The second edition of this study of _Panics in the United States_
brought us through the year 1891. I originated about one fourth of it.
This third edition brings us practically up to date. Of this edition I
originated about one half. I hope it will prove helpful in many ways. I
trust that it will force an appreciable number of men to realize that
"business" or "financial" panic is not merely fear, as some have
asserted; but is based upon the knowledge that constriction, oppression,
unhappy and radical change in this, that, or the other kind of business
must tend to drag down many others successively, just as a whole line of
bricks standing on end and a few inches apart will fall if an end one is
toppled upon its next neighbor. Indeed, the major cause of "business" or
"financial" panic is just reasoning upon existing conditions rather than
a foolish fear of them. Over-trading and loss of nerve constitute the
medium. Recent national legislation has gone far in enabling the
business world in the United States to prevent panics, and farther yet
in providing the means to cope with them when, in spite of precautions,
they shall recur.