Grand Rapids herald., 1894-01-06

The Hon. 7. D. Gilbert Addressed
the Lincoln Club
ON The PANIC OF 81 AND ST
Interesting Meeting OF the Club and
Able Address by Mr. Giibert.
VI. Iaggart. - Wesselias.

The Lincoln club roOms were well
filed last uight L. listen 10 a discussion
% the subject u panies andfheir cause
The meeting was under the leadership
* Chac. l. Sigh sho spoke very briefly
in opening the meeting and taen called
on the Hon I. y Gilbert for hls recoi
leetions u the financial panics II ls57
and 1851. Mr.. Gilbeft spoke substan
italy as follows:
-One usually tries 20 forget the disa-
greeable things Ia life bat have a.
ways eherlshed the bitter memories OF
my experiences in ls5 and the i've sue
eeeling years | caught IL hard in 1887
aad you may well imagine thai when
emerged from that crisis three years
later With my debts paid and few dol
lars of doubtful money as my capital for
new start. made d careful mental
record OF my experiences and by fire.
qnent reference 10 them for my guidance
have safely passed through all the
financial panics that have since occurred
Speculation Was Rife
IL lsS3 the tide OF western emigration
set in and IN ISIS had assumed large
proportions. The emIgrants were well
supplied with money and specu.ations
IN western lands and town sites ragged
with great fury. As a result very few
turned their attention 10 the cultivation
Of the soil. y large proportion OF the
necessaries q life were imported from
the east. draining the west OF the money
that immigants brought with them. and
leaving them poorly provided for the
times soon 10 follow. The money in use
at that time proved unreliable. although
IL had Tor some years answered all re-
qUirements as a medium Of exchange.
The United States bank and the banks
in New England and New York. with
few others scattered through the states,
furnished the circulating medium for
the country. Gold was seldom seen and
large proportion OF the silver in use
was Spanish coin.
Ranking on Faith.
The banks Of New England were or.
ganized substantially on the Scotch sys-
ten. /. o.. % per cent Of their capital in
coin in their vaults and &c per cent in
public faith. Ny employer. in ls33.
thought we needed another bank in
town and easily found subscriptions OF
el0O0OO 10 the capital stock. This was
paid in notes OF other banks. but II was
necessary 10 have $1,000 in coin To be
counted by the state bank commissioner.
My employer went 20 Hartford and
borrowed $4,000 in coin and put il in
the bank 10 be certified 60 10y the com
missioner aud the next day shipped II
back 10 Hartford. This looks like
sharp practice. aud yet that man was
- thn a.v,..t.,ks 81 ~
that bank If today oue OK the most sub
stantial National banks in the country"
Mr.. Gilbert told Of the system Of bank
ing ia New York and other states, and
told OF the effect the panic had upon
them. lie said that there WAS no doubt
that the panic Of 1881 inflicted more
misery on the people Of the west than
| all other panics combined. IL took i've
/ years Of rigld economy 10 recover here
/ in Michigan with the ruling powers at
tempting To thrust upon the people un-
limited quantities Of the kind OF money
/ that threatens tue country at present.
lie then took up the panic OF 1891.
/ showing how different the conditions
were at that time. lie showed that the
establishment OK tariff gave prosperity
to the north while the slave states retro
| graded In business aud brought on sec
tional strife.
Democracy's had Influence.
/ Mr.. Gilbert said he was out u the
county during the panic proper. He
! called attention TO the fact that IL took
\ place after the democracy had bcen in
power long enough TO make ia baneful
influence felt and the present crisis was
no doubt due 20 fear OF what the party
might DO. lie declared tho panic of
ls7J was due IN lSG1. but was delayed
FOR reasons which lac gave. and did not
come until ls13 He closed as follows:
"As things look nov. II makes no diTer-
ence what YOU have ia your pocket. be
IL gold. greenbacks. national bank
notes. silver dollars or their rep
rcsentatives. all alike circulate to-
I gether without discord This being
50. and We all know iiwhy in the name OF
common sense cannot We let wei enough
alone and profit by past experiences
I There must ue gold reserve somewhere
I "a meet tie eX igencies IL aforeign balance
I Of trade az ainst US aud the proper place
/ FOR u - the government vaults. The
supply can be maintained by requiring
all airport duties 20 lie paid IN goid
7 The will have a tendency 10 check i'm
portations and ia turn help domestic IN
dusiTies"
The Hon Moses Taggart followed with
/ an able address on panics and the Hon
Sybrant Wesselius closed the meeting
with brief talk on the finances n the