The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-06-06
ANOTHER PANIC In SIGHT.
How Those Awful Crises Are Created
C. Vincent's Prophecy Two Years

How Those Awful Crises Are Created
C. Vincents Prophecy Two Years
Ago.
Friday, May s. will be remembered with
shudder by many operators on change
The days business was treated in sensa-
tional style, and we are told that it was
almost another BLACK Friday" Stocks
dropped with and rush that caused
pandemonium to reign supreme in that
junta of elegantly attred gamblers. 1t is
a remarkable commentary on our civiliza-
ton that a clique Of stock manipulators,
gambling with millions for the stakes,
should be able to produce a crash per-
nit O. the country to enjoy business quiet
But we did not start out to discuss why
1t is so this condition exists; then let us
lake a square view of the situation.
Black Friday occurred in SO. AS we
have several times in the past few months
approached the verge of another similar
catastrophe, it is well to make comparisons
Of values then and now. In Nonconformist
of Sept. 8, 1892, is published complete
review of the circulation statements, show
ing conclusively that the more recent tables
issued from the treasury department are
unreliable as to the circulation in the six
ties. Large issues of currency were in
daily use, made legal tender, and to all
intents a component part of the circula-
ton, but are now excluded from the tables
of that period for the purpose of creating
the belief in the minds of this generation
that the circulation of that day was less
than now. In our Issue of Sept is shown
from the laws, quoting dates and acts,
that the circulation in 1866 $lS44, $780,
600, $53. S3 per capita. The Hon. John ].
Knox comptroller of the currency, in a
speech before a bankers convention, in
Pittsburg Oct. II and 3D. 1861 stated the
circulation for Aug. 81, 1865, as 81, S92, 02O 0OO
a tritle more than our compilation above
refererd to. The business of the country
was adjusted to this currency volume and
the substantial prosperity of the country
is shown by the fact that with this increase
commercial failures had been reduced from
4225 in 1858 to 500 in 1864 and $50 in 1863
Now Secretary Mccullough began his policy
of contraction. The people of that genera
ton had never pasesd through such an ex-
perience and could not be made to under
stand that all values were to be reduced
more than half except interest, debts and
taxes. Business proceeded upon the same
basis of value that had prevailed for some
years, and when slight pressure became
observable it was ascribed to some tenn
porary cause, and a loan made to bridge
over the time, but values kept shrinking
never recovering, till the pressure pro-
duced the Black Friday of 1869, and this
did not check the downward tendency
which continued till all values vanished in
vortex of the maelStr ON of 1873.
I)urino he Ia had hoo
reduced to $17.4S per CAPITA and CONNER
cial failures had risen to 2,799 in 1869 and
5,1sS in 1873. If we accept the treasury sta
tistics of circulation after the refunding of
the early los was completed, we find if
was lowest in 1878, being then reported as
$l5.32 per capita. We also find in the statis-
tical abstract, a government pubica ton
that in 1S17-7S corn was lower than at any
other time between 1862 and 1889; wheat
was lower than any other year from 1862 to
1888. only one other year besides 1878 be-
tween 1862 and 1888, did rye go so low as in
that year. The same was true of oats and
barley, while the value of all the live stock
in the country went lower in 1879 than anv
other year since 1869, although the aggre-
1869.
1t is true that values have not gone down
SO rapidly in recent years, but the ten
aency was ever downward, and though the
nope mas always been present that the hot
tom was reached and a short loan would
carry the victim till the reaction should set
m the reaction never came, and wheat is
lower than since the sos, with all other
crops in sympathy, and with 20 per cent
more live stock than we had 10 years ago.
the aggregate value is about the same as
then, which means shrinkage of live
stock values of % per cent in 10 years and
commercial failures have risen to TO- 1894 in
1892. ''o''' ~
The country at large has scarcely vet re-
allied that the deliberate purpose in 1879
was to place this country upon a mono
metalnc oasis, and this in spite of protests
ana the vigorous efforts of patriots TO the
contrary, the present administration is de-
termlned to finish the work begun in tbo+
year. "'
Inc Democratic party of the West prom
1sed monetary reform and free coinage of
silver, while in the East a contrar; policv
was advocated '
only one of the opposite policies can be
!oiiowed, and the West and South is realiz
ing what it is to be BETRAYED again The
BUSINESS activity and the changed circun,
STANCES OF our civilization demand moro
money per capita rather than less than we
had one or two generations ago.
in splte OF TINS fact and in spite of the
Increased production of gold and in smile
OF the increase in population. the adnipis~
lration lnsanely declares it's purpose To re-
gard gold as the only ultimate standard Of
payment. vi
w ohiy IS the production CT gold de-
creasine in this country, but throughout
the world, with stationary population.
produce a strngency in time but whom tba
increase in population is considered ~
connection with the lessened production Of
gold' the insanity, or criminality. of a
mopometallic basis becomes the moro ,n
parent. The average annual production pf
gold has been as follows (report Of intar,o
tionai monetary conference 1873 n aoc, ma
From 1852 to 1856. .........,. coo ooo no,
From 1857 to 1851 ..o 81 GOO o os~
From 1862 to 1866. .....,,, % Sso o ooo
From 1867 to 1871. q 7ss ooo
From 1872 to 1875. ...... 10 o0o Goo