New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-05

be driven to do. Our people under ordinary CIR
cumstances are quiet and orderly. ana only IL
driven to desperation would any OF them Vio'a'e
the law.
The great pressing necessity Is to obtain as
speedily as possible medium Of exchange. NJ
civilized community ever before found the'"-
selves In a moment deprived OF their currency
No bills can be collected no debts paid no pu'-
chases made except with the small amount OF com
now in the hands Of few, and no remit'anceS
made by bills OF exchange The Government mas
no money to pay salaries at the END OF 'ne
nu,rter and what oficials-those IN the CIVIL
service teachers of schools and academies etc
will do remains To be seeh Inc Government
apparently Is bewildered. It has decioeo "
bring a bill before the Legislature 10 guarantee
a percentage on the value OF the pahk ho'es no"
IN circulation. after Investigating the condition
OF the banks. This would give certain amount
of temporary relief and cause the wheels OF COM
merce to move. Fol II lis reason the measure
would be welcomed but oui hnanciers have no
great faith In It. Could the Union Bank be re-
suscitated and placed on a solid basis, so as to
inspire confidence. this would be an immense
boon The agents of ssveral Canadian banks
are here with the view OF opening branches. but
as vet nothing definite has beer attempted We
are waiting To hear from the Government FIRST
The Bank OF Montreal. one OF the strongest
monetary institutions OF the day. has an agent
here. Many advise that he should be applied TO
and asked to take over the Union Bank on fair
terms after careful investigation Inc ho'eS
Of the Montreal Bank would thus replace those
Of the suspended bank. We should thus obtain
2 currency on solid basis and means or OK
change II ''in multitude of councillors there Is
safety we ought to b, safe. The newspapers
teen with the widest end crudest schemes. The
bank experts who az" here will help us to dis
cover a way out OF the 1ninclal muddie in which
we find ourselves.
What are the causos winch led up to this ter
rible financial crash Involving us In such misery?
The immediate cause was the failure Of a large
firm in London-Prowse Hall & Morris-who
acted as agents for large number Of our FISH
exporting firms our local firms were largely in
volvel with the London house and fell with H.
The SUSPENSION Of one firm told heavily on
others and helped - bring them down After
some time another firm In Bristol with which
large business was done also suspended. greatly
increasing the panic. though. happily this firm
has been resusctated and has red business
under another name.
The remote causes. however. which led to the
catastrophe have been long maturing and II was
but a question OF time when the day Of reckoning
should arrive. The great staple industry OF the
country. has long been evident to discerning
minds was conducted on unsOund principles The
fisheries for generations were carried on uLon
what was known The credit system. Inc
large mercantile firms az the beginning Of cacn
ASKING season made advances in provisions ana
goods OF various kinds " the fishermen. In many
instances directly but often through midde-fnen
called planters. The products OF the year ;
labors at the close OF the fishing season
handed over 10 the merchant supplers ana the
nsne adjusted. a
to his credit remained. he obtained his winter
supplies and returned home happy. In bad sea-
he found himself In debt 10 the merchant
and had To take DIP his winter provisions on
credit Many became. In this way. hopelessly
sunk In debt. The evils OF such system are not
difficult discover. II vas calculated 10 UNDER,
mine the honesty and industry Of the fisherman.
and In many instances - deprive him OF all nope
and energy It was hardly less Injurious 10 the
supplicr At the close II each fishing season ne
found "A pile Of bad debts accumulated by those
who had been unsuccessful In the fisheries ID
cover these he must make high charges. "hch
the ioiling fisherman resented. Thus the Truck
system was .urse 10 him that gave and 70
him that received. once thoroughly established.
II was almost impossible 70 get out OF the VICIOUS
round Tho crash has come NJ last whicn VIII
eni H. but at ar enormous cost OF suffering The
credit system" has got It's death b,9W cr,-,s
Another efficient cause OF the present Us. .9
wa. the connection OF the bounty-suppor'ed
French fisheries from Ie Pierre. Ten years ago
our mercantile firms were prosperous ana he'd d
high and honored place. Al that date, D! III
creased bouniies the French bank flsher'es We're
largely exo,nded La~ge catches drove down
the price OF goldfish N~yfound!and houses ios'
heavily on their exports. and "A CONSIDERABLE. pol-
ton of their capital was swept away -r Ta
lost from $3.50 900 - 100000 in one year. lhey
were unable aferward q recoup themselves; anu
70 keep anOat had recourse 10 advances nauc ps
our local hanks Tho directors OF the banks were
almost entirely merchants An unsound sys,
TEN II banking commenced me directors hau
et the banks Largely o-erdrawn accounts and
| others were allowed similar license inns
| could only last for time. This year snort
| fishery and the failure II two Ehg:sh irihs III,
tcrested In the trade precipitated the Crisis ana
| the whole banking and mercantile system was
| reduced to state OF chaos from which after
| sore sufferings and mu n misery 1t VIII emerge
| let US hope in str0n sel md healthier cOndi-
| ton
But II any one supposes that the present
| financial crash is but temporary d:sarrange-
| ment from which the country VIII speedily re-
| cover he Is widely mistaken. The ancient
| colony" is ION its beam-ends." and will not right
| itself except by slow degrees and many sacr-
| fees BE- these ruinous bank and mercantile
failures all the industries OF the Island are dis
(, organized Mutitudes are Impoverished Large
| amounts ~ capital employed In the business of
| the country have been swallowed up. and the
| question arises where viii. the fresh capital be
| found 10 carry the seal fishery In March. and
| the great cod fisheries In summer? The property
| ~ the suspended firms will go largely To pay
| ,heir Indebtedness 70 the banks. or late years
| the seal fishery has not been remunerative.
owing to the decline In the price Of sealskins
| and %, oil All this. II Is to be feared. means
| that next year large numbers Will be unem-
| moved Already the cry Of want comes from
many quarters II is calculated that next year
| tho lamentations will he one-haf below the
| average The revenue Is mainly derived from
| duties on imports. Should the revenue be re-
| duced by one-half the public services cannot be
| maint med and the interest on the public debt
| viii moi be paid Should a remedy not be found
| bankruptcy must follow
| The state Of matters AZ the present moment Is
| hardly conceivable by outsiders Christmas has
| come and the festive season waS shOrn OF all
| enIovmcnts to n large extent. The bhs or the
| wear are sent round. but few can pay. Many re-
| spectable families not able 10 pay their ser
| wants wages Tradespeople. shopkeepers. pro-
| fessional men, such as doctors and lawyers. can