River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1873-10-14

the most unquestioned securities rose
TO what was up to that time un-
heard of there, four and five per
cent. a month, and money could not
be had at any rate on ordinary promise
sorry 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 of
Philadelphia, was followed by that Of
the other banks of that city, and by
those Of Baltimore and the Southern
Atlantic States generally. The panic
was no respecter of persons. Mer-
chants, bankers aud moneyed corpora
tions, and manufacturing companies
were swept down witho Ut distinction.
Commercial business was everywhere
suspended the purchase and transpor-
tation of produce entirely ceased,
and the climax only was reached when
on the 14th of October, the bank
suspensions of New York and New
England took place. For this almost
universal suspension the banks could
not claim the want of faith among the
depositors to be the cause. Despite
the distrust that early began to affect
the entire country, the depositors
stood well by their guns, and not till
the Goth of September did they begin
10 be alarmed. For the five successive
weeks preceding they withdrew less
from the banks each week than the
banks withdrew from them by the de-
preston of loans. Although the panic
started on the 25th of August, caused
by the contraction of loans, and was at
once carried by the telegraph with the
speed OF lightning to all parts of the
country, no marked withdrawal of
deposits by individual depositors took
place anywhere till more than an
entire month later Up to that
time the depositors presented steady
front, apparently determined to sus
tain the public credit if everything
else failed. But when October came
in resistance seemed at once to cease to
be a virtue, and on the Sd of that
month marked change came over the
spirit of the depositors. Over four
millions of deposits were withdrawn in
the seven days following, and over
| fourteen millions in the next twenty.
The 14th of October was the date of
the banks suspension. On the day
following Withdrawals ceased and
restoration began. One of the
causes alleged by the banks
themselves themselves for their sus-
pension was the sudden with
drawal Of country balances, aud
for this the telegraph was responsible.
1t not only took the news to the
country banks of the collapse of credit
in the city, but brought back their
orders demanding their deposits in
specie. The Clearing House. too, was
alleged to aid IN increasing the general
collapse. Its daily settlements in coin
forced the smaller banks into contract
ing their loans, into sacrifices OF PROF
erty, and finally into bankruptcy
Default at the Clearing House became
the Banquo's ghost that appeared at
| the bank b )ard of all the smaller insti-
buttons. The most universally accepted
cause for the panic of 1867 is the vio-
lent contraction of bank loans immedi
ately after the oath of August. And
this was entirely the action of the
banks, and they had only themselves
to blame. 1t was, too, the expansion
OF banks previous to the panic that
| laid the foundation for the memorable
commercial crisis of 1857.
THE PANIC OF '66.
In the early months of 1866 the
financial position and feeling IN Lon.
don was IN a morbid state organized
bear cliques formed during the months
of March and April, and we're bearing
all kinds of stocks, but especially the
newly created financial companies and
several of the stock banks, OF which the
Agra and Masterman was central
object. Although Overend & Gurney's
company was selected for attack,
yet no one of the most sanguine
bears dreamt of the really rotten
state of the great discounting
house. On the beginning of May,
1866, people or Change and in the city
congratulated themselves that the
morbid feeling in financial affairs was
past, and the stocks all round were
considered better and stronger. These
delusions almost invariably follow the
greatest disasters. On Thursday, the
Sth of August, 1866, | was walking uy
Newgate street about four p. NJ, when
| met one of those noisy, busy men
who hear and know everything first.
| was on the opposite side of the street
when this man bawled out to me,
"Did You hear Overend- Gurney's have
failed ~ Walking acrosst he street
TO meet him "a dozen men
or more were already arrested
by his loud communication, l
cautiously said "hush," when with a
louder tone he bawled ont again, 81
say Gurney's have failed !" BY this
time perfect mob had gathered round
us. left the crowd aud wendell my
way to the we'll known corner house
in Lombard street. To my astonish-
ment saw no crowd, no excitement
The only sign of suspension was the
closed doors Of the house. 1t must
be understood that, although no
official business is done IN bank after
three r. NJ, yet the doors are always
kept open until six =. NJ for clcarings
and taking bills up Going into the
opposite building Of Messrs. Barnetts,