The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-06
Cause OF the Revnlslon-Its Effects.

Elsewhere will be found some mention Of
large failures at Boston and New Orleans
The epidemic is. travelling over the whole
country; no city of any note can expect to es-
cape. All followed the example of New York
when flush times began; all must now follow
her as closely in adversely.
How simple and plain the whole story of our
troubles to one who studies them with the light
of plain common sense, and without the deceit
full glare Of theory! It all began with few
merchants who made money in ls43 and the
following years, and undertook to live as they
believed, cup to their MEANS" Others follow
ed when Californian gold added ON apparent
resource to the country; and very soon the
practice became general in certain circles. One
after another, the successful traders built fine
houses in Fifth avenue, set up carriages, kept
servants in livery, and spent vast sums in din
ners and equipages. Not that they were accus-
toned to such things, or even knew how to use
them; most of the possessors of this sudden
schoolhouse, or worn pinaf0res in back parlor
behind small retail store. Neither hereditary
luxury nor even stable resources could be
urged as an excuse for such extravaganza. The
money was spent because it was unexpectedly
made, and as fast as 1t was made This was
not the worst. Seeing his neighbor launch out,
many man, who had less reason for increasing
his expenditure, resolved not to be outdone,
and ran into debt in order to keep pace with
him. Soon, the mania spreading, q despe-
rate race of wastefulness began; long before
it ended, every one, rich and poor alike, was
busy mortgaging the future to sustain the pre-
sent. As every one but a few croakers" said
that the flush times would last forever, and
merchants profits go on increasing, no one
thought it dangerous to anticipate little Of
the promised corpucopia. Thus, four years Of
California gold produced an era of extrava-
gance unparalleled in American history. Men
ofmoderate means initiated the rich even the
poor tried to emulate the example Of their
weather. neighbors. Boston, Philadelphia, and
other second rate cities initiated New York /:
the small towns initiated these cities the vii
lagos initiated the towns till the whole coun-
try was thoroughly impregnated with spirit
Of lavish extravaganza. The consequence was
inevitable. At the first check, every one who
had been living beyond his means, and count
ing on increased resources to carry him through,
was brought to stand and as this class COM
prised nine-tenths Of the business community,
extensive embarrassment began to be felt.
Then resort was had to desperate schemes to
| raise money I; fraudulent banks were started,
fraudulent companies organized, baseless
schemes set on foot. These delayed but aggra-
waited the crisis, and when IL came, few indeed
were those who could withstand II. Five
months now has the process of demolition been
| going on breaking down mercantile houses,
banks, railroads, and financial enterprises.
| The public have not heard one-twentieth Of the
names Of those who have suspended payment
or compromised with their creditors since July
last does not know one 1.-THE OF the disaster that
yet remains to be accomplished. Now and
then temporary relief has been felt !; and spe-
cufators have fancied they saw the last of the
crisis-just as Nicholas Biddle, in 1887 and
1888, used to 60 down to Wall street every few
weeks, and announce that the hard times were
over, and all was about to improve. But those
who are not blinded by interest or prejudice see
plainly enough that the revulsion can only end
when It's work has been completed when every
man who has lived beyond his means has bro.
ken down when every bank founded on frau
dulent basis has gone to the dogs; when the
bulk Of the swindles devised for the purpose of
sustaining Fifth avenue extravaganza has been
exposed, and their authors stripped OF their i'll
gotten gains. Any one can calculate when this
will be.
Amid oil the distress aud suffering which
revulsion like the present cannot fall to cause,
II affords some consolation TO reflect that crises
Of this nature are actually ofultimate benefit TO
the country. The alternate succession Of pc
RODS Of grea. expansion and corresponding con-
traction Is becoming one of the most marked
features Of the progress Of the United States.