Semi-weekly herald., 1908-02-10
NEVER WAS GENUINE PANIC.

FURRY Due Solely to FaithIess Bank
ers. Says Leup City. keb.,
Man.
Loup City Northwestern.)
Nothing but q bankers panic" is
the terse way A. P. Cuiiey. president
OF the First National bank OF Loup
City. sizes up the financial furry In
the Daily Omaha Bee OF late date.
There never was panic and there
won't be one" added Mr.. Culley. 81
wrote letter to John u. Forgan OF
Chicago. In reply to the Chicago bank
ers asking II we were ready to re-
sumo cash payments. in which told
him my sentiments. The thing Is
this: Those fellows in the big cities
saw a ghost. and they tried to make
us see the same ghost. We had to
look through too thick wall OF pros
perity to see any ghosts. There are
no ghosts. or II there are they are
only ghosts and nothing real.
Il got one of those letters in which
the bankers there practically said;
III you leave your money on deposit
with us. well resume paying cash
Well. bless their hearts. my bank at
l-oup City never ceased to pay cash.
We have been paying 1t right along
and we are in better Tx than we ever
WERE
Here Is Mr.. Culley's letter to Chi.
cago;
Mr. John b. Forgan. Chairman Chi
cago Clearing House. Chicago, Ill.
Dear Sir:-Your circular of Nov %.
carrying more OF the seeds OF our
trouble. at hand. Why not resume
normal banking at Queer This very
act would answer all your long and
scary paragraphs. Cease at once this
EFFORT to deceive yourselves and the
public viii be undeceiyed. If the
cowardice. the confidence will lose
confidence forever In them. There Ii
little more than the fright and cow
ardice of the bankers In this whole
ghost show. Can't you see how hon
estly and nationally the public is be-
having? Why not be as rational aad
honest as the public? Should the Chi
cago bankers resume business at
once. all your questions In your cir
cular would be answered at once.
The plea you make rests on nothing
and is worth nothing even If promised
and any banker ought to know this.
Get natural. get honest, get contidsn-
tial, get TO business. get back next the
people at once. and this question will
be at an end. Quit your talking, writ
ing, disputing, go to work and to bus.
mess and try to forget what the peo.
Pile have already forgotten. Get to
the truth and go 10 banking and you
will have no trouble. We will trust
you when we believe you can trust
yourselves. Then western money WIN
dow to you in abundance, but not un-
I'll then.
The largest percentage OF this
trouble the bankers have made them
selves. Human nature Is essentially
the same everywhere. We have goue
on as in ordinary times and our bus
mess has not been injured or money
reserve gone down one dollar. whiis
other banks in the country made fools
OF themselves and their customers
and will suffer from the lack of coz
fldence and character, when all Is
over. Get right at once and the pub
lie will follow II you don't delay too
long" r-
The above letter from Mr.. Culiey
was published in the Bee and the
World Herald some weeks since and
was written to sfr. Jorsan right In
the midst OF the anauciai furry. That
Mr. Culley sized up the situation
about right, one has only to read tho
report OF Comptroller W. D. Mdgeley.
published to the world about Jan II.
which ascribas the recent furry to
fhNh Va tchhoNhNV VI b"hhS IL ehrhb
selves and their reserves" Co3ttnu.
ing. the comptroller says, In part:
The conditions which led to tho
panic Of October and November. 1907.
were not due to the failure OF few
individual banks nor TO the lack OF
confidence of the people in the banks.
but more to the lack OF confidence OF
the banks In themselves aud their re-
serves. Banks have been fearful that
the reserve system would break down.
and in consequence il has broken
down. and the reserve deposits have
been only partially available. They
were also fearful that not sufficient
currency could be supplied to meet
the demand. and as they all made the
demand at once. there has aot been
sufficient currency. Ths result has
been a currency famine.
Following the publication or Mr..
Culley's views. he has received a
large number OF letters from bankers
and business men from over the cou3.
try f.op p0rat atulatinp him I'm fha stand