The herald., 1893-07-11
TWO SUSPENDED BANKS Open,
The University and Southern
California National.
Their First Days Business Shows
that Confidence is Restored.
Judge r. NJ. widney Reviews this Panic
and the Causes that Led to
1t, and Outlines what
Must BE Done.

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would be the case, two of the suspended
banks, the Southern California national
and the University, opened their doors
yesterday and recommended business.
Both concerns report their business as
having been most satisfactory, the de-
posits largely exceeding the with
drawals.
At the close of business yesterday
4, President Breed, of the Southern Cali
fornfa National, stated, on referring to
his cooks, that the deposits had been
$57 900, and the amount checked out
s2l 900, leaving net gain Of $50, 900 for
the day.
Judge r. M. Widney was asked yes
terday by HERALD reporter what were
his views on the financial situation,
local and general.
Locally. the danger of a panic is
past" said he. 1.-THE people demon
strated under the late run that our
banks have been safely managed and
have assets in excess of liabilities. The
public fear of insolvent banks has
therefore no ground to rest on.
1.-The public also haVn learned that
banks receive depositorS money on the
implied contract to repay it to them in
/, the ordinary course of business, and
not all at once. Such is an impossi-
bility. The total deposits in all the
commercial banks of the United States
ia over three billions, while the total
volume of money in the United States
is only one and half billions, and the
total volume of money in all the banks
is only about fopr billions.
People deposit the same money over
and over again. II the depositors have
right to call for all their money at
once, and the banks call on all who owe
them, it would result in smash up of
every industry in the United States.
"This is the ultimate danger threat
ening the United States today under the
small volume OF money in existence.
Congress alone can give the remedy.
To this end have been putting forth
my public efforts for three years dating
from July ", 1890.
"The repeal of the Sherman act is
simply a negative measure, and will
give no Affirmative relief.
'If congress does no more than re-
peal it the United States will see the
worst time it has ever known.
"Under the Sherman act our volume
Strike out that volume today and every
bank in the United States would be
closed, for that is about the total volume
they now hold.
1.-The Sherman act does not cause the
export OF gold. 1t only goes ahead to
pay debts. II silver certificates were
not surrendered for gold the greenbacks
would be surrendered, and if they could
not be exchanged for gold then gold
would be at premium, and the mer-
chants who owe foreign debts would
have to buy gold at whatever price they
could get it, aud pay for it with what
ever article the owner of the gold would
accept.
The exchangeability OF our currency
for gold today prevents our people from
being robbed of their property at ruin
GUS prices to get gold, to pay foreign
debts.
1.-The Nsw York chamber of commerce
and clssfins house now fully realize
these fscts and their recent action, that
the remedy lies in total revision Of our
financial system by congress, and Sec
retary Carlisle's statement that he is
now having the force of the treasury de-
partment preparing all of the statistics,
facts and history of the money question
in the United States for the purpose of
a general revision, is most complete
vindication of my efforts on the subject
for the last three years.
"a year ago spent two months with
the congressional committees, laying
before them these statistics, facts and
history and pointing out the certainty
of the present national crisis and power.
"Had congress then done what il now
contemplates doing our nation would
now be in. tho midst of commercial
prosperity.
If congress takes such action as will
give us an increased volume of money,
and well devised banking system, our
nation viii enter upon an era of prosper-
ity such as no nation has ever witnessed
on this earth. 1t will be for centuries
free from general panics, and only mis-
management and dishonesty will pro-
duce local disaster.
''As to the University bank, it closed
! its doors under my instructions before it
paid out all of its cash, as it was folly to
pay out money in such mental panic
and have it locked up in safe de-
posit vaults, and out of circulation. We
have been receiving deposits and accom-
modating our customers right along and