The Monticellonian., 1894-11-16
CAUSE OF THE PANIC.
Iyarrison's Efforts to Throw the B.am
 Upon rernocruts.

| Harrison, having apparently been re- minded that the bare assertion that democrats caused the panic would not be accepted by rational men without proof, essnyed to argue the question. This was distinct departure from the general practice of membe of his rarty this fall, and fer that reason, it for no other, it deserves some att tention.
 Mir Harrison urged that as the vol nmc of the currency increased during his term of office it could not have been the lack of money that brought or the panic. This may be conceded so far as the quantity of money in the whole country is concerned In the second place, he argued that it could not have been want of confidence In tbe money which caused the panic, be- canse dcpositcrs who withdrew their money from the banks took any kind of money they could get.
 When the expresident says 1t was not want of confidence in the money that caused the panic he files in the face of the whole financial world, in Europe and America. Before the panic, during the height of the panic and while 1t was abating, 1t wau in- sisted with iteration that became tire some by financial authorities every where that confidence was the one thing needed to restore financial af- fairs to a satisfactory basis. Wherein was confidence needed?
 During the four fiscal years from June 30, 1889. to June 90, 1898, core spending nearly with Mir. Harrison's term of office, the exports of gold ex- ceeded the imports by over one hum dred and sixty million dollars. This was not in payment of trade balance, for during the same years our exports of merchandise exceeded our imports by nearly three hundred millions of dollars. According to the republican theories we ought to have imported nearly three hundred millions of gold, but instead we exported one hundred and sixty millions.
 This had two-fold effect, when taken in connection with the depletion of the treasury hy the prohigacy of the Fifty-tlrst congress, Abroad, h created the impression that payments in gold or its equivalent could not long be maintained in the United States, This fear gave birth to determination to realize on American securities before the country went to the silver stan dard. Vast quantities of American se curitics were thrown on the market breaking the price and leading to further exports of gold. In the second place, the apprehension spread to this side of the Atlantic, and the hoarding of gold became common. Even when gold was not withdrawn from the banks it could be had from the treas ury for greenbacks or treasury notes of 1890, and this constantly depleted the gold reserve, which was all that stood between the country and the sil- yer standard
 At late period of the panlc, 1t Is quite true that depositors would take any sort of money that they could get. But why? After the mischief had progressed so fur that banks began to suspend the people began to fear that unless they withdrew their deposits at once they would getnothing. In most cases this was an ungrounded fear, but panics beyond certain point are es- sentially unreasoning and unreason- able. There was at least danger that the suspension of banks would prevent depositors from getting money when they needed it very badly, and this ac- tuany occurred in many cases The principle of "the al take the hind- most was dominant for several weeks. & The truth is, want of confidence, at home and abroad, in the money which the republican party had provided was
 t the bottom of the whole trouble.
 ~imarily this was due to the sherman R, {, which was device for selling sil CT bullion for gold, in order to hold the silver states to their republican ale, lance and secure the passage of the tcKinley bill. Secondly, it was due t, the wild extravagance of the repub4 can administration, which called 'or an issue of bonds, which would ctually have been issued by Secretar Foster but for the interfer- ence of M .Harrison himself, who pre- ferred to save an empty treasury to his succe sor. The disturbance of busine ,,s by the passage of the McKin- .vy law and other circumstances were auxiliary, but the essence of the panic was want of confidence in the curren- oy under the conditions brought bout by the republicans. The repeal of the Sherman act restored confidence in the currency, and there has since been an easy money market; but the injury to business was such that 1t required time and repeal of the Mckinley bill to repair the damage Democratic legislation has put the country on the road to prosperity, but wounds of such severity cannot heal In a daY.-Louis- vile Courier Journal
 Mir. Wilson's speech in England.
 There is no one in this country who has oftener described, more clearly and with more virility than Mir. Will son. the evils that have resulted from the foolish effort to grow rich by self taxation. What he said to the English merchants was repetition of what he has often said in congress and on the platform The infant industries, in tha decrepitude of aged pauperism; the wage-earner deceived by fair prom ises, but exposed to competition in the unprotected la bor market of the world; the farmer selling in the cheapest and buying in the dearest market; the ab normal profits gained by legislation employed in political corruption and