The weekly hawk-eye. [volume] (Burlington, Iowa) 1858-1860, 1859-05-10
Rdvard Everett ON the Crisis Of 1857,
From NE New York Lslgsr.
~~r<~r~ ap~sNen

[ GdWord Everett On the Crisis o. A0oJs
| From NE Nsw York Lsagsr.
| SECOND ARTICLE.
The view taken il the preceding number
Of the real cause Of the financial distress o.
! the year 1857, viz, the mountain mass OF debt
under which the community Was laboring
will best explain the periodical recurrence o.
similar state Of things. The process Of
running in debtis, in its very nature, grow
| ing one. Il rarely stops while it can by pos
| sibility, be carried on. With respect to what
| have called the personal debt Of the country
| If the means Of the individual do not enable
him, in the first instance, to get through the
1 year without anticipating the next years in
come, he will, the second year, besides hii
! current expenses, have debt-and soon an
interest bearing debt-to take care Of Ac-
customed gradually in this way to live IN
part on credit, he soon begins to resort to II
from convenience, as he did at first from
necessity. Family expenses usually 60 on
interchangeable happy accident which Is
greatly to augment ones means, never turns
up; and the debt, which have supposed
averages at least three hundred dollars fol
every head Of family swells till it is arrested
| BY forced liquidation, which comes sooner
| or later in the case of each individual, accOr.
ding to the extent of his ability to carry Q
| debt.
The business debt Of the country goes on
increasing, till it can increase no longer, by
a still more certain law 1.-THE business is
what is called prosperous, the trader is
tempted on ITO enlarge the sphere OF his oper.
atoms y which means to strain his resour.
ces still further; to buy and sell more largely;
and of course on credit; his personal ex-
penditure increasing all the while, and ne
himself often tempted into new fields OF enter
PRISE with which he is unacquainted. The
panic of 1887 and that of 1857 we're both
preceded BY seasons of unprecedentd activity
in the business world. In the former year,
besides o strange expansion in every other
direction, the public lands were purchased
in such fabulous qualities, that it became
necessary to relieve the plethora CT the treas
ury by distribution Of the surplus revenue!
The crisis came however before the last in
stalment was paid.
| In the year 1857. business of all kinds had
been quickened by the influx of California
| gold, which gave q fallaci0us strength to the
banks, and tempted them not merely to aid,
| but to stimulate speculation. On this Occa-
| sion, the West became again the great field,
where golden visions Of sudden wealth were
to be realized The stock Of rail roads
through tracts of country to which the Indian
title was bnt recently extinquished, and town
lots IN painless wildernesses, were sought
| with aviditv throughout the older States.-A
| few highest prizes in this lottery. drawn by
fortunate individuals" turned the heads of
| thousands, who dreamed of the same good
luck, and awoke ruined.
But the business debt like the personal
debt has its limits 1T cannot 60 on forever.
| The time comes at length when borrowing
must cease and paying must begin. An un-
easy feeling begins to ervade the community.
| The banks and the men Of solid wealth who
watch the signs of the times with care, TN
derstand the portents. 4 crisis 10 perceived
TO be coming On,-and with the unerring
but not always wise, instinct ofself-intesest,
the individuals and institutions Of the creditor
class, seek, not to avert the storm but to secure
| themselves from its fury. Further accomoda-
| tions are now refused, credits contracted,
| loans called in The ship is put under snug
| canvass, and men await in feverish anxiety
for the white squall to burst 1t may come
from quarter and in shape absolutely
| disproportlOnal in appearance to the effect
| praduced as in the failure Of the Ohio
! Trust Company the year before the last
the whole debt of that institution was small
per centage on the aggregate of the money
transactions Of the New York banks for one
| day I; and yet, as far as any individual cause
can be pointed out its failure gave the alarm,
| which ended in the temporary prOstration Of
the credit and suspension Of the business Of
the whole country.
But even the dictionaries teach us that
it is idle to inquire into the cause of the pan
| ic that is the immediate cause the word
is used to signify great and general alarm,
without any apparent adequate cause. In
the Oldest heather mythology, Pan blew mis-
oonch shell, when the Titans were fighting
with the gods. The audaciOus rebels had
stood undaunted against the thunders Of
Jupiter, but they fed at the blast of the
harsh clarion. Having succeeded so we'll on
this OCCASION Pan accompanied Bacchus on
his expedition to India, where on certain
occasion, he gave wild scream, which filled
the echoes Of the mountain and put the
enemy to flight These old fables,-(what
foundation Of fact they may have had in the
experience of an infant humanity, who can
tell O-struck to the heart of the race, ami
have given name to the saddest realities in
every period of history. Old dynasties have
nk,-mighty battles have been lost-revo-
lutions have been commenced by Pan ic
fears
One Of the most authentic signs of the last
dread consumation Is mems hearts failing
them for fear and when this takes place,
no form of disorganization and ruin is just
matter of surprise The cracking Of seat,
or mischievous cry Of fire will in an instant
set assembled thousands of Intelligent persons
frantic with terror, and cause them to tram
pie each other to death, in their insane haste
to escape from the building A great strong
ship strikes an iceberg, and discipline is
sometimes instantly subverted, all hope of
escape in the life-boats blasted, by the fierce
haste with which they are lowered into the
sea over crowded IN the dismav of the
dismay of the moment, and hundres dof lives
lost when all might have been rescued. All
most all the great battles Of ancient and
modern times, from Pharsala to Waterloo.
have probably been decided at least by panic
Miracles of valor are performed by brave
men, blood flows like water at length a
wild cry is heard, on one side or on the other,
that all Is lost-and with that cry all is lost.
1t is SO in financial crisis; a cry of alar m
is raised perhaps by feeble voice, perhaps
from an insignificant quarter; but its -four da-
ton, III Tie kcucEbl stttc VI CuluSS, 10 lelt ny
too many persons to be just All, alike The
creditor and the debtor class, know that the
country is staggering under a load of debit
Most persons in active business unite the two
characters Of creditor and debtor; and, eithe r
coerced by the necessity Of meeting its own
engagements or FROM the desire of securing
what is due him; every man demands pay
ment ut the same time, and general banks
ruptcy ensues. From the condition Of care.
less and joyous prosperity, the community
passes in week into one Of embarrassment,
terror, and for too many persons, hopeless
ruin. Individuals indebted to the extent Of
from five to ten times their capital banks
thot have one specie dollar in their vaults,
for from Eve to six of their deposits and cir
culation, are struck with the panic. All
grasp at once at the means Of paying their
debts, and find their debts many times larger
than the available means of payment.
What then is the remedy? Unhappily, il
! is so simple, 80 destitute Of all financial re-
fnement, SO much at war with the specula-
| ting character of the age, that the very men