Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-06-18

toe cause, ara who In old eye b very
apt 10 be pensioned by the bank The
most honcAt man We had In the treasury
department Wa Hauilton. for when
he resigned he went 70 the Law and
made his living by his mind. Gallstin.
who sueoeedcd him under JefRcrson,
and had . great deal 10 say about lib
erty and the fitness " things. never
sheless became the ssipcndiary 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 its re-
charter. was prcyed upon by the poll
siciana. who aftcrwari destroyed Il.
and the favor to them wss made the
point Of accusation against il by Gen.
Jackson. when he could no longer use
IL 10 push his favoritcs into its branch
baukA My observation 1T the close of
the civil war was that nearly all the
state hanks ~ the south which had
failed had likewise been doing fsvors
for politicians, and In many cases their
debta were upon the bank books unset
tied for yesrs. and finally never act
tied. We do not know how much se-
ce~sion and disunisn have 10 do with
the despair Of bankrupt Individuals
The panic Of 1887 was . panic Of in
experiences. Our people had never
been called upon 10 make popular sub
scripsions 10 anything but che United
States itself. Jay Cooke hss taught
them 70 behave like other people and
bring their savings tn the government
and take bonds for the same.
In spite of mean secretaries Of the
treasury. of whom Chase vas one. Jay
Cooke. by the magnificcnce Of his spir-
it. carried the public loans all through
the ,~sr. and st the conclusion thereof
va . well-established banker in sew
ersl cifiea Having large banking
facilities. he pinned for something TO do
equal 10 his resources The Northern
Pacific railroad was brought to him
early In the seventies. or perhaps ~
early "a 1850. We had then only the
railroad scro~s the plains. the Union
a Central Pacific. Mr.. Cooke under
took to build that raiIroad on popular
subscription The American people
had plenty Of money to embark In the
enterprise. for the war. while giving .
public indebtedness. had made private
wealth general. through = sound IL in
fiated currency.
Mr.. Cooke. however. incurred the AMI
mostly Of older bankers. who were will
ing 70 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-
temstically condemned and attacked.
Coincident with u railroad undertake
ings and extensions became general In
other part~ Of the country. Finally
the New York end Of Mr.. Cookies bank
ing house abruptly closed its doors.
The chef banker hss always insisted
that there was not the slightest occa-
sicn foe tina A general panic, how
ever. snsued. which wa were about
four years in ssemming. Ia the sequel,
everybody who had faith In Jay Cooke
got his money and interest hack In the
Northern Pacific investment
The panic of 1887 oper. ted with great
rivor on the public because they had
been living eStrSvACantly upon IN in
ast~d currency and the altered habits
~ the civil war. Perhaps the sudden
ness Of that panic wss beneficial In cor
recting = great many Wild undertake
ings IN the nature Of swindles which
were being Matched out. such "a the
sale ~ Spanish land grants. The
Rank of California. which had main
tanned specie psymens against our
gr~enbscas. went mp among other
things. and turned looee ON the coan-
trys purely speculative element. led
By Flood and Ulsrien.
Hat. IL we now compare the Needless
panic over The Northern Pacific rail
rad With sach custhroat operations
- Ne have s~~n In the Reading rail
rpsi. in ia frequent bcoms and bank
err r~.wrsnisstsons. we can wonder u
the psosNls of SOS arr ~ gcod a. they
were In isT1 Yet The panic % isTs hsd
nearly destroyed Commodore Wander
hiis. Who. IN No. The language OF one
Of his family. lay down ard gave
everything ap fuv la~t" Hat some ~
his eosdtusors. with more pluck. az
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