Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-01
Do Financial Panics
Come in Cycles?

Although the consequential effects Of the
hrlohtr panic aud the tlmIdlty which lm-
medtatciy followed that panic are tn some
features exactly what precedent Justified
every business man boo expecting. set the
causes nf this panic are luly ln a general
way tn Dee compared with the unhappy lu-
Huencos which brought about other great
crises POI our commercial history. The bus
mess distress of the panic % is3T could De-
loo part traced ip the political agitation ef
that time brought to DO climax in the
suffocatlou hy President jackson of the
bank of the United states. that great GENE
trai Institution. which. had o. been pre-
srrted and wisely managed wouid have
made the issue % clearing house cerir.
Gates unnecessary might have prevented
some 10 our panics and would have served
as a hulwark % protect credit and business.
as the bank of England has served that pur-
pose ln Great Britain
Do 1St7 There was some disturbance partly
due o. tariff agitation. partly consequent
upon me var with Mexico Again IN 1851
a terrific business crash occurred and 10 was
assumri thdt these disturbances came ln
,}cies having an croft that could be almost
as accurately forecast and described a. that
named comets
% was upon that hypothesis that some
tenturrd in predict "a financial and husl-
ness eHtacI1 sm ln tire United States ln the
year 1903 and aaain Boo the year 1918 The
panic 90 1897. distinguished ou the one
hand hl an unparalleled season % religious
excitement which iu many casps almost de-
FeI0ued hfstorln. con the other furnished a
perfect Demonstrated of the danger tina De-
ir an over issue 20 paper money u was a
tme of uurestrained speculation. The de-
tclUUuIout " tire midwest was well under
way The railroads d few years earlier
a ih prophetic Instinct had been finding
their WAY through the forests OF Indiana
ohio f1 chicago unlR a few years
EARLIER tho fret Iuk in what is now the
MHnun slstrm had been coAstructed from
"a point nearly opposite Loulsvllle Ky. %
il The lawyers ahn searched titles
that thcY might secure rights g way were
iur weeks in THOSE forests. eucounterlng not
merely ths danger from exposure 90 climate
and slid animals but also. many Hines
hunger The banks q the midwest
issued their notes Ulthnut any adequate pro-
.lslnn Cor immediate redemption o. them
eifh n1 sense 90 the danger that urked
n these ofcrissues until 90 last the crash
.ame
That Vas a speculative panic II Was
Hr collapse 20 the era % banking dcsls-
mated by Horace Greeley as Nideat bank
DO vas ths Ncu YORK. clearing house 10
1873 that demonstrated in some measure
De danrer that iurked in an rredeeuab be
iapsr currency For the first time that as
'ariutian issued clearing house certiftcates
on The panic 70 isfa Earlier. during and
affef TIRE close u the civil war
.nd aftereard iu the Black Friday panic ~
Rat IVES in the nature n a pooliuE oil
ash resaurcfs protected business men But
b. thF1 business Itself vas 81 seriously
treafnned-husluess mat vas perfectly snl-
lent and fet found Itself face 90 face uIrh
.n Inability 70 meet ohliEaunns-that ire
ieariuE hause uudeftnok 60 utiiae enc cree
it a. tc project not only tanks tut H1iF