| Show PANICS AND ahcin 1 CAUSES irvian of it ft C currency breeney volume cun call lie ile C Control parelie lc I 1 by n I 1 ow blen 1 amr fl L panic occurs lit in tiny country irn or auy any other it is due to tollie I 1 lie ill tempt attempt to la male make credit do the lie work mork of cash may bo be the an ani incidental cause this is tile the effe ru atti lil one bieh which has produced vei MI anni ich f from rom tile the first and gica greatest test of moden times to the latest which bic 11 fOlIO NNed ir ill america the lie proclamation of three years 11 ago go ag against rain st saher cr the john law panic followed illi immediately mediately on the firt first rent coall systematic attempt to mon etise cred civil it and it brought almost rl as muel misery in its train ansa ns a war it wa was s not characterized ll glocer ocer 13 1 an attempt to demonetize cash that mos most t potent clause cause of modern parties panics was not ope rathe in laws tint time ill brought about his panic by attempting to remedy re an existing cash shortage by floating credit paper papel into auto circulation and arx trying ing to make it do tile the work of at cash this discovery 1 is able modern modera and it is characteristic of blat is nox now the english Ingli sll system sistena of blinking banking control of the medium of ceh Cell tinge ilage a system wh ch is iff undoubtedly the mcdent scheme of robbing t bc lie people of oppressing labor and taking unjust toll frodi trade ever dei de ased by the ingenuity of the human intellect under L this plan the supply of cash is 0 o rr restricted list hat a demand is created foi far the circulation of credit iriner and the system requires that at all times cash in actual circulation shill shall be no more than enough to ranke make clearings on oil au an increasing volume of credits hence it is the most dangerous dan gerou s system s possible for business and the tact fact that the credit circulating as cash is generally general ay paid or cleared as cash does docs not make it so the entire coluni of credit paper is added to the flip debt a ol 01 I 1 ill tin com community munty in order to keep heep it adois the supply of cash in circulation i is re tricked strict cd when a stringency comes it means a general call fo for cash to make the lie credit good it means that the sound backer must do his best to dra crovi all possible cash inao his resene lit in order to meet the increasing pressure on ills his outstanding credi paper at such times as this tic cie real character of the blank note based on oil sold old is IN rexeal revealed ree aled ed it is not money at nil all and is not based on gold cold at all but being acin a apart part of 01 the floating debt it the pre pressure sure for gold the honesty of ilie banker and his determination that ili his notes shall not go to protest forces him to corner gold is as tar far as lie can call that his bis re of gold may be equal 0 o the he v them lie also calls in liis his notts jis as far as lic he can cac if he be be an honest dionest and sate safe man mail thus this dpn er reliability increases the stringency h b decreasing the amount of cash in act actual ual circus while on the other hand it the credit paper can ill met it its alume is also restricted while on the hie other it is sure eure to colla collapse if it i is too inflated to be met the panic banic is chils absolutely inseparable from aery attempt to the paradox involved in the is so clear that it would ion 1 0 fo han ha e condemned the system but for i he e enormous profits the money dealing lacapa blasses can make while they are arc alow houed ed to restrict cash circulation and lend end out their heir own notes as cash t blat ot k i to have their own pronte debts issued as currency treated as safer than silver 1 I er at and d worth orth as much at interest as is gold the de aclus luson on that this is sound found fi inalee i nanee and bonest gonei t money seas annie disinterested mm men who v bat aresther are obber ft i iw ise sane but it is certain certainly v title the most delusion of the nineteenth century it has brought on oil ung cliff land ever since the beginning of the century an average of 0 one panic for fiery ten y years ears and these panie panics must erta mainly continue while england ILI aa los lons its supply of cash ash to be shortened mil and kept short in order to keep bank lotes merr mer credit paper representing 4 loat afloat as the principal part of its I 1 jurrency we c have had panics in 13 s w ith angland and will continue to have have them it i wr we surre DiJT rider to the attempt to keep heep I 1 ilic lit plentiful and useful of the orveil precious us rici als in order 1 lu lan the silk paper on abich chieh print the debts the flip deficits ivits the dollarson dollar abu a hundred ildred cents less than ilian nothing lit at all they wih wi h to lend out to the bui business riess community st at the highest los possible sible rate of interest they a uli in force in hn the forced restriction of t ille ilie supply of actual cash st louis rao A dispatch |
