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

A"'' .s,.sf ''oos"''ss, 'no'e We love 'nf
IN silence on VI tread.
TbusIen " tread, and thus each heart in 81.
=. +: , ts!s ta' 9a 49,, , ..,, ,.:
-: Si s the io1e num- IN heaven
From love on earth below,
Is: Heee-we love and know not how, to tell it.
And there No al shall know. .
PANlCS OF the PAST.
7~i Is s;::: S::::; &C. sss::, and
PANIC Of. 1887.
The New York World OF Septembe,
20 thus reviews the history of forme,
financial duIries:
"Thet two causes generally assigned
for the panic of 1887 were the Bank Of
England requiring payment from the
American houses m'Iondon, and the
passing Of the s Surplus Revenue bill
by Congress, which latter had the
effect Of causing the bank credits,
which represented thu surplus revenue
to be- transferred from place to place
without any regard tathe laws of trade.
The combination otfkese circumstances
was too much for the banks, and they
ell simultaneous stopped payment in
May, 1887, - well o the three leading
American houses In London, The
depreciation Of bank notes throughout
the country varied from II to Is pel
cent. The Eastern banks adopted
all proper ms6sures to secure
speedy resumption of pay
ments, but their efforts were not
seconded BY those Of other parts Of
the country, and in the West and
South new banks continued to be
created. During the remainder OF
1887 and in 1888 the excess of specie
imports over exports was $18 O00, 600,
OF which q part was sent to the Bank
of England t. enable American banks
to resume. In May, 1888. the banks
OF New England and New York resumed
and continued to pay specie. In the
August following the banks of Phila.
delphia proposed to pay specie, and by
January, 1889, there was . nominal re
sumption Of payment throughout the
country. October, however, of the
same year, the Philadelphia banks sus
pended second time, resumed in
16A {; suspended . third time the 4th
Of February following, and did moi
permanently resume till March, 1872
In 1887 there were 768 banks in the
country, employing capital of $780,
100000
PANIC OF 1857.
Up to August, 1867, that proved *
fatal to all the business interests o.
the country, commercial affairs hai
been pursuing tho even tenor of thei,
way on the highroad to prosperity
Everything pointed to q still NOR
prosperous figure. The mania fol
building railways had apparently beer
nipped, If not in the bud at least be
fore it had extended too greatly tn,
country's credit, and, although Their,
were several hundred millions of for
eign capital in .se, in case of it's bein1
recalled the home market could regis
ter the bonds which represented it q
half the par cost. The wisest Solomon
Of banking saw no indications of th,
coming storm in the commercial skies
When, on the 9Th of August, the loan,
reached the unprecedented height O
$122, OOO, 600, even then q reduction
Of 80, O00, 600 or 81, 90, 600 dur:nl
tho autumn months without injury t,
commerce WAS declared possible. AMI
} in pursuance Of this declaration tn
banks began to contract their loans
Never was an act followed BY NOR
fearful consequences. The prices O
securities at the Stock Board imme
diately fell. The. failure of heav
produce house, although accounted TO
by the depression Of that partioula
interest in the market, and, the repor
OF defalcation in q leading railwa,
company, caused . suspicion Of com
ing crisis TO faint the public security
but failed to seriously affect the zen
eral confidence. On the 9th of th
month tho news of the suspension o
the Ohio Life Insurance and Trus
Company came like thunder from
clear sky. The financial circle vibrate.
to it's center; banking officers, panic
stricken by the suddenness of the blow
ct once lost their heads. The days of g
seemed once more upon them, an,
financial chaos was come again. Stock
and commercial paper were at one
sacrificed at ruinous rates, other fail
ures were announced, and rumor
Exaggerated each calamity. The Clear
ing House report for August 9th
first after the suspension of the Trus
Oompany-showed q reduction O
| Il, 900, 600 in the bank loans for tn,
previous week. A defalcation was an
nounced on the same day of so, 600 j,
one of the associated banks, and n
great was the general mistrust, tina
other institutions Immediately becam
suspected OF similar dishonesty. Tn
most substantial securities in the mar
ket sold for next to nothing at publ
sale, and while the regular discount
OF bills by the banks had been nearl.
suspended, street rates for money OF
the most unquestioned securities ros
to what was up to that time un
heard of there, four and five ne
cent. = month, and money could no
be had at any rate on ordinary promis
sorry notes and bills of exchange. Com
mercial house after commercial house
banks after bank succumbed to thepanic
The panic extended through the entir
ceuntry.5 The failure of the Bank o
\ pAiIadalphia, WAS followed by that 0
the other banks of that city, and b,
thoaa III Baltimore and the Southeri
Atlantic States generally, The PAM
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 Whe
on the 18th of October, the ban
: suspensions of New York and Ne,
! England took place. For this almoa
universal suspension the banks coul
, not claim the want of fifth among th
; depositors to be the cause. Despit
the distrust that early began to affet
" the entire country, the deposito,
lstood well by their guns, and not ii