The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-10-10
SUGAR QUOTATIONS.
From the indianapolis Journal:
TUE CAUSE or THE PANIC.

There is no reason why any one in indi-
ana should have any doubt as to the cause
of the panic and depression of 1898. 1t
passed before the eyes of the people as in
a panorama. Think what was the first
thing you heard Of any trouble in the
business world. The earliest sign you
will find was the closing Of the Columbia
national bank Of Chicago-the center OF
the zimri Dwiggins system-on May IL.
1899. and the closing of the Capital ma
tionaI of this city on the same day. On
the next day followed the suspension Of
the Paris & Nave banks at various points
in the state. From that time forward
there were banks going down at points all
over the country. mostly those that we're
considered wild cat institutions, with
occasionally a speculative concern as that
involved by ex-Secretary Foster in his
failure on June &c. BY June the panic
had fairly set in in Chicago, New York
and other points. and the savings banks
were suffering from runs.
When these failures began there was no
Indication Of any trade depression. Fac
tories and mills were running as usual.
and business was moving at ordinary
rates in ordinary channels. But as the
banks began to tighten up for anticipated
trouble trade was forced into closer quar-
tiers. Loans were called in and every one
was forced TO collect as close as possible
Millions Of money were taken out of cir
culation and placed in the vaults Of
banks to meet possible runs. a very
large part Of the business Of this country,
both mercantile and manufacturing. Is
transacted on credit and on borrowed
capital. Such business was contracted to
fits narrowest limits or obliged to suspend
entirely. Men were thrown out of en-
ployment. Wages were stopped. The
ordinary avenues Of circulation were
clogged.
This condition continued for weeks
The worst pressure did not come in In
diana until the last Of July. 1t was on
July "a that ex-Treasurer Illusions bank
suspended. and on July % that the Indl-
annapolis national and Bank of Commerce
closed their doors. At that time the other
banking Institutions of indianapolis
strengthened their reserves to the utmost.
Loans were cut to the narrowest margin,
and the money of the community was
pulled into the bank vaults as rapidly az
possible. That was what stopped bust
nothing could improve until the pressure
was removed. The pressure was not re-
moved. and the panic was not stopped to
an extent to make money easy until the
Sherman silver law was repealed, and the
fear that the national government might
be obliged to suspend specie payments was
finally removed.
1t was a money panic, but it's necessary
effect was TO paralyze manufacturing
and mercantile business. As soon as the
Sherman law was repealed The Sentinel
called attention TO the fact that what
was needed TO stimulate business, and get
II out OF its abnormal state of depression,
was prompt and radical tariff reform.
The reform was made. but not 80 quickly
as il might have been. Now that it is
here every one can see it's beneficial.
stimulating effect in the rapid revival of
business Of all kinds It acts as tonic
on the business Of the country which had
been thoroughly corrupted by the evils
of McKinleyism. and therefore fell a
speedy victim TO the destructive tend
encies of the Sherman purchase law panic.
The justification Of a theory is it's practi-
cal demonstration, and most clearly is it