The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-07
ACKNOWLEDGEMENTS WOE
RUIN AND DISTRESS THROUGHOUT
THE MOST ANCIENT COLONY.
The Bank Failures Cause 81 Dearth of
Currency and Stoppage of Business
causes of the Crash.

Whatever else may be said of Newfound-
land, it cannot be denied that in recent
years it has attained sufficient notoriety.
In 1890 it attracted the attention of the
world by the spirited resistance it offered to
the arbitrary, and, as it turned out, illegal
measures adopted by the British govern
ment for the settlement of the French
shore difficulty. The little colony showed
wonderful pluck in fighting against the
modus vivendi, and was successful in prov
ing in the highest court of law that the
imperial authorities had no legal power to
enforce its provisions. Then followed the
UBIQUITOUS coercion biI' of Lord Sails
bury. designed to give legislative sanction
to that harsh and unjust measure, and the
historic scene in the House of Lords, when,
before the most august assembly in the
world, the delegates of Newfoundland de-
Tended their rights so successfully as to
win the sympathy and approval of the Par
lament and people of England. Almost
the whole press of England applauded the
address of the delegates, and approved the
dignified and judicious position assumed by
them. The obnoxious measure was with.
drawn and a compromise was effected.
The ea-girt isle had drawn on itself the
eyes or the world and came out of the con-
Not long after, in July 1892. the namesof
the island was on all lips, as the eEof
a terrible confiagration which destroyed
more than half the city of St. Johns and
left 1000 people houseless. Help came from
all al. quarters guar The people bore the calamity
rebuild their capital. In two years fhe
burned portion was restored and greatly
shining brightly.
It would seem, however that the coiony
sport Of historic misfortun ee,"e as
salisbury pithily described it. 1t is how
prostrate under a calamity tenfold more
Of December of the present year wilt Tong
be memorable as the Black Monday OF
cial tornado that suddenly burst upon dfhe
unhappy country the effects of which ARE
likely to be far more ruinous and Vide
spread IMAM any previous historic mis-
fortune. On the morning of that day. the
only two banks in the countryside dorl-
creating universal panic and distress sThe
next day SIX OF the largest mercantile Arms
SUSPENDED mI,e payment increasing the disaaay.
BUSINESS was at once paralyzed. Almost
the sole currency of the country Consisted
OF the notes of the two banks These nKere
now valueless;. no one would receive them.
Few persons had more than a fewverold
pieces and small supply of silver inItheir
possession; many had but two or nhree
dollars in their pockets Gold was sT1araIvs
ever seen in buying and seling-the notes
answering answer all purposes. Those whoaafhad
money In their houses founu rnat it was in
the ulscredlted notes, and that their money
on current account and deposits rWere
ioNAOu UP III TIE CLOSED banks. Without
any warming the community was deprived
or its circulating medium, and nearlr all
e exylng ana selling, selling came to a. standstill,
except on a limited credit. The shops were
open, but the customers few and far be-
tween splendid assortment of Christ
mas goods was in stock or stood temptingIv
IN the windows, but few could Touch Hem
Inc people found themselves as in am en-
chanted observation-disclosures, poweriess nm
aDie TO comprehend the situation
ASTOUNDING REVELATIONS r
Speedily employers of labor of all kinds
finding themselves without the means of
paying wages and that demand for their
articles of production had ceased, were
compelled to discharge their hands Day
iaoorers were no longer required. Dismay
was pictured on every face and the qtfes-
ton was on every tongue s'What is going
to be the end of this?, The condition. of
affairs was entirely Unprecedented here or
elsewhere ss9
OF the Commercial Bank was held frighiful
reVeiat1ons were speedily made, and 1.-THE
condition of the bank was found to be- far
worse than any one had deemed to be posi-
pie ANNOUNCEMENT of the grossest andfmost
culpable kind came to light. Overdrawn
accounts to the extent of a million and a
quarter of dollars were found in the books
One merchant, who also a director of
the bank had overdrawn his account to the
extent of 100000 Three other directors han
obtained each one-third or half that amount
Many traders. and private individuals had
circulation amounted to $3.50 900. sThesa:were
held by persons all over the countryo anil
IL was soon ms seen that they We're almost
large. and there were amounts lying On
current account, The shareholders WHO
were liable, by the charter, for double the
amount Of their shares. were struck with
dismay. The great bulk of them were per-
sons of moderate or small means, who had
invested in shares to make a provision
for declining years or for their families
Many were widows and orphans whose little
ruin and almost beggary among this class
are heart-rending Noteholders, Of whom
m ma r are poor men are n no less to @ PIT
dollar-hardly more. Depositors will also
lose heavily. The liabilities of the bank
Assets are not yet known The mercantila
firms indebted to the banks will have to go
wreck, and entails widespread ruin on thou
sands. Yesqs-
The condition of the Union Bank is con
at present. that it will pay its debts, bit
shareholders will lose the value. of their
50 cents on the dollar. The same system
of permitting overdrawn accounts was in
operation in this establishment, but Aunder
drawn The affairs of the bank si are only only
depends on what may yet come to light light.
In the stores of the merchants there are
of .s2,OooOOO which, of course. cannot be
realized on at present. Most of the sus-
pended firms are believed to be solvent
If time to realize without making large
sacrifices be secured "a -
The condition of the mechanics, factory
workers and laborers in st. Johns rs
alarming. They are without worlc and
many ere long will be without food. The
hand of charity cannot come to the rescue
because there is money in circulation
and we all know what hungry mem may
be driven to do. Our people under Dr.
binary circumstances are quiet and orderly.
and only if driven to desperation would
any of them violate the law. u belt
THE THINGS MOST NEEDED. - =
The great pressing necessity is to obtain
as speedily as possible a medium of exA
change. No civilized community ever lo be-
fore found themselves, in a moment de-
prved of their currency. No bills 1eari he
collected no debts paid, no purchases
made except with the small amount of coin
now in the hands of few, and no re-
mittances made by bills of exchange. THE
government has money to pay salaries
at the end of the quarter, and what off,
cals-those IN the civil service. teachers
of schools and academies, etc.-will do re-
mains to be seen. The government appar-
emily is bewildered. 1t has decided to
bring bill before the Legislature to guar
antee percentage on the value of the
bank notes now in circulat ton, after in
vestigating the condition OF the banks
This would give a certain amount of tenn
porary relief and cause the wheels of
- TyA.