Show 1 W States Is Panic Proof of By Ira C. C Tichenor LT T the currency and banking system of the United States has Lade aada the country proof panic under wise financial leader- leader 1 JK co confidently expressed by the National Bank of Commerce in York ork in n an article bearing the hc title The Normal Business In n the June number of its magazine Commerce Monthly The f federal deral system the bank says lays has been devised to make panics Impossible future and there is Js abundant reason to expect that that we shall not ot se sein see seen in n this country such demoralization n and chaos in the money market as airs rs 1893 or 1907 witnessed 9 currency and banking system can avoid the recurrence of crises in nse ense of liquidation periods or p periods r ot of readjustment but we we have hare grounds for confidence nce that under wise financial leadership our cy Cl and banking system has made us proof panic the bank states nods of reaction and liquidation unless too too violent violen and prolonged wholesome rather than harmful the bank says It I explains that such r are merely merly phases phaes of the general rhythmic movement in business It I Ie I e tates however between crises and panics defining a crisis as an I Industry generally and a panic a aI at aan an affair of the he money mar mar- mardIt mar I I nt It I declares that sound bank policy c can can n a and d does prevent nt crises from crating aerating into panics As z-s z our understanding of crises has increased ased U the e bank stats states we come come orne to substitute for tor the n notion tl n of crisis the not notion n of ot business rand and ad to recognize recognise that the crisis is m merely l lY a a phase of the g general mic Ic movement In business crisis business business crisis foll fol followed wed by bY depression depression by erity ity prosperity by crisis again and and e BO so on There is good d reason reason for irig nl too that with wih better beter understanding of the bu business cycle we e. e are better beter control contro of It i that the period of prosperity can an be lengthened the crisis crisi can ean be made less severe and that the of depression can I If we can mh minimize he the extravagance and mistakes mistake of the ert ity period we can make the reaction from It fless less severe t re can be no doubt that the financial a and d business interests cpm com cpm cpm- wit the people generally can minimize any trend toward busi business ess or undue inflation by adopting the plan of consistent making buying toying in the face of dullness or prospective backwardness or by apply apply- ply ply- f conservative lve brakes when th there re Is a danger of undue expansion slon The latter later process recently was WIS applied with wih undoubted good results to to Country country count as a whole and giving an n. n example of the effect of ot the enforce enforce- of conservatism at all al times Doubtless the United Stat States s possessing now the best banking system in word i Is I as near panl proof panic proof as a n nation ton can get but even at that It J vise Jie to keep tho brake of conservatism in order at all al t times mes |