, 1875-08-16
THE CRISIS Of 1897.
Contrasts and IseacMb]nDcc9 Bc"
tween Then and Now.
Reasons Why the Experience in Ono
Case Carries Instruction for
tho Other.
Tho Iueyita1lo Results Of Tho Policy OF
ShInplastcr.IMilation.


Commercial and Fin1neiai fAronfr"
Ict ue recall briefly tho lpaluE ovonta ana IN
o,d.,ta M nthn orc.t crtss OF 1857" ~ It was
e'ueu .,,,, 1,rt ,irst nottco
tefmoa ior '''"''s s'"'' ..... "''o''
THE PROMINENT coSFH"hs
between that periot and tie present. Ihcf. tho
aooroRats yauatton of ifs real and personal es- !
~. f., tt,o u,,t.d E+n,ca and trerrftorios uaA |
'"to =. ~" ',e,t. A.. ,r,..rt ,r,,r,t ,ra |
only ABOUT ohe-o'Rn1n '"n nto"'.'s a'''o"s 49,
popuIaaoa waa snous I" "o'h''hs ''e l'te'c''' "" n
her therefore tho wealth por ca; ita In 1874. |
,,hon iii, ortaia occurred. wsg three and ono
-1 r.. =. ,,un,, 40 I, ,y,a in 1aa7
lltn ''n'eH 40 .s'"." =" "Ae -. 49,.
lhon' tne kse"'es pAs.
aholc numbar o! conmercia' debtora osehsual5 i
hac.me iarkrunt. thu1lusl comparatively fcw Of
tha, ,rna,tod that roanlk iurluf tho first year
sn''' N>ts 49,. a.. ..a., ~ .n,rsi In.
Oh auai'on0''o' NV, NV ~4o ....'s L,,.i.
eoyo''oy amonR merchants anu o'l'el Autt'o p'isr
pesa mon have hcon fow, mid 10 tle'r numhar
yorv few n,ore ueod t,o added up!oas the i'll. na.
,,sss ., rn,to,o b,,u,ncux nativity la loo Ionu
...s.', III tna .,,r;,,L,n, ~ xaluea and nm.
oeIsye"' @'4 ."e s"''"s''s ~ ~, .,', ~
employment ol labor ahd cap''a1 no eoht'naea
until both courage and rnsonrcos al'a1l be OK
hu,,,tal. Their, sueuuuaon Ut speoio payments
zr,s co,no,5o,,t will. and = aorIous mr.. of. the
"H' ~, ,,..,. ,,,a,,o,,:n,, ~ v,ao;o ,ay.
menta was cauH"t ny tho "Ss. was pro
csutlonAry, deliberate, aud not because tho
ianka wcro u,.uble to redeem thur ,ss,its. Dur
,"r ,ho Wor c,troor,,;nn,v ron litioue grew up
tns so' ,airr cnnt;nmnI ,yit, ,mcronuaI forcp
wtSu ftaI sho ' ar e,,I"J md, inoytaLe. pooor or
,nt.r crtss .,n M NJ hs,i and lid frnn Wow
~ sav Tho nnn,t,nr ytowl Tia irTcejBtilte p,ng-
~. - Il rh"x" ara Tia "rcat puint, OF uon-
tsaa+ nr Iiffcrcrr, iotvcot, tic cfisia pf 1871
.n ,,s9t int NJ of Is7 Following ai"ug tto saliout
Sa,inrsn 81 caeh n,,oG csteciaIl, those rroceu-
Ia tLn ro,..t ro,,hns .o rI,al aco the ponts Of
,1s tsscmhlsnoe. md tno ,oaso,.s why tic s1peti-
.uco In ono cano
'u'o =, nsnurtY mn tssrnucrtos ron TIE OTHER.
p,tor tn iH,a t,r 1;,utet Htatoy Bank lad held
,sstrain,pr control oyor lilo other banks Of
issns in liza wl,nle country preventing o1cesAtyo
issues Of notay. Au &C. Of Congress to reusw
r. ot,a rtor If tbo I}ant nnpaea iiv both IiuuBcy
;a sua'.u, was :" voino lac % y r'os'st Jackson In
1o11 IL ortlcr ~ the aa,ne rroa;dent. tic publlc
5snc.;;s 9s i; wsro rcmuyod from to UnitoI States
EvnL To cs,tntp state baphs, thus llnnguratinQ
what was calicI lilo lat Dauk Systea' Which
.o~o vnsr. inter rnys ninco 10 The " Iudepen cnt
S,,nsa,rs srI,c rhurtor Of tho Quilted Btutcs
n.uk axnlrod March >. 1871. mud could not bn
1ansusd o., nccouut Of tho detcstnnad retistaace
~ In trns,Iout. A. tilo lime of lilo veto iu
is1i shara @oH a majority In favor OF t,e re-
cbartcr in t,mIgrcpn. aud probably a majority of
tho people favorel it, but b"tl, rnajor,t,cs hati
become IN accord viii tho rrotdont uetere ls!a.
ststa u9s cha,tor In and became tnu United stptvs
nnni of Ioun.ylyauin, under tho management
oiits former ofilcers generally, and obtaining BY
II, 40,
purchase Tue aesota 0! thn ola M .ank, ossayoa ~
Mie'a i9s Enwes NY 4a 1 1v 'na;m!, j.. ~
tue ga unlen eeates na"a ~ l'tseluA i,s is
oranenea p az t!!o pEu.!. Ien iai. aua uo..s ~
same leading aha eon.so't!ns pna.asss az OF oau'
Dut IN vas 10 longer ane soa aSst ~. % u to ts Sag.
a. basis fot ITS losus II had to pay OF the
GosornMont ~! rs STOCK IL nau lost ~ spee'a'
powss anu .ads @ es ts naaco H ~ S"1 the ,' ron o
popularity Us wei nv tno co'naecu ~ ~ reu
ple; Il beeAma deeply involved % ~ liabilities anu
oeltgatloas ana III despsrae eMeI's u ieGovor
~ tames cohtAata o. nnslaeas y Mann a ,oaos
11om lss own ahd hos1o"eu Iahos too ialso III
smount aud too llttie securea lof ita alio.y
IilR' however, Wa ohataetafisu6 10 .ol Tue nn'es
Ihs daIosis nanks' or msos u shetn IT, eager 10
iunds, rapidly aud WIDELY e1tonded their
losua hoyond the houns na,sar, q prudence; &C..
policy Of loo mauy other banIs eserysnero !;
aud "a II tlat was mob enough now hat,ka by
scores xsre chartered and fsar!ed ~ opasatioi'
in all tho States aud Iarritories. q fow Ut thou,
With cAJb cap.tal wAolIy OF III rart paid up, but