CHAPTER XLVI.
AN IMPORTANT SYNOPSIS.
A RESUME IN BRIEF OF THE LEADING EVENTS CONNECTED WITH WALL STREET
AFFAIRS FOR SEVENTY-SEVEN YEARS.
_December, 1816._—The first savings banks in the United States went into
operation.
_July, 1820._—Great financial distress throughout America. The causes
were excessive importations and a deranged currency.
_August, 1833._—There was great commercial distress, caused by
contraction by the United States Bank. The bank defended its course on
the ground of the evident hostilities of the Administration, the public
deposits, amounting to $10,000,000, having been withdrawn by order of
the President.
_May, 1837._—In this year commercial distress prevailed throughout the
United States. On May 10th all the banks in New York city, by common
consent, suspended specie payments, banks throughout the country
following the example. In New York about 300 large failures took place.
In Boston 168 failures were reported. In New Orleans houses stopped
payment owing an aggregate of $27,000,000.
_May, 1838._—The banks of New York and New England resumed payment after
the suspension due to the panic of 1837. The Philadelphia banks resumed
in August, 1838, and in January, 1839, there was nominal resumption
throughout the country.
_July, 1840._—The bill organizing the United States Sub-Treasury became
a law. The act was repealed in 1841, but was re-enacted in 1846.
_October, 1842._—The first sub-marine telegraph cable, the invention of
Prof. Morse, was laid between Governors’ Island and the Battery, New
York, October 18th.
_January, 1844._—The first telegraph line in the United States was
erected. The telegraph was invented by Morse in 1837.
_August, 1851._—The depression of this year reached its height on the
13th. A bad credit system had been in vogue, trade with California had
not met expectations, imports had been large, exports of gold heavy,
cotton declined in Europe, the banks contracted, property was sacrificed
to raise ready money, mercantile credit was disturbed everywhere, and
distress was general in all the cities. In Wall Street large blocks of
stock were unloaded and the market was broken. Erie went from 90 to 68¾.
Later in the month money became easier, prices advanced, and the market
resumed its ordinary aspect.
_October, 1851._—Panic regarding the value of State money. The
Metropolitan Bank made war on the country banks to compel them to
deposit with it against their notes, which were extensively circulated
in the city. After receiving their bills the Metropolitan Bank demanded
their redemption in specie. This led to many suspensions. The bills were
well secured by State stocks, and the Metropolitan continued to receive
them. As brokers refused to take State moneys of any kind there was a
rush to the Metropolitan, and a panic prevailed. Ultimately the brokers
bought the bills at a discount and made large profits. Their purchases
gradually restored confidence, but not before four country banks had
failed.
_July, 1853._—A panic in the stock market in consequence of bank
contraction. The State Legislature enacted that the banks should publish
weekly, in the New York _Times_, statements of their condition. In
preparing for this statement the banks called in a large portion of
their loans, and ran after each other for specie. The panic was of short
duration.
_October, 1853._—Simeon Draper, a railroad banker, failed.—Stocks were
depressed on the 19th, in consequence of bank contraction. There were
several failures.
_January, 1854._.—California defaulted in its interest on the 1st, and
there was much alarm in financial circles in consequence.
_February, 1854._—Heavy failures in California.
_May, 1854._—The New York, Newfoundland & London Telegraph Company was
organized, and was the first company to attempt Atlantic cable
telegraphy.
_July, 1854._—Robert Schuyler, President of the New York & New Haven
Railroad Company, fraudulently issued nearly $2,000,000 stock of the
company. About the same time fraudulent entries, made by Secretary Kyle,
were discovered in the stock ledger of the Harlem Company, amounting to
about $470,000. Frauds were also discovered in the affairs of the Parker
Vein and the Vermont Central railway companies. In consequence there was
a rapid decline in the stock market, and many suspensions occurred in
New York, Boston and Philadelphia.
_September, 1854._—A severe twist in Erie stock on the 13th.
_October, 1854._—Frauds on the Ocean, American Exchange and National
banks were discovered.
_December, 1854._—There was a severe run on the savings banks of the
city of New York on the 9th.
_September, 1855._—A financial panic in San Francisco and many failures
of prominent bankers.
_September, 1856._—Charles B. Huntington committed forgeries amounting
to $15,000,000 or $20,000,000. The forgeries were used as collateral
security for raising money, and for a time were taken up before
maturity.
_April, 1857._—Freight-train men on the Baltimore & Ohio struck. Trains
were molested and many fights occurred. The military were called out and
a desperate fight ensued, in which many were killed and wounded.
