Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1875-12-09
Durations of Commercial Depres-
sions.
From the Toledo Blade.

| FROM the Toledo Blade.
The panic 1919, caused by the in
tiatlon of the currency during anC
succeeding the war of 1912, began
properly, about the first of April
1918, when the Bank of the United
States set about putting its affairs il
order, and uncovering the rottennes:
Of the New York, Philadelphia and
Boston banks. BY August OF that
year the business of the country was
Frustrated. In the small city Of
Philadelphia 10000 persons thronged
the streets, seeking employment.
Thirty trades in that city which usual.
ly employed 1872 persons, reduced
their force TO about 1000 The same
ratio prevailed in New York, Baltj-
more and Boston. The depression
lasted through 1919 and 1920. In
June, 1921, revival of business
seemed evident. By October there
was an unmistakable movement in
that direction, which continued to
develop until December, 1922, when
a reaction took place in manufactures,
which reduced prices sharply
amounting, in cotton goods, to as
much as so per cent.
Business recovered from this, and
went on improving rapidly. The
prosperity was very marked in 1924,
and the year opened very auspicious-
ly. England, which had also been
suffering from trade depressions, had
recovered, and everything was going
on swimmingly.
In July, 1925, reaction took place
in England, which communicated
itself to this country, and firms went
down like card houses. The panic
eliminated in December, and the de-
preston lasted throughout the year
1926.
In 1927 the revival came, and the
country was again prosperous, and
business increased rapidly, with but
few temporary stringencies, until the
greatest crisis this country has ever
known was precipitated upon it in the
beginning of the year 1887. The
brunt of the crash occurred in New
York in March, aud in April the
whole country was succumbed. The
depression continued throughout
1887, but the next year opened fevos-
ably. trade revived rapidly, and the
banks generally resumed specie pay
ments in August. The year 1889
brought about a crash in our defec
tive banking system which wiped out
of existence 343 of $50 banks then in
existence. This crippled the indus
trial interests of the country some
what, but the next two years were
comparatively prosperous. A revul-
sion took place in l843 which lasted
the whole year.
In 1914 the recovery was nearly
complete 1916 was still better, and
so it went on, each year apparently
more prosperous than the proceeding
ono until 1851, when there was
panic, the effects of which, however,
disappeared by the following year,
and in 1855 and 1856 were very pros
porous seasons.
The bad outlook for crops, and
decline in stocks early in 1857, caused
uneasiness and apprehensions of
trouble which finally came on the
oath August, when the Ohio Life and
Trust Company, of Cincinnati, failed,
with seven millions of liabilities. The
infection spread on the 18th and
18th of September the banks of
Philadelphia, Washington, Baltimore
and many other cities suspended.
On the 18th of October the New
York banks, with one exception, sus'
pended, and few days later the Bos
ton banks did the same.
This marked the climax of the
trouble. December IL, the New York
banks resumed specie payment, and
other banks followed one after an
other. The revival of business was
wonderfully rapid. By spring it was
we'll established, and continued TO de-
velop until 1850, which was the most
prosperous OF our ante-war era. The
data for the above statements are
mostly obtained from Professor Sum
ner's "History of the American Cur
rency."
The recapitulation of the foregoing
shows that the commercial depres
sions following the various crises
which have visited our country have
been in duration as follows:
That Of 1919, two years.
That 1852, year and half.
That Of 1887, a year and half.
That of l843, one year.
That of 1853, six months.
That Of 1857, six months.
The tolerable uniformity of the
periods through which each depres-
sion lasted--about year and halt
shows that there is something of a
rule which governs these revulsions.
1t will appear that from eighteen
months 20 two years are required for
people to look around, strsighten up
their accounts, pay their indebtedness
and collect what is owing to them.
Reasoning from the analogy obser
vable in these instances, it is evident
that the period of the commercial
stagnation following the panic of 1878
has run its full length, and the recov
cry cannot be long deferred. We
have before shown reasons for be-
lieving the revival is in progress, hav.
ing set in some months ago. Another
feature of the analogy is that the
coming years will be unusually pros
porous. There seems no doubt to u,
that we are now entering upon thi'
era, which will last for another de
cade or score of years.