The New York herald., 1873-11-15
SOUTH CAROLINA.
Tho Rise and Progress or tho Panic at
Charleston-rhe ID hc ties OF the Cor-
ton Factors, Man ufacturers and Fer
tilixing Concerns.

The Rise and Progress or tho Panic -
charlottesville ID hRc u ties Of the Cor.
ton Factors, Man ufacturers and Fer.
tilizing Concerns.
CHARLESTON Nov. g, 1879
The tidal wave OF financial ruin which has swept
with such disastrous results over the entire length
and breadth OF America expended some OF Its fury
In the commercial metropolis OF the Palmetto
State; but the old "City by the Sea-" although OF
late years proverbiaiy uniucky, has, in great
measure, escaped the consequences OF the storm.
This escape was the more noteworthy and
the more provldeptal from the TACT that
tho crisis was totally unexpected, and.
consequently. no preparations were made to
avert the consequences. When the 1rst mutter.
ings OF the storm were heard In the North the
great financial lights OF Charleston wondered at
the shortsghtedness which led Northern capitalists
INTO wild speculations In fancy stocks, but their
equan unity not In the least disturbed. On
Friday the 26th OF September, there was an un-
usual tigh.ness in the money market, and as the
news was rapidly flashed over the wires or banks
suspensions In every CITY OF the Union the first
panicky symptoms began 20 manifest themselves.
On Saturday morning, the 27tb, there was run on
the banks, which caused some or them to suspend
currency payment These were the South Carolina
Loan and Trust Company, the Pc pies Bank OF
South Carolina and the Planters and Mechanics
.
however, laced the storm bravely, and paid out
greenbacks all day. This saved the o.ty. AS the
hours passed BY and the teers at the national
banks continued TO pay all checks at their c0un-
ters, the people began to recover from the effects
or tue panicky feeling which had induced the
rush, and at the close Of banking hours q
very general feeling OF renewed confidence
began to manifest itself. This was strengthened
on the following Monday by the action OF the
national banks, who, without an arrangement OF
any kind among themselves, tided over the
trouble and saved the community from almost
complete financial destruction. In q lew weeks one
OF the suspended banKs-the South Carolina Loan
and Trust Company resumed business, and the
financial troubles seemed to 0e iOr the time over
come. The total capital employed by the two sus-
pended State banks IS not more than s50O000.
This was the first crash OF the panic in Charles
ton. Terribly ruinous consequences were averJed
by the confidence OF the people and the prompt
payments OF the national banks. From that time
out, however, 1t was apparent that the financial
screw had been turned, and despite her lucky es-
cape from the first shock OF the storm Charleston
like all the other Southern cities, was doomed 10
suffer from the prevailing financial epidemic. For
a short time business was at a standstlll The
wholesale merchants, calculating upon splendid
fall business IN consequence OF the unprecedented
health the city during the past summer, had
made heavy purchases Ut the North and were
prepared Tor and expected large and remuneratve
sales. The crash came just at the time when the
merchants and planters from the Interior OF the
state were accustomed to come TO the city to
make their fall and winter purchases, aud the first
food OF the feecy staple nad Just uegun to set IN
steadily. The blow was severe, and even the stald
and steady old merchant prince, o, Charleston
were or a time dismayed. AS the money market
in New York frightened the difficulties here in
creased The difficulty In negotiating bills OF ex.
change h ndered, and for a time almost paralyzed
the Sale cotton. For once the standard southern
staple was drug in the marNet, King Cotton
tremoied his throne, and the thousands of
feecv bales lying about on the wharves aud in the
warehouses became so much idle capital.
which tney were willing to dispose oil on liberal
| terms the market was blocked .or the want OF .
circulating medium. This state Of affairs. how.
that the business men and capitalists o Charleston
have not yet come INFO the new way OF making
money-viz.. by speculation IN fancy stocks. The
banks were solid ana the business men nrm,
and behiud all this substantiality lay
was great, but it was only temporary. and.
although cotton belan at once to go down, and
the planters were strongly urged ny some to mold
their corton until eaction came aaout, tney were
moved by wiser and more honorable motives.
THE SITUATION AT PRESENT is GLOOMY
enough, but yet Charleston has mach to be
thankful for. A. | have oelors stated, the remark
mer mon MS gave rise To antcipa'ious 0f an unpre-
cedentedy heavy business in the fail. And these
antcpatons we're only disappoin ed uy the unex'
pectei sringency in the money market. On the
wholesale jobbing trade the effects oil the panic
are pOoaS nSs most s Oosng Ms,
prior to the crisis. wnlcn has caused the merchants
from the interior OF the State to mold on. In con-
sequence OF this the trade Is in great measure
crippled. The monthly sales oil one oi the leading
wholesale dry goods houses nave fallen OF nom
$4,000 10 $4,000 during the month OF OctuOer.
The announcement recently made that the prices
OF goods were TO be reduced by the Spragues
caused considerable OF q STIR among toe dry goous
men here, but the trade has remained sound. and
beyond the temporary loss OF business no serious
erfects are hhely to ensue. The retail dry goods
the cash to New York to purchase go ds claiming
that they can purchase for cash at greatly reduced
rates, and the trade IN the city mas consequently
been rather brisk.
IN THE MANUFACTURING DEPARTMENT
the loss has been much more serious The great
manufacturing interests OF Charleston are con.
fined chiefly to the mining and manufacturing OF
a dozen ex enslve factories In the suburbs. The
labor employed In this branch oil business
labvrers, field hands, whose wages average
from 20 cents TO 81 50 per day: About
week before the commencement ,n OF the
demanded 81 90 per day. 1t was an unfortunate
time for the strikers. There was very little de-
mand Tor ertiIzers at that season or the year, and
all the factories had accumulated stocks on hand.
The mill owners re;useu to pay the advance de.
manded and closed tner mills preferring to rely
Tor the present on the stock on hanu. Then ol-
lowed the crash ana The consequent tightness IN
power OF the mllls to resume, and lett large num-
Der OF colored men out ol work.
'rhe pressure was Iet IN ali the machine shops
and factories in the city, who found IL Impossible
to make collection lhe most extensive OF these
are now paying only fifty per cent In cash OF tGeir
weekly pay rolls The large printing establish.
ment OF Walser. Evans & Cogswe, where several
hundred men and women are employed, IS work
threequalter time. The extensive mach. ne shops
OF the south Carolina Railroad are worSins on iul
time aud at iul wages, but REDUCTION oil wares Is
inevItable; and should the shrinKage In vaues
continue there must be O general reduction oI
wages all through the city.
The real trouble az present In this section OF the
country Is tue want Of currency. This Is where
the shoe pincees. We are starving for currency,
and unless relief comes from some quarter very
shortly, our sunerlngs threaten to be prolonged.
Various efforts have been made TO relleve tue
stringeucy. but, as usual In pauicky times. money
seems TO absorb ITSELF The Ne,rS ana Courier the
leading paper IN the state has boldly advanced
the idea OF an increase OF the amount oil tie cir.
culatIng M dun. TEe South Carolina Railroad,
which has an annual freight business uf about
$1,000 or more, has issued . limited amount OF
.lare tickets" win which it pays Its operatives