The herald., 1893-09-10

large and as heavy a. half dollar; a
hundred OF them was of nearly sufficient
weight to sink one II one fell into the
water. The Canada piece of equal
dimensions was also numerously ire
quent. and the two-cent coin OF Upper
Canada was a familiar object.
Dealing in money-it should perhaps
be said gold, as that appears to be the
only thing recognized as money in cer-
tain quarters now-was not such an in
dustry as it became in after years, and
men were glad to take silver. The
"Spanish milled dollar" was far more
numerous than American dollars, and
even then they had the same old trick
of slipping down into old stockings and
remaining concealed from the business
world. United States bonds were Of
limited issue, and paper money, as
shown, was hardly worth putting away.
New York state money was generally
good in the west, but western money
did not pass current in the east; good
for railroad fares only at heavy dis
count. The inconvenience occasioned
by this condition of things can hardly
be conceived of now. while the losses
were often of serious nature.
This, briefly. was the financial situa-
ton in June, 1857, 80 years old. When
the crash came, these state banks, and
private banks went out of existance in
a twinkling and their bills were worth
only what any other piece of paper would
be of the same size for lighter for pipes
or cigare. The ruin was overwhelming
and universal. The story of runs on
banks and panics was repeated every7
where and so often that it became a
sickening recital of distress. To this
day no rational explanation has
been made of that mid-sum mer mad
ness, although the finance reporters
and theorists have all had their say re-
garding it, and all differ in their con-
clusions.
For long time before 1858 and after
warde, it WAS a regularly recognized bus
iness matter with the manufacturing
establishments in many parts OF the
country to pay small portion of the
weekly demands of their workmen in
paper money-a commodity in those
years mott readily obtainable--and pay
the liberal remainder in orders on mer-
chants, grocers, butchers, etc. These
orders were in turn taken up by the
houses issuing them once month OF
quarter; often by due bill, sometimes
by interest bearing note, which might
be negotiable, and sometimes by New
York exchange if house happened to
have gilt-edged credit. This procedure
involved nearly every artizan or work.
man in every mill and shop in the en-.
tire country with rare exceptions; and
when these chops closed and the long
list of workmen were thrown out of en-
ployment and remained in enforced
idleness for many months it became q
serious matter. The ability of the coun.
try to recover and assert itself was lust
beginning to tell when the war cloud,
which preceded the great civil war oi
1860 began to show in the southern sky
and everything bent before it. The In
dustrial change was 30 complete when
the war finally came that the financial
troubles OF 1857 were forgotten and nc
account of business recovery from that
period seem any way connected with the
struggle of the past. But 1857 was q
marked era and ever memorable from
every point in which it's record may be
viewed.
Bimetallism, parity" "stand-
ards" "double Standards" "equiva.
lents," and all such terms used by
writers to describe the alleged conflict
| U6LW6tu ROlu huu EllvcI hI0 IcCcAt Ill
ventions used in all their variations to
frighten people and overwhelm them as
with o fear of something dreadful.
Speculation in gold is regular indus
try, in q much more restricted sense,
| however, than speculating in wheat OIL
pork but those who handle it hold 9
sensitive key, and all the gorgons and
evil things PRndora's box is credited by
tradition with containing, spring from il
like faeh light when those who handle
this key have nervous fit.
The financial crisis OF 1887 was con
sidered by those who wrote of it as dis
astrous and prostrating; the upheava
of 1857 is remembered still for the wide
spread ruin, the utter collapse of thou
sands of enterprises and the wiping oui
of existence of productive business
The severe strain of 1878 was caused
chiefly by frauds and disreputable CON
duct on the part of dishonest men who
were promoting" that scheme of con.
centrated rottenness, the Northern Pa
cific railroad. The sudden congestion o.
monetary affairs in 1884 was alarming
for time and wound up with tight
grip q number of plungers and specula
tors and then passed away. But few re.
liable business enterprises suffered seri
ously. Several other instances of q
similar financial stringency have taken
place at other periods when some fever
ish speculative bubble would break, but
the energy of the people would quickl,
recover itself and prosperity would fol-
low.
The history of the great panicky
craze OF 1898, with its attending evils
overwhelming Losses and universal pros
tration, is yet to be written, and it may
be written in bitterness and want. The
historian of the event will be astoundel
when he comes to recite the fact that
with all the business complications ano
the dreary record OF disaster, unlike
some of the previous upheavals, thers
was not dollar less in the business
world after the collapse than before the
first note of disaster was sounded, Will,
in 1857 what was then recognized anC
accepted as money was as completely
swept out of existence as if it had al
been crowded into the furnace the
United States treasury department hal
been using to destroy greenbacks for tht
past few years.
Disadvantages of Rouge.