The Washington herald., 1914-09-10
HISTORY BUILDERS.
A Panic that Halted Improvement in
Navigation.
Written Expres6 for The Hsrahl
By DIR. r. J. EDWARDe.

1 iHTffen ELEe1AU lot lte neiNhll
By DIR. r. J. EDWARDS.
william Window resigned from the
Cabinet Of President Arthur in order to
resume the seat in the Senate which he
had given up 90 that he might accept
President Garfield's invitation to become
Secretary OF the Treasury. The Mime
| sofa legislature had not filled the va
! cancy caused by Mr. WINDOWS resigna-
ton, so that there was the opportunity
to re-elect him as his own successor.
something that was without precedent in
/ the history Of the Senate.
After his term as Senator expired, Mr..
Window became much occupied with
/ business affairs. some OF which were con-
| centrated in New York City. He spent
much of his time in New York. and was
always received with distinguished con-
! sideration in view Of the fact that he
| had been not only Senator. but Secretary
| OF the Treasury and had conducted a very
! brilliant financial achievement when he
refunded the IS into 3l-2 per cent bonds,
which became colloquially known as
! Windows" I was chatting with Mr..
Window about two years after the brief
panic OF New York City, which was pre-
cipitated by the failure OF the firm Of
Grant & Ward. in which former President
Grant was a special partner, a failure
which swept away Gen. Grants entire
fortune.
I asked Mr.. Window II there had been
any reason to suspect that conditions
were such as 10 Justify apprehension OF
financial disturbance
He said: Like ali panics. the climax
in 1884 came suddenly, and many persons
thought II was due to a sort OF volcanic
or cyclonic disturbance. instantly created.
From one point of view II was The ap-
pearance Of it was instantaneous. but
after the financial world had time TO
think II realized that II was due chiefly
to overeXpansion of railway construction.
and therefore overexpansion OF our credit
in Europe.
How suddenly a panic affects not only
community. but a nation l had good op-
portunity TO learn at the time Of the panic
OF 1873. II came like the approach Of a
thunderstorm. II was conquered after a
short time, but the remote effects Of IL
lasted for years. l suppose that II Il had
not been for that panic the United States
would have had under way within two
or three Years preparations for the i'm
provement Of the navigation OF the Mis-
sissippl River and OF the Great Lakes
Il was one OF the committee OF the
Senate appointed for the purpose of in
vestigaiing the question Of improved nav
igation OF the Mississippi and the Great
Lakes. John Sherman was another mem
OeE OF thal committee ana so was KOS
coe Conkllng
I'VE were in session a. Buffalo, be-
cause that city is the Eastern terminal
OF the Great Lake navigation. It was
while We were in Congress that We re-
ceived intimations. I think from one Of
the Buffalo newspapers first, that Jay
Cooke & Co. OF Philadelphia, had sus-
pended and that great panic was in
full sway in The financial centers.
Il remember that Senator Conhling
asked: Won't this make II necessary for
US to suspend our Investigations?
Il looked at Senator Sherman to learn
what he thought about the matter. He
said: We might as well adjourn. Con-
gress will be in no position to take up
the matter Of the improvement Of the
waterways at present No one can tell
just how far this disturbance will 60, and
II cannot be perfectly adjusted until the
government provides for the resumption
OF specie payment. This panic Is due to
overeXpansion Of currency and credit
We did soJOurn and the panic Of lST3
procrastinated for many years the i'm
portant work OF improving the navigation
OF the Mississippi and the Great Lakes.
Copyright. 1914, By z J. EdEsrd& All rights 70
EUed.l
Tomorrow DR.. Edwards will tell Of An
Instance Of Gladstone's Prophetic In
sight