The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1908-01-09


able that the stringency, which reached
its height ON tat dark day of Oct "a.
might in part have been alleviated had
We had a currency which could automat-
ically enlarge itself to meet the tremen-
dous demand OF a day or a week or
month while public confidence is being
restored. The national administration.
together with many of the large capt.
talists OF New York and elsewhere, put
their shoulders under the load, and by
various devices of an unusual character
have brought about the present condi-
tion of gradually increasing confidence.
The Injurious consequences to follow
from this panic are not likely to be so
long drawn out or TO result in such dis
astrous industrial depression as the
panic of 1898, or the panic Of 1873,
and this for the reason that the
condition of the country makes it
SO much easier to resume business
gradually, to accumulate capital and
then to renew the enterprises which had
to be abandoned for lack Of it. In the
first place. we have a solid currency,
with no suggestion now of departure
from the gold standard In 1898 the pres
sure for free silver was on. and the
threat of national Reputation had much
10 do with the delay In the return to
prosperous times. Our government
finances now are In excellent condition
and we have a large surplus Our farm
ing communities lin the West to-day are
not under the weight of mortgages and
of debt. which distressed them in 1898
and 1878. They are prosperous and
wealthy.
Again, the railroads, which make up
large part of the wealth of this country,
are on IA mucn solder foundation than
they were in 1898. Then many of them
had to be taken into the hands Of re-
ceivers and immense amounts expended
by means of receivers certificates dis
placing and destroying the value of
vested securities in order to put roads
In a safe and income earning condition.
The railroads today are in a better physi-
cal condition than they have ever been
In their history. But few of them have
recently been built into new territory,
in which business has to be created by
introducing population.
Trade Balance With Us.
Again the balance of the trade Is with
us. We were about to settle for the $100-
900, 900 of gold that we withdrew from
Europe in order to meet the demand for
money in the markets in New York by
the excess OF our exports over our I'M
ports in the single month of October.
All these things point to the probabili-
ty of restoration of confidence, and af-
ter a proper liquidation and an indus
trial depression of some months, to
resumption of business on a normal
basis.
Modern business is conducted on a sys-
TEN of credit which, in normal times.
increases the facility with which the
work of manufacture, production and
sale can be carried on a thousand-fold
beyond the limit of earlier days, and
enables total of many billions to rest
on a very small percentage of actual
money passed. Every manufacturer.
every merchant is under modern con-
ditions dependent in the successful con-
duct of his business upon bank credits
extended at regular seasons, The banks
themselves in turn acquire the means
of granting these credits largely from
the money of their depositors And in
loaning some of their deposits the
banks rely on the improbability that
more than a certain part of the deposits
will be called for at any one time.
A lack of nublic confidence in the banks
creates a common desire among deposit
tors to withdraw money. The fright
which seizes the creditor-the deposit
tor--and leads him to hoard his money,
spreads like wildfire and is as unreason-
ing and unreasonable as the spirits of a
banks then cali on their debtors, and
the tremendous structure depending up
on credit tu:nbes.
Meantime, men who properly count
themselves as millOnaireS, who are
honest conservative solid business men,
al,YayS responding to their obligations
find themselves as helpless under such
financial cataclysm as they would be in
an earthquake.
Return Always Gradual.
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 new and
increased businesses enterprises must be
abandoned and liquidation and house
cleaning take place. The business men
who nave 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 nat
urally sore and depressed. They be-
lieve, and generally they are right. that
this disaster has come upon them without
fault of theirs 1t is unjust to them.
No matter how many symptoms of the
coming trouble there may have been,
panics always come with a shock and
ment. And hardly is the panic over
but a fierce discussion arises as to the
cause of its coming. With various mo-
tives. editors and public speakers rush
to the front to faSten upon something
or someone the responsibility for what
has happened. 1t is entirely natural
that in the conultiOn of mind in which
the suffering business men are left by
the great strain and trial. such sugges-
tionS should receive marked attention,
and that the more definitely the per-
sonality of the scapegoat can be fixed
the more pleasure 1t gives the victims
OF the catastrophe.
The mental attitude Of the business
community, which ! have described as
likely to be found after every financial
panic. is clearly present to-day. The
economic and political history of tho
last four years gives it special impOr-
ance, because 1t offers to certain ele-
mentS in the business and political COM
munity an exceptional opportunity. Let
me invite your attention to that history
II is that of giant struggle between the
nationa administration and certain pow
errul combinations III the financial
woT.-. These combinations for lack Of
a better name are called trusts" They
are engaged in different lines of manu-
faCture and production. BY assembling
large amounts of capital into one mass
in particular line of business, managed
by successful and skillfully devised,
but illegal method of duress, to exclude
competition and monopolze the trade,
they became the dictators to great rail-
roads however powerful, and by threat
ering n withdrawal of patronage secured
uni Wiul and discriminating rebates,
greatly increasing their profits and still
more com0letely suppressing competi-
tion. Managed with conspicuous busi-
ness ability, these trusts went into legit-
innate foreign trade and largely increased
| our country's exports. The profits which
| they reanZed enabled them to engage In
| other enterprises carried on by legid-
| mate methods until the hold which they
acquired in the business community gave
| them a posl,.on of vantage 1t seemed
| hopeless to combat. The basis of their
| original ha