The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-07-11
THAT'PANIC" BLUFF.
Heavy Losses OF New York Banks
Under Democracy.
Money Plenty and Idle Produces National
Bank Profits-Faiiurc of Efforts TO
Defeat Mckinley business from
Business Standpoint

The threat used by certain politicians
and democratic papers 10 create finan-
cial panic, for the purpose OF defeating
the nomination Of Mr.. Mckinley, was
taken with too much seriousness. No
doubt the threat was made in the heat
Of anger and disappointment. But
when it's effect Is analysed IL appears
ridiculous.
In the first place II must be remem-
bered that all the talk against Mr.. Nc
Kinley originated and existed only In
the columns of a few democratic news
papers and in the minds of handful of
disgruntled republicans. The latter
are recovering. SO we need not worry
further about them. AS 10 the demo-
cratic papers II is well known that they
we're simply trying 10 divert attention
from the ignominious middle that ex-
lists in their own party. Therein they
were temporarily successful too. II is
only necessary to turn back TO the files
OF these very papers, for 1892, 10 re-
fresh our memories upon all the won
derful good things they promised the
people in the event of the election Of
complete democratic administration.
Then their fight was for the repeal of
the Mckinley tariff, concerning which
they printed falsehood after falsehood.
They promised cheaper goods, more
work, higher wages and lower taxes.
These alluring bats carried the people.
The authority asked for was given to
the democratic party. The Mckinley
tariff was repealed and the Wilson
monstrosity has reigned in its stead.
But with what results?
1t Is true that the prices of farm
products have been cheapened, but
there has been less work for the people,
lower wages and higher taxes. The
national revenue had been In sore
straits as well as the revenue of the
individual. The very character of the
tariff bill passed by the democrats
differed so widely from the kind Of
measure that had been promised, that
II was stigmatized as party perfidy
and party dishonor" by the democratic
president, and as rag bag produc-
ton" by the democratic senator, Mr..
Hill, of New York state. The demo-
cratic press dare not face discussion
of the tariff question, so II occupied It
self in reviling the most prominent
for the republican presiden-
tiai nomination, because IL knew that
his election will eradicate every free
trade idea from the country during the
present generation.
The democratic threat TO create
atol L.. 1.It a
That IL was ever seriously
sustained by one solitary bank presi-
dent, be he republican or democrat, we
can hardly credit. Who would be the
greatest sufferer by financial panic?
The bankers themselves. Bank presi-
dents are merely salaried officers APP
pointed to manage banks finances.
These finances consist of the money of
the stockholders and depositors. An
attempt to create panic would be
deliberate Encouragement of the trust
reposed in president, and IL would
speedily result In his dismissal. No
bank president would ever be permit
ted, by majority of his board Of dl-
rectors, to play ducks and brakes with
their money or with that of the depos-
ltors. IL would be criminal act, mer-
ting the everest punishment, and any
democratic paper that lends itself
thereto Is particeps criminis, and NOR
ally, IL not legally, guilty.
III bank presidents, bank directors
and bank stockholders would careful
" consider the condition of their banks
when the Mckinley tariff was In force,
md compare IL with their business of
to-day. we have no hesitation In say
ng that their unanimous verdict will
De that n restoration of the McKin-
ley era of prosperity is very much TO be
desired. The financial situation calls
1pon bankers TO support the nomina-
ton of Mr.. Mckinley. not 20 allow
spleen and bad Judgment to control
heir more mature business Judgment.
have large sums of money TO
end, not to keep idle, and they know
that they now have n plethora of idle
money for which there Is no demand.
In 1892, on September 30. the national
banks of the United States had S2,153,-
'9s,S2o of money out on loan and dis
,ount that was earning interest.
This year, on February %, their loans |
Ind discounts amounted only TO s1,051.- |
Use. or $500, 100000 less than In the |
tariff year. The earnings and
profits of the national banks can
lot be as satisfactory an they |
we're In 1892, and they are even |
ess satisfactory to-day than they were
asst February. Why? Because more /
4 our industries are idle. owing 20
he democratic tariff.
In 1892, on September 30. before the
election of a complete democratic nd
the amount of money on
deposit in the national banks Of the
United States was S2.022, 100000. This
Tear, on February 2s. II was only ST.
AS, 0o2, 500. or s375.0o0,oo0 less than
n the Mckinley tariff year. With
% much less money ut their disposal
he national banks have not the OPP
for earning. or trnnsacting