The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-10-16

not in the proportion OF National banks |
that have failed. no matter whether they
paid out or not, but IN the proportion thai
have suspended payments. Ability to main
tain paper currency controvertible into
gold is not question OF ultimate security.
but OF present ability to pay or redeem In
gold on demand.
As stated above by the commission, some
National banks have suspended payments
and failed, although their assets were am
pie for ultimate security OF all their debts,
but all that have failed are insignificant
IN Importance as compared with those thai
have suspended payment and would have
been closed Up IL the law had been enforced
against them. Tho notorious fact Is hat
| although the National government has al
Ways met Its demand money obligations
and has maintained it's paper CURRENCY on
the gold standard under all circumstances,
there has not been a panic since the Ma
tional banking system was in existence in
which the leading National banks did not
suspend money payments altogether. For
brevty the admission OF this ia quoted
from the commissions report
THE PANIC RECORD.
AS to the pane OF 1873:
On the Goth tof September, 1879, the
| New York stock exchange closed It's doors
me closing of the stock exchange
was decisive. Immediately after this event
the binks OF New York decided at a meet
| irg to mako their legal tender notes a
common stock and to issue clearing house
oertihcates. This was followed by a sus-
pension OF currency payments Exchange on
New ioik was at premium. as II should
h1vo been. The other National banks,
tnefeforc. being unable to withdraw Their
| deposits from New York suspended cur
rency payments. and the suspension con
tihued Tor forty days fReport. p 2l5)
Likewise for forty rights--just The time
required to drown every living thing In the
time OF the deluge.
AS to the panic OF 1884
General suspension was imminent The
result, as 10 1873, led to combined action
on the part OF the New York banks on
May IA, at q meeting of the members of
the New York Clearing House association,
the issue OF clearing house certificates was
! again decided upon. The action resulted
only In mitigation OF excitement (Re-
port, y. 2lS)
rs TO tho paalc of 1890:
On the 18th Of that month November
ls9ol tho situation so grave that a
3 New York decided upon the issue of clear.
80 nUuso ,Vih ceIti'eates, These were
tho EXAMPLE NJ Tho Nav Wi, 'I,, "uu
house was followed by those of Phil7Gel.
phln ana Boston soon afterward. These
= an,a,i,ts n"us 20 lssu,a ceItncaes 10 the
| spectvey. (Report, p. 219)
AS to tho panic of 1s03
As usual. the issue NJ CLEARING ,opso csr-
4 tificates was re sorted TO, and that on a
4 , nuule nlneh greater IMAM In previous years
o used tbnn rroy.o~.ls MI MI ,n'n osu wlueiy
A the use OF certificates the first mnlins A..
: appearance on June Is. New York and
O I. IeSo,'eu 10 'ne same expedienl o.
r more followed NV pittsh,i,,g ycor ,,,o 'n.
@ gregnte of these cities the largest amoun
II on.standlny at any one time was 1868 200.
q WV 'NeP"' page --i'
q ' - Nn"' our eAper'ehce win 'h'
a ''''o'''' Jams 'e"N"es us as 10 tnel ao !!
"S WIZ "''''ns"esS 10 in"'"'aln money
Il - u''es ''"""o'a' STRESS
rs ""''' Wv '>"''o''' sVN''"'"'nl triumph
"""s "e"'"e'e"' '"' 'ne oh'S iorec"s'
~ "''"' "'"S o' oNPe'teu 'heS are re''e'
90 "P'n W "''N'''" 'hc p'Per MONEY vi 1"
M 'o'"'' Oh so'' s'Hnu'lu' 'hey refused
y ''''' "e'"""' o''' s"''"S' hno"' III
n .'as ivy 'Ou'N W .o'ee' ~ o'oSe tne'
IS 'oo'' vi, "'0ou"' ot II, II 'es'' proteeo'ns
M WV V'"e" "s"'us. '"e"' lueS ISSUED
y. .''''''s nous' No'..'''''es N''uo"' any au
y. '"o'ity =" "w why would they not a