The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1857-10-17
The Crisis-.Kunning Comparison of
1857 with 1917 and 1887.
'S'itor ofGe Chicago DaHy Press.


7ohhe Editor efMe Chicago Daily Press.
Many persons are contrasting the present
with 1887, and thus think they can see the
results, in the results oethat period of embar-
rassments and final ruin of almost the entire
business community, and destruction of all
values to property.
In 1887, the olderlnembers of the COM
munity looked back TO the crisis of 1917, and
they judged in the'same way. Then. such
judged rightly, and because the circumstan-
ces of the country are similar. In 1917 the
country was largely in debt The Govern
ment was in debt for the cost of the war of
1872. The people were in debt growing out of
the excessive trading produced by the high
price of produce, and the pentitude of money
produced by that war. Banking, and bank
ing capital, and circulation then became in
flated. This state of things reached its eli
max, or apex, and burst in 1917. This year
-four reached the enormous price of So to
$l3 per barrel, pork S25 to S27 per barrel,
and other things in proportion. The West,
then, was somewhere about Utica, and where
Syracuse now is. The supply of Albany
and New ork markets came in by wagons,
mostly, from the interior OF New York, New
JERSEY, and me little by the Hudson and
East Rivers, and triiling amount from the
South by water.
The season Of 1876 and 1917 were exceed
ing cold and wet seasons The then limited
country barely produced enough to support
life, and the eastern portion of New England
lived nearly on cod and other fish. In 1916
the writer was driven from the field on the
10th day Of June from planting potatoes, by
snow storm. which covered the country six
to twelve inches deep. Such was the wea-
ther and such the causes that produced the
crisis of 1917. Everything was unsettled,
and business depressed, and men failing, for a
time. But everything got down to the low
est point in prices in 1921, when, as it's said,
we touched BOTTOM" and began to recover.
Flour reached that year the low price of 4.25
in New York, and the average price for the
wear was S4Il. | write from recollection,
not having the statistics before me- The
country prospertd, and success attended the
enterprise OF the people in the main, until it
run up the bubble OF 1867. The crash
came, the bubble burst in 1887. Many of
the business men of the present recall the
results and hence they infer that the same
results, will follow the present, as then.
Now, let us see how Justly the same results
may be looked for, by the analogy of the
circumstances. In 1886 and 81, the crops
of the country, as was the case in 1916 and
IL, were exceedingly short, SO much so that
we hat! to import breads,uGs very largely for
our own support. Flour and pork rose to
the same prices they sold for 1917. The
price at both periods, was fixed by the ac-
tua wants Of the country for consumption.
In 1887 the country owed large foreign
debt, made by reason of excessive importa-
tons. and an immense domestic debt to banks
and individuals, for landsand town lots, swamp
villages only existing on paper. The lots and
lands produced nothing, nor could they be
sold for money after the suspension of specie
payments. The immense domestic debt was
mainly for property that wis!utterly valueless.
The foreign debt was demanding all specie,
and much more than was in the country,
which only amounted in round numbers at
that day in bank ami individual hands to
$50 00000O. The Erie Canal and Ohio Ca
nal were completed. The shores of Lake
Erie were then substantially the West. a
little had been done at Chicago, only. At
that day it woald require three weeks to re-
NIT money from Chicago to New York, or
an average of two months to forward pro-
pertv either way. Now funds can be remit
ted i'll three days, and property in twelve to
fifteen.
How is it now, in 1857 Instead of FAM
inc or less than half crops, as then, we have
the largest crop ever known i'll America
Install cf having to import brcadstutls to
support ourselves, We have in the country
tributary to Chicago surplus of 35, 100000
to 100000 bushels Of grain to export
All this is of the last crop and now lying in
Il, 4
-four at cost of Sl4 per barrel, and her
pork at about $2S. This 4O,0O0,00 bushels
of surplus graia is equal to the entire busi-
ness debt of this State. This grain brought
to market at present prices. will clear up the
farmers debts to the inland merchants, and
their debts to the Chicago and Eastern mer-
cnanis, and their debts to the Chicago and
Eastern merchants. This marketed, the
country will bo .ustaincd. That will sustain
and pay to Chicago the business or mercan-
tile debt due it, and Chicago can pay her Eas-
tern mercantile debt The grain is now posi-
lively in the country, secured from the last
harvest, sufficient to pay the entire business
and mercantile debt of this State and CITY,
leaving the pork and beef or in other words
the hogs and cattle, as a capital to commence
Il new business and mercantile debt of this
State and city. So You plainly see there is
no comparison in the circumstances of this
State and city now and '37 as to condition. as
to crops which are the resources of the cOun-
try, and that Chicago, with patience and an
accommodating spirit between debtor and
creditor, has no occasion to fear. Nor has
the country back of her; all will be right in
this section of country, our debts will be paid
and we remain cheerful, happy community,
as soon as oar last crop can be got fairly
marketed. | speak in general terms. true.
some individuals may fail, and may suffer
more or less, but the aggregate is safe and
will soon be easy.
But in regard to the country generally,
there is no analogy between 1857 and 81, or
III. Then (in '37, the domestic debt of the
country had no basis but imaginary, consist
ing in western city paper plats, or lands not
wanted. Now, the great principal debt OF
the country has Its basis in railroads, the
stocks and bonds of which have real and
substantial basis, real value in themselves,
and are paying in the aggregate moderate
interest to the stockholders, besides the more
than exorbitant benefit to the country IN ia.
citating and chea, cning transit to the pro-
ductions of the country, and Fastening them
to market. besides the saving in time of the
travelling community, u1i VIC 'idiioiI vi piop-
ertv and food. Again, given amount of
money will now perform five times the prac
tical service that it could then, by reason of
the rapidity by which financial matters can
be worked, by the use of our railroads, our
expresses, our teegraphs and the increased
facilities VIC now possess not then enjoyed
The means you see, are in tie country to
pay the debt of the country, as soon as the
esan can be converted. The railroads are
facilities for such conversion, consequently
the debt resting on the railroad system is ac-
tually facility ior the rapid conversion of
the products Of the country into money, and
in turn this work done by railroads becomes
their resources to pay their debts, and reiLu-
nerate the stockholders. The fact that TINS
immense crop is IN the country to be trans
ported on these roads, is a most encouraging
feature in favor of railroad securities ana
should tend to enhance their values. Inc
railroad interests have been made the hrst
victims to this unnecessary panic, and that
interest will be the first great interest to re-
cover from it by an appreciation justly due it.
Now. tell every creditor be kind, humane,
intelligent, and each help bear another's bur-
denis s!Let patience have her perfect
work" and all will be right and easy in eight
months. T. RICHMOND.
mi