Shreveport semi-weekly news. [volume] (Shreveport, La.) 1865-18??, 1865-09-19
Financial crises.

close observer OF those perioohca
Geuominat-d Financial
crises" we think we understand their
causes and the laws by which they
are governed. For every event
there is an adequate cause this
whether in the neral. physical. or
intellectual world. Financial crises,
then, hav. a cause, or causes, and no
NOR. occur as isolated. independent
PHENOMENA than do hurricanes, e;"th-
auak.s. &c. This being established,
tue next inquiry is. what are the
causes that lead to these great con
WILSON'S in III. financial and CONNER
ciai world? The following may be
said to be the leading causes in all
tn. gr-a, crises in this country TOR
the last dirty OF forty years
l-t. Excessive, issu. of paper mon
cI.
I'd Extravaganza growing out OF
imaginary prosperity.
Sd. Speculation.
The financial ruin that oversprcad
the land in 1897, can be clearly
traced TO these causes. To under
stand this the better, it is we'll TO
observe that at the important session
4 .,.,f rrl
before the congress- of the Unite /
States: a recharter of the bank OF
the United States, supported by the
wings. and, as second choice. by
southern states rights democrts, who
had. abandoned the support o. Gen.
Jackson, on account of his rrccla-
nation: 2d, the sub treasury scheme,
substantially as it was afterwards
adopted by congress. The leading
supporters OF this measure were TIA"
southern states rights men, headed
by Mr.. Calhoun. and, as a second
choice, by the wings; 30, the stat.
bank scheme, supported by the
democratic followers o. Genera! Jack
son. This measure was adopted and
went into operation, and the bank:
were instructed to "discount lib
orally" They did discouu, literally
the grand swell commencing in III.
fall of 1884 and continuing through
1885 and 1886 with augmented force
unit! the winter of 1896 and 1887
when the point of elimination wa'
fully reached. In the spring o
1887 III. grand crash came on, ane
the country was ruined.
From the clos. OF 1884 until tn
close of 1886, period of two years
the country, from one end to III
other, presented wild scene of banl
expansion, Extravaganza, and sPrcu
la,ion. Ever, body s--lued ia ri
wild: the preacher abandoned hi
sacred calling, the lawyer his brictr
the merchant his desk, the mcchani
his tools, and in many instances tn
ground was left untitled, as all ord
nary means OF acquiring forum
We're locked upon as too slow Tor Il!
-. time. A man who refused 20 rus
into TIL. general whirlpool Of excite
men, and speculation. was lauSh-
at By the fast ones As an old fog
. Many a one, not worth o'm'
thought themselves mii2ionG'reS. all
lived in style Of .xtravassnc
adapted to this mag mary ~eaitl
Every body run in d-a,. and every
body lived in the highest style .
extravaganza, as everybody imae
, ;ned themselves the owners o: boun'
r less wealth.
:. When the crash came j. was terri
;. BILE; every body failed, good and ba'
i in many instances, went toSrthe
Banks failed. and bank paper BEGAN
worthless. The only persons III;
, escaped the wreck were the 90
fosirs" before alluded to. The'
prudent gentlemen refused to co
: tract debts or to involve Intensely
in security for others; and havis
but very little faith in the thouSan'
J of mushroom banks that had ever
where sprung up through the con
= try, they never held their paper oil
: momen, longer than they could bel
It, From this shock the country pa
- tally recovered, and, strange to sa
- in the tall of 1889 there was anoth
u" crash among the banks and me
J" chants. We had become such ski