Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1884-06-19
me wn1cns

tahy nnpreP les,
up to August 0tsn1 veN&Sn.
cial affairs wers geneFaly
/ The local jouJ aas throughoq "a.
Ifrysrepresent business is h, AZ
condition. high prices wefre "a
have enriched the farmer, las TX
raiser and planter. Trade and me-
chanicalmdustry. fourished with cor
respon0ng success. s'In estimating
probaakies for the FUTURE says j. S.
GlbbQ IN his account of that event,
gre gtress was laid on the fact that
the e1ness of railroad building was
arr ed The bond market, and with
Improvement securities generally,
nz1 fallen into disrepute. Stock COM
mes could no longer send an agent
urope with five millions of credit
o1ens, and receive the money for them
Within sixty days from the engraver's
press. Heavy financial negotiations in
this dlFection were suspended, and, al
though the country had several hundred
millions ct foreign capital to use, there
was no danger of any considerable por-
ton Of it being recalled, since our home
market would reject the bonds which
represented it at half the par cost. We
might, therefore, coatinue TO enjoy the
use Of this large capital and avoid the
disaster conse 1uent on further accu-
mutation of foreign debt. The common
sentiment was that we had passed the
dangerous point in railway credits, and
with the immense productions of the
year at our doors, there was little prob
ability of serious financial disturbance.
The most sagacious of our city bank
officers saw no indications of an I'M
nSnQl tho ;o1
When the loans reached the unpreee-
dented height of Sl22, Oo0,OO0on the Sth
OF August, they pointed to the annual
reduction of $4,000, 900 or $l2, 900, 900
in the autumn months, as one of the
regular GIBBS to which the market was
subject. but they had no foresight of
extraordinary pressure, and no dreams
of panic Credit was extended, but
''the country never was as rich.', a F.
But this storm was coming. On the
Sth of August the banks began to con-
tract their loans, and, as Consequence.
securities began to fall in price at the
New York stock Board. The failure
of heavy produce house was explained
by the depression of that particular in !.
terest in the market. A report of dis
honest jobbing, and the misuse of funds
by leading railway company, caused
partial excitement. but did not serious-
ly disturb confidence in mercantile
credit. The immediate cause of the
panic. however, was the suspension of
the Ohio Life Insurance d Trust Com
pany on August "a. 1t came like a
lightning stroke from an almost clear
sky. An intense excitement was mani
tested in all financial circles, in which
bank officers. says Gibbons, participated
with unusual sensitiveness and want of
self-possession. Flying rumors were
exaggerated at every corner. q The hold
ers of stock and commercial paper hur-
ried to the broker, and were eager to
make what week before they would
have stunned as a ruinous sacrifice.
Several stock and money brokers failed,
and the daily meetings of the New
York and Boston Brokers' Boards-the
former. especially-were characterized
by intense excitement. Every individ-
ual misfortune was announced on the
news bulletins in large letters, and at
tracted curious crowds, which were fed
from the passing throngs-the New
L ork Clearing house report for the q tn |
of Augustine first after the suspen-
sion of the Chic Life Insurance & Trust |
Company-showed reduction of S4,-
0OO, 900 in the bank loans Of the previ- |
Gus week. The most substantial secur- |
tiles of the market fell rapidly in price |
at public sale. The safety of bank |
notes in circulation was suspected or |
denied. The publishers of the counter
spread alarm among the |
and workingmen, by sell
ing haHd-bills with lists of broken
banks, which were cried in the streets
by boys ga penny apiece" One of the
New York associated banks fell
into default at the end of
August, and ia fraud of
$4,000 by the paying teller reused sus-
picion OF similar misconduct in other
Institutions. The regular discount of
bills by the banks had mostly been sus-
pended, and the street rates for money,
,yen on unquestionable securities, rose
o three, four, and even five per cent. a
month. On the ordinary security of
merchants as promisory notes
md bills of exchange-moneyw was not
% be had at any rate. House after
house of high commercial repute sue
,umbed to the panic, and several heavy
,anking firms were added to the list of /
aiIures. The settlements of the clear
ng-house in New York were watched
With the expectation of new defaults,
md their successful accomplishment, |
'ach day, was sui, ect of mutual con-
.ratulation among the bank. officers.
The statement of the New York city
,anks for the week ending September
!, showed further reduction in loans
# more than S4,OOO,OOO. Commercial
ADVERTISEMENTS and suspensions be-
anne the chief staple of news in all the
,apers of town and country. The pur-
base and transportation OF produce al
most entirely ceased. From this period
ARE was nothing lacking to aggravate
tramon distress for money. he fail
nc of the Bank of Pennsylvania, in
was followed by that of
he other banks of that city, and those
f Baltimore and the Southern Atlantic
tates generally. Commercial business
verywhere was suspended. The ava
anche of discredit swept down mer-
hants, bankers, moneyed corporations,
nd manufacturing companies without
istinction. Old houses, of accumu-
ated capital, which had withstood the
iof8nce of all former panics, were pros
.Afed In day, and xhen they believed
aemselyes tosbe perfectly safe against
iisfortupe. The Suspension Of the New
'ork banl and the banks in Boston
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