Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1908-11-03
The Panic of 1898.

The Forum of August, 1891. contains
an article by the president of the Chem
ical National bank of New York upon
the causes of gold exports, 90 millions
of gold having been sent abroad within
a few months, mainly within the last
two
He first calls attention to the fact
that the bank of England in ordinary
times holds as a reserve only about 100
millions in coin, not merely for itself
but for the other great banks of London
and says that this sum is in fact the
pivot on which turns the great transac-
tons of the world, of which London is
the settling center.
He next calls attention to the condi-
ton of fiscal affairs abroad as one of
disturbance and apprehension, attribut-
ing ii first of all to the great failure of
the Barings, the great banking house
Of London, causing prudent men the
world over to pause and prepare for
other storms Distrust on the continent
caused similar retrenchment and con-
traction. At the same moment the
great Russian bear reached out his
paw and gathered into his own sub
treasury, called the imperial bank. his
great deposits of cash, estimated at 100
millions of dollars.
This constant scramble for the pre-
cious yellow coin struck at the boards
in the United States. Then began the
return of American securities formerly
sold abroad and often serving as collat-
eral to large loans made by bankers
The cessation of sales of securities and
the calling in of loans turned the bal
ance of trade against us, causing gold
shipments. Changes in tariff schedules
made by the Mckinley bill brought
heavy importations, supplemented by
a. great tide of American travel ac
centuated the outward movement OF
gold 10000 travellers spending an
average of 81 600 apiece would make &C
millions, the amount withdrawn
Last, but not least, was the Sherman
silver purchase act requiring Al millions
per month, for the purchase of silver
bullion for coinage, and turning heavy
expectations of silver bullion, which
brought in gold, into importations OF
silver which drained off sold.
In addition to ali these, was the fear
that we would not be able to maintain
the gold standard and the consequent
demand for gold to liquidate outstand'
ing obligations.
The lessons taught by this review is
that nations are not isolated and indie
pendent so that financial disturbances
are local affairs of no interest or conse-
quence to others. We are great
| family of nations and financial disorder
in one means financial disarrangement
in all. 1t shows, too, that panics are not
sudden and unexpected affairs without
adequate cause.
The financial skies did not clear but
became more dark and lowering. The
banks accumulated and hoar1ed gold,
while the predatory monetary interests
worked the endless chain TO deplete the
governments reserve until it was
finally exhausted.
Har ison took the presidency with
100 million dollars surplus in TIE treas
ury. Sixteen months after this Access
sion, John Sherman, on the floor of the
senate, warned his fellow pariisans that
deficit was already in sight and
urged them to discontinue their ex-
travagant appropriations, but was not
needed. Several months before the
close of his term, Harrison gave the
order for engraving plates for printing
bonds to repienish the exhausted treas
ury, but decided later to postpone the
printing and leave his successor to
rescue the country from the bankruptcy
he had brought upon it. Cleveland
used Harrison's plates for printing the
bonds with which to pay toe Harrison
debts and restore confidence.
Now Taft, the Intelligent and truthful
statesman, is telling The people that the
tar:9 act Of Aug. ?. 1894 caused the
panic Of 1893. Tae tempest broke in
November. 1892, and had nearly spent
its force when the Wilson bill became
Law. The panic came under the Nc
Kinley bill as he panic Of 1907 did
,rIar tha D5nuiox hill