The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1873-09-24

one ana u nall or two per cent nc
annun, Hence England again became
u purchaser Of American securities
Her capitalists bought largely OF rail
road bonds, taking the best. Hundred
of houses at home likewise had thel
capital IN bonds, In short everybod,
invested in bonds because they wer,
paying large Interest. Finally, how
ever, there was sudden check 10 nj
lhis mania. There were rumOrs of wa
on the continent. The English CAPT
tnlists became timid and returnc,
their securities for realization. Bread
SUITS advanced, Deposits decreased
Heavy importatlons became due and I
llt,le later, the banks were absolutely
forced TO the calling in of loans. Stock,
now fell rapidly,
To stem the wave was impossible
and the money institutions were lcl
with great load OF stocks and bonds
that were daily diminishing in value
The year 1854 offered anything but 1
prospect of RELIEF. Great issues o
fraudulent stocks were discovered
10000 illegal shares Of II great Nilroac
running out Of New York had beer
sold ut par by one of its principa
officials; $500, 600 worth of forged stock
of another company was on the street
there were minor breaches of trust by
the score, and suspicion filled the air
Several Western banks and Il few IN
this neighborhood suspended. The
depression of prices was enormous. Re
acrion followed in 1866 Those who
dared to buy at the low prices of 1851
made fortunes. Crops were good, the
older railroads paid handsome dlvi-
dends, and The bulls Were jubilant.
New and competing lines now came
into the picture. Their bonds sold for
anything they would fetch, and thou
sands on both sides Of the Atlantic
came forward as buyers.
The banks loaned money on these
securities in lttlemore than six months
to the amount of over twenty million
dollars. Stocks moved gradually down
ward, but panic seemed impossible, be-
cause it was believed that it could only
originate in London, the capitalists OF
which were not likely TO send back al
of their hundreds of millions of dol
lars to certain sacrifice. The juncture
again became critical. More "irregu-
larities" We're quoted. Heavy loads of
stock were being carried in the hope of
q rise, and the banks began TO slowly
contract though still generous in ac-
to customer who desired
aid in maintaining their position. Sud
denly came the failure of the Ohio Life
Insurance and Trust Company.
This was the feather that broke the
camel's back. Ii had advanced Large
sums on stocks and bohds. The loans
were called in, brokers could not COM
ply, and the doors of the institution
were closed. 1t was the beginning Of
The end. Panic ensued. Loans were
rut down at the rate OF $i,000,0O0 n
week. Scores broke daily and univer-
sal distrust prevailed, while stocks
deprecated from 80 to 40 per cent.
Added to this were evidences of ms
peculatlon stock johbing
schemes in Congress and revelations Of
.he adherent weakness of great c0rpo.
'ations everywhere cropping out, and
all the proportions Of a
gigantic and widely-spread system OF
fraud. such briefly sketched, is the
history of two of the greatest financial
crises of America. To the careiIl
observer they are full Of lessons. 70
the prudent business man they Will
suggest caution. While nothing looms
up in the immediate future thrt may
excite fear, there is enough in the
pending condition of affairs to give
Our tremendous Indebtedness, State,
NATIONAL local and individual is our
one weak spot. Unfortunately we owe
owe the bulk of this to Europe and it
Is beyond our own control. In the
end, however, give us good crops, cheap
and abundant transportation from the
interior to the ceast; give us II markeo
Tor our produce across the seas; gioe
rs men and women who will sensibly
as they have done in
France, to live within their means, to
abandon even a fraction of the Injuries
hat are imported, give us prudence
and honesty in the management OF
our railways and banks and it will
not be many years before we should
see the load lifting from our shoulders,
.he world, our debtor, and u magniti-
cent destiny approaching something
ike fulfillmeut.