Year: 1873

press homeward its teachings and its lessons.
Ana first and most important OF these, using the
language Of a strict definition, Is that we have
passed through great financial crisis without q
panic. In other words, the recurring event Of
every ten years-'s7, AL '57 and in '67-but tided
over by the greater event of the war and It's con-
sequent financial strategy has been met boldly in
1878 and strangled in its inciplency.


WE HAVE HAD NO PANIC.


A crisis in our financial dealings has been met and
passed without loss Of confidence, without fear,
largely without distrust. Here are growth, under
standing, increased knowledge, 1rmer self-relia-
ance. The eXperimentalists OF '37 and '67 have be-
come to-day the safe engineers In times OF peril.
The fresh thought OF earlier days is now the ma
tured Judgment Of experience, and that which
might have occasoned widespread disaster Is
turned to mere profit IN instruction. Where are
we to look for that profit The question is simply
answered. In seeking the causes Of the suffering
we have endured and applying the remedy there.
The panic Of 1887 was the result OF overtrading
on our part and wild speculation in real
estate, particularly In Western Canada. In the
hopeful springtime of our national existence, we
over-discounted the promise OF maturity. Dream
ing dreams, we fancied them realities and sought
to turn them into currency until we overbore the
market, when our dreams, vanishing for the time,
left US ''poor indeed" In 1857 those same dreams.
resurrected, assumed q currency form that played
us the same trick of evanescence when brought to
the test OF practical applicability. Yesterday-for
1t is to be hoped we may speak in the past sense
was the thorough awakening. Dreams no longer
took material shape, and, being -exchangeable
Ior currency, perlshed, to the loss only OF their
dreamers. Currency itself rather appeared inclined
to assume dreamy character, SO Intangible did
it become in the daily transactions. Thus


IN COMPARING


those three events do we see not alone wherein
we have gained, but that which we have yet to
gain to be above such nhuence-in wide sense,
as Wall street panic. In 1887, still colony in
its commercial relations, we suffered reaction
from the over-stimuation which our Freedom in
political sense, had brought us. In 1857 too much
coming OF ideas into bank issues of currency precpi
tated the same result, when many OF these ideas
were demonstrated false. To-day the great press
ing, aching business needs or the country have
had to bear the distress Of insufficient token In
facilitating exchanges. In this summary are left out
the new railroad enterprises, the incomplete char
acter OF which precipitated the trouble through
therefrOm were simply Incidents upon the field OF
perplexity through which the non-elastic char
acter OF our currency obges US to pass every year.
Thus have we


TWO RECURRING CONDITIONS AFFECTING VALUES:
period OF redundancy. with imitation as u natural





reaching an extreme, with its inevitable breakup.
Our currency to-day as 1t stands, is great bless
ing. Having Tor its basis general credit which
takes the aggregate character OF o national en-
dorsement 1t Is currency OF o free people seeking
the widest latitude in their domestic exchanges,
with common faith in their chosen government.
1t is superior to gold, which is after ALL only an
arbitrary token and mas no comparative quality for
our own use and must eventually take Its place in
settling foreign exchanges when mutual conf
dence between the nations shall become as CON-
mon as that between the States OF our Union. The
advocates for


RESUMPTION OF SPECIE PAYMENTS,


In urging their peculiar theories lose sight OF the
terminate basis OF value than anything else.
fixed currency went out with the flrst bill OF ex.
well as corporate CLAIMS being substituted, with
the universal law Of supply and demand to govern
its issues. The earlier nations used brass copper,
current tokens of value. Gold In this use only
marked a later period OF luxury. Credit COM
mon human faith and confidence In one another,
grew out Of larger intellectual and moral de-
velopment 1t Is well perhaps to acknowledge
gold as o present standard OF material value,
just as In our moral strivings we assume
some point Of excellence that shall enable us, by
the principle OF comparison, to reach correct con.
cluslons But with this standard acknowledged
gold becomes no longer necessity OF our daily
business, nor in the resumption ofspecie payments
Is wise to look or panacea for all our financial
into common circulation. IL Is not needed. We
have our national bank currency and our legal
tenders, secured against all doubt and disavor by
the security OF the pledge behind them. Resump-
tion II 1t were possible, might temporarily add TO
the volume OF this currency in bringing gold into
medium OF exchange requires expansion; but this
would be only giving us ease for the hour, without
removing the source OF danger.


WE NEED MORE CURRENCY;


also we need means or rendering our currency
always productive, without the necessity OF incur
ing too much risk. The plan submitted in the
HERALD before. OF turning our debt to- account by
making government bonds exchangeable for cur
rency at the Treasury, interest on such bonds 10
cease while 80 pledged, but to re-enure upon re-
demption by the party or institution so pledging
them, deserves here further examination. Look
ing to the possible conversion OF d portion OF our
debt into an irredeemable consol, much needed In
this country as solid, safe and endurable Sc
curity for the investment OF trust funds, we have
in this utilization OF such cons0 In giving elasticity
to our currency at once an excuse Tor It's Issue and
means OF dlssipating its burden. How much Of
the revusion we have just passed through may
have been resultant from the undue strain put
upon our ~ national industries during the past few
yet fallen due is matter german to this thought,
and out OF these several


ANSWERING CONDITIONS


OF hrm credit without an elastic currency, an
overtaxed people, driven to the anticipation OF
their debt obligations, and the need OF an enduring
sale trust fund, we may perhaps reach sound
conclusion. The circulation or ideas upon this
theme Will help to correct solution OF the difcul-
ties that distinguish It, and H. through the event OF
the recent Wall street hurry, we should reach q
financial basis that will make us Independent OF
such shocks as occasioned that and grew out Of It,
1t win be cheap experience. In no department
OF human thought has man stood still so persist
entity US upon the subject OF finance. Content to
accept certain maXms, whose title to attention
was that merely OF the original settler on piece
Of land, to the quiet possession OF which by his
descendants the memory OF man runneth not to
the contrary, we have suffered


A sQUATTER SOVEREIGNTY IN RESPECT TO VALUES
to grow up In our minds TO the exclusion OF the
genuine sovereign idea-convertibiltty. Before
men had grown TO an understanding OF the use OF
paper, or trustfu enough OF one another, or pos
sessed the facilities OF transportation, gold became
paramount medium OF exchange; but now when
the same gold may be sold In London and New
York on the day. without handling, II Is self
such medium. What is that +? The answer Is
simple


CREDIT.


with larger share OF confidence In one another
we accept promises or value In the full satisfaction
that tho value OF which these promises are repre-
sentative exists and Is held subject to their re-
demption we may even anticipate It's existence In
the assurances that such existence Is foreQone