The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-06-30
CAUSES or THE CRISIS.


Tho wave OF financial and commercial
disturbance that has appeared SO sud-
denly and spread over the country with
such rapidity is not only surprise
but, to many, a mystery, People won
der wha. all tho trouble means, and
most oil those who are looking Tor
causes seem to have found little beyond
few CansativG incidents wholly in
adequate to the consequences to be
accounted for.
II is true that there has been ono
dominant cauieI but its INFLUENCE has
been mugniGed by Certain secondary
abnormal conditions. 10 fully under
stand what is now happening, 1t Ia
necessary to 60 back to the great crops
Of 1891. Tho result OF that year OF
abundance was large increase in the
purchasing ability OF our agricultural
population, Following from that came
u period Of abnormally large importa-
tons. Tho increase OF imparts, how
ever, was far from being equal to tho
gain in our exports Of grain due to tho
general deficiency OF tho European
crops; and wo ought therefore to have
received important remittGnCas Of gold
from abroad in settlement oil tho larga
trade balance in our favor. At that
junctuTe, however, the Sherman silver
act was working out its effect upon for
Oign holders Of our securities; tho re-
suit OF which was to drive home, within
some twelve months, an amount OF
our stocks and bonds nowhere estI1
mated ut less than Sl00,0OO,0OO in mar
ket value and in some quarters at
much higher sum, We stood that
strain with remarEnble equanimlty, and
ilnttered ourselves that our power OF re-
sistance was due rather TO some unob.
served broad and general gain
in natural resources than to the
transient boon OF single year
oil extraordinary fertility. These iit-
toen to eighteen months proved
to be to this country a period Of most
damaging decline OF prestige in tho in.
vostmenE markets oil tho world and in
our financial status among foreign
bankers; n period'during which wo lost
an Invaluable opportunity for Consorv-
rIng our stock OF gold, at moment
when Europe was strAining every effort
to acquire gold Us an offset to the do.
m6notiaation OF silver and in the
face OF serious obstacles to procuring
it, This period offered US an
opportunity, had We followed conyer-
,sNtive policy respecting silver, for do.
pletinG Europe OF at least $l0O,000OO0
OF its gold, for throwing upon the con-
tinOnt the whole onus OF the prevailing.
monetary confusion, and for immen'
surgbly strengthening our credit among
foreign investors. THIS golden oppor.
tunity VIC converted into IN occasion
for Austria putting herself upon tho
gold basis, for tho bank Of France i'm.
mensely augmenting hor stock Of gold,
and for ltussia Cutting her war chest
with that metal aud, not less mortity-
ing, for exposing ourselves to the tNunts
OF Europe when We sought conference
for settling tho silver question. For
these untoward happenings in tho first
stage OF the drift that Is now Culninat-
ing, we have our insane triIiing with
tho silver problem alone to thank,
AT later stage, new sot OF adverse
conditions conironts US, which our pre-
vious impairmonts had peculiarly dis
qualified us for meeting Tho depres-
sion OF trado In great Britain and in
other manufacturing countries precipi.
tuted extraordinary Consignments Of
merchandise to tho United States,
which, added to the still FREQ purchases
OF our importers arising from the pros"
pGrlty Of tho farming population, pro-
ducOd IN unparalleled commercial in
dobtednnss to other countries. The
pressure Of this circumstance would
been loss serious had it not boon for
another folly, for which important mer.
chants and influential bankers have
boon alike responsible. Our eXporta'
bio resources were large. In addition to
about an average surplus OF agricultural
products from tho harvest Of 1892, We
had also an extraordinary reserve OF
grain and cotton carried over from tho
unprecedented yields OF 1891. Europe
needed these supplies and was prepared
to take them ut prices that might be
deemed fair under the circumstances
but, at tho wOst and tho south, speCul.
atora accumulated unparalleled stocks
Of these staples, and tho local banks
backed their ventures to an extent OK
Ceeding all bounds OF prudence. 1t
thus came to pass that, for three or foul
OF the earlier months OF tho year, we
were having to pay unprecedented
amounts for Imports whilst our exports
wore blocked by the persistent holding
back OF n produce through spectators
and western banks. The result OF this
ono.sded foreign trade movement has
been that, within tho first five months
OF the curront year, We have made mel
export Of gold from this port Of some
sixty millions.
This violent derangemont in the for.
egn exchanges has undeniably played
an important part in producing tho or
listing state OF affairs. But, under nor
mai conditions, there is always q limit
to the mischief that such Irregularities
can produce. When It Is cloar that the
general Situation Is sound, tho elAstiCit!
Of banking credits, n trcer use Of gold
and shipments OF securities soon 70
liove tho tension. And this unusup
strain in our foreign balances would
have been adjusted without any dis
turbanCO beyond temporary string
oncy had it not been for the radical dis
trust iostored by tho silver danger
That factor acted as block to settle
monts through tho export Of securities
and also made foreign bankers tho les
disposed to extend open credit
TO us. Still moro sharply die
these conditions appeal to tn
caution Of our own banks, They hat
seen how, ever since the passag