_August, 1857._—The financial panic of this year began on the failure of
the Ohio Trust Company, with liabilities about $7,000,000. Banks either
failed or suspended specie payments everywhere. The New York banks
resumed in December. Business was generally prostrated until the
following spring, when improvement became perceptible.
_July, 1860._—Congress authorized a war loan of $250,000,000. The
National debt was $64,640,838.11. It reached $2,756,431,571, its
greatest point, in 1885.
_August, 1860._—Treasury notes to the amount of $50,000,000 were
authorized by Congress.—The first well ever sunk for oil, and the first
petroleum ever obtained by boring. The well was at Titusville, Oil
Creek, Pa. It gave 1,000 barrels a day. This was the beginning of the
petroleum business.
_December, 1860._—The Southern banks suspended specie payment on the
12th.
_April, 1861._—The lowest price at which United States bonds sold during
the war was 75 for the 5s of 1874, quoted in this month.
_December, 1861._—The National Bank system was recommended by Secretary
Chase.—A premium for gold was quoted at the New York Stock Exchange for
the first time, on the 30th.
_April, 1862._—Gold was first quoted at a premium on the 12th, and by
October 1 it had advanced to 123.
_February, 1864._—Speculation in stocks was “rampant” and “wild.”
_March, 1864._—There was a panic in the coal stocks on the 10th.—The
month was noted for a rapid rise in gold.
_April, 1864._—A semi-panic in Wall Street on the 18th.
_June, 1864._—National currency to the amount of $300,000,000 was
authorized by Congress. The full amount was issued before the close of
1867.
_August, 1864._—Gold touched 261¾, its highest point.
_July, 1865._—The Stock Exchange made a rule inflicting a penalty on
members who attended Gallaher’s up-town night Exchange.
_August, 1865._—Edward B. Ketchum, a junior partner in a prominent
banking house in New York, forged gold certificates to the extent of
$1,500,000, and they were negotiated at the banks. In addition he
abstracted more than $3,000,000 from the vaults of the firm. The firm
failed.
_October, 1865._—Call loans were made as high a per cent. and a heavy
commission added. Tight money checked a rise in stocks. Money was wanted
in the West for the moving of crops. Relief came on the demand from the
West subsiding, and by temporary loans from the Sub-Treasury to the
banks.
_November, 1865._—Prairie du Chien common stock was cornered. On the 6th
29,000 shares were bought at about 40. The trap being sprung 200 and
more was demanded, and the shorts settled at rates ranging from 110 to
210. There were several failures. It opened on a Monday at 96; on
Tuesday it ranged between 160 and 225, and closed on Saturday at 110.
_December, 1865._—The new Stock Exchange building was opened for
business on the 9th.
_February, 1866._—Toward the close, on February 20th, everybody seemed
to want to borrow money, and no one was willing to lend. The market
verged on panic. People were afraid of the course of the Government in
selling upwards of $12,000,000 gold.
_April, 1866._—Michigan Southern was cornered. The price rose from 84 to
104. The pool closed out and the price dropped to 80 within 24 hours.
Other corners were made in the same month in Reading, Rock Island,
Hudson River, Cleveland & Pittsburg and Northwestern preferred. Money
was plentiful and speculation was rampant.
_May, 1866._—The marketing of Erie stock by Daniel Drew caused a drop in
its price from 74½ on May 18th to 60½ on May 31st. The movement had very
little effect on the remainder of the market.
_July, 1866._—A panic in stocks followed the failure of Overend, Gurney
& Co., London bankers.
_August, 1866._—London markets were first quoted by Atlantic cable in
New York.
_November, 1866._—There was heavy speculation in stocks, produce, dry
goods and real estate. Poor men became rich by a single turn of the
wheel. Unexpectedly the Treasury drew about $15,000,000 for its own
purposes, money became tight and the bears became very active. Prices
declined about 10 points, and outsiders lost upwards of $25,000,000.
_December, 1866._—Northwestern preferred and Cumberland Coal were
cornered.
_January, 1867._—Prices broke on the 18th with a rush. Cumberland Coal
declined 55 points, and the general list went off in sympathy. There
were several failures. Money was tied up by bear operators.—President
Yelverton, of the Bank of North America, on learning of the failure of
A. J. Meyer & Co., the firm having overdrawn its account $219,000, was
seized with apoplexy and died.
_May, 1867._—A pool in Erie was broken by the sale of a large block of
English stock.
