Year: 1871

l W08uhod109 Tho0s


! In former times, before the magnetic tele-
graph, railroads and steam power came into
| operation, financial crisis In one country, or
in any particular locality, generally proved
very disastrous there before the rest Of the
world could either know of it or extend relief
Knowledge then had not taken wings, and
travelled only few miles an hour by the old
mail coach. That other mighty agent of our
modern civilization, the press, then spoke only
In short paragraphs and slowly. Now, the
| current events aud the financial affairs Of all
civilized countries are spread before the people
in full detail each day, and at different times Of
the day, as regularly as are the morning and
evening meals. Such catastrophe IS the
Chicago fire in times past would have proved
much more disastrous and have caused far
greater financial disturbance. Apprehension,
aud that sensitive timidity waich is character
istic of the money market and credit, would
have produced the worst effects before all
the facts could have been known. In
surance companies, banks aud other bust
ness establishments involved would have
been overwhelmed before they could have
made arrangements to sustain their credit and
TO bridge over the difficulty. Not only have
the telegraph, steam power and the press
promptly carried relief to the suffering and
given an example Of humanity and of the
brotherhood Of nations unknown previously,
but they have had the most important effect,
as well in dffusing the burdens, in regulating
the financial consequences and in averting an
immediate crisis. All commercial cities,
countries and business communities generally
have an interest 10 Chicago and they are CO.


operating through the rapid communication Of
intelligence to prevent, as far as possible, the


serious financial results that might have fol-


lowed.


It is the same under other circumstances
and casualties. These agencies are tending


to equalze values and conditions and to bring


promptly the money power of one nation or


locality to relieve the necessities OF another.
A financial pressure is felt in New York, and
instantly, by means of the telegraph means
from different sections of our own country or
from abroad are brought to overcome the diff
Guilty. The credit and commercial resources
of people are known at once
and temporary relief is afforded On these.
Bank or money exchanges are instantly
| regulated according to the circumstances, and
| the flow of specie or commodities restores in
time the equilibrium. True it is that know
ledge is power in the financial and CONNER
cial, as well as in the moral and political
affairs of the world. The balance of trade is
better maintained than formerly through the
agency of the telegraph, for this gives instant
knowledge of the supply and demand. There
must be a constant tendency to reduce the per.
centage of exchange and to equalize it between
commercial nations and different sections of
the same country. The effect of this will be
to make great revulsions more and more un-
likely and less disastrous.


We do not lose sight of the fact, however,
that overtrading, extravaganza and excessive
speculation result in financial disturbances
ard distress, nor that the mismanagement of
the national Ilnanees brings trouble upon the
people and retards the development Of the
country. Much as the consequences may be
modified by the agencies to which we have
referred nation has to pay the penalty for
its ignorance, reckessness and extravagance
just as individuals have. If we continue to
get deeper and deeper in debt to Europe, par
ticularly for those Injuries which are consumed
and leave nothing behind, we must be more or
less at the mercy of our creditors. True, it
may be to their interest not to press us too
hard and to keep us swimming along, but they
can keep US poor-keep our noses to the
grindstone, to use familiar expression, and
continue to absorb the available means drawn
from our industry. The republic under these
| circumstances is in much the same condition
| that the rich agricultural South has been in
relatively to the commercial North, and that
all purely agricultural countries must be in
The South, with its surplus products of cotton,
tobacco, rice and other things worth hundreds
of millions year, has been always poor and
mortgaged to the capital of the commercial
North. The whole country occupies much
the same relative position to Europe.


Then, again. we are not such pessimis!s as
not to see the astonishing resources, recupera-
tive energy and great future of the country.
The time must come when this republic will
| be the centre of wealth and financial power
| when New York will become what London
has long been to the res! of the world. A
great deal of the British and other foreign
capital that comes here, and which for
The time augments our indebtedness and
drain of specie to pay interest, will remain
permanently and become portion Of the ma
tional wealth. Apart from that which is con-
sumed in luxuries there is much that goes
into improvements, in railroads and other
things, which, of course. enrches the country.