The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-30
\ WORD OF CHEER,

The recent panic In New York diff.
fered from the panic of 1873 in that 1t |
was checked before there was any
snaash-up, except in the stock market;
while in the former year the Jay Cooke
was permitted to run it's course. The
same is largely true of the panic of |
1854 which was precipitated by the
failure of Grant e. Ward. That failure
was followed in quick succession BY
the collapse of the Metropolitan Bank
and other financial institutions. and the
panic thus begun ran until 1886. From
that time on there was gradual recov- |
cry, and the country enjoyed a season
OF prosperity. This was interrupted
somewhat by money stringency in 1891
which developed into a currency famine
in 1898, when the banks all over the
country. with few exceptions. were COM
PEELED to issue clearing house certih-
Gates or certified checks. In 1893 a dull
season set in, and continued for several
years. but there was direct cause for
1t, which was not hard to trace. TIL,
purchase of silver bullion by the United
States Treasury, under the Sherman
act Foreign investments were with
drawn, gold was boarded and COM
merce and industry were greatly re-
tarded. There was general lack of
confidence, and the farmers, whose
property was heavily mortgaged, were
barely able, in many instances, to make
q support. In the latter part of 1894
Congress repealed the silver-purchas-
ing act, but the mischief had already
been done, and the free silver agita-
lion, which Immediately began and did
not spend its force until after the
election of 1896. aggravated the situa
tion. The country was slow to re-
aoyer from the effects.
But the situation now is fer different.
There is plenty of gold, and the supply
is constantly increasing. There Is no
distrust az home or abroad as to our
monetary system. The governments
vaults are abundantly supplied with
the yellow metal, and there is no ques.
,fon about the vasle of,.a dollar. The
banks are strong. The railroads have
greatly improved their physical condt
ton and increased their equipment
This has been done. TOO, in large part
out of current earnings. The industrial
and commercial business OF the coun-
try Is prosperous. and the farmers are
better off than ever before in the his.
tory OF the nation. And they have just
harvested another fine crop The gen
eral wealth of the country has enor-
nously increased, and We are better
than ever prepared to stand storm.
Europeans think that we have over
traded. but there is no distrust abroad
IL We may Judge by the expressions OF
the foreign newspapers, which are al
vising their readers that this is the
chance of lifetime to purchase -Ameri-
can securities at bargain prices. They
have purchased In large blocks, and
as consequence of our trade balance
abroad millions of gold are now being
imported.
There must be some recession in
business The steady decline in tho
price Of securities has long portended
it, as The Times-Dispatch has in duty
more than once pointed out, But we Dc
not believe that ii will go very far, oil
that there Will be a long period q
business depression. The Fundamental
conditions are too strong to warran
d II. a moderate recession is desirable
for II viii relieve the strain on GU
financial resources and give the coun
Try. a chance 10 take It's breath befor
making another squirt.
There are plenty of cakes and all
for our forthcoming Thanksgiving tes
tival Let us be of good cheer
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