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

1C8VlDk TIC WOTt0 uuS1Nl,
And. side by side with. those We love the
dearest,
In silence on We tread.
Thuson We tread, and thus each heart in 81
Its fate fulfils,
Waiting and hoping for tho heavenly music
Z Beyond the distant hills.
The only difference of the love IN heaven
From love on earth below,
Is Here we love and know not how to tell it,
And there We all shall know. .
PANlCS OF THE PAST.
Is sf::: s:'.ss !: ~; :"s &c.
PANIC OF 1887.
The New York World of September
% thus reviews the history of forme,
financial furries:
"The two causes generally assigned
for the panic of 1887 were the Bank Of
England requiring payment from the
American houses in London, and the
passing of the "Surplus Revenue bill
by Congress, which latter had the
effect Of causing the bank credits,
which represented the surplus revenue,
to be transferred from place to place
without any regard to the laws of trade.
The combination of these circumstances
was too much for the banks, and they
all simultaneously stopped payment in
May, 1887, as we'll as the three leading
American houses in London. The
depreciation of bank notes throughout
the country varied from 10 to Is PIE,
cent. The Eastern banks adopted
all proper measures 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 SIS, 900, 900,
of which 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 Phi'a-
delphia proposed to pay specie. and by
January, 1889, there was o nominal re
sumption of payment throughout the
country. October, however, of the
same year, the Philadelphia banks sus'
pended q second time, resumed in
1841 J; suspended third time the 4th
of February following, and did moi
permanently resume till March, 1912.
In 1887 there were 783 banks in the
country, employing a capital of $500,
OO0, 900.
PANIC OF 1857.
Up to August, 1857, that proved So
fatal to all the business interests oil
the country, commercial affairs had
been pursuing tho even tenor of their
way on the highroad to prosperity.
Everything pointed to q still more
prosperous figure. The mania fol
building railways had apparently been
nipped, if not in the bud at least be.
fore it had extended too greatly the
countrys credit, and, although there
were several hundred millions of for.
eign capital in use, in case of it's being
recalled the home market could regis
ter the bonds which represented it al
half the par cost. The wisest 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 oil
$122, OOO, 600. even then a reduction
of $10,OOO,00O or $12,00,OOO dur;ne
tho autumn months without injury t.
comm cree was declared possible. ant
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 particula
interest in tho market, and the repor
of defalcation in a leading railwa,
company, caused a suspicion Of com
ing crisis to faint the public security
but failed to seriously affect the gen
eral confidence. On the Oath of th
month the 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
at 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 ono
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
Company-showed a reduction q
81, OOO, 600 in the bank loans for tn
| previous week. A defalcation was an
nounced on the same day of $40, 600 il
one of the associated banks, and q
great was the general mistrust, tina
other institutions Immediately becam
; suspected of similar dishonesty. TIL
most substantial securities in the maj
, 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 O.
the most unquestioned securities ros
to what was up to that time uu
heard of there, four and five pc
cent. a 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
bank after bank succumbed to the panic
The panic extended through the entir
country. The failure of the Bank G
l Philadelphia, was followed by that q
, the other banks of that city, and b
those of Baltimore and the Souther
> Atlantic States generally. The PAM
was no respecter Of persons. Mer
. chants, bankers and moneycd corpora
tions, and manufacturing companie
3 were swept down without distinction
Commercial business was everywhe1
suspended; the purchase and transpol
q tation of produce entirely ceased
I and the climax only was reached whe
on the 18th of October, the ban
9 suspensions of New York and Ne
u England took place. For this almos
y universal suspension the banks coul
= not claim the want of faith among til
> dcpositors to be the cause. Dcspit
u the distrust that early began to affe,
!" the entire country, the deposition
lstood we'll by their guns, and not ii