The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-20
A GOLD STANDARD PANIC.

AT the very hour on Monday that the
Republicans in the House of Representa-
tives in Washington were passing the bill
to establish the single gold standard and
turn the issue of paper money over to
the National bank trust-a measure de-
manded by the men who put UP the
money to buy the election of Mckinley
at that very hour, Wall street was in
the throes of a panic and the rate of in
terest rose to 1S5 per cent If the birth
of the gold standar dact precipitated a
panic, what train of evils may We not
expect when its perfect work of com
traction has had time to grow:
If the advocates of the gold standard
bill are right in saying that we have
money enough, why is the birth of the
act heralded with so fierce demand for
money That men frantically offer 1S5 per
cent fer it?
The panic in the stock market IN New
York followed like panic in gold stand
ard London, cut off from the steady IN
crease in gold from the Trans
.yaal which has Enlightened times
fer the past year, the London
stock exchange went into q panic. A
Saturdays cablegram to the New York
World tells what happened:
London, Dee 19-The panic ON the
London Stock Exchange today, caused
by the reverse of Gen. Butler, was nll-
exampled in the memory of the living.
The opening scene was like DeGlam, the
iobbers shouting like maniacs at each
other. their faces wild with excitement
and their hair disoTdered. All their cries
and gestures were those OF demented
creatures.
The best reputed Kaffir stock, that of
the Rand mines, fell six poin ; IN few
mniltes. Others were totally unstable
at amy price.
Many men were ruined III tn' first
half hour Some were to be seen sl-tng
on the steps, pictures of deso'ation and
detection
When the first violent stage Of the
panic had exhausted itself the members
resigned themselves to a settled gloom,
and a more miserable collection of hui
man beings could scarcely be found Ca
the face of the earth There was no
hope to be gained from any quarter
This scene of hysterical fear was
striking contrast TO that witnessed on
the declarations Of war, when, in RAM
pant iingoism the stock exchange meulr
hers sang 1.-The Soldiers of the Queen,
and in cowardly vainglory despatched
this insulting cable to Kruger:
For what you are about TO receive,
may the Lord make you truly think
full
Commenting on these paGics in the
two money centres of the English speak
ing world, the Columbia State. with
much force speaks words of truth and
ssoberness as follows:
Yesterdays stock and cotton panic in
New York was but the reflex of Sat
urday's panic In London. The British
speculators simply handed "hysterical
fear" on to ours. And the fear was OF
The stoppage and loss of the I'ransyaal
gold supply.
There might be devised a better Illus
tration of the dangers of the financial
system about to be clincned upon TINS
country, hut we doubt it, So far as the
Republicans and renegade Democrats
can compass it the business OF the Uni
ted States will be made to stand on one
monetary foot. Somebody hike Paul
Kruger comes along and steps on and
brushes a toe of that foot and the huge
body writhes and collapses. The Demo
cratic party believes iii standing on both
feet. ON both metals, so that II one sup
mort falls the other remains. While we
have the single gold standard we shall
be constantly at the mercy OF accident
and exposed to destructive panic.
I'VE hope most sincerely that the ap-
prehensions we expressed last summer
OF the finarfcial consequences of the then
Dq.nding war in South Africa may not
be further justified than they have been
in the last few days; that there will be
relief and recovery. But there will be
no permanent safety for business until
we have as our standard of value some
thing more than metal so limited IN
srpply that the prospective loss of one
wears production of one country Will
breed terror and break prices
If such panic as shook New York on
Monday. had followed the passage Of q
free coinage bill in the House Of Repre-
sentatiyes. the bi-metallists would have
been held responsible for the destruction
of american commerce and of smirching
our Irrational honor" At may not be
true that the gold standard bill actually
produced the panic. 1t is true that it did
not have the power to avert it.