The herald., 1893-07-10
SoMR FINANCIAL REFLECTIONS.

Aoe uc uouutous Every issue OF news
paper contains the account of some fail
ure OF bank, though it is a notable cir
cumstance that none OF the big bank
have failed in the United States, anc
that is popularity that distinguishes
the present from previous financial dis
turbances. In the panic of 1857 every
bank of New York City except the
Chemical bank shut its doors. We have
yet to hear of bank of any standing in
the metropolitan city of New York suf-
fering any real hardship. Coming to
our own state, there was a momentary
run on the Hibernia Savings bank, the
other day, as ridiculous as it was un-
called for. People familiar with the
financial history of San Francisco can
recall an instance when, for seventy.two
consecutive hours. that institution de.
clined 10 close its doors, telling all who
desired their money to come and get it.,
and dlsdaining even the ordinary division
of the twenty-four hours into night and
day.
Anyone who has any recollection OF
the kind OF panics that used to prevail
in the United States in the old days
cannot but feel grateful that the condi-
tions are 30 different now. Those old
time visitations were perfectly awful in
their sweep, and very searching in their
effects. We have heard, as boy, very
realistic descriptions of the panic OF
1887, which threw the Democratic party
out OF power. When Gen. Jackson
knocked over the United States Ma
tional bank, Nick Biddle had strength
enough to do the Samson act, and to
pull down the whole fabric of the ma
tion's business. Even the panic of 1857,
which the writer can recall as boy,
was something to leave enduring mem.
ories on the minds OF those who wit.
messed its furies. It was indeed a
financial panic of unexamp pied force. In
Pittsburg, where the writer was born,
as in New York city, but one bank
failed to close its doors.
And yet the universally OF that panic
was not its worst feature. There were
conditions attached to it that are uu-
known today, and would be unknown in
o paric which should prove to be ten
times as severe as that OF 1878. Now
when man gets hold OF money of any
kind Whatever it is good money. It is
worth what is stipulated on its face,
whether it be gold or silver, gresnbacks
or national bank notes, gold certificates
or silver certificates. The illimitable
credit of the United States is behind it
all. Far different was it in the days of
1887 and 1857. Not only were those
panics attended by universal bank
failures. but they were aggravated
by wildcat bank issues, which
were something or nothing as
the ease might be. A man who
pulled up in Philadelphia with q note
issued by somebody in Muskingum
county, Ohio, would be greeted with a
sniff of disdain if he expected it to be
received for five cents on the dollar. The
teller of Philadelphia bank would look
around for pair OF tongs with which to
handle the issues of western banks. He
did not wish to contaminate his fingers
with these issues. Bacteria, microbes
and microcuspides were not very
familiar developments in those days,
but be doubtless looked as if these notes
were all heavily infected with these
pests.
How different in this year OF grace
1893? When a mans hand closes on
money nowadays he knows that it is
good for the amount of its face.
The telegraph, the other day, credited
Secretary Carlisle with plan of conso-
lidating all the different forms of money
now circulating in the United States
under the national endorsement, nine in
number, into one form OF note issued
from the treasury department. The
Associated Press was provokingy meager
in it's details as to the secretary's plan.
The idea itself is novel, and if it were
kept separate from the Vaccinations of
Wall street, it might be developed into
a symmetrical system OF finance, with
far-reaching ramifcstions for good.
Nothing in our judgment is more cer-
tain than that the approaching special
session of congress will take the bit in
it's mouth, on money questions, and in
sist upon the formulation OF "a distinct
lively American policy on finance. The
reign of Wall street, in New York, and
Lombard street, in London, is ended,
and forever. Their coDjoined efforts to
throttle the financial life of the world
have reached their greatest power for
evil. Whatever is done, it is dollars to
marbles that it will be in the direction
of stability and in favor OF the twin
metals of the constitution. England
has played its left bower in closing the
mints OF India to the free coin age of
silver. That closure was followed by a
drop in the price OF silver OF fifteen cents
an ounce in one week. Now let the
United States play ita right bower by
admitting silver to free coinage at our
mints, and we shall within week see
its price 60 up thirty cents an ounce; or,
rather, in an incredibly short time, we
shall see it on parity with gold.
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