St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-03


Failures in Minnesota-Sher-
man and Bland Acts Not Only
Causes of Trouble.
The present financial depression diff
fers materially from any that has here
tofore occurred i'll our history, says
Comptroller Eckels in the North Amer
ican Review. The strain mas been of
unprecedented length and great sever
ity, but there has been nothing APP
preaching a panic, such as character
lied other years under similar circum-'
stances. More significant is the fact
that throughout it all there has been
| manifest no unusual excitement, de-
spite the general distrust in the Stabil-
ity of our moneyed institutions evil
denced in every portion of the country;
the daily failure Of banks, national,
state and private; of great commercial
enterprises, trust companies and COZ
porations and manufacturing establish
ments. No stronger proof than this
could be had of the vast rsOurces of the
country and the available
Wealth Of the People.
1t demonstrates that no matter how
bad the outlook, there can be no general
bankruptcy and distress like that of
1887, 1857 and 1878.
In all the circumstances surrounding
the present situation it is equally at
variance with other periods of liquida-
ton. 1t has developed at time when
there is an abundance of agricultural
produce and of manufactured product
on every hand. Ordinary business in
mercantile lines is up to. and In some
trades above, the standard of the same
months i'll times of marked prosperity,
while the actual amount of money in
| circulation per capita is as great as
that of recent years. Not less worthy of
note is it that, in a majority of the fail
| ureS that have occurred in legitimate
lines thus far. the assets ported Of the
failed concerns have been largely in eX-
cess of their liabilities. and of such a
character as to cause comment that in
| stitutiOns holding them should have
been forced to suspend. As these facts
come to the knowledge of the people
the situation is slowly but surely under
SOtlIS lOl UGlIGls IL 10
true it is not radical one, but it is uf-
| ficiently notable to attract the attention
| of even casual observer. Evidence of
this improved condition is plainly ap-
parent. The people are getting
Over Their Scare
sufficiently we'll to calmly take an
| inventory of the solvent institutions
hot it1o CT o,,I n
| to realize that they are so far III excess
of the numbers that have been forced to
the wall that many more might be put
| into liquidation and our country still
remain the wealthIeSt in all the cata-
| logue. They are coming to know that
many of the failed institutions are in
| sections of the country where boOmS
have been the order of the day and
legitimate business growth looked upon
as quite out of date. They are turning
| to staid New England and observing
that not national bank within her
borders has closed its doors; that but
| two have gone into liquidation in New
York, one through misuse of the
privileges so easily granted those
| connected with the institutions,
and the other because of mismanage-
| ment; none in Pennsylvania, New Jer-
| sey, Wisconsin, Minnesota and other
Northwestern and Western states, and
| that the failures in the South are but
| few. They have learned that the three
in illinois, one of which carried down a
now reopened bank in Indiana, were
forced to suspend more because of
internal causes than from outside
| pressure, and that the same causes
worked the failures OF one in Ohio, one
in Indiana, two in Michigan, three in
| the DakOtas, one in Kansas, three in
| Nebraska, two in Georgia, three in
Texas, and one in North Carolina, and
that two in Tennessee, one in Montana
and one in Utah were wrecked by
! peculations.
Shot at the Coast.
They have also noted in the states of
| Washington and California the result
ant effects of laying out cities for future
purposes instead of present needs in the
| breaking of banks that carried paper Of
the projectors of such magnifcence,
while to the sudden drop in silver, they
have charged all the failures in Col
orado. one in Montana, one in New
Mexico and one in Utah. Reopened
banks in Indiana, Illinois, Iowa, Cali
| fornia, Washington, Florida and Ken
| tucky under favorable conditions and of
greater strength, too, have reas-
sured the public. Turning from a
studyof the causes which, under unfa-
vOrable circumstances more quickly
than would have otherwise have been
the case, revealed the weak places in a
great banking system. to the financial
reports they find that gold is coming into
the country in small amounts instead of
going our in large ones, that the rate of
exchange is lower, that our breadstuffs
are again in demand in European coun-
tries and that the balance of trade is
once more slightly in our favor; that
the tone of the press, the best of indi-
Gators, is reassuring, while the views of
our public men and acknowledged fnan-
ciers are hopeful and confident. The
action of the president in calling con-
gress together in an extraordinary ses-
sion at an early date, to consider finan-
cial legislation, has been of incaIculable
benefit in quieting the peoples fears
and improving the business outlook. 1t
has imbued not alone the many in great
business undertakings, but all classes
with the belief that the
Radically Bad Legislation
of three years since is to be speedily un-
done, and, strong in this belief, they are
looking forward with confident hope to
Aug. Z. When, to all these sources of
encouragement, are added the further
ones that the banks are loanjng more
freely, that frightened depositors who
withdrew their money are redepositing
it with the same institutions, that mill
ions OF new currency are being ordered
for circulation by national banks upon
bonds deposited, that there is less call
upon the East for help on the part of
the West and South, and that the bor-