New-York tribune., 1911-11-29
Price Of Greenbacks Rise.

Price Of Greenbacks Rise.
The country soon began to feel the bene-
III Of the new order of things in tho bank
ing world. and New York was not the least
important beneficiary, being then, as it Is
now and doubtless always Will be. tho
Graucial ucrve-centro of the country FROM
re- cents greenhacks rose TO 70, -, aud ~
cents The close Of the war, or course.
PLAYED q big part in the restoration Of con
hdeuce and the general Improvement when
contributed TO this appreciation, but even
the 100 per cent increase i'm value was not
enough Nothing but par necessarily coud
suffice. since anything else would show
greater or lesser absence Of gold or silver
I'm the channels Of trade However. 'he
situation was not wholly saved until Sec
retary Shermsns time, IN the late 's.
with his simple theory tnat tho way to re-
sumo Specie payments was 70 resume.
Aleauvh hila New York banks had had ter
riblc experience8-Biack Friday. on Sen
tcYnber o. 1S69-strictly a financial panic
which was caused by gold speculation ana
might ho called home affair In that ii
Was closely localized in effect and tho
Sill more Dreadful panic of 1919. which was
industrial
This last named panic started with the
failure OF jay Cooke & Co on. septem-
Der 18 and as n means Of preventing the
sacslfce Of securities the stock EAcAAneo
vss closed two davs later and remained
closed til the end % the month. The 'lear-
ing House loan certificates issued 10 relieve
.s. Situation having an been redeemed 't
tar.ar,. p. tSI. thc uiieis e. ;GJs uN'd ~
have lasted not more thau four months
but the period of depression was vastly
j.ruer prices of all things continuing 20
decline and NOT reaching the turning point
r,.u ave years later. The eStraordinar>
Industrial activity in an lines upon the
Close of the civil Wpr had led 90 tie ia
ordinate expansion that caused tle pan.
and i'm the reaction there was pracucaliy
an entire stoppagc, the people not only
falling and fearing to- initiate new enter
.s.rscs. but even 70 finish those which hab
been begun.
The rau.. Of -sg3 was no; dssilnilar 90
t;at O. ls.s. being also Industrial, while
tr. ua.;c O. ,,J- called the silent panic
viti. y.c,. tuc.uling on the Stoc'; EX-
change and peoule generally unaware OF
tn. cause. niicn soon enough was ois-
closed TO be q currency famine, was purely
financial Foar months again was the
period Of duration. but. unlike 1913 and 1898,
tho aftc- effects were not long drawn out.
Rise Of Trust Companies.
Stu another important feature q the
banking history of the period under review
is the development iu Jhat time of the
aust company as q banking institution
The statute under which they were created
in this state aid not contemplate their do
Ing an ordinary deposit and banking busi-
ness. but intended them 10 act In fiduci-
nrv capacity. aui not a little objection 60
them arose when they began TO branch out
,ato the banking field. This was largely
based on the fact that a. they had not
been expected 70 receive demand deposits
no provision was made requiring them 10
keep q cash reserve. II was argued that
thia created q condition which might easily
develop into g great evil. but such did not
/ provo 10 Ue the case. greatly 70 the credit