The Hickman courier. [volume] (Hickman, Ky.) 1859-current, 1907-11-15
The Situation


sion is confidence. II this asset be
used without stint in the present
crisis the country will soon be on a
sound financial basis. The three
master factors aTe-metals, crops
and energy. The United States
abounds with all three. The lesson
OF the present situation is that the
country has not failed to continue
its extremes. The lesson learned
from the past is tina, the country has
excelled in all former hnalcial
cyclones by the development, OF panic
residence. In the more recent
panic there has apparently been no
way out, but in an amazingly short
space OF time the atmosphere has
cleared. Commercial panic IN Amer
lea have practically all been due 10
the same cause-absorption Of new
capital into new enterprises az a
pace that makes it impossible for
nev projections TO become self-suP-
porting Immediately.
A glance into the past reveals
that in June, 1900, Pessimism vas
rampant and securities acre Offering
at bargain counter prices. Yet in
May, 1901, business vas booming
and people bought securities at an
advance Of from so TO so per cent.
The reaction Of 1905. which inspired
vide fear. was also followed within
half a year or so by the hrst signs
Of our "greatest boom" Confidence
and oheerfulness, therefore. should
be encouraged, and il is a time for
sentiment. not statistics.
The same men Who know most
profoundly that the United States
possesses thirteen billion dollars 10
deposits as against ore billion dol
lars In actual money are the first to
desire a cache for their gold. This
is wrong. No money should be d.
vertsd from the banks. No action
should be taken that would tend 10
undermine the present system Of
credits. Value exists only in pro-
duciion. Money is an exchange
merely. A bank run means the at
tempt Of thousands OF individuals to
tie up the country's medium Of ex
change. In theory, as in practice,
the idea is ridiculous-and most
selfish. The period anterior TO the
panic Of 1873 teemed with extrava-
CANT speculation. Abuse Of capital
and credit was also the main cause
Of the 1898 furry. The national
disease seems TO be the malady VI
OVERRIDING. In the present unpleas-
an,ness the lightning action Of bank
ers IN issuing "Scrpt" has saved the
situation. The restraint placed on
saving bank Withdrawals must also
be highly commended. The ques-
lion Of an extended business recess
sion is worrying some trade authori-
ties equally with the banking excite
ment. The depression inauguraied
with 1898 lasted four or i've years.
Il is claimed that the lengthy dura.
ton was, however, due 10 he dis
organized currency system, as the
struggle was then on as TO whether
the United States should adopt a
gold or silver basis. The future
will settle the question as 10 whether
collections are 70 become fairly nor.
NAL and The huge masses Of CONNER
cial paper be cared for at maturity
or extended safely. The dislocatior
in money exchange nov complained
Of between cities will suffer a natura
adjustment.
A potent influence in the iS9,
situation was the heavy investmen
Of eastern funds in western farm
mortgages. Today the farm situa
ticn is ironclad, and farm value
are nearly double the total Of on
entire bank deposits. Following
1873. six years we're required 70
the country TO work back to a stronl
footing. The national brain, how
ever, moves at a tremendous pac