The National tribune., 1907-11-21
OUR SOLvENCy, NOT OUR BANIE-
RgyHgCT.

RUPyCY.
The financial stringency has differe':
from all previous ones in revealing. not
our bankruptcy, but our solvency II
all previous crises there was something
so hopelessly rotten in our commeIciai
system that it required the vigorous
surgery of a financial crisis TO get rid
Of the diseased portion.
In the panic Of 1857 wildcat banding
had cursed the country, and there could
be no healthful business until the ad-
venturers and rascaIs who had .lled
every State with their more or less
worthless little banks and their flood
of bank notes could be wiped out. IT
was impossible to do any sound, health
full business where every bank note that
a man received was liable to depfe
citation of from % per cent to ute:
worthlessness.
The panic of 1873 was the direct re-
suit of the frightful disorganization oc
casioned by the greatest war the world
had ever seen. Property had been yir-
tually destroyed in the South, and the
good property remaining in the North
had had its values so distorted by the
depreciation of the greenback down TO
35 cents on the dollar that no one knew
with any certainty what his real estate
or his pig iron or his wheat was really
worth. A rcadjustment had to be made
upon an entirely new basis and until
this was done there could be no con-
fidence in business circles.
The panic of 1892 was precipitated
and aggravated by causes which are
still! fresh in the memories of those
upon the stage of action. Our manu-
factories had had an unprecedented de-
velopment. favored by wise protective
legislation, but crowd of men who
were in violent protest against this
hea!thfuI encouragement succeeded in
getting a majority in Congress, which
proclaimed a firm intention of wipinS
out this protection. Naturally every
one of our manufacturers at once
ceased operations or decreased his ac-
tivities until he could see what was
going to be done. 1t was the part of
prudence. Every merchant stopped
giving advance orders for goods until
he could see whether he would be able
to buy them cheaper from Europe.
With this came the slump In wheat.
Owing to the great development of our
means of transportation and the per-
fection of the twine binder. which i'm
mensely reduced the cost of wheat
grnwipp tho nroduction of uyba,+ Il, =
been one of the most profitable indus
tries in the country for many years
1t has been said with great truth that
the twine binder enabled us to resume
specie payments. By 1890, however,
the rest of the world had begun to have
twine binders and swift steamships, so
that they could raise and market wheat
in competition with us. Thus while in
1866 wheat had sold in New York at
from s2.20 to s3.45 bushel. and as late
as 1873 had brought from $1.55 to
$2.25, the price sank in January, 1895,
to ASK cents. This could not help
spelling ruin to hundreds of thousands
Of farmers. who had bought land, built
houses, purchased agricultural imple-
ments and made financial engagements
of all kinds upon a basis Of two or
three times the then price for wheat.
AS matters began to be readjusted to
the new condition and the skies light
ened with a promise Of hope. they were
clouded again by tho fatuous advocacy
OF free silver a. a cure for the evils
Nothing could be done until this na-