New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-01-15
VOLUME XIV.
Financial and Commercial Panics,


having for the past several days come to us groan
ing under the weight Of editorial fears and appre
tensions for our future success and ultimate sol
yency, both national and individual, we cannot
better occupy leisure hour than in exposing the
iallacy and groundlessness of such utterances, es
pecially at the present time and under existing cir
cumstances. Every decline in stocks at New
York. every alteration in rates of gold, every evi-
dence of speculative movement is eagerly seized
by these would be soons, and with lightning speed
is waited as an unmistakable indication of ap-
preaching bankruptcy to the most remote sections
of the country. Panic in the share market, panic in
the currency panic in the government securities, is
the usual heading which these croakers give to
their alarm items, with the hope doubtless, Of
creating or diffusng general feeling of distrust
at time which loudly calls for our most profound
gratitude on account of the increasing prosperity
and happiness which are being daily showered
upon us, after the vicissitudes to which we have
been subjected during the past four years.
Nothing can be clearer to the vision of those
who do not see through jaundced, optics,
than that the people of this country are
recovering from the effects of the late
unhappy war with greaterrapidity and are exhibit
ing more recuperatiye power than has ever been
manifested before by any nation ,of ancient or
modern times. The cessation of hostities be-
tween the North and the South is of such recent
date that most people have come 10 look upon it
as but the work of yesterday. Yet in the brief
period which has ensued, tens of thousands of the
truest and bravest and sturdest patriots that the
world has ever seen, have unobstrusively with
drawn from fields of carnage and misery and
death, and resumed their more congenial avoca-
tions in fields of industry, of peace and of promise
The great resources of the country are being sue
cessfully developed. Every profession, trade
and calling appears to be in fourishing
condition, and to dispassionate observer there
never was a time which offered less pretext for
habitual croaking than the present. The South
alone suffers seriously from and feels keenly the
effects of the war, but from her midst no word
of complaint goes up, and her children wisely oc-
cupy themselves in efforts to ameliorate their
own condition. The magnitude of the ma
tional debt is, however, the most prolific theme
of our social disorganzers, and in order to ex-
pose their inconsistency, it is only necessary
to direct the readers attention to the follow
ing brief statement of facts. According to the
published report Of the Secretary of the Treasury,
the national debt amounted to $2,7l6, ,58l ,53G, on
the lst inst, whereas the national wealth of 1860,
taken from official data, sl4, ,l67 900 900,
and the annual increase from 1850 to 1860, was S.
per cent. The same ratio would give us an aggre-
gate wealth in 1865 of SIG, liz 900 O0O whilst tie
national income for that year is estimated at
,3ls 900 900. Pursuing the subject further,
find that at the above rate of increase the aggre-
gate wealth of the country in 1870 would be
S24, PIG 100000 and in 1880 s4s, ,236,OOO 900. At
the latter date the ratio of debt to capital would
10 n
interest to annual income would amount to only
fraction more than u per cent
With the above facts before us, it is difficult to
see how any sane man can indulge in misgvings
or distrust as to the future of our country, and
none but the most criminal will lend themselves to
the unholy work of destroying public confidence
or creating unnecessary pancs. The writer of this
found it necessary, in the discharge of his
editorial duties during the temporary revulsion
which prevailed in 1860, to present resume of
tie several panics which had previously been ex
perienced in the United States and as some readers
of the CRESCENT may not have seen it at that time
the present is deemed an opportune occasion for
its reproduction.
The first panic occurred in l7Sl, and arose from
the depreciation in paper money, issued by Con-
gress during the revolution from l776 to 1870.
These issues amounted to over $3.50 900 900, which
on the dollar.
The next revulsion was in 1878, and resulted
from excessive mportations, commencing in 1875
(after the close of the war of 1872, which was in
January of the former year) and continuing
throughout 1916 and 1877, from the effects OF
which the country continued prostrated until
1924
Another crisis was experienced in 1926, caused
by sudden and heavy decline in cotton and
various securities, after extraordinary imitation.
This, however, was only temporary and was much
less disastrous in its consequences than the pre-
viOus ones.
There was also panic in 1888, which commenced
with a removal of the government deposits from
the United States Bank by President jackson, but
as it had its origin in an unnecessary alarm, while
the country was in comparatively sound and
healthy condition, it was of short duration, a.
| though while lasted it caused large number f
failures in several of the States.
Still later came the revulsion of 1887 when near
ly all of the banks in the Union suspended; and a
| large proportion of the merchants, manufacturers
and business men, as well as many of the banks,
failed, and were utterly ruined ; after which busi-
ness and property continued depressed for many
years. The causes of that revulsion and so great
distress were the excessive imports of 1884, 5 and
| g, whereby our foreign debt was nearly doubled
the expansion of the paper currency, which led to
extravaganza, speculation and an initiation OF
prices-and large sales of public lands, amounting
for the years 1885 and 1886 to over fortyone mil
| lions OF dollars.
The foreign debt of the country including Ma
| tlonal and State stocks and bonds and amounts
! due for imported goods footed up in the aggregate
about $500 900 900 on the lst October, 1887; S232
900 on the lst October, 1885, and 5000, 900 OOO
on the lst October, 1912, which, however, was
gradually reduced till it amounted to only $780,
OO0O 900 on the 3Oth June, 1917.
The last great panic occurred in 1857, and proved
to be one Of the most violent and disastrous which
has ever swept over this Or any other country. 1t
commenced with the failure of the Ohio Life In
surance and Trust Company on the 9th of August
but soon extended to other banking companies
and to many merchants, manufacturers and bust,
ness men in every section of the Union who had
Large payments to make.
This, like most of the others, can be ascribed to
a variety of causes, of which the principal were
excessive imports of the manufactures of Europe
the accumulation of large foreign debts, and the
expectation of large amounts of specie to pay the
balance of trade against us, and the interests on
our foreign debt--the immense amount invested
for ten years previous in unproductive railroads
extensive speculation in stocks, and extravaganza
stimulated by reason of fancied wealth arising
from the possession of securities-the deprecia
ton in all kinds of securities consequent on flood
jAg the market with such stocks and bonds as were
everywhere held as collaterals for payment OF
loans, ETC., and the alarm and distrust which per.
vaded in every part of the country.
i Mrs. Clement G. Clay.
/ FORTRESS MONROE Dec %, 1S65.-Mrs. Clay j!
still here, and there are no indications of her visits