The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1907-11-21
A SHORT LIVED PANIC
WHAT QUIETED TIE RECENT
MONEY DISTURBANCE?
The Fact that Industries and ,Agri-
culture Were Solvent, Labor Was
Employed, and Production and

Nearly all the elements OF Il fearful
financial panic were present and opera
tive in the week ending Oct. %. Orig
mating in New York City, the home OF
high finance"-crooked finance, many
people call 1.-THE disturbance spread
somewhat to other business centers,
with the result that larger number OF
banks suspended payment and closed
their doors than at any time since the
dismal free trade period of 1S93-9I.
True, the banks in difficulties were
mostly solvent, but that did not save
them from Il whirlwind rush of deposit
ors bent upon drawing out their bal
ances. What with the support prompt
ly rendered by the United States Treas
ury Department IN placing at the dis
pOsal OF the banks an additional So
OC0,OOO of government funds, and the
valuable cooperation of few of the
great money kings, the severity of the
panic was restricted to five days. Short
lived, but tremendous while Il lasted.
Why was this panic so short lived?
As we have said, nearly all panic-pro-
ducing elements were present. Prac-
ticalIy but one element was absent.
That was the element Of industrial de-
preston to either cause or aggravate
the panic conditions.
All labor was ut work. ali industry
active, all production and consumption
at high water mark.
The country was in the midst of pro-
lection prosperity; not, as III 1S93-9i,
in the depths of free trade depression.
Bearing upon this question the fol-
lowing is worth quoting from the New
York American of Oct. 26, Demo
cratic newspaper:
ITO the wise no word is necessary.
Men of knowledge understand full well
that the country was never more pros
porous, and that n panic in the midst
of such unexampled industrial and COM
mercial activity as this nation has re
Gently enjoyed and still enjoys is
grotesque absurdity.'
And this, from the New York Press
of the same date, staunch protection
ist newspaper:
Consider the facts: There has been
panic. Gambling stakes have been
swept from one hand to another. Money
has gone from one pocket to another;
deposits from one vault TO another. Men
who had plenty of cash or big bank
balances last week have less or none
now. But somebody else has the
wealth. 1t is all in existence; it Is all
performing pretty much the same func-
ton as before.
Meanwhile the railroads. whose
shares have been dropping. are hauling
traffic to their fullest capacity, making
bigger earnings than ever before. The
factories are turning out their products
in vast volume. Just now tie farmers
alone are selling between six and seven
billion dollars of crOps-new wealth.
The wage earners are getting their
pay. They are buying the new pro-
ducts; they are living as they never
lived before.
There Is your wealth-from the
farm, the forge and the factory. More
than ever before This country was
never so rich. If every stock on the
market had touched zero yesterday that
natural, real increase of wealth from
the true source of wealth would have
been with us just the same, and If, on
the rebound, those stocks had scared,
there would have been no more real
wealth. Never anywhere in the world
was there anything like the wealth OF
this country to-day-panic or no panic.
Therefore the future is one of conf
dence The American people are going
on to more prosperity"
This is substantially the tone of our
best newspapers, Democratic as well as
Republican. They all agree that the
Industrial solvency of the country and
its twin brother, the agricultural solv-
ency of the country. combine to pro-
duce prosperity that cannot be wreck
ed by mere money panic brought on
by frightened bank depositors-
1t is absolutely true that Protec-
ton prosperity has once more shown
itself to be panic proof.
Is there not in this supreme fact
some hint OF things to avoid, of stay
ing the hand that would tamper with
prosperity, of frowning down the the
DRY and the guesswork that would try
dangerous experiments? Is there not
in this latest brief money panic les.
son to be learned? Does it rot teach
the wisdom of letting all industry, all
agriculture, ali labor, all production, all
business, go on and prosper--in short,
of letting the tariff alone american
Economist.