The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1893-09-14
WHO CREATED THE PANIcf
II Originated With Certain Sensational
and subsidised Organs In New York
City. So Says Congressman Newlands.

II Originated With Certain Sensational
and subsidised Organs In New York
City. 30 Says Congressman Newlands.
From the New Ysrk Sun. -
To the Editor Of the Sun: observe
In today's paper that you take humor-
GUS exception to the statement of Mr..
Teller In the senate that "a scheme h&d
been organized early in the season in
New York for the purpose of creating
q financial panic, which would compel
at an extra session the repeal of the
purchasing clause of the Sherman act;"
and you state that 1t is impossible that
New York could thus 90 to work to pick
its own pockets. viii you permit me
TO present my observations with refer
ence to this matterp
was in New York during the early
part of this year for some months, and
was q close observer of the course of the
bankers and newspapers regarding the
Sherman bill. You will remember the
clamor that then existed for the calling
of an extra session. Refer to the files
of the Herald, World, Times and Post.
during that period, and you will find
the most indammatory articles intend
ed to arouse and alarm the country. L
remember In particular that the New
York Herald would day after
day have from FIVE to six
short editorials, double loaded
or italicized, In every column, calling
attention in the most alarming way to
the danger OF the situation. "The
treasury reserve was being depleted,
the gold was flowing out, the country
was drifting on a silver basis, the dol
lar was 60 cent dollar, foreign in
vestors we're selling their securities"
etc. l remember that in one of the
papers for some days there appeared in
immense figures at the head OF the COL
umn the constantly decreasing amount
of the gold reserve, accompanied by
sensational headlines.
Now, what was the effect of all this ?
There lie always natural drain of gold
from this country during the early part
of the year, which Is followed by flow
this way during the latter half of the
year. These New York papers were
read and quoted In England. They,
doubtless, alarmed investors there, ana
the result was that that the natural
drain of gold was turned into forced
demand by foreign sales of American
securities. The reserves of the New
York banks were diminished; clearing
house certificates were resorted to to
tide over the difficulty; the western
banks being alarmed at the situation
la New York, withdrew their balances,
and the situation was aggravated;
and then panic arose throughout
the country, arising not out of fear
of the Government issues of money,
but fear as to the security of the banks.
The withdrawal of gold by foreigners
and the withdrawal of deposits and the
boarding of money by our own people
have brought on monetary stringency
which has caused the sacrifice of hun
dreds of millions Of values In American
securities, as well as wheat, cotton and
other products. Our foreign investors
alone have prolited, for they are now
buying back the very securities which
they sold some months ago at from 20
to 40 per cent discount.
1t Is impossible to believe that the
bankers In New York entered into an
organized conspiracy to produce the
great panic from which we are all
suffering; the part which they played
was merely Incidental. They were, of
course, hostile to silver and wished the
Sherman act repealed. The National
banks also wanted bonds issued for the
purpose OF increasing the reserve and
also for the purpose of enabling them
to increase their circulation, but the
were constantly interview
ing the bankers and publishing their
interviews with sensational headlines
and comments. ask then, Is 1t not
fair to say that this great panic, which
all agree now Is senseless panic, had
its origin in the metropolitan press Of
New York? :.
l remember well, on my return to
Washington from New York last
March, predicted to some New York
friends that the New York papers
would, within the next three months
create the greatest panic of the coun-
try. That prediction has come true.
For the purpose of illustration, let us
suppose that the press of Paris should
commence an outcry against the secur-
ity Of the currency Of France. We all
know that France Is one of the largest
owners of silver In the world. believe
she has about $700,0O0000 of silver
coin. Now, suppose the Paris journals
should, day after day, with sensational
headlines and double loaded editorials,
declare that the five franc piece was
worth only three francs; and that the
gold was In danger Of going
out of the country, and should
pursue generally the course
which our metropolitan papers have
pursued. / ask how long 1t would be
before panic would be inaugurated in
France. apprehend, However, that
40 such emergency could occur In that
country, for the editors of the Paris
Journals so engaged In the seditious
work of underming the public credit
would doubtless be behind the bars of a
prison before their work could be fully
Whether this scare will result In the |
'epeal of the deponetization of silver |
n this country Or not, remains to be
ieen, but IL 1t Is accomplished, the loss
Ind distress and ruin caused by this
agitation will far outbalance any that |
would have happened even had the |
worst prediction of our opponents as to |
he effect of this country's drifting on
. silver basis been realized. Yours
ruiy. FRANCIS G. NEwLANDs
Holland House. Sept,2, 1893.