Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1893-08-23
1857 AND 1873.

How Hard Times of Those Years |
Came Ahout-OhiO Life and Trust |
Company and Jay Cooke & Go. Led
the Breaks-Seme "Reminiscences.
- The hard times of 1857 and 1878 brought
on by financial panics had their origin In
causes which probably would scarcely sf
feet the business of the country since It's
enormous growth and extent. The early
part of the year 1857, just after the demo-
cratic administration of Buchanan had
been inaugurated, was fairly prosperous.
The adverse results of the Walker OF low
tariff had been overcome in a large meas
ure by the discovery of gold in California
and the additions of wealth to the country.
Money was freely invested, as now, in
western enterprises, and there was
"boom" on. This condition of affairs
continued until August "a of that year,
when the Ohio Life and Trust company,
concern that carried on an extensive bust
ness in western securities, suddenly failed.
PANIC ENsUED.
SO great was the confidence in the Ohio
Life and Trust that up to the day of the
failure it's stock sold at par and there was
not whisper as to Its shaky financial con-
dition. The news, which did not spread
as rapidly as now, created great excitement
| in this city and seriously affected its bust
ness concerns. Confidence became I'M
| settled and there was long series of fail
lures through the country. Industries
closed, and there was little or no work to
| be obtained. Provisions we're high, pota-
L - - loI \
| that August Workirgmen could get hold
of but little actual money.
DUE BILL CHECKS
Such corporations as did business paid
their help in due bill checks which were
| much inferior to the clearing house pay
roll checks in use In this city to-day.
These due bills were sometimes received
by merchants for necessities of life and
| sometimes not.
The sharpness of the panic lasted about
! four months, and many failures occurred
| in all parts of the country, New Haven in
| Guided. The winter following soup
kitchens for the relief of the unemployed
were established in many cities, and the
files of Hartford and New Haven papers
show the frequent appeals for food and
cast off clothing to be distributed among
the poor. Confidence was partially re-
stored in the early part of 1858, and bust
not until the demand for supplies for thu
army during the war for the Union tina
there was anything like business activity
| Of the paying sort
Differing from the preent condition O.
affairs, the report of the New York money
market during the extent of the panic O.
Isl read almost uniformly: "Money con
tinues abundant, with no demand"
JAY COOKE AND 1878.
The panic of 1878 was likewise summe
affair, and was brought about mostly b.
lack of confidence following the failure o
Jay Cooke & Co., promoters of the North
ern Pacific railway and general fnanoia
agents. The most notable feature of tina
panic was the absolute stsgnation of trans
portation. For weeks freight cars wer
idle and business was at a standstill
Wages were reduced and time shortened il
many industries, but it WAS only fe,
months before business picked up, althouR
high rates of wages which had prevsile
from war times never again obtained
There WAS nothing like the suffering whic
characterized the panic of 1857.
PRESENT DEPRESSION.
1t will be noted that the panics of 1856
and 1878 arose in each instance from tn
; failure of single house, which broke th
confidence of the business communit,
The present depression is an call owe,
) affair, the country having passed that stag
| where the Encouragement of or acoide1
to any large business concern, even thong
it be much larger than the Ohio Life an
: Trust company or Jay Cooke & Co, ca
& affect the entire country. To days d
! preston seems to be from national rath
~ than from individual causes.
81 The CRISIS In the present panic is ov
with and the prospects are tightening som