_October, 1867._—Daniel Drew was turned out of Erie, and the stock
advanced 10 points.
_December, 1867._—Vanderbilt secured control of New York Central.
_January, 1868._—A corner in Rock Island was broken, owing to the
company throwing 49,000 shares on the market. The stock declined
heavily.
_February, 1868._—The contest between Drew, Vanderbilt and Frank Worth
was at its height.
_April, 1868._—There was a break in Atlantic Mail, with subsequent
complications.
_June, 1868._—An unsuccessful attempt to corner Pacific Mail was made.
_July, 1868._—Jay Gould became president of Erie.
_October, 1868._—Money became stringent, owing to the withdrawal of
funds from New York for the West. The associated banks lost $20,000,000
in deposits and $12,000,000 in legal tenders, with a reduction of only
$9,000,000 in loans. Special efforts were made to break the stock
market, but the bull leaders had provided themselves with time loans,
running to the end of the year, and were thus enabled to hold prices.
_November, 1868._—Erie was cornered, and a panic extending through the
whole list occurred. It was helped by the inability of a leading
operator, a director of St. Paul, to meet puts on that stock. The common
and preferred fell about 20 points. Erie made an extraordinary issue of
shares. Later on money became more plentiful, prices advanced and the
market became very strong.
_April, 1869._—A bill to consolidate the New York Central and the Hudson
River railroad companies passed the Legislature.
_May, 1869._—The New York Stock Exchange and the Open Board of Brokers
were amalgamated under one management. The new Exchange began business
with 1,030 members and $750,000 in its treasury.—The era of
consolidations. Active stocks advanced to prices never before reached.
New York Central sold at 192-5/8. A movement to depress prices at the
close of the month met with some success.—The last rails of the Union
Pacific and Central Pacific railroads were laid. Trains began running
across the continent on the 15th.
_June, 1869._—Many brokers failed, the result of a successful bear
attack on the market.
_July, 1869._—Heavy speculation in the Vanderbilt stocks. New York
Central advanced to 217-7/8. Money was stringent.
_September, 1869._—New York Central dropped 25 points on the 22d, and a
panicky feeling was developed.—Gold reached 165 on Friday, the
24th—Black Friday. Transactions ran up into hundreds of millions, and
business was conducted with so much confusion that bids running from 135
to 160 were made at one and the same time in different parts of the
room. Between 11 and 12 o’clock the shorts settled on a basis of
148@158, the market price being 5@15 higher. At noon it was officially
announced that the Government would sell gold next day and buy bonds,
and within 15 minutes the price had fallen to 135, and the great
speculation had collapsed.
_April, 1870._—The cliques who had bought stocks on the decline after
Black Friday, started an upward movement in the last week of the month.
The public came in and top figures were reached about May 10. The
cliques unloaded, turned bears, depressed prices until margins were
wiped out, bought in again at the decline and were ready for another
advance.
_May, 1870._—The process of “shearing the lambs” was repeated in this
month.
_June, 1870._—James Boyd, carrying 40,000 shares of stock and $5,000,000
gold, failed. The market showed signs of breaking, but was sustained by
the cliques.
_July, 1870._—Congress authorized an addition of $54,000,000 to the
national currency.
_January, 1871._—A prominent operator repudiated his orders to buy
Reading. Several brokers failed in consequence. The market was only
slightly depressed.
_April, 1871._—There was much speculative excitement in the stock
market.
_June, 1871._—Rock Island was cornered. The pool began buying at 114½
and advanced it to 130-7/8. On liquidation the stock declined to 110.
Many failures occurred and bad faith was charged.
_October, 1871._—The week beginning October 9, 1871, was one of the most
eventful in the history of the Stock Exchange. The banks had expanded
beyond precedent and were compelled to contract loans to raise money for
crop purposes. The payment by France to Germany in settlement of war
claims caused the Bank of England rate to advance from 3 to 5 per cent.,
and produced a feeling bordering on panic in London. The New York market
was very sensitive when news of the Chicago fire came. Prices broke 4@10
points. On Tuesday there was great excitement; sales were enormous and
fluctuations wide. On Wednesday there was a rally on the belief that the
Government would purchase 5-20s. The lowest prices, however, were made
on Thursday. On Friday there was more steadiness and prices were higher.
The bank statement was favorable and matters quieted down.
_December, 1871._—The Ocean National Bank, the Union Square and the
Eighth National Bank failed. Money was scarce, but stocks were firmly
held. Operators and brokers were loaded up with stocks and they
sustained prices, awaiting an opportunity to get out.
