The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-07-24
rnE SLOW RETURN OF CONFIDENCE

bred excellent symptoms" His physicians
declared that he was going on vol and that
everything In his case betokened n speedy
recovery. while he himself felt that he was
growing worse. In the snme way, prices on
the Stock Exchange have fallen heavily In the
face OF the announcements OF better supply
OF money. OF an increase Of gold In the Treas
ury. Of imports OF the same metal from Europe.
OF larger exports OF cereals. and Of an improv-
ing prospect OF tho repeal OF the Sherman act.
The list Of failures Of corporations and private
firms receives. too. every day frosh accessions
factories here Mt tho East are shutting down.
and west OF the Missouri bankruptcy IL tho
rule and not the exception.
All this is decidedly unpleasant but II Is not
unnatural nor unprecedented Tho destruc-
ton Of credit, which has been effected within
the past two or three months, cannot be re-
paired in the same short apace Of time. This
is in accordance with q universal law from
which thero are no exceptions mans leg
may be broken in q second. but weeks must
elapse before the bone will nit toy err again.
The woodsman with his axe can in an hour
fell tree which II will take years to replace.
and Sir Isaac Newton's dog. Diamond. merely
by upsetting q lamp. destroyed the fruit Of
lifelong labors. So. when this immense fabric
Of interiacinx and interdependent credit
try's business receives q shock Ike that to
which It has recently been subjected. we have
no right to expect II to recover from its inju-
ries as speedily as they were inflicted.
To many people. especially those who are
not old enough to reno der the earlier nnan-
cial catastrophes through which the country
has passed, this one which we are now expert
encing seems the worst that ever happened.
1t is perhaps more severe than that Of 1884,
and even that Of 1880. hut it is nothing as
compared with that Of 1873. or even with those
OF 1857 and 1860. As to the distressing period
which began In 1887 and continued with moro
or less severity till 1913. so few OF the men
who were in business then are still alive that It
belongs rather to history and to tradition than
to the chronicle OF current events Besides.
1t is a popularity OF human nature that con-
tempo; airy occurrences occupy n much larger
SPACE In the mind than those OF bygone times {:
just as In a landscape objects near the eye I'LL
q larger space than those which are remote,
and often completely hide them.
Conceding. however that tho catastrorhes
OF 1884 and OF 1890 were Of less magnitude
than that of this year and were more speedily
followed by recovery than this one is likely to
be. no one acquainted with the facts will deny
that the crash OF 1873 was far moro wile-
spread and destructive. and that it's effects en-
dured for much longer period than we have
any reason to expect at present Thus far. at
least. the Stock Exchange has not been closed
as 1t was in 1873. tho exports OF produce have
not been suspended. nor has the collection OF
debts been impossible. The collapse Of 1873
was followed. too by a prostration Of enter
prise. from which q recovery did not begin I'M
til 1877. and which did not wholly disappear till
1871 That we are gong to drag on in the
Same way now there is no ground for sup
posing.
Nor are we suffering now. as we were In
1873. from the exhaustion Of a four years
costly war which Impoverished the Northern
two-thirds OF the nation and ruined the South
ern third. The enormous destruction of prop
erty which took place in both sections was re-
paired by borrowings in Europe and by fever
ish activity In evcry department OF industry,
and it thus escaped general observation. The
flood OF paper money which was poured out to
meet the necessities OF the Government had
also stimulated speculation and carried the
prices Of la Dor and Of all kinds OF commodities
to an extraordinary height For q year
or two after the war ended the impetus
1t had given to business still continued
and only gradually died away. When it was
finally spent. and when we set ourselves seri-
ously to tho work Of paying the national debt,
OF preparing for resumption o: specie pay
ments. and Of going back to the occupations OF
peace. we discovered how much our resources
had really been depleted. and how mach it
would cost to repair them. As the premium
on gold fell the prices OF commodities. rail-
road stocks. and real estate fell with il. and the
panic OF 1873 was the result.
The panic OF 1884 was almost entirely local
in this city. and was produced by the ilegiti-
20 ,lnNi1 II q q.
]. Seney. John c. Emo. and other men like
them, which involved in ruin the Marine
Bank and the Metropolitan Bank. and robbed
the Second National of millions. The panic OF
1870 was only distant echo Of the Barring
collapse in London. and Its OWL consequences
soon passed Off. 1t may. therefore. safely be
said that we have enjoyed substantially unin-
terrupted prosperity since We resumed specie
payments In 1870. and that the pl esent troub-
les indicate no profound and extensive rotten
ness. hut are o passing epidemic. like the grip
and the cholera from which We arc destined
TO emerge with comparatively little loss
This being So 1t will naturally be asked:
WHY does not con dence return more
speedily. and why. in spite Of all the favorable
indications which have manifested the m selves
during the past month. do the prices Of stocks
and securities continue to fall and failures
continue TO MURPHY inc question has
already been partly answered by a reference
to the slowness with which in the course OF
nature all injuries are repaired. Tut it may
also be said by way OF further explanation.
that the return Of general confidence. indis-
pensable to a return Of general business pros.
perity. Is also purposely hindered by the acts
OF men who find their profit in prolonging and
the public alarm.
II would be q waste OF time to den OH nee the
wickedness Of the attacks upon the credit of
corporations and Of individuals which have
caused the declines In stocks and bonds on
the Stock Exchange and the many failures OF
the past week. As to tho wild talk OF the Colo
RADIO silver miners and their allies In other
States. tho object Of which is to defeat legisla-
ton unfavorable to their interests. that also
may be left to public reprobation for it's pun
ishment. Nevertheless. 1t cannot be denied
that these causes count for great deal in ere
ating alarm In the minds OF large number Of
people. and until their hollowness is exposed
30 that all tho world percelves 1t. they will
not, as we see. fail OF producing an Injurious