The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-13

This was the case in 1884 and 1893 The
present condition does not result from
scarcity OF money, and in that il Is dit
ferent from anything that had preceded
it. The banks generally had large de-
posits and were fully able to meet all de-
mands of legitimate business, and there
was no reason to apprehend such dis
turbanee as has occurred all over the
United States, beginning at New York
Public confidence, however, has been
shaken
Patience Of People.
The trouble began with the investiga-
tiOn Of insurance companies. The dis
closures demopstrated that some of them
had been managed dishonesty. National
and state legislation in the direction of
authorizing investigation and enacting
laws for the governance of insurance
companies and their productive institu-
tons. suggested by the conditions that
had developed. was somewhat radical in
its nature. This tended to create alarm
In the minds of the people.
In the early summer, revelations as TO
the traction companies of New York were
followed by one thing after another, re-
shifting in complete Generalization and
distrust. Thus people were induced to
withdraw their funds from the banks
particularly in the large cities of the
east This was followed by an investi-
CATION. and several of The companies
were forced to eject their officers through
the clearing house association The IS
Suauce of clearing house certificates fol-
lowed runs on other banks. which were
indeed, IN excellent condition. The New
York banks refused 10 allow their vest
ern correspondents who had placed
funds with them tn withdraw their
money Western banks also were conf
PEELED 10 adopt the clearing house plan
and we're forced 10 refuse to allow bank
ers still further west to withdraw the
funds they had on deposit. Thus the
wave swept over the country until il
reached the Pacific coast, clearing house
certificates and scrip being used BY even
IT, t,eas,t L.
owing TO the large importation of gold
from Europe-nearly 100000 0l0-anG the
kindly aid of the government in deposit
ing its funds in national banks and the
issuance Of 3 per cent certificates upon
which the circulation of the banks may
be increased. that we Snay soon have Il
complete resumption Of cash payments
throughout the country. OF course they
have to begin at New York. and properly
so. otherwise the banks in the west could
not safely resume cash payments until
New York sets the example and allows
the west TO withdraw the large sums of
money it has or deposit there.
Beginning of Trouble.
a feature of this so-caIled panic which
eXacts our admiral ton is the patience and
forbearance of the people at large whose
funds are held ~ the banks, and who have
not been allowed to withdraw except in a
small way for their actual necessities the
money which they have deposited
People will be slow to invest their
money in new enterprises. and more par
tlcularly so on account of the presidential
election which Is always a disturbing
factor. But the lesson will be wholesome
to the nation at large. We have been
living at too swift q pace. Business has
been unusually prosperous for number
of years. Wages have been increasing
from month to month. and people have
ACQUIRED extraVagant habits
Men have launched into enterprises
largely beyond their means, thereby con-
tracing obligations which were difficult
to discharge. We will settle down into
more conservative methods healthy
tide of prosperity will set in and continue
undisturbed. ] trust. for many years TO
come"