The Portland daily press., 1893-06-27

consider the dismal, precarious life
they lead in the government service,
liable at any time to be turned out
when the mob has altered its will,
with the apparently substantial condi-
ton of the bank cashier, teller or pres
ident, who is never discharged except
for cause, and who in old age is very
apt to be pensioned by the bank. The
most honest man we had in the treasury
department. was Hamilton, for when
he resigned he went to the law and
made his living by his mind. Gallatin,
who succeeded him under Jefferson,
and had a great deal to say about lib
erty and the fitness of things, never
theless became the stipendiary banker
for old John Jacob Aston, until the
panic of 1887 struck him, when he was
retired, and he died at Astoria under
Astor's nose,
The United States bank, after it's re-
charter, was preyed upon by the poll
ticians, who afterward destroyed it,
and the favor to them was made the
point of accusation against it by Gen.
jackson, when he could no longer use
it to push his favorites into its branch
banks. My observation at the close of
the civil war was that nearly all the
state banks at the south which had
failed had likewise been doing favors
for politicians, and in many cases their
debts were upon the bank books unset
tied for years, and finally never set
tied. We do not know how much Sc
cession and disunion have to do with
the desp air of bankrupt individuals.
The panic of 1857 was panic of in
experience. Our people had never
been called upon to make popular SUBJ
scriptions to anything but the United
States itself. Jay Cooke had taught
them to behave like other people and
bring their savings to the government
and take bonds for the same.
In spite of mean secretaries of the
treasury, of whom Chase was one, Jay
Cooke, by the magnifcence of his spir-
it, carried the public loans all through
the war, and at the conclusion thereof
was well-established banker in sew
eral cities. Having large banking
facilities, he pinned for something to do
equal to his resources. The Northern
Pacific railroad was brought to him
early in the seventies, or perhaps as
early as 1869. We had then only the
railroad across the plains, the Union
& Central Pacific. Mr.. Cooke under
took to build that railroad on popular
subscription. The American people
had plainly of money to embark in the
enterprise, for the war, while giving
public Indebtedness, had made private
wealth general, through sound if in
fated currency.
Mr.. Cooke, however, incurred the ami
mostly of older bankers, who were will
ing to bring on general panic rather
than see him head the list of financial
authorities from that old and some
what reactionary city of Philadelphia.
The Northern Pacific railway was sys-
tematically condemned and attacked.
Coincident with it railroad undertake
ings and extensions became general in
other parts Of the country. Finally
the New York end of Mr.. Cookies bank
ing house abruptly closed it's doors
The chief banker has always insisted
that there was not the slightest occa-
sion for this. Ageneral panic, how
ever, ensued, which we were about
four years in stemming. In the sequel,
everybody who had faith in Jay Cooke
got his money and interest back in the
Northern Pacific investment.
The panic of 1857 operated with great
rigor on the public because they had
been living extravagantly upon an in
fated currency and the altered habits
of the civil war. Perhaps the sudden
ness of that panic was beneficial in cor
recting great many wild undertake
ings in the nature of swindles which
were being Matched out, such as the
sale of Spanish land grants. The
Bank of California, which had main
tanned specie payments against our
greenbacks, went up among other
things, and turned loose on the coun-
try a purely speculative element, led
by Flood and O'Brien.
But, if we new compare the needless
panic over the Northern Pacific rail
road with such cutthroat operations
as we have seen in the Reading rail-
road, in its frequent booms and bank
ers' reorganizations, we can wonder if
the morals of 1898 are as good as they
were in 1873. Yet the panic of 1878 had
nearly destroyed Commodore Wander
bilt, who, to use the language of one
of his family, s'lay down and gave
everything up for lost" But some of
his coadjutors, with more pluck, as
sisted to better days. GATH