The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1907-07-05
"PANIC" TO ORDER
POSSiBlLiTY THAT HISTORY WILL
REPEAT ITSELF.
einanciers and Politicians Of To-Day
Differ Little in Character from
These Who we're Prominent in
Andrew Jackscn's Time.

In looking back at our industrial
and financial history 1t Is interesting
and may be profitable to know that In
1881 there was great prosperity, csuo.
cially In New York city. The diary
81 Philips Hone, who was mayo: OF
New York in 1876, describes that pos.
perity as being beyond all former OK.
amplcs, accompanied by high rents
vessels worth double, good prices tor
ample crops, In fact, general prosper
Wy. Two years later President Jack.
son was In the midst OF his vigorous
war against the United States bank
monopoly. Nicholas Biddlc, the urcsi-
ucnt of that bank, was the grCa-
tlnancier' of his day, and he not oug
aimed to control the financial affairs
Of the country. but its politics also,
for he attempted TO defeat the rcnum.
tnation of Gem Jackson In 1882 ana
the nomination of Martin Van Buren,
TO be his successor In 1888 Hone
speaks Of ill.adyised action OF the
president in removing the government
deposits from the United States bank.
which he said produced an awf
scarcity OF money, stocks declined
greatly in value, n December Of
that year he speaa.- of panic PFC.
vailing and as times being "graycIy
hard Gambling in stocks, he says.
mas been carried on by brokers to an
extent disgraceful to the character Of
the city" He speaks Of spectators
selling stocks TO the amuun, of mil.
lions without owning a dollar Of the
stocks. betting It would fall and then
taking pains by every kind Of ly.na
and chicancry to injurc the reputation
of the stock that he may win" The
bears of the Wall street of those days
evidently had the bulls by the throat
and were making them below for the
time being.
But In the beginning of 1895 the
buiB were on top again and there was
renewed prosperity and speculation
in progress. Hone speaks of the high
prices prevailing for rents and com.
modities and the increased cost Of liy.
ing. THE rage for speculation I'm
lands in Long Island, he says. is one
+ the bubbles Of the day" He tells
lie OF Abraham Schermerhorn as hay.
ing farm Of 10 acres. three miles
from Brooklyn, which he had offered
for $4,000 four years before and now
sold for 100000, Two years later in
1887, however. the boom burst and
lots which sold at $3.50 were then
worth but $50 That was in April. and
on May 10 the New York banks had
suspended specie payments
There IS n great similarity between
those times and now Andrew Jack.
son was somewhat a prototype OF The.
odore Roosevelt, they are both Of the
strenuous type and President Roose-
vent. like Gen Jackson, is hardly sat.
isiied without having a fight on hand
with some one. The parallel is com.
plete enough even to the fact that
both were mixed up in n controversy
with ladies of great political ambition.
for while Gen. Jackson had his Peggy
O'Neil, President Roosevelt has had
his Maria in the Storer episode. only
there is this great difference, for while
the chivalrOus Jackson stood by the
woman In the case. even to the point
Of disrupting his cabinet. President
Roosevelt felt compelled to denounce
the political activities Of Mrs. Storer
WIN the parallel hold good In the
collapse OF the boom and a resulting
depression IN the price Of real estate?
VIII President Roosevelt be able TO
name his successor TO the presidency,
as jackson did with Van Buren,, after
he had broken down the politisul ma
chine of his party and created Ier.
sonal machine that he was able to be.
queath to his successor? VIII Presl.
dent Roosevelt prevail, as Ger Jack.
son did, or will the palallel be incom-
plete by the stalwart wing OF the Re-
publican party controlling the next Re-
publican national convention?
Whether poor crops and tight money
will cause a collapse of the present
boom is impossible to say until the
crop uutbltbN - Stlteu, we are now
doing business on ten to one basis
that Is the banks Of the country only
hold one dollar in cash for ever $40
they owe their depositors. It will not
take much to upset such an inverted
pyramid and great many more things
may happen nowadays than in Gen.
Jackson's time. There are indications
that the farsceing fren2ied financiers
have sold or are selling their specula-
tive holdings and the retirement from
active business of such masters OF
finance as j. p. Morgan and Rookie
Teller and Rogers and Stlllman looks
to be a warning for other people to
take heed before the next financial |
occurs. OF course, when a
boom collapses somebody holds the |
bag api these see their property melt |
away in falling prices for lack of buy. |
ers. Those who are out of debt will |
weather the storm. II they can pay
taxes and get along with reduced in. |
comes for a while. But those who are
In debt when the pinch comes will |