Year: 1873




OF tho Policy OF President Grant.


The week opened quietly in Wall street yes
terday, and there is much encouragement that
the crisis will be tided over without any
serious embarrassment to business. A few
houses which entered into rash speculations
and dealt in bonds which were without any
certain basis of value; few banks which were
little too accommodating to the operators,
and one or two trust companies had fallen be-
fore storm of their own creating. On Satur-
day night it was by no means certain how
business would open on Monday morning. AS
in the United States Treasury was un-
touched, and there was no anticipated
trouble among the merchants. Though there
had been great excitement there was really
no cause for very serious alarm. Still there
was no absolute certainty as to the future.
There are always men willing to precipitate
crisis, and it was plain enough that some of
the reckless spirits in Wall street were ready
to hurry the country into general bankruptcy.
Sunday came opportunely, and served in a
considerable degree to allay the storm. If
Monday brought no additional failures, or
failures only Of the same class as before; if the
banks stood firm and went on with their bust
nary times; if the people were prudent and
made no ''runs'' of any consequence upon
the Ysavings banks and other institutions,
which were in reality outside of the vortex of
this panic, there was every reason to hope
that the worst was past and the danger almost
over. Whatever '.runs'' there were yesterday
upon the savings banks were unimportant and
were promptly met, and if public confidence
is maintained and no imprudences are COM
mitted, the Stock Exchange may soon resume
business without danger.


In looking back over this panic some
features present themselves which are new in
| financial crisis. Conservatism has been in
the ascendant throughout The disposition
| not to precipitate events has distinguished
the course of the HERALD, the conduct of most
of our business men, and the policy of the
government We saw from the beginning
that the panic could be prevented from be-
coming general in its effects, unless alarm and
fear took the place of reasonable action
Hence we have constantly counselled mode
ration, and we have not even alluded to the
savings banks, lest even word of caution
might precipitate the result it was intended to
avert. If one thing is to be more deprecated
than another it is a ''run' upon these institu-
tions. They are entirely without the whirl-
pool of this Wall street excitement and
are not affected by it one way
or the other. Should depositors be-
come causelessly alarmed their alarm
would be injurious to them and profitable to
the banks. Sound institutions, such as these,
which are by law protected by first class Sc
curities, are always in a position to make
money out of peoples fears. A case in point
is the ''run'' on one of these institutions soon
run was a long one, lasting nearly three
weeks, and every day of its continuance en-
abled the bank to make enormous profits
through the deduction of the interest on de-
posits. similar result would be likely to
happen now, the savings banks making large
profits out Of the fears of depositors. It is
plain, then, that there is wisdom in modera-



There is no reason why poor men should
sacrifice their little boards to unreasoning
fears or precipitate their own ruin because o
few reckless spectators in Wall street have
been overwhelmed by the dangers they SO
boldly and so persistently courted.


The moderation of our business men is also
worthy of great commendation. The mer
Il NJ, W H. e.
the speculative brokers were topping over and
held themselves high above the storm. The
banks evinced the proper foresight and spirit
by preparing for any emergency which might
come to them. Instead of going down into
the street with their millions to still further
distract the market and make impending ruin
inevitable, men of wealth and character and
influence kept themselves out OF the fray
altogether or stood ready with their money to
unloose the tightening market The press, too,
is to be warmly congratulated for excellent
advice and earnest work. On every hand
there was determination that the spirit of
reckless speculation, though it might crush
its own ministers, should fail to find victims
among innocent people or be able to involve
the business of the country by its destructive
follies. The same wisdom and magnanimity
and moderation, if maintained till the end,
will do much toward tiding over the crisis and
establishing legitimate enterprises on firmer
basis than ever and the whole country will
be the gamer in this, that sound and specula-
tive stocks will not be quoted together in the
Stock Exchange and command almost equal



attention in business circles


Lastly, the policy of the government has
proved as wise as it was moderate. We cannot
too much praise the course of President Grant,
for it has probably saved the country from
great financial crash. Many persons, wild
with the excitement OF the moment and fear