Omaha daily bee., 1908-10-25
PANIC FICTION IN OMAHA
No One Knows What Happened a
Year Ago Monday Morning.
WHEELS KEPT ON TURNING
Elimination of Surplus stocks and
Decrease of Debt Have Been
Features Of Year Following
Currency starvation.

-
What happened in Omaha a year age
Monday morning7
The same thing which happened in New
York City but five days before.
But the general public did not know wha,
It was. nor does one man in 100 now know
the significance of October 2s. 1907. There
Is nothing by which the average citizen
can remember the date. no reason why he
should keep It In mind even for a single
year. II was not a black Friday, but q
queer and sunny morning in October. For
some reason the public did not know what,
the banks proposed to make gold and silver
coin and national bank notes only the media
Of final payment; issue checks by bonds
deposited with a clearing house commit
tee and make braces of crooked figures on
the bank books do more work than silver
dollars and gold certificates.
This the general public could not under
stand. To the man or woman wholly un-
familiar with financial and business affairs
It was not an easy matter to explain why
the leading bankers OF omaha held a meet
ing In the rear rooms of the First National
bank which was attended by Representatives
Of the financial institutions OF Omaha and
South Omaha That they met early in the
aft-ernoon-stayed in the smoke-filled room
until late at night, used the long-distance
telephones to towns all over the state and
to Chicago and Kansas City, it was a
known fact But the meaning of It all was
q mystery.
The morning newspapers told of the meet
ing and shouldered a tremendous RESPONSE
biiity, but the optimism Of true conditions
was employed and when the banks opened.
though the public suspected. only a few OF
the customers were unreasonable oppressive
In demanding full payment of deposits in
money, while the reasonable we're told
simply that the bank in Omaha, though
they had no reason to do so because OF
their condition, had taken the precaution OF
refusing to pay currency except in small
amounts to prevent the eastern banks from
drawing the cash from the vaults and the
people from boarding money which should
have been left in the banks to facilitate
business.
But the pride of the west was hurt. The
pride Of Omaha was injured. Bankers
themselves were Inundated and many op.
posed the adoption of the plan because they
had never before refused to pay any man
in any kind OF money he might name, every
cent which he had entrusted to him.
Unlike other Panics.
Looking backward over the days which
have followed Monday morning, October 2S,
1t is apparent that history never repeats
itself In all particulars. but Is coustantly
repeating itself in some particulars; similar
circumstances appear in some combinations
and similar combinations recur under vary
ing circumstances, hence the probabilities
of the future may be Inferred from the
past.
In the financial cycle of 19O7-19OS history
did not repeat itself so far as Omahs and
the vast area between the Missouri river
and the Rocky mountains are concerned.
No financial panic ever had the same
effect on business In Omaha, touched In
dustrial and commercial interests so lightly
saw growth In improving conditions begin
so early and a golden age of general pros
perity appear so near at hand. Compared
with other financial cycles in the history
OF the west, the socalled panic" which
began Just a year ago. sinks into nothing
ness.
A COW started the great Chicago fire and
a blunder quite as bovine and much less
excusable because perpetrated by men OF
supposedly human intelligence started the
combustio of confidence that swept from
Boston harbor to the bay Of San Fran
cisco, when the spark was struck in Wal
street.-the Rome of America.
As Mrs. O'Leary's COW made a place in
history because Chicago was a boom city
with a great amount Of boom construction.
so the imitators OF the lamp-kicking DO
vine In Wal street. made a place and
started a panic because business was boom.
ing and there had been during 1907 boom
buying by merchants and dealers; booms IN
real estate and also In stocks and bonds
Omaha shares U~ndeserved TrOubIe
What was true in Omaha was true In
every other city ard center where line,
OF business are about the same. Thing,
were not exactly flimsy. But the Ions
gray cribs OF yellow corn on the farms
the granaries and corrals. encouraged tn,
ssrlcultural class to buy literally, know
ing the money would be coming in within
a rev weeks. The country merchant saw
the trade coming and more than prepare,
Tor II. Wholesalers and jobbers knew tn,
crop was not mueh more than two-tbird,
OF what II was the year before. but nrice
were better and they bought literally. tn,
factories had been running overtime an,
the warehouses of Omaha were full eve,
AFTER the country merchants had Dough
heavily.
Prepared for moving the crops OF. In
west as they always are. Omaha bank
had more cash In their vaults than usus
ana as the corn would not all be eathere
Tor -FOUR or five weeks the country hank
allowed . large amount of money to re
main on deposit in the banks OF omaba
Paper which matured in August ana Ser
tember was renewed with the usual car,
but the west was generous with the cas-
Just previous TO the trouble and som
OmAha money was placed in the east.
During the ten months OF 1907 a lars
amount OF money had been invested \
omahans In city real estate and loo homs
mad been erected. Some increase in value
was noueeaoie' but none who had bougt
TOT investment were threatened at an
time with a loss OF interest nv tn ,.ut-
OF rents.
Noch was about the condition in omah
OIEGTInN Ann ev