The New York herald., 1865-06-26
E6,7lO 0ss
EXCESSIVE SPECULATION.


There abundance Of money which was offerod
at very low rates Of interest This caused rage for
speculation any and almost everything that invited
capital Not even the South sca bubble, whom at is
extreme height presented such soeuo Of insane eagor
ness that which prevailed for investment In stock
enterpriscs Tho greatest excitement was in mining
shares which mot unfrsquenty advanced f26o in sim
ge day. and shares, the par valuo Of which was
47o, rose 70 one thousand i've hundred gunsaa
Tho speculative Juror continued throughout the
year 1924 Nothing transpired TO check the wild
enthusiasm which had seized tho brains Of thou
sands OF Individuals who sought fortunes In
hurry, and the picture Of prosperity remained
prominently In view. During the yoar the three
per cent consols co. which unmistakabe owl
dence that the work Of imitation had boen going on to an
oxtent which would sooner or iator produce trouble n
tho money market
The vast an0dnt Of surplus capital howovor kept of
tho day OF reckoning and tho opening Of tho year 1926
exhibited the spectators rampant as ever and as in
dusriousy work showing forward thcr now schemes
London paper OF January TO- 1895, contained list OF
hundred and fourtoon now projects principally min.
ing requiring aggregate capital OF upwards Of ninety
Ave millions OF pounds sterling nearly four hundred
and y millions Of dollars The papcr circulation or tho
Bank Of England about twenty millions Of pounds
and that OF the private and joint stock banks i'm
As the year wore on II became evident that a
reaction could much longer bc avcrted Indications
arose that revuIsion approaching and before Do
cember the whole speculative bubble burst.
THE GREAT PANIC or 1895.
Tho mining companies which had been organized had
located their mnos in Mexico and South America and az
some trouble had srison between England and the 6rs
named country the public began 10 think that their in
vestmenH would not bo likely TO return the immense
profits they had anticipated The result was panic
Tho money pressure became excessive and all the at.
tompts Of the government and the bank TO relieve IL
entirely unavaling Tho rush Of the people on the
banks was tcrrlac-so great in fact that those which
wero well supplied with gold had not time 10 count H.
and we're forced 10 deliver II by weight rorty.nye
Of he tcountry banks wore compelled TO STOP and
many failed outright and became bankrupt Tho
panic was general and It was estimated tno
doubt accurately that over eleven hundred fall.
ures among bankers, brokers and merchants took
place during the month Of December 1895 Before tho
year ended, however, monetary matters again as
sumcd manageable position but thousands Of wrecks
made by this short financial hurricane were plainly visible
on ovcry hand, many evidences OF the folly of in.
hation ard the insanity displayed by the people In their
cagerncss 10 grasp tho bubbles that were frightened by
the shining beams Of market overstocked with xded
paper Lot US be warned by the financial incidents of
that me and avoid the dangers which lie n our course
in precisely the same positions that they found
by the English in tho great panic OF 1926