The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1873-10-23
NUMBER 20
The London Panic of 1866.


In the presedt state Of financial excite
ment sketch Of the great London panic
in 1866, by an eyewitness, which fol-
lows, will be Of interest
In the early months Of 1866 the imam
cial position and feeling IN London was In
morbid state organized bear cliques
formed during the months Of March and
April, and were bearing all kinds Of stock,
but peculiarly the newly created fnan-
clal companies and several OF the stock
banks, of which the Agra g. Masterman
was a central object Although Overend
q Gurneys company was selected for at
tack, yet no one OF the sanguine bears ev-
er dreamt Of the really rotten state of the
great dlscounting house. On the begin
ming OF May. 1866, beople on Change and
IN the city congratulated themselves that
the morbid feeling in financial affairs was
past; and stocks all around were consider
ed better and stronger. These delusions
almsst invariably follow the greatest dis
asters, On Thursday, the 8th Of August,
1900, was walking up to Newgate street
| about P. M, when l met one of those
noisy, busy men who hear and know ev-
cry thing first I was on the opposite
side OF the street when this man bawled
out to me. "Did you hear Overend &
Gurneys have failed2" Walking across
the street to meet him Ia dozen men or
more were already arrested by his loud
communlcatlon). cautiously said "hush, -
when with louder bawl he called out
again, Il say Gurneys have failed !" By
this time perfect mob had gathered
around us. left the crowd and yended
my way to the well-known corner house
IN Lombard street To my-astonishment
saw no crowd, no excitement. The on
ly sign OF suspension was the closed doors
OF the house. 1t must be understood that
although no official business is done in a
bank alter P. m, yet the doors are al
ways Kept open until p. In. for clearings
and taxing bills up. Going into the eppos-
lte building of Messrs Barnetts. Hoar &
Co., | saw one of the tellers who signif-
cantly shook his head. "You will find
great excitement Tomorrow" said he,
the tumble has come" Lettering and
lounglng about, 1 still kept by some mys-
ferrous attraction near the great fallen
corner house. Twilight had set in, and
the crowd began TO increase, Suddenly a
man passed the crowd and said in an au-
dIble whisper. as if speaking TO himself,
The Agra d Masterman will go next"
lmm medlately the theme was taken up
by the bystanders, and it was pretty well
settled that the bank would fail. OF
course no reason was asked or given. 1t
must be stated that although all London
knew of the failure by five or six p. M, no
excitement ensued. There was a sort of
gloom prevailing early on Friday-that is,
early Tor London. About ten a. m, a
vast crowd was swaying to and fro from
the Poultry, or the Mansion House,
through Lombard street, Threadneedle
street, and the panic of the memorable
Black Friday had fairly set In. But it is
1 q hof \ he ,f ! !,
Alliance Bank, no run was noticeable, aud
yet every ten minutes brought news of
suspensions of banks-the European
Bank, the Consolidated, the Bank of Lon
don, three Of the newly created Indian
banks. The discounting houses ali tum-
bled down like nine pins. What at that
time seemed strange to me was TO see an
unusual number Of Quakers in Lombard
street, dressed as thsy were in their stiff,
stolid dresses. Their appearance only
added more to the general apprehension
of something awful going on. BY twelve
o'clock news came that the banks act had
suspended. But calmly speaking now,
l feel quite certain that no real relief was
felt by this announcement. Events later
droved II. However, to compare New
York panic with a London panic is about
as good as comparing an evening at the
hdaollle Win prayer IneeIlngs----4-46~ SOL
emnitY; the gloom and aF.ssIzf mental DIS
tress of London Panic s in the extreme
lFsinful. No one thinks Of eating, drink
ing, or smoking Stolen whispers pass
about, and no one would consider it pro-
priety to speak above his breath, while in
New York the livehest time, the gayest
lunches, the most spicy Jokes, are the or
der Of the day. In fact great disappoint
| ment Is felt by New York crowd If the
panic for ten minutes slackens. The pan
ic in L0Adon really only lasted-that is
to say, the eXcitement-adring Friday.
On Saturday the usual quiet appearance
IN the streets was restored, although
more than 920,000 600 in firms and banks
went bankrupt after the excitement. In
London the shock of Black Friday was
enough to search out the most tender
spots in financial weakness, and il took
five long years to restore or rather rebuild
the structure anew.