The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-14
SILVER CAUSED THE PANIC.

TIE paoie In the industrial shares: tie general
snrinSags Of stock values and failures OF eFok-
efsgc houses are regarded with perfect accuracy
- the response OF tee money E.a.xet 10 the ur-
certainty surrounding the currency question
ana tac prospect OF rrosraesed pressure before
osnnafc settlement can be arrived az through
tAe acton OF sas coming congress. The aausca-
ZION las been delayed Fer . considerable period.
1uring waica time the strain oil unsettled con-
aihoas was endured evea i! with some dim
Guilty. the storm when IL finally broke moving
along tie line OF the ieaS. resistance. which was
Oh coarse prescntei BIZ sc.,s Of the indastriai
organizations aad sheir supporters in tie spccu-
Isiivc share msrke. Wall street a, this rsomen:
- 10 the midst OF crisis even more severe in
"a eIecss than the Barring panic Of 1890
caces ordinary circumstances . disturb
ance OF values and decline Of stock prices
at once attracts heavy buying at the lower Level.
srca influences could BE always relied upon 10
appear .. suen an emergency and :nse.pose .
barrier to the further progress Of dislntegratior
A. this moment. however. the haying power
underneath the market is seriously curlssied BY
the general fear in regard to Tie currency snd
The doubt which exisls a. TO tho speedy .eaiszs-
ton oy the national Legislature that q gigAnsic
n!ssakc was committed when the silver law OF
1850 was enacted. II may also be said that the
speculation in industrial securities so-calied
constituted danger Of the greassss magnitude
aad paved the way fog just that has happened.
though such reflections have little real value
compared with the nctra. disturbance o. cent?
dence and the tangible fear ths: the trouble Will
extend to the mercantile community and iu-
tensify its effects Throughout: the couutry at
large.
Under present circumstances there IL . natu-
RAJ disinciinasion on the part OF the leading
representatives Of the banking profession Ut
New York to express opinioua which nigh. re-
aect either uniounded confidence or uuneces-
sary alarm. II might, however. be said that.
though ample preparations had been made to
meet IN emergepey regarded - almost iney:sa-
bic. the severity Of the shock has exceeded an
ticips;ions. and therefore aroused . feeling akin
to dismay. II can be said that tho real damage
10 fully recognized. and that the principal nnxi-
ely O. ali concerned Is to avoid any further
crAmping OF legitimate business enterprise from
the general contraction OF financial confidence.
There Is no doubt that the mercantile COM
muni,y. as a whole, il upon less extended ba-
sis of credit than usual. and tn a. its ability to
stand the strain. although already pu:
to . severe test, 10 capable OF fur
Their exercise. At the same time
the New YORK banks, the cornerstone
of the whole financial edilce. ara without
question in q position TO extend the support
which is needed at this junc;ure, and possess
through their careful preparation for an cmer-
cency OF this kind the power TO interaose bar
rier to the demoralizng influences 4 further
consideration is thai the trouble has oyertakeu
the markets and the business world in the
spring and not in the autumn. At this time
the legitimate demand tor money throughout
the country decreases, and funds would uatu:-
ally tend TO seek the financial centers instead
OF being drawn from them This circumstance,
while not Immediately effective. would tend to
mitigate the severity OF the blow and TO aid not
only in checking the progress OF disorgsniza-
ton, but in scce!erat:rg the calmcr feelings.
which are bound to succeed when the FIRST dan
ger is over.
Behind every reassurirg expression there re-
mains. however q marked feeling OF distrust
SO long the Sherman silver act, tho underly.
ing cause OF all the difficulty. Is stiii in force
Temporary improvements and rallies In the
stock market do not. in the opinion OF those
best qualified to judge. have any real or lasting
effect, while the foundation OF the existing dis.
trust continues to form an obstacle to any
genuine amelioratfon OF tho situation. The
spasm through which Wall strect 10 just pass
ing is merely another manifestation OF the dis
trust which tho continuance OF this measure
involves. The policy OF the administration az
fords hone OF ready relief. it being apparently
determined that the only was 10 arouse public
sentiment in relation to the existing silver lcsis.
lation 10 to enforce it, which involves the taking
of very severe medicine. OF which the present
events are only sample.
Hostile criticism has been freely launched at
the industrials even with less than customary
effort at discrimination. out II 10 encouraging to
learn that . report from the American Cotton
prior to April last. Is Of such . character TO
leave its stockholders indifferent a. to whether
efforts are made 70 stampede them or not. The
rerort shows net earnings OF more than e, 40,.-
oc0 within seven months, after having added 20
the contingent fund Of the com rauy that 10