The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-12-31
eondltloa d gtadnalIyl incrsnsitIrl !.

" increasing con
filence. q II 2;
The injurious consequences to fol.
low from this panic are not likely Il
be SO long drawn out OF. &c result Ii
such disastrons industrial depression
las the panic OF 1893 or the panic o
1873. and this for the reason that III,
condition OF the country makes 4. Sc
much easier TO resume business grad
, raliJ. TO accumulate capital, and ther
to rcaew the enterprises which had L
be abandoned for lack OF It. In ths
first place, We have a solid curreac,
with no suggestion now Of a departure
from the gold standard. In 1893 The
pressure for free silver was on, aat
the threat Of national reputation hat
much to do with the delay In the re
turn to prosperous times. Our govern
ment finances now are In excelien,
condition. and we have largo sur
plus. Our farming communities IL
the west to-day are not under the
weight Of mortgages and OF debt
which distressed them in 1893 aud
1873. They are prosperous and
wealthy.
Railroads Solid.
Again, the railroads, which make
up large part OF the wealth Of thii
country. are on a much solder foun
dalton than they were IN 1893. Then
many OF them had to be taken into
the hands OF receivers and immense
amounts expended by means OF re-
ceivers' certificates, displacing and de
/ stroying the value OF vested securities
IN order to put roads In safe and In.
come earning condition. The rail
roads to-day are in a better condition
than they have ever been in their his.
! tory.
Again, the balance Of trade Is with
us. We were able to settle for the
hundred millions Of gold that we with.
drew from Europe in order to meet
the demand for money in the markets.
Of New York, by the excess Of our
exports over our Imports in the single
month of October.
All these things point TO the prob.
ability of restoration OF confidence,
and after a proper liquidation and an
Industrial depression OF some months,
to resumption OF business on a nor.
nal basis.
Modern business Is conducted on. a
system Of credit which in normal
times increases the facility with which
the processes OF manufacture, produc.
ton and sale can be carried on n
thousand fold beyond the limit Of car.
Her days, and enables total OF many
billions to rest on a very small per.
centage Of actual. money passed.
Every manufacturer, every merchant,
Is, under modern conditions, depend.
ent in the successful conduct OF his
business upon bank credits extended
ut regular seasons. The banks them.
selves In turn acquire the means of
granting these credits largely from
the money OF their depositors and In
loaning from their deposits the banks
rely on the improbability that more
than certain part OF the deposits
will be called for at any one time. A
lack OF public confidence in the banks
creates a common desire among de.
positors to withdraw their money. The
fright which seizes the creditor-the
depositor-aud leads him to hoard his
money. spreads like wildfre and Is as
unreasoning and unreasonable us the
spirit of mob. "A run on the bank
ensues. The banks then call on their
debtors. and the tremendous struc.
ture depends upon credit tumbIes.
Meantime men who properly count
themselves as millionaires, who are
honest, conservative, solid business
men, always responding to their obi.
cations. find themselves as helpless
under such q financial cataclysm as
they would be In an earthquake.
h Danger In Scare.
Gradually. reason resumes Its sway,
but the Injury to credit and the blow
which has been struck at the normal
business progress has more. or less
permanence. Values have shrunk,
plans for a new and increased business
enterprises must be abandoned, and
liquidation and house cleaning take
place. The business men who have
had to stand the strain = who have
seen their fondest hopes crushed and
have only been able to come through
the crisis with the greatest effort and
most substantial financial loss are
q