The herald., 1893-09-10
WHEN MONEY WAS WIPED OUT.
Tie Financial Panic of Thirty
Years Ago.
When There Was Little or No Money
in Circulation.
A Remfnis cencs of the Past as Suggested
by tho Late Epidemic OF Panic.
The Days of Wildcat
Currency.

The following paper Dy Mr. II. IL.
Hewitt was read before the Southern
California Historical society at its last
meeting.]
The people of the United States, in
common with all peoples of modern
times. who do business through banks
on system of exchange, and with bank
bills and minted coin, have experienced
at diverse times financial stress termed
a ''crisis," striking like cyclone, which
with an energy astonishing the world
would resolve itself into whirl involv-
ing every business house, manufacturing
establishment, bank, factory, mill or
railway in the country and strew the
land with wrecks, leaving trail of
wretchedness and want following along
the path for years. After one of these
eruptions, there were thousands OF men,
upright, honorable, industrious, against
whom not breath had ever been whie-
pered, who had been reasonably sue
cesBful, that were never able to hold up
their end again broken in spirit, ruined
financially, health seriously impaired,
they sunk from sight leaving the field,
when the clouds rolled by, to others to
repeat the experience and the expert.
ment.
Perhaps in all the tidal waves of finan-
cial upheaval in the United States, the
convulsion in 1857 stands alone in it's
record of disaster and distress, and the
effects of the storm were more far-reach-
ing than any preceding or since. The
country was enjoying liberal measure
of success, recovering from the fearful
scourge of yellow fever and black tongue,
which had decimated cities and laid
waste many parishes in the southern
states, and the great drouth, which had
withered and crippled the north and
west between 1862 and 1856, when in
the early summer months of 1857, after
q brief season of prosperity, the great
storm broke and the country bowed to
the blast, which was as sudden as ire
sistible. Every industry felt the blow,
and commercial houses and banking es-
Establishments toppled over like row of
bricks. 1t was as though men had
''eowed the wind" and were ''reaping
the whirlwind." The telegraph was not
as universal then as now, and daily pa
pers not 30 numerous; but somehow
the blast seemed to travel faster than
by electrical agencies, and in an aston
ishing short period of time the wreck
was accomplished, the ruin complete;
every portion of the country, near or re-
mote, being stricken alike. To add
keenness to the prevailing distress the
price of provisions mounted to the high
est attitudes, and bread became one OF
the costly luxuriee.
To fully appreciate and realize the
situation at that time, one must have
been witness to the scenes, or must
imagine one's self back say in the inte.
rior OF New York. Those who survived
that disastrous period can thank the
everything God that no such dire ca
lamity, with it's Hweeping, fearful, ter
rible effects can ever again overtake any
country or people. OF course, periods
of financial stress will visit and for
time prostrate any people, but not with
the merciless clutch of the times of
which we write.
At that time there was no money in
the country that is to say, there was
no paper money worthy of the name,
with the stamp of the United States
upon it, guaranteeing stability and con-
fidence. Any person or combination
with money enough or credit sufficient
to procure an engraving representing a
bank bill and the printing OF a quantity
OF notes from it, could open a bank and
proceed to business, first arranging"
matters with the state officials 30 as to
get Certificate" not difficult thing
to accomplish. The next thing was to
push these bills into "shinplas-
ters" the maine of the day in the east,
"wildcat" money in the west. These
banks were numerous; their emissions
unlimited.
The money of the country-if in ex-
cess of the imagination this currency
could be called money-was. in 80 far as
bills issued by state and private banks,
completely wiped out of existence and
there was but little left to take its place.
Gold was a rarity met with very infre-
quently, and $40 gold piece would be
gazed upon as curiosity. Although
the government business was on gold
baeis, its disbursements seldom reached
far enough away from the sea board to
cause any plethora of money.
Every business house was provided
with Thompson's Bank Note Reporter.
Without this publication, called also
Bank Note Detector, issued monthly, no
man felt safe in accepting the bills of
any bank without close scrutiny. 1t de-
scribed every note issued with directions
how to detect counterfeits, and the
counterfeits fourished in those days. 1t
contained also engravings representing
the diverse and reverse faces of ali
coins minted throughout the world.
The coin OF every country circulated in
the United States at its face value gen.
orally, but its scarcity prompted the
thrifty counterfeiters to supply the de-
nd ho IN tho
Silver at that period was not in such
quantities as to be disturbing element
either. A few dollars more or less in
the white metal could be yet piled up in
banks or brokers' offices, and everybody
willingly took it, no one ever pretend-
ing to refuse. The smaller coins, the
mint drops" of Benton, subsidiary
coins" of able financial writer's, were
largely the Sixpencs (64 cents) and
shilling (121a cents) bearing the Spanish
mint stamp, and pieces of every COM
modify were gauged from these, although
the child attending school was taught
that 40 mills make one cent, 10 cents
one dime, 10 dimes one dollar" etc.
This by enactment of congress and not
because the pupil knew it from any very
intimate knowledge arising from ex-
perience. An occasional dime was en-
countered, bearing the United States
stamp, as also 25 and 30 cent piece;
but the Spanish coins largely predomi-
mated and ruled small transactions.
One curious thing of that period, now
hardly thought OF, is that the dime
always retained its name as such, no
nicknames or imported term being APP
piled to it; likewise the dollar has re-