_March, 1872._—The Erie revolution occurred. The Board of Directors was
overthrown, and Jay Gould resigned the presidency. Gen. Dix became his
successor. The operation caused great activity in the stock market, and
money became tight.
_June, 1872._—Stock dividends on Lake Shore and Michigan Central were
declared.
_August, 1872._—Gold was cliqued.
_September, 1872._—Erie was cornered. The Gould-Smith clique was short
of it. The stock first became scarce on purchases by German brokers for
foreign account. Then Drew became a heavy purchaser. At the same time
the German brokers were long of gold, and with the double idea of
punishing them and compelling those carrying Erie to sell out the
Gould-Smith clique endeavored to lock up money. This plan was defeated
by the refusal of two banks to pay out legal tenders on certified
checks. Just then, too, the Government bought $5,000,000 bonds and sold
the same amount of gold. This completely broke the speculative
manipulation of money, and a panic was averted. During the height of the
panic there were no quotations for money. Among the failures of the week
were Northrup, Chick & Co., bankers, the Glenham Woolen Manufacturing
Co., Paton & Co., dry goods, George Bird, Grinnell & Co., stock brokers,
Hoyt, Sprague & Co. and A. & W. Sprague. The banks suspended their
weekly statements, and they were not resumed until late in November.
_November, 1872._—Jay Gould was arrested on criminal charges based on
his management of the Erie Railroad. He surrendered securities, the face
value of which was more than $9,000,000, in December.—Northwestern was
cornered. It opened Nov. 20 at 83¾ and closed at 95. On Thursday it sold
at 100, and at the close on Friday 200 was bid. On Saturday buying in
under the rule ran the price up to 230. The settlement was made on the
following Tuesday, when the price declined to par, the highest bid made
being 85. Jay Gould, Horace F. Clark and Augustus Schell conducted the
corner, while the cornered were Drew and Henry N. Smith. It was one of
the most profitable corners ever made in Wall Street.
_February, 1873._—There was a noted corner in Northwestern.
_April, 1873._—The preliminary panic of the year occurred in this month.
The stock market was uneasy. The failure of a firm of silk importers was
followed by that of Barker & Allen, the members of which were related to
Vanderbilt. Three other firms also failed. Confidence returned and quiet
prevailed until the 26th, when the Atlantic Bank failed. This brought
about another depression, which was followed by a quick rally.
_May, 1873._—Heavy break in Pacific Mail. The further retirement of
greenbacks was prohibited by Congress.
_August, 1873._—Fraud was discovered in the issue of certain bonds of
the New York Central & Hudson River Railroad.
_September, 1873._—The New York Warehouse & Security Company failed on
the 8th; Kenyon, Cox & Co., in which Daniel Drew was a special partner,
on the 13th; Jay Cooke & Co. on the 18th, and Fisk & Hatch on the 19th.
Innumerable brokers failed. There were runs on the Fourth National Bank
and the Union Trust Company. The secretary of the company was a
defaulter to the extent of $500,000, and its doors were closed. The Bank
of the Commonwealth failed. There was a panic in the stock market, and
the excitement ran so high that the Governing Committee closed the
Exchange at 11 o’clock on Saturday, the 20th. The Gold Exchange Bank was
unable to effect all the clearances, and dealers were unable to get
their balances. The result was the temporary suspension of some dozen
firms. The Gold Exchange Bank having been enjoined by the courts from
making the clearances, the Bank of New York undertook the job and failed
in it. Next a committee of 20 was appointed to do the work, but it
failed also, because Smith, Gould & Martin refused to render a statement
to it. The final settlements were made between members themselves.
Smith, Gould & Martin, with contracts amounting to $9,000,000, settled
on a basis of 135. Business was resumed on Sept. 30.
_December, 1873._—The Credit Mobilier was organized for the construction
of the Union Pacific Railroad. It was composed of stockholders of the
railway company, and had a capital of $3,750,000. Profits were large,
and the stock was quoted at 400. Certain Congressmen were given stock at
par on their personal notes, the object being to gain their favor in
case adverse legislation was proposed. Oakes Ames, of Massachusetts, was
expelled from the House for his connection with the bribery, and James
Brooks, of New York, for accepting bribes. Other Congressmen were
censured. A proposition to impeach Vice-President Colfax was reported
against by the Judiciary Committee.
_January, 1874._—The value of the pound sterling was fixed by Congress
at $4.86.65.
