The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-22
ABOUT MONEY PANlCS.
They Will Not Come to Us 80 Long as We Sell
More Goods to Foreigners than We Buy.

To the Editor OF the Indianapolis Journal
Those who predicate their fears upon the
old data and are predicting great money
panic TO not consider the differences exist
ing now and in 1887 and 1S56 We have
sometimes grown 100000 of bushels
more wheat under these new conditions
than the world demanded. and had low
prices So of corn, and cotton. and the pro-
duction OF iron. This will occur whenever
any staple is overproduced. But low prices
not money paDics- the latter are pro-
duced. first. by loss of confidence; second.
boarding money for that reason. The
new conditions that have come
III since specie resumption In 1879, aud
grown almost constantly since. have very
largely neutralized both of the final causes.
In the old-tlDe paDics money WAS In CON-
paretiveiy few hands, and was readily
boarded. Holders took convenient sdvan-
tage of the shocks TO confidence. and some.
times had the additional motive. under
such conditions, of making one dollar buy
property worth two or three.
In 1860 the annual appropriations by
Congress were not q third what they are
now. The circulation per capita was
SlO.23. The annual disbursement Of the
pubho funds IS now about $500, 000. 900, and
the circulation per capita is S24.47.
In 1860 the pension list was small and the
disbursements on this account were 81 ,0f2.-
46l. Now there sre nearly one million per-
sons on the rolls, and the last annual APP
preparation for this purpose was Sl66. $751;
S5O. This Is dsbursed In sixteen States
quarterly. and from a million hands goes
into general circulation in the chief COM
mercial States of the Union. Not only so.
but since we passed our provincial period
in 1860. millions of money Is disbnrsed on
numerous public improvements, and this
also goes through the hands OF millions of
operatives and laborers and also into gen.
eral circulation. The sum of this new con-
dition Is that tight money market.
usually begetting loss of confidence,
and boarding is constantly. monthly
and quarterly being relieved by these
immense disbursements. Those who
court shaken confidence and go TO
boarding for the selfish reason alreay
named. find themselves confronted by
others with money TO pay 81 for the prop
erty that Is worth it end find tbeir occupa-
tioD gone. And so those who are predicting
money panic are looking backward. in
stead of counting the existing conditions.
OF course. IL must be considered that with
all the advantages of these new conditions.
the country may be plunged into panic and
depression. Our revenue laws may he so
adjusted as TO put the country to buying
hundreds OF millions annually more than
1t sells. That would effect q nation rs nc
does an indiv idnal. and neither can MAN.
tain prosperous conditions under such
policy. This is the only thing that threat
ems US. There Is no internal cause which
can bring about genera. depression. Even
gold will stay here il we sell more than we
buy. III we overproduoe this. OF that, we
eau soon correct the mistake. But If We
are by any reason induced to buy abroad
millions more than We sell abroad and thus
curtail the earning power of labor, We
check the How of the current of prosperity,
and the end OF that sin is death. No great
and ruinous financial rsvuision has ever
como that was not preceded by buying
more than selling-importibg more than
exporting.
The present hope of the country 10 lts
necessities for revenue aud the healthy
public sentiment against getting IL by sell
ing moro bonds. or by direct taxation.
Here and there n departure from the policy
which has brought us great prosperity may
be entered upon. but IL will require bold
hand To- readjust our revenue laws In q
way that will so far relinQuish the tax on
foreign producers. who sell IN our markets.
as 10 drive the Nation TO some other method
OF raising the requisite money TO maint ain
its establishments. JNo. IL. CONNER.
ISDIANAPoLIs. May Is.