The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1922-05-05
"NO INTEREST TO BE COL
LECTED FOR THREE YEARS

y
D., during the Consulship Of Galba
and Sulla, the Roman commercial
world was shaken from center to cir
conference by the greatest panic
known to its history.
A vivid account of the panic is
found in the pages of Tacitus and Seu-
tonius. About year before the pam
ic, trade reverses and the loss of three
richly laden spice ships on the Red
Sea had jeopardized the position of the
| firm of Seuthes and Son, of Alexan-
dria. A little later the firm Of Nal
chus and Company at Tyre, with fac
tories at Antioch and Ephesus, went
| bankrupt owing to a strike among
their Phoenician workmen and embeZ-
elements of the manager. When it be-
came known that the great Roman
banking house of Quintus Maximus
and Lucius Vivo had loaned largely
to both Seuthes and Malchus, depos-
itors started a run on these banks.
The still larger house of the brothers
Pettius was involved and in one day
all three banks closed their doors,
This great Roman panic had all the
characteristics of a modern panic.
Banks in Corinth, Carthage, Lyons
and Byzantium went down before the
cyclone and after this nothing seemed
able to check the food Of insolvencies.
One bank after another closed. The
IL per cent legal rate was set at
naught by any man lucky enough to
possess ready money. The Praetor's
court was crowded with creditors de-
manding the auctioning of the debt
ors' houses, slaves. warehouse stock
or furniture. The auctions were thin
ly attended, for who could buy. Valu-
able villas and racing studs were
knocked down for trifles. Caught in
the disaster, many men of excellent
credit and seemingly ample fortune
were reduced to beggary. -aEE
The calamity seemed spreading ov-
err the empire and threatened stop
page of all commerce and industry
when Gracious, the Praetor, unable
to decide between the hosts of ydes.
perate debtors and equally desperate
creditors, invoked the aid and advice
of the Senate. After a hurried debate
the Conscript Fathers, dispatched O
fast messenger, with full statement
of the danger, to the Emperor Tiber-
Jus. in his retreat at Capri.
Four days later a vast throng
slaves and millionaires elbowing to-
gether, filled the forum while the EN-
peror's reply was read, first to the
Senate and then from the open ros-
trum, to the waiting people outside
Tiberius' accustomed good sense was
apparent in his solution of the prob
lem. He ordered 100 million sesterces
flour million dollars) to be taken from
the imperial treasury and distributed
among bankers to be loaned to the
neediest debtors; no interest was tx
be collected for three years. !,
Gradually, the Via Sacra (the- Wal
Street of Rome) resumed its wonted
aspect. We are told by the historian
Stearns that a few banking houses
and individuals never recovered THEN
losses but that the majority escaped
permanent suspension.
Undoubtedly, the crux Of this i'm
perial remedy is found in the cancel
ing of all interest obligations fol
three years. If such remedy coulC
be applied to the panic that is threat
ening, not one but all empires ant
nations, beyond all question it would
prove more effective than any Other
conceivable remedy. In the United
States alone, it would liberate approx.
imately five billion dollars annually
and appropriate it to productive pur.
poses rather than to mere payment or
dividends. We have the high author
ity of Governor Strong of the Fedora
Reserve Bank of New York City that
money cannot be used to pay interest
on debts and at the same time t.
purchase goods. ..
Undoubtedly, if the remedy by
which one of the wisest of Roman EN-.
perors saved the empire from uttel
destruction could be applied to thu
. present situation the effect would BIZ
to reanimate the dead corpse of pub
lie and private credit as by miracle
Is there enough real craftsmanship a
Washington to apply this remedy
The question answers itself. Hilairt
Belloc, one of the most acute critic.
of contemporary politics, says: "In al
parliamentary countries few in
!. triguers are the unworthy depositor
les OF power, and by their service o.
finance permit the money dealers tx
govern It's all today" in other words
: Wall Street is identical with the gov
! eminent.
The visible government has Ions
, been the ebsequious servant of the in
: visible government. Verify the BATH
is with principalities and powers il
! the highest places. 1t affords foo,