The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-10-13
port shouted to s7oo 81 payments $500 s.

port 20 day snouted TO 81 $500 S.
balance, %, Y23 1877 O6.
The election of directors of the New York and Erie
Railroad took place yesterday The list chosen includes
FIVE new names, viz:-Daniel Drew, Edward Z. Weeks
Aanson Robinson Of Buffalo; John Az not, Of Emira
Ambrose 8. Murray, of Goshen.
The steamship America from Boston for Liverpool to
day carried out FIVE hundred thousand dollars specie
The total amount Of toll received the New York State
canals up to the th of October inclusive was 907
showing an increase of SIC, 81 over last year.
The Island City Bank has made with the
bank OF 'he Republic for exchanging at the clearing
house. and funds have been furnished for that purpose
me Gearing house, as at present organized is defective
and viii have to be rsmodeed throughout 1t too com
plcated and produces great deal of confusion
The suspension OF Simeon Draper has created great
deal Of excitement in Wall street. and in the minds OF
those familiar with the rise progress and result Of the
speculative mania previous TO 1897 produced appre
tensions Of the most alarming character We in the
future events Of the most startling nature and those who
are prepared for the approaching crisis may be thankful
that they are SO fortunate Very few have foreseen
proximity of the collapse which is likely so wide
spread and disastrous 1t may even more general than
that Of 1887 and perhaps in the same proportion that
credit Of 1853 bears to that which existed sixteen years
since We cannot by comparison of data form a very
correct opinion Of the position Of things in the nan
laton Is now vastly extended and expanded and the
ramifcations of the credit system nnumerabe and
already beyond control We cannot trace them through
all their sources, but will to of the most i'm
lorant movements o! the Last twelve fifteen years
In 1887, the banks and individuals we're immensely
expanded The lines Of discount in banks in every
section of the Unon had in a few years run up from
S32i, 49S in 1884, to 1925, 15,702 in ls37-an
increase OF than two hundred millions of dollars
three years This rapid increase bank credit caused
corresponding credit between individuals of different
character inflated prices for every species of porpery
created immense number Of bonds mortgages
built up in fact of the most stupendous systems of
credit upon weaker bahs than before realized any
country. After few years of progress at this rate
when every under full headway and commercial
paper floating about the market in Masses
the community panic struck fine morning by the
announcement that the banking house of j. L. and Jo
sephs Co. had suspended payment. To allay the
element, perhaps in accordance with their belief at
the tmc it reported that the suspension was only
temporary, and that in few days the house would
sumo payment and all would go comfortably usual.
This delusion lasted but very short time. The next
twenty hours told tale that spread terror through
the land and the cry Saus que peu Ruin stared
every in the face and houses long andng and
reputed wealth disappeared like magic, leaving in
many instances not even wreck behind AL classes
panic struck, and no one seemed to possess the
power to extrcate himself from the impending blow
In few days confidence among the things that
1t utterly out of the question to raise money, and
every thrown Immediately upon his
Dozens of failures occurred daily and the list in few
weeks became frghtfuly extended. The banks went
down amidst the general crash and shin pasters in the
shape of bank promises and individual promises pay
convenience formed the currency of the country Specie
hcv sfad Tha si0 af
gold liver wonder The state of thinge that fol
lowed this convusion must be still fresh in the memories
Of those who passed through those times 1t viii never
be erased from Complete prostraon the effect
Of such enormous artificial extension. Prom
reme to the other the Of things and for
every interest dormant The country merely existed
it made progress. To get enough to eat and drink
was about all any expected. After about three
years of such inactivity and distress, effort
made to revive business and after period Of feeble,
sckly action, with indication of permanent strength
it failed and the community plunged into still deeper
depths Of doubt and despair 1t relapse and but
for the want Of material in the body commercial
work upon it, would have been full fatal the rst
stack
In the year 1S41-foar years after the original
crash-the very lowest depths reached There
not important interest in the country-but that
struggling along, uncertain whether 1t would survive
from week to week Upwards Of two hundred millions Of
bank credit had disappeared, and perhaps Ave times
that amount of individual credit had been sxnguished
wiped out as with sponge, without the FIRST dollar
exchanged in liquidation The general bankrupt law at
that time to the aid Of the hosts Of bankrup and
destroyed all claims standing against them That having
been pretty escual performed and there being nothing
left to risk, the community gradually emerged from The
chaos and confusion Of such heightened period of dis
aster and there favorable indications Of
return ng health At first the progress slew but
The past xperencs had been recent and too
bitter to be lost sight of and the utmost caution was
exercised by all classes.
In December, 1872 new tariff act commenced opera
tons the Compromise Act having expired the month
of June the year. That tariff highly protective
which restricted importatons and served check upon
that branch Of foreign trade The currency the
time also upon pretty sound basis. In 1916, the
circulation of all the banks $50 ILL., and the spe
Gle hand 81 21 242 whereas in 1887 the circulation
sl49 1856 $780, and the specie hand $37 $40.
This acting as check upon importatons, served
to prevent too rapid an expansion, and the for
ward movement strong and steady up to 18l6 The
importations continued limited the banks extended their
discounts gradually, and speculation by
prominent in any article. AL this healthy and leg
innate, and the future looked encouraging In 1846
then change made in the tariff the protective fea
lures OF OIL lo4z were aDandOn00 revenue
standard, what at the time considered revenue
standard, adopted, under the ad valoren system
Soon after that act commenced operations the discovery
of gold in California announce, and the world
instantly filed with the most intense excitement. The
public mind for time occupied with all sorts Of spo
cuhtons relative TO the effect of such immense acqus
tons to the supply of precious metals, and opinions diff
ered widely upon the subject Fnanoers and capitalists
pretty equally divided upon the extreme points at
issue and commissioners employed by the Of
France to investigate the matter reported just the
trary TO the views expressed by the commissioners of
the government of Great Britain. Our opinions
main precisely the expressed at that time.
Circumstances have strengthened and confirmed
them. We predicted increase in the value of
money, increasing demand for all purposes an
increase in the value Of all kinds of property wages
all branches of industry and general expansion of credits
tar beyond any limit justified by the production OF gold
Cali 9TH or