The midland journal. (Rising Sun, Md.) 1885-1947, 1896-11-27
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.

Three frightful disastrous finan
cial panics have prevailed through
out our country since January,
1887. Each caused to the people
incalculable losses, great poverty
and untold misery, each was of
several years duration. Each was
mainly brought on from far too
contracted money circulation. Pros
perity only returned in each case
mainly through u large increase in
the volume of money. A fourth
panic is now prevailing without in
dications of an end being near.
The first panic broke forth with
great violence in 1887 and increased
with time in terrible severity, only
ending during the war declared
against Mexico in 1916, which war
was caused mainly by the greatly
disconnected masses of idle people.
This panic was lar more extensive,
disastrous, and of longer duration
than any that has since occurred.
The second panic broke out with
great force, beginning with the fail
ure of the Ohio Life Insurance and
Trust Company in August, 1857,
followed by the failure of nearly all
the banks throughout the country.
This panic only eliminated during
the war of the rebellion. The hard
times and the poverty of the masses
of the people has been ascribed by
some, as one of the causes of that
terrible conflict.
The third panic broke out in 1873
with the startling failure of Jay
Cooke, the banker, followed imme-
diately by the suspension of pay
ments to depositors by nearly all
the national banks throughout the
country. But fortunately the banks
were on a greenback in lieu of a
metallic basis, which enabled them
to resume payments in greenbacks
to depositors in about seven weeks.
If they had been on a specie basis
they could not have recovered for
several years. Had the advice been
taken given by John Thompson,
Pliny Freeman and Peter Cooper in
their published letters, that fright
full, destructive panic would not
have occurred.
The fourth panic that is now run
ming its course, had its origin in the
first term of President Cleveland, in
the rapid and heavy retiring from
circulation of national bank notes
also in the heavy shipments of gold
from our country which began in
1888. Both of which heavy drains
on the peoples debt-paying power
was continued through the term of
President Harrison; the heavy ship
ments of gold still continue Cat this
writing). The first loud warning of
danger camein July, 1898, in the fail
IRE of about600 banks. Fortunately
the banks were on greenback in
lieu of a specie basis, consequently
the failures were limited. Had they
been on a gold basis the crash
would have been terrific.
From July 1, 1888, to August 1,
1896, 1892 1897 1920 net of gold has
been exported from our country.
On October 81, 1882 the national bank
note circulation was $780, $50, 712
On August |, 1896, it was 214,O96, 62C
Total destroyed SIG, $50, O92
BY export of gold and destruction
of bank notes; the people have lost
the use of $479,773,349 of money,
while population has been increas-
ing nearly 100000 per year. 1t
went on gradually but impercep-
tibly to the people, and has forced
down largely the price of all pro
duets and property, increased bank
ruptcy, idleness, misery, and crime
reduced salaries, wages and rents,
forced foreclosures, also heavy
issues of bonds to try to keep the
masses employed. Money decreas-
ing and population increasing. Yet
the people heed not these loud
warnings, nor seem to realize their
perilous situation. Should such
reckless conditions continue, a
heavy crash will surely come
Sauce qua peut."
FIRST PANIC-On March 4, 1887
Martin Van Buren, (Sage of Kin
derhoOk), was inaugurated Presi
dant of tua limited States. who