Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1873-10-09

fatal to ali the business interests of
the country, commercial affairs had
been pursuing tho even tenor of their
way on the highroad to prosperity.
Eyerytbing pointed to = still more
prosperous figure. The mania for
building railways had apparently been
nipped, If not in the bud at least be-
fore it had extended too greatly the
country's credit, and, although there
were several hundred millions of for.
eign capital in use, in case of its being
recalled the home market could regis
ter the bonds which represented il at
half the par cost. The wiisest Solomons
OF banking saw NO indications of the
coming storm in the commercial skies.
When, on the 9Th Of August, the loans
reached the unprecedented height of
$122, OO0, 600, even then q reduction
Of $11 000, 900 or 81, ,O0, 900 during
tho autumn months without injury to
commerce WAS declared possible. and
in pursuance of this declaration the
banks began to contract their loans.
Never was an act followed BY more
fearful consequences. The prices OF
securities at the Stock Board imme.
distely fell The. failure of q heavy
produce house, although accounted 70,
BY the depression of that particular
interest in the market, and, the report
Of defalcation in . leading railway
company, caused q suspicion of q com.
ing crisis to taint the public security,
but failed to seriously affect the gen.
ersl confidence. On the 24th of the
month tho news Of the suspension Of
the Ohio Lite Insurance and Trust
Company came like thunder from q
clear sky. The financial circle vibrated
to its center; banking officers, panic.
stricken by the suddenness of the blow.
at once lost their heads. The days of 81
seemed once more upon them, and
financial chaos was come again. Stocks
and commercial paper were at once
sacrificed at ruinous rates, other fail.
ures were announced, and rumors
exaggerated each calamity. The Clear.
ing House report for August 29-the
first after the suspension of the Trust
Oompany-showed q reduction Of
&, ,O00, 600 in the bank loans for. the
previous week. A defalcation was an
nounced on the same day of go, 900 in
one of the associated banks. and 40
great was the general mistrust, that
other institutions Immediately became
suspected Of similar dishonesty. The
most substantial securities in the mar.
ket sold for next to nothing at public
sale, and while the regular discounts
OF bills by the banks had been nearly
suspended, street rates for money on
the most unquestioned securities rose
to what was up to that time un.
heard OF there, four and five pc,
cent. = month, and money could moi
be had at any rate on ordinary promise
sory notes and bills of exchange. Com.
mercial house after commercial house.
bank after bank succumbed to thepanic
The panic extended through the entire
country. The failure OF the Bank o.
0ailadelphia, was followed by that O.
the other banks of that city, and b,
thoaa -of Baltimore and the Souther1
Atlantic States generally, The panii
was no respecter of persons. Mer.
chants, bankers and moneyed corpora.
tions, and manufacturing companie,
were swept down without distinction
Commercial business was everywher,
suspended; the purchase and transpor
tation Of produce entirely ceased
and the climax only was reached whe1
on the 18th of October, the banl
suspensions of New York and Nev
England took place. For this almos
universal suspension the banks coul,
not claim the want of fnith among th
depositors to be the cause. Despit
the distrust that early began to affec
the entire country, the dopositor