The Richmond palladium and sun-telegram., 1922-07-27

Wonderful is the magic of the wiz,
ard of finance. He can take scrap
of paper. a piece of iron, a lump of
stone, or a speck of dust even, exhib-
1t II to ALL then blow on it, and it
swells and swells, filling the vision
of everyone, and all minds with
dreams of golden promise
In the year 1895, the United States
of America, found herself more pros
porous than in all the time since her
independence. Money was plentiful,
the extent of the country's resources
We're only being realized, whatever
she wanted from Europe in the way
of manufactures she could get on long
credit
So far, people had thought little
about the great stretches of country
in the West But now, with popula-
ton increasing, settlement began toi
move farther afield. Perhaps it wa5
ne reports of the richness of the
country that lay ever ahead. or meDe-
ly the desire to speculate again, but
soon the whole nation was buying UP
waste lands. In a short time every
household in New York, Boston or
Pennsylvania had its map, round
which the family would gather at
night, discussing the merits of this
tract or that. Everyone believed that
there could be no better investment
than land. What matter if it We're
waste, settlement would soon be out
by it. Especially with the new inven-
ton, the railroad. which was just be
ginning to show how it would promote
settlement.
Soon the belief had become that
the only real riches was land, after
all, most of mans food comes from it,
and all the minerals are found be-
meath it.
In few months the nation became
land mad Every waste block that
could be found on a map was bought
up. The governments surveyors
could not peg out more blocks fast
enough to keep pace with the nation ;
land hunger. And no sooner had
man bought block than he had doz-
ems of people imploring him to name
his price for it. In years time
lands that only the surveyor had seen
were bringing more than areas in the
older settled districts. The belief had
become now that there were no other
GlCQ6S Out lduu, duu 0fCl " hCi Q 'hiN4 :
were men with land to sell. who Went
round preaching this doctrine.
Soon. with the new lands selling at
high prices. values in the Older, COM
munities took a Jump. Immediately
speculation in city blocks began. Peo-
pie bought and sold within few
hours. making huge profits. and in
vested the proceeds in another specu
lation. Others with little cash, but
not wishing to let opportunities slip
entered into contracts to purchase, in
tending to sell before they were called
upon to complete the bargain. 9th
ers with a speculation in their mind
called upon their bankers for assist
ance. The banks having plenty oi
money in their vaults were only toe
disposed to lend, taking as security
the deeds of the land purchased.
Still. values of land. old and new
went soaring. Some sold their blocks
and repaid their bankers with inter
est in remarkably short time Soon
seeing unprecedented opportunities
loan banks were springing up all ovel
the country.
So great a rush was there for liant
that people began to look around fol
other investments. Some put thei1
money in railroads. canals, cotton
even in negroes, while others fluni
their money across the sea into for
eign loans. In this last all that wa!
looked for was a high rate of interes
as high as a good land deal woult
return-and in two years no less thai
S111693, ,519 left the United States TO
foreign parts.
The whole country was now in
speculative fever-legislatures banks
merchants, public and all. Nor wa
the great financial power of the LAM
the Bank of the United States, i'm
mune It's President was Nichola
Biddle, a man with some fine attain
ments, but who allowed himself to b
surrounded by q crowd of flatterers
For many years, because of its poll
ical power and fayors 1t had show
his opponents, President Jackson ha
shown hostility to it. But Nichcola
Biddle felt he could afford to defy a
the authorities at Washington. and h
directed the affairs of the bank i
his own way.
It had 25 branches throughout tn
Union, all of which were glad to az
vance money on almost any specul;
ton whatever. For the bank had to
much money and a use had to b
found for it somehow It's capital wa
the enormous sum (for those times
of $35,000,000.
For two years the nation was
this delirium. During that time