The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-09
Financial Panics and RevulslOns-A Valuable
Chronological History.

Financial Panics and Revulsl0ns-A Valuable
Chronological History.
We present in the HERALD of to-day extended
chronological accounts of the financial crises
in England and the United States since the es-
tablishment of the first regular banking house
in London and the first issue of paper money
colonial bills of credit-in America. The
American chronology gives the principal facts
in relation to the earlier financial struggles of
1.-The infant commerce of our country; the dis
tress occasioned by the hard fought and long
continued war of the Revolution the panic of
1898. caused in part by the financial troubles of
England during the same year, and in part by
the suspension of amicable relations between the
administration ofMr Adams and the French gov
eminent; the revulsion of 1908 caused by the
Jefferson Embargo act; the prostration of trade
and destruction of values occasioned by the war
of lSl2-'l5; the flush times of 1925, leading to
the widest speculations and mad stock gambling,
which brought on the panic of 1926; the ter
rible revulsion of 1867, beginning with Gen.
Jackons war upon the United States Bank,
and closing with the general liquidation under
the Bankrupt law of 1871 the railway smash of
1854 the Schuyler swindles, and the hard winter
of 1896; and finally the revulsion through
which we are now passing.
! Our aim in presenting this chronology in a
condensed form is TO give not only complete
record of the most important facts in the
financial history of our country, and thereby
to inculcate valuable lessons for the guidance
of our merchants and financers, but to prove
also the soundness of the theory which has been
often pronounced in these columns, that such
are the wonderful resources Of this young ma
ton. and such the elasticity and vigor and per-
severance of the American mind, that any pros
tration of commerce here must be only tempo
rary. If the republic in its earlier days could
struggle through such times as those of l79S 1908,
1872 1926 and 1887 saddled with debt, without
revenues, dependent upon foreign countries for
almost everything except the absolute necessa-
ries OF life, how much more able are we now to
contend with the effects of extravaganza and wild
speculations growing out of unbounded pros
perity. an OVERLOOKING national treasury, an
amount of revenue far greater than is required
for the expenses of the government, an annual
WELD of gold to the amount of fifty millions, and
the product of all the great staples increased
tenfold9 Such is one of the most important
lessons to he derived from careful examina-
ton of the records of the past.
Our history of English panics is the financial
history of England itself Although but an
dJrtge, IT comprises every important event occur
ring in the financial and commercial world from
the year 1867 down to the present moment Be
ginning with the establishment of the first
regular banking house in London, by Mr.. Fran
els Child, it carries the reader, in chronological
order, through all the monetary disturbances
which have deranged the operations of trade
during a period of nearly two centuries. Ii
explains the origin of these crises their effects
upon the public interest, and the measures re-
sorted to to arrest the progress of the disorga-
nizing influences from which they sprung. Thus
our readers will be able to inform themselves at
a glance Of the causes that led to the suspension
Of specie payments by the Bank of England in
1926. and again in 1897, and the narrow escape
which ii had from a similar necessity in 1926.
These points of history have just now power
full interest for our community, as the circum-
stances that created them bear q close analogy
to those which have placed our own banks in
their present discreditable position. In every
instance il will be seen that these suspensions
by the Bank of England have, as with US,
been preceded by reckless spirit Of speculation
and adventure on the part Of the public. Thus,
the suspension OF 1895 was brought about by
the multitude of visionary enterprises to which
that and the preceding year gave birth, and
amongst which the great Darien scheme occu-
pies the foremost place; that of 1898 was caused
by the increased number and reckless opera
tons of the country banks, one Of which had
been established in nearly every market town;
the critical position Of the Bank Of England In
1926 WAS as certainly occssioned by the eager
ness with which the public grasped at the
tempting bats held out to them by the proprie-