The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-05-17
From the NeO York Euening Post
THE UNITED STATES BANK AND
THE PANIC OF EIGHTEEN HUN
DRED AND NINETEEN.

II is very generally said that never was
the country visited with such pecuniary dis
tress as it now experiences. Not altogeth-
er, perhaps but the lapse of time makes
us forget the extent of past caIamities
Whoever desires to compare the embarrass-
mcnts we now suffer with those which VIC
have suffered in other seasons Of pressure,
win find the means of doing so in Gouge's
History of Banking, and may gain instruc-
ton from making the comparison.
The United States Bank went into oper-
alton in January, 1917. On the 9th of
February, in that year, its discounts were
three millions Of dollars. In July follow
ing they had increased to twenty-five mill
lions, and in October to thrty-three The
subsequent increase was almost equally
rapid, and in March and April, 1913, its
Loans and issues had sweiled to foriy-three
millions. In July following the discounts
of the bank had reached the amount of fifty
one millions.
The result Of this vast and rapid ex-
panson Of credit was similar to what we
have witnessed for the two or three years
preceding the present pressure. Specnla-
ton was encouraged by the facility of cred
il, lands rose in value, the price of stocks
had advanced, foreign merchandise of every
kind commanded an instant sale mt high
prices, and the utmost prodigality and lux
ury regned.
But in July, 1913, the bank found itself
compelled to retrace its steps, to contract
il loans, ana cut short lis discounts. Al
the end of the year 1918, its discounts were
f;riy-one millions, ten millions less than III
July, and It's circulation, instead of nine,
had become seven millions. 1t went on re-
dacing bot, its discounts and circulation
through the year 1919 and the year 1920
until the discounts were reduced to thirty
seven millions, and the circulation to three
and IA half
The effect of these operations Of the
United States Bank was calnmitous in The
extreme. We quote them from Mr.
Gouge's book, and recommend them to tn,
serious attention of all our readers who arr
for trying second time the experiment o
National Bank.
The Bank was saved, and the people were ruined
For time, the question in Market street Phllade
phia was, every morning, not who had broken th
previous day, but who yet stood. In many parts
the country, the distress was as great as IN Phil
dephia aud in others it was still more deporabe.
From all parts OF our country, ;" says Mr. Nile
general stagnaton Of uade, large reduction
the price of staple articles Real property is rapid
deprecating in its nominal value, and II rents
profits exceedingly diminishing Many high
respectable traders have become bankrupts, and It
agreed that many others mnst go: the Banks n
refusing their customary accommodations: con
dancc among merchants is shaken. and three p'
cont per month is offered for the discount of promi
sory notes which little while ago were considere
a. good as old gold, and whose makers have nj
since Suffered any losses TO render their notes le
valuable than heretofore"
Four months afterwards, he saws, 1t is estimate
tha. there are 10000 persons daily seeking work !
Philadelphia in New York 1000 ablebodcd me
are said to be wandering about the streets lookin
for it and five add to them the women who desir
something Ia do, the amount cannot be less than 20
900; in Baltimore there may be about 10000 person
in unsteady employment actually suffering be
cause they cannot get into business We know scN
eraldcccnt men, lately good livers,' who now sui
sis' such vctnals as two years ago. they wouI
not have given their servants in the kitchen"
A committee appointed by meeting of.the cit
zcns ofPhilldephia the 2lst Of August, TO inqur
into the situation OF the manufacturers of the city
its vicinity. reported, the ID Of October that il
thirty mechanical and manufacturing branches q
trade, which they enumerated, which gave empty
Insn 10 nine thousand one hundred aud eighty olgh
persons in 1914 and to nine thousand six hundred
and seventv-two in 1876 there were but two thou
sand one inbred and thry-seven persons employ
ed in 1919.
A committee of the citizens of Pittsburgh, whc
made report on the oath of December, stated tha
certain manufacturing and mechanical trades in the
city aud its vicinity, which employed one thousand
niHe hundred and sixty persons in 1915 employed
only six hundred and seveniytwo in 1919.
Awriter in the Kentucky Gazette, quoted by Niles
the 9th of October. observed; " Slaves which
sold sometime ago aud could command the mos
ready money, have fallen to an inadequate value. 4
slave which hires Cor 80 or 100 dollars per annum
may be purchased for 300 or 400. A house and 10
Limestone strset, for which $4,000 had beer
offered some time past, sold under the officers ham
mer for 81 800. house and lot which, am in
formed was bought for $4,000 after 5000. had beer
paid by the purchaser was sold under a mortgage
FOR 81 500, leaving the original purchaser (besde
his adyances) $1,000 in debt 4 number of sales
which excited a, the same time astonshmeut and pit
have occurred in this town. Comparison of loca
snfferings shoald not be indulged in, but toll
that Lexington is less afflicted than almost any 9th
er part ofthe State"
occurrence. Mention is made. among others, OF tn
bankruptcy ofa merchanttaor in the little town o
York. Pennsylvania, who failed for the sum Of eighty
four thousand dollars.
This was, indeed an important affair in iowi
containing but three four thousand inhabitants
but ii sunk INTO insignfcance when compared viii
some OF the failures IN the large cities. so exten
sive were these among tho merchants Of the cite
east OF Baltimore. that it seemed to be disreputabC
tn stop payment for less than 100 900 dollars The
fashionable amount from 9 to 3O0,OOO dollars
and the tipiop quality. the support of whose fara
ies had cost them from TO $4,000 dollars ayear
were honored with amount Of debt exceeding
100000 dollars, and nearly much million o
dollars. The prodigality aud waste Of some of hes,
were almost beyond belief; we have heard that the
furniture of single parlor possessed 1--WE cannot
say bclonging) to one Of them, cost 10000 dollars.
80 It was in all the great cities--dash, DASH dash
'enders OF tape and bobbns transformed into per-
sons Of high blood aud the sons of respectable CHI.
zens converted into knaves Of ranl--,hrough srec-
n'atou and the facilities ofthe abomnabe paper sys-
tem."