again, danger is imminent.

On the other hand, a steady and radical reduction of loans and
discounts, following a panic and extending until new enterprises are
very scarce, till prices are very low, till there is wide-spread
idleness among workmen, a decrease in salaries and in interest rates,
when the public is wary and speculation dead, and expenditures are cut
down as far as possible, may be taken to mean a rapid and continued
resumption of every prosperous business: but if the above process is
only partially performed, renewed trouble must result;--in other words,
liquidation to really be helpful (to congested business) must be
thorough.

A study of the first of the following tables, "National Banks of the
United States," illustrates the above generalization. It is unnecessary
to mention that 1878, 1884, and 1890 have been the last three panic
years. But it is very necessary in studying this table, to bear in mind
that its figures are taken from the standing of the banks at the first
of the year, while the panics generally occurred later in the year: the
last two, for instance in the second and fourth quarter, respectively.
The third and fourth tables will give more exact figures in this
connection. Table Two, dealing with State Banks, is given merely to
round out our banking history as told in figures.

The increase or diminution of deposits of course reflects a confident
and successful, or a panicky and impoverishing, state of general
business.


TABLE NO. 1.--NATIONAL BANKS OF THE UNITED STATES