The midland journal. (Rising Sun, Md.) 1885-1947, 1896-12-11
LIVE ISSUES.
FINANCIAL PANICS.
Cause and Remedy Considered by
Jesse Gilmore.
BENEFITS FROM FREE COINAGE.
Prosperity Comes With an Increased
Money Volume Hard Times With
Scarce Money Supply.
No TIT
NO, III.

IDe late johns HOPKINS, IOunOef
of Johns Hopkins University, Dor
rowed money in Europe in 1912
and bought largely of Maryland
bonds at a heavy discount, which
he held till they reached par.
Afterwards he invested largely in
stock of the Baltimore and Ohio
Railroad Company, which at his
death he willed to the university.
In 1889 this stock was worth about
1926 per share; now it is selling at
about $13.
Speaking of B. & o. stock re-
minds the writer of two predictions
he made about it. AT Baltimore in
1873, while on business in the Pea
body Insurance Company, he said
to Mr.. Thomas I. Carey, the presi.
dent, that B. & o. stock then worth
$1S5 per share would not in a few
years be worth half that sum, which
result came by 1877, giving as his
reason the contraction policy that
had been and was then going on.
In October, 1889, at the same place,
while B. & o. stock was selling at
1926 per share, he predicted to Mr..
Carey that within few years this
stock would sell for less than par
($100). His friend laughed, but
the writer said to him that like
causes produced like results, that
contraction of the money volume
was again at its destructive work
as it was in 1873.
Also, John w. Garrett, another
Baltimorean, laid the foundation of
an immense fortune in the purchase
of Indiana bonds at heavy dis
count. He refused to accept the
scale down from the face value
made by the state, but held them
until the times became prosperous,
when he received the principal and
interest in full. He was the
founder of the B. & o. R. R., and
at his death left an immense invest
ment in this stock to his daughter,
Mary Garrett, now prominent
woman of Baltimore. Yet with all
the warnings of wreckages from
contraction that have occurred in
our country at different times, the
bankers of Baltimore, through their
associations, have declared for the
retirement of the greenbacks and
substitution therefor of national
bank notes on gold basis; also for
the continued suspension of the coin
age of silver. Their memory about
bankruptcy with it's ruin is short.
Those days (1S43) there was very
little money in circulation for farm
ing, manufacturing, steamboat,
ship, store and house building.
Consequently there were an i'm
mense number of idle people, com.
petition was very great, and sal
aries and wages very low. Bank
cashiers who in 1886 had received
$1,000 to $4,000 per annum were
reduced in 1912 to 5000 to 5000 pei
year; clerks from $75 to 800 per
month to $l5 to $40, and carpen-
tenters from $3.50 to 80 per day to
65 to Is cents per day. The most
odious laws were enacted to prevent
vagrancy, without avail. The idle
were marched daily in gangs before
magistrates and committed, with
out other trial than the judgment
of the magistrate, to six and twelve
months confinement in the work
house.
1t was not tariff that was causing
hard times, because they continued
until 1S47 when the money volume
was largely increased and prosperity
came with it. No, it was scarce
money only which brought the
hard times.
In 1S43 there was quite a heavy
importation of gold and silver,
amounting to about $21, 100000
which was coined that year and the
next, which aided somewhat in re,
viving banking interests and thus
afforded the suffering people little
more money, which gave some re-
lief, but was entirely insufficient
and the times still continued very
hard and there were still great
numbers of people unable to pro
cure steady work, which caused
much misery and great discomfort
to prevail among the masses.