Year: 1873

! ing, enterprising town.


We stated yesterday that the financial
! trouble is no temporary matter. In fur
! ther proof of this, we give the following
editorial from yesterdays Cincinnati Ga
zette:


! THE MONETARY SITUATION.
| We are compelled to say that the pan
ic in New York is not a mere furry, and
/ that it has not subsidized into feeling OF
| confidence, but that it has extended to a
revulsion 1t is not that the banks are
insolvent, but that they are called upon
| for their deposits, and the securities
which they hold are unstable, in the
! general necessity to sell, save at a ruin
Gus sacrifice. Every intelligent person is
aware that the business of banking is to
receive deposits and loan them, and that,
| in ordinary times, an immediate call on
the banks for their deposits would find
| them unable to meet it.


The most healthy monetary condition
may be prostrated by destruction of
confidence. Such a panic as this causes
the banks of the interior and West and
South to cease depositing in New York,
and to call for what deposits they have
there Capitalists, merchants, and bro
kefs are likely to do the same, even
while they are saying it is only furry
and will soon blow over, and indeed is
over already. Thus the inflow of depos-
its ceases while the drain comes from all
quarters The decline in such securities
as the banks hold is so great that to force
a sale of them to raise cash would be ru-
inous. They might as well fail at once
as to sacrifice their assets and make
themselves insolvent and then fail.


The immediate effect is also to cut off
the line Of discounts to commercial hous-
es, which at once spreads distress into
the general trade.


A general call for deposits makes inev
table general suspension. What has
been hoped all along is that there would
be no general call. This is the object Of
the efforts to quiet the fright and restore
confidence. But there are many who, in
words, try to quiet alarm and to raise
confidence, who, for their En part, draw
their money from the deposit and hoard
it for the crisis to pass. In this way, a
vast amount of money gets locked up at
time when the demand for money is
multiplied.


1t would be useless to attempt to con-
ceal that there is much alarm in New
York, and that the pressure is very Sc
we're, and has not yet eliminated 1t is
working serious disasters to all kinds Of
business. 1t is not, as the London Times
called it, an effort of the financial system
to eliminate its dishonest elements; for
some of the most dishonest elements ri
oted in the panic, and some of the houses
that have gone down are of the best in
the land.


The associated banks have found their
mutual plan embarrassing by their un-
willingness to embrace all. But if they
rule out some whom they deem weak,
this will precipitate their failure, and
that may increase excitement to the dam
ger of the associated banks.


We do not doubt the general sound
ness of the banks and trade of the coun-
try In the usiial order of business they
can pay all. The restoration of conf
dence would bring money from its boards
into the channels of circulation and de-
posits again, and this would restore the
prices of securities, which, even in the
speculative stocks, were not inflated
when this crisis came up. Until this re-
action the public must not Judge hastily
the measures the banks take to gain time
and to fortify The trade of the country
is in healthy state There is o large
demand for its exports. and the South is
| Just coming in with about four million
bales of cotton to create foreign exchange.
! These substantial realities, it is hoped,
will soon convince all parties that the
country is sound, and will restore the
faith that belongs to so substantial a
! foundation.


1t is with satisfaction that we contem-
plate the fact that the farmers of Jack
SON county had nothing to do with the
Grange, folly. 1t is not only folly, but
a crime. Our farmers knew that railroads,
and the manufacturing interests of the
country, were the two things that gave
them good markets for their grain, and
all the products of their lands. Our
county is not rich agricultural county
yet large amount is produced in the
| aggregate. Our farms are small, yet
every one produces something, and what
ever is produced finds ready market,
! either at the furnaces or at the cities
made accessible by railroad.


We saw recently in some of the papers,
gone wild over the Grange folly, that the
farmers of Jackson county would soon
! go into this movement. They were mis-
| taken.


1t has always been feared that the
want of pure water at this place would
prevent the erection of rolling mills
When the shaft was nearly completed on
Mr.. Vaughns land, great stream of
pure cold water was reached 1t rushed
in with such rapidity that it took num-
Der of men day and night, with two