_February, 1874._—Two letters, purporting to come from the Wabash and
Western Union companies, were received by the Stock Exchange, announcing
an increase of stock by the directors. The market went off three points
before it was discovered that the letters were forgeries.
_April, 1874._—The President’s veto of the inflation bill unsettled
prices and caused depression. The bears raided the market, causing a
heavy decline, but a quick recovery followed.
_February, 1875._—Wabash went in the hands of a receiver.
_May, 1875._—A receiver for Erie was appointed.
_July, 1875._—Duncan, Sherman & Co. failed.
_August, 1875._—The Bank of California failed. Cashier Ralston committed
suicide.
_March, 1876._—Jay Gould made his famous attack on Western Union.
_April, 1876._—The National Bank of the State of New York failed.
_November, 1876._—Many savings banks failed.
_January, 1877._—Commodore Vanderbilt died on the 4th.
_February, 1877._—Jersey Central went into the hands of a receiver.
_July, 1877._—Great railway strikes; rioting and incendiarism in
Baltimore and Pittsburgh; losses $10,000,000. Over 100,000 laboring men
took part in the movement.
_January, 1878._—The Vanderbilt combination, including Michigan Central,
Lake Shore and Canada Southern, was made in this month.
_February, 1878._—The purchase of silver bullion by the Government to
the amount of $2,000,000 to $4,000,000 per month, and its coinage into
legal tender dollars, was ordered by Congress on the 28th.
_May, 1878._—Congress passed the Resumption Act.
_January, 1879._—Specie payments were resumed after the suspension which
took place soon after the opening of the war of the rebellion.
_April, 1879._—Gould and Field combined, and under their auspices the
St. Louis, Kansas City & Northern and Wabash Railways were consolidated.
Gould already had control of Union Pacific and Kansas Pacific, and
afterward secured control of Missouri Pacific and Denver & Rio Grande.
_June, 1879._—Western Union declared a scrip dividend of 17 per cent.
_August, 1879._—There was a serious tumble in prices in this month.
_October, 1879._—The stock market was very active in October and
November. The bull movement of the year was at its height and
transactions were so numerous that it was impossible to record them all.
The drop came in November.
_November, 1879._—William H. Vanderbilt sold 250,000 shares of New York
Central & Hudson River stock at 120 to a syndicate headed by J. S.
Morgan & Co., of London. Early in the following year the same syndicate
took 100,000 shares on the same terms.
_May, 1880._—Philadelphia & Reading Railway and Coal and Iron Company
failed. There was a flurry in the stock market in consequence.
_June, 1880._—A scrip dividend of 100 per cent. to the holders of Rock
Island stock on the purchase and consolidation of the Iowa Southern and
the Missouri Northern with Rock Island.—A leading German Wall Street
banking house, in view of the large exports of gold, offered a premium
of 1/2 of 1 per cent. for a call on $1,000,000 gold, the privilege to
extend for one year.
_November, 1880._—The Louisville & Nashville declared a 100 per cent.
stock dividend.—Western Union declined from 104-7/8, on November 22d, to
77½ on December 17th.—Jay Gould purchased most of the stock of the
Denver, South Park & Pacific Railroad, in the following month a large
block of Iron Mountain and a majority of the International & Great
Northern.
_December, 1880._—Seats in the New York Stock Exchange sold at $25,000.
A great number of new securities were listed. So numerous were the
combinations, consolidations and extensions of railways that in many
cases the analogy with former periods was lost, and comparisons as to
earnings were of little value. In 1886 seats in the Exchange sold at
$35,000. In December, 1870, when speculation was stagnant and the market
was clear of all outsiders, seats sold at $3,000.—B. G. Arnold & Co.,
the largest coffee importing house of New York, suspended. They were the
principals in a combination to corner Java coffee, and met disaster in
the attempt.
_January, 1881._—Western Union, American Union and Atlantic & Pacific
consolidated. The former company declared a stock dividend of 38¼ per
cent. The capital stock was made $80,000,000.
_February, 1881._—Call loans were made at 1 per cent. per day on the
25th.
_May, 1881._—The Gould southwestern railway system was consolidated.
_July, 1881._—President Garfield was shot by Guiteau. The stock market
broke on the news of the shooting, and a panic was only prevented by the
intervention of Sunday and the National holiday on Monday.—The Oregon
war debt was paid.
_August, 1881._—There was heavy speculation in wheat and corn in Chicago
and New York. Money became scarce, and call loans were made at interest
and commission.
_September, 1881._—The Hannibal & St. Joseph corner.
_January, 1882._—The trunk line railway war of rates was settled.—Gould
and Huntington purchased a controlling interest in the St. Louis & San
Francisco Railway and half the ownership of the Atlantic & Pacific
Railway.
_February, 1882._—The market showed some animation early in 1882, but it
soon collapsed and became very weak. Bottom was touched on the 23d, the
recovery being based on talk of a settlement of the then existing trunk
line rate war.—Richmond & Danville plunged from 219 to 130 and a
semi-panic ensued on the Stock Exchange.
_March, 1882._—To allay reports that he was in financial straits, Mr.
Gould, on the 13th, displayed his wealth. He took from a tin box
$23,000,000 Western Union, $12,000,000 Missouri Pacific, $6,000,000
Manhattan Elevated, $2,000,000 Wabash common, and $10,000,000 bonds of
Metropolitan, New York Elevated and Wabash preferred. He offered to show
$30,000,000 additional railway stocks, but his visitors had seen enough.
_October, 1882._—A syndicate headed by the late W. H. Vanderbilt
purchased 124,800 shares of the common and 140,500 shares of the
preferred stock of the New York, Chicago & St. Louis Railway at 13 and
37 respectively. This stock afterwards became the property of the Lake
Shore & Michigan Southern Railway.
_December, 1882._—The Municipal Bank of Shopin, Russia, failed with
liabilities of $60,000,000.—The railway war in the Northwest lasted from
September until December 15. On the announcement of the settlement the
market improved and the year closed with a better feeling all around.
_February, 1883._—Western Union absorbed Mutual Union by lease, the
rental being interest at 6 per cent. on $5,000,000 bonds and 6 per cent.
on $2,500,000 stock.
_March, 1883._—A block of Hannibal & St. Joseph stock was sold to
Chicago, Burlington & Quincy. At the same time Wabash was leased to Iron
Mountain.—From the 19th until the close of the month there was great
depression. Money on call loaned at 4@25 per cent. The public was
heavily loaded with stocks.
_May, 1883._—Jersey Central was leased to Reading.
_June, 1883._—The National Petroleum Exchange and the New York Mining
Stock Exchange consolidated.—McGeoch, Everingham & Co., of Chicago,
failed in consequence of an unsuccessful attempt to corner the lard
market. The firm lost $6,000,000.—The movement against the circulation
of trade dollars at par was begun in Philadelphia and extended
throughout the country.
_July, 1883._—Western Union Telegraph operators struck for increased
pay. The strike lasted a month and ended in failure.
_October, 1883._—A notable feature of 1883 was the gigantic losses made
in speculative operations. The failures of McGeoch, of Chicago, and
Ranger, of Liverpool, were notorious instances, but thousands of private
individuals were squeezed out by the pressure.—In the summer and fall of
this year there had been a shrinkage in prices of stocks, when, in
October, the Northern Pacific Company announced a proposed issue of
$20,000,000 new bonds. This precipitated a heavy decline in nearly the
whole list. The market became largely oversold, when a sharp twist was
made in a number of stocks, and prices advanced with great rapidity.
Northern Pacific preferred jumped from 56 to 78½ within a few days, and
Oregon & Transcontinental went from 34½ to 51. Then Vanderbilt came into
the market and put up Michigan Central from 77 to 96½, and the other
Vanderbilt stocks to a less extent. Great depression followed this
manipulation.
_December, 1883._—The mercantile failures in 1883 amounted to
$173,000,000, against $81,000,000 in 1881.—The triple alliance between
Union Pacific, Rock Island and St. Paul was made.—Villard resigned from
Oregon & Transcontinental and Oregon Railway & Navigation.
_January, 1884._—Firmness in the market on the announcement that a
syndicate had made a large loan to Oregon & Transcontinental on the
pledge of its stocks. A quick move against the shorts caused a sharp
advance.—Henry Villard resigned the presidency of the Northern Pacific
Railroad.—John J. Cisco & Co., New York bankers, failed.—The surplus
reserve of the New York National banks was wiped out.—James R. Keene,
operator in wheat, failed.
_March, 1884._—There was a squeeze in New York Central. It sold up to
122.—Delaware, Lackawanna & Western was cornered, and its price was run
up to 133-1/8 regular and 139½ cash. S. V. White managed the pool.
Another move in the same stock was made later in the year. The pool
closed out at an average of 102. Then the stock dropped to 86¾.
_May 6, 1884._—The Marine Bank failed May 6th, wrecked by Grant