Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-19

There Il no argument favorable to financial
panic in the fact that many banks have failed,
for, - TEE STAB has more than once said, the
dead and dying institutions are Of 9 character
not common In those great commercial csnters
where the nations solid business il principally
transacted This undoubtedly accurate state
ment has several times been emphasized by
those TO whom the world Of finance u not .
mystery, but ct no time has the precise situation
been made more plain that 1t was last night by
Mr.. Ecksls, the controller Of the currency, In
. speech male by him to . large number Of
New FORKS big bankers. He struck the key
note whsn he said that the art has not - yet
been discovered Of making something out Of
nothing and that tho AnAncisf who stakes his
all upon an uabuilt city must bring about the
ruin Of his own and kindred Institutions
which have trusted in him and pinned their
faith to assets yet unborn. All the great
crashes have come only In towns or states
where property values have been
unreasonably inflated or where the bank OH
cials had speculsted with the funds placed In
their keeping. A few really solvent institu-
lions have been crippled because Of business
relationships which existed with banks that
went down - soon a. there was appearance Of
stringency, bet the former will come ont al
right within q little while, but, a. Controller
Eckels says, ''the states Of New England and
the east and the middle states and those of the
northwest, no. less than those of the south,
have thus far escaped, and will, because the
foundation upon which they are erected IL Of
rock and not Of sand" This announcement,
coming from the most authoritative of public
sources, should have . quieting effect upon
communities that have foolishly allowed them
selves to be frightened by disasters which
wrecked less conservative and less sensible
nsishbora That Colorado banks should fail
IL not surprising when the utterances OF many
Of Colorado's most prominent men are recalled;
even rebellion and secession have been urged to
complete the disturbance Of commerce and
finance that the prophecies Of evil
should be made good Similar conditions have
prevailed In Kansas, another Of the afflicted
subdivisions Of the republic, while In the
Paciic states sad Missouri-where failures have
been Observation-Disclosures TO improper
blooming Of values have wrought the mis-
chief winch il generally consequent upon the
endsavor to "maks something out Of nothing"
The failures will have but . tempo
rarily harmful effect. Their influences
are promoive Of better business health
than the country at large has
enjoyed for some years. Better times are at
hand and there viii be speedy termination Of
the stringency that now sfiicts the inst and
the unjust alike. Confidence, but little shaken
here, IL gradually being restored even in the
regions where many have been ruined, and
boarded money-wishdrawn from circulation
when the clouds commenced to gather-is once
more being placed to the credit Of cautious
customers
Locally the outlook ID most satisfactory and
now that the days Of doubt and anxiety have
gone By Washington can and should congrstu-
late itself the solidity Of its financial institu
tons and on the sensible manner In which
emergencies have been quietly and effectively
met and disposed Of.