The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-10-10
Progress OF the Panic,

ing like wild fire, so that no punt u" e"e
country Of any commercial importance has
escaped its dire effect. Every body has lost
confidence in every body. Men touch bank
hills as ginserly as If charged with infection,
while gold and silver are ciutched with the
grip Of desperation. Since 1888 there has
been no panic like the present. In Chicago
everything is doubt and distrust. The mer-
chants and dealers generally have their
drawers full Of Illinois and Wisconsin cur
rency, but are unable to pay their eastern
debts, because unable to procure exchange,
so their paper goes to protest, and the east
ern creditors, wanting their dues, are smash
ing I'D. The farmer owes the merchant,
and can't pay, because there is no market
for grain the country merchant can't pay
the city merchant because the farmers don't
pay So everything is at stand still. In
Chicago a new failure is announced yester-
day-Benson & kingsbury, bankers. who
dealt chiefly in lands and land-warrants. In
New York the telegraph reports yesterday
give tire failure aruvns ethers Of the heavy
house of Bowen, McNamee & Co., and say
Thursday was the g'ocmiest 'ay yet expe
rienced in the morey market, and general
dependency seemed tie pervade all classes
Of business men. In st. Louis affairs are
quite as bad as in New York. The suspen-
sion en- Monday Of the heavy houses Of
Chouteau, Harrison & Vale, and Of Lucas
& Co, seemed to give the finishing blow at
confidence there. The Philadelphia Banks
have all suspendcd-so throughout Penn
sylvania, Mary land, the District Of Columbia
&c, and all down the sea coast to New Or
leans failures continue to be announced
We give the following list as we find il in
the papers of the banks which have suspen-
ded thus far, and whose notes are either
wholly uncurrent, or current at heavy dis.
count:
NAISE--MouSom Bank. Sanford Bank,
Bank of HalIowell, Ba-s River Bank.
VERMONT. Bank, Stark Bank
RHODE IsLAND.-AH banks of this State.
Observation-Disclosures Bank, Colchester
Bank, Bank of Hartford County, Thompson
Bank. Mercantile Bank, Charter Oak Bank,
Exehan Bank
Ndw YORK.-Chemung County Bank, o.
Lee 4 Co.'S Bank. HOLSTER Bank, Sackett's
Harbor Bank, Reciprocity Bank, Mechanics
Banking ASSOCIATION, Ontario County Bank,
Bank Of Orleans, Huguenot Bank, Niagara
River Bank, Ontario Bank, Utica, Yates
County Bank, Western Bank. Lockport,
Bank of Canandaic qua, Medina Bank, Dairy
mems Bank Agricultural Bank of Herkimer.
Bank of L'ma, LeonardsviIIe Bank. Farmers
Bank Of Hudson, Hudson River Bank
NEW JsR>Er.-Union Bank. of French
town, Bergen County Bank, Bank of New
Jersey.
M,RrLAxp All Maryland Banks
DELAwARE-Ar Delaware Banks
Columbia Banks.
yIRGIxI,.-AI Virginia Banks.
OHIn.-MIami Valley Bank. Dayton.
PESS>YLvsSrs.-AII Pennsylvania Banks.
MOTH CARoLIyA-AlI North Carolina
Banks.
South CARoLrSA-AI South Carolina
Banks.
GEnRGIA-AU Georgia Banks, EXCEPT
Cherokee Insurance Co. Lagrange Bank,
Merchants Bank, Macon, Interior Bank, At
lanta Bunk.
Ixpr.xs.-Central Bank, indianapolis;
Bank of the Capitol, Indianapolis; Traders
Bank, Indianapolis; Exchange Bank, Salem
Bank. Huntin- ton County Bank.
TENSEsssE--Ai Tennessee Banks.
Mr>si>SrPpL-All Mississippi Banks.
MIcHIGAx-Bank Of Tecumseh, Peninsu-
lar Bank.
WI>CnSSIS-Badger State Bank Farmer $
Bank, Hudson; Rock River Bank, Beloit !;
Peoples Bank, Milwaukee Fox River Bank.
Manifestation tenelle Bank of Bellevue.
he
vince.
What has caused the present panic? II
came so suddenly and unexpectedly that
everybody is dumbfoundled. The country
is rich. The crops are the best we ever had
every department of trade was prosper
ous-money was plenty. good harvests and
general prosperity in England and Franco,
no drain of specie-no overtrading with
Europe-whence came the blow? 1t COM
,ue,-ed with the stock market in New York.
There were some s70O, 200, 900 Of railroad
stocks in the country. There is scarcely a
bank or large i.m that has not more or
less dabbled in these stocks. The bulls and
bears in Wall street were playing their teter-
ing game of up one day and down the next.
until finally the bears got down stocks be-
low all precedent. and when the bulls got
ready TO drive them up, they were amazed
to find they wouldn't go up. The rascai'ty
in the Michigan Southern and hest OF 9TH
or railroads had revealed the fact that the
railroads were generally being robbed by
their officers, and that railroad stocks no
longer pail. Stocks were not only pulled
down by the bears, but the shrcwd financial
men Of the country saw they were woeth-
less and they kept down, and no ings nuity
of the bulls could drive them up again.
Thus the 500. 0Oo, 600 invested in railroads
were at once discovered to be worth but
about 500. 00O, 600 al one fell swoop $780,
00O, 900 OF property was lost-lost as effect
uaIly as If il had gone to the bottom Of the
sea. Thcreupon, the Ohio Life Trust Co,
which had gone largely into Railroads, blew
up. and a revelation of its affairs showed .
state of rottenness that startled the whole
country. Suspicion at once fell on all other
banks that had dabbled in railroad stocks,
run was commenced on them, and few
could stand the trial. The crush in railroad
stocks came, just when all the other banks
had out frem two to five dollars of paper to
ere Of specie in their vaults, and Of course
run Of day drove them TO the wall; and
thus they have been topping; and the mer-
chants who are Dependant upon the banks
for accommodations and can't get them fall
with them, and from one end of the country
to the other they are tumbling down toge-
Their like a row Of nj pins
How long will tho panic last? On this
suiirct r.w are competent to venture an