Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-15

of this was the reduction OF the work
able volume of currency In circula-
ton, for much Of IL was boarded. Fin
ancial conditions at the time OF the
runs were by no mean so sound as
they now are.
The Trouble of 1881.
Previous 10 this was the trouble OF
1888. This began in the failure of
the firm Of Grant 4 Ward. Grant
was the former president of the
United States-General Grant. Mr..
Ward was that financial p%lunger. the
Napoleon of finance. NJ failure Of
this firm was coincidental with that
Of the Metropolitan bank These
failures were the elimination Of a Pc
riod OF undue expansion. reckless
speculation and uniustifiable initiation
Of values. These two failures were
not the cause Of the disturbance,
though they precipitated the raids that
embarrassed all the banks OF New
York. more or less, n real reason
was the failure OF the crops. The
basis Of values had fallen out in this
disa ppointment. The failures, coming
as they did without warning. made a
crisis which had in the conditions
they revealed, some justification Tor
the frantic %endeavor to take funds
from out of the keeping of financial
fNHAt 1t "a - - R8fHF
ers' panic, for the eason that bank
ers we're panic-stricken with the rest
and were quite as frantic In calling for
their dues from other banks.
The Panic OF 1873.
The panic of 1873. which occurred
ten years earlier, was like that OF
1888, precipitated by a failure. The
nouncemer Of the suspension OF
jaw Cooke d Co.'S banking house was
"A shock to every man who had a dol
lar on deposit anywhere. The esteem
In which this concern was held, ana
the respect with which IL was regard
ed can be described today only by
comparing Il 20 the position now held
by j. Pierpors Morgan e. Co. This
house. under the leadership Of jay
Cooke. had ben closely allied 20 the
treasury Of the United states governs
ment. 1t had floated the war loans
Of the govern ient with consummate
ability. and at n time when the credit
Of the goVernr-cnt was at its lowest
ebb. For this service. in the opinion
Of the north especially. II deserved
well all the confidence that was re-
posed in the FIRM. After the war II
had continued to do a large banking
business. prom citing many financial
and Industrial enterprises. At the
time of it's greatest activity business
was based on the paper currency IS
sued by the government. Specie pay
ment was yet suspended, The failure
came at the end of years of Initiation
and of almost abnormal expansion Of
all sorts Of business enterprises in the
wears Immediately following the war.
Everything was at a high mark. APP
~parently no one was without money,
but Il was inflated money. When TINS
great firm fell. confidence crashed In.
No one trusted another, and the ftnan-
cial institution less than The individ-
uai. Raids on the banks began at
once. and prevailed for many days.
with some. or until they could go no
further But in the vast majority ~
Instances the doors of banks were
quickly closed. This was n of the
few occasions when the stock eN-
change closed. The values fell out OF
everything. Five years were eX-
hausted in making a full recovery
from the effects Of this disaster.
BLACK Eri0ay' i'm 1863.
In 1869 there was a turmoil In the
financial market, which has come
down 10 US as Black Friday. It also
has been called a panic. But the doc-
tors Insist that il X not TO be placed
I'm the category of commercial crises,
since its effects did not reach In any