Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-06-21

nOpoly, ana the United states BANK
increased its issue 100000.
English manufacturers were pros
porous, and the demand for raw ma
terial unprecedented. Cotton reached
twenty-seven cents, and corn was
pulled up to plant cotton. Specula-
ton was rife, and the excess of ex
ports over imports, in 1925, was 81
GAG, 200.
In July the prices in England fell.
1t created panic here. Fifty failures
took place in New York before De.
cemDer. Banks failed by the score,
and even the United States Bank
was in trouble. The Government had
ST,o00,000 in coin to pay, and the
money was to come through this bank.
The payment was delayed. When
paid, the bank was debtor to the
State banks, and could not redeem its
circulation. Then followed repeti-
ton of 1919.
Niles, in his Register, under date
of May 9, 1889, says that new banks
opened and period of speculation
began in 1884. In 1835,he adds:
"This became, wild, siezing upon cot.
ton, lands, negroes, city lots, western
lands, and every form of stock - but
the administration having learned
wisdom from experience, foreshadow-
ing the inevitable result, induced
most of the States to forbid notes I'M
der S..
At that time there was supposed to
be $64, 10000 of specie in the banks.
In the winters Of 1895 SO, however,
indication Of weakness became appar.
ent, and quotations began to fluctu-
ate. A feeling Of uneasiness peryad-
ell the assos--especiaAy affecting
manufacturing and agricultural in
terests.
July II, 1886, the Secretary of the
Treasury issued a circular forbiddlng
the receipt of anything but specie for
public lands. Congress, fearful of The
consequences, at once passed reso-
luton practically resembling this or,
der, which was sent to the President,
and by him forwarded to the State
Department, where it was filed March
8, 1887. But the crisis was at hand.
Early in March, 937, an important
firm in New Orleans failed, because
of decline in cotton. An equally ex-
tensive establishment in New York
closed It's doors Immediately upon the
receipt of this news. This was the
beginning The whole southwest
was at once Frustrated, and May
eighth, of the same year, run was
made on the Dry Dock Bank of New
York, causing its suspension. The
other banks throughout the country
were forced to suecumb. Gold went
up TO lO4, all specie had disappeared,
and the market was once again flood
ed with worthless paper.
To present in detail a description
OF the various effects tn ese monetary
disasters produced, the sufferings of
the poor, the destruction of industrial
schemes, the injury to husbandry, to
every species of individual and ma
tional interests, would fill volumes.
1t is, however, surprising with what
wonderful persistency tho country,
emerging from one Of these reckless
schemes, plunges headlong into
another.
In 1888 business again revived, and
a moderate feeling of security took
possession of the masses. There was,
however, a disposition to enter upon
more careful system of banking; but
a proper solution of the currency
problem had not been made, and fur
Their experience was necessary.
Scarcely had the country settled
down form the previous shock when
the United States Bank became in
volved in cotton speculation, and
there was again symptoms of trouble
in the finances. The old bank worked
hard to sustain itself, but there was
no coin, and the notes were sold in
New York and Boston at Is to "a
per cent. discount.
Upon this several banks failed
in different parts of the country.
Throughout the Western States, es-
pecially Michigan and Illinois, sus-
pensions were numerous. The notes
Of several joint-stock companies were
discounted at 25 to 60 per cent.
Alabama, during 1888, created q
debt of $l5, 100000 to found banks.
This was nearly all lost Mississippi,
the same year borrowed $7,000,00O
for similar purposes, and the whole
debt eventually was rep udlated.
September 10, 1889, a draft Of
the United States Bank was refused
in Paris. A respite, however was
obtained through small loans. This
could not long continue. The bank
owed 20,0oO,0OO in New York, $500
900 in Boston.
A spirit of rivalry seems to have
always existed among banks, and this
indebtedness was promptly brought
home tor payment. The pressure
was too great, and October 10, 1885
the doors were closed.
This event was followed by tia
suspension of nearly every bank the
the South and West. New England
held out for time, but finally sus'
pended wholly or in part. Three
hundred and fodrty-three banks, out
of eight hundred and fifty closed out
tirely, sixty-two partially and over
$4,000 900 Government deposits were
lost.
Again we have an instance of the
recuperative powers of the nation.
There was period OF universal pros
perity from 1871 to 1859. Business
men had gained confidence and all
classes expanded their engagements,
man, howevea goeing far beyond the
projection of their resources. This
was particularly the ease of those en-
gagged in banks and bank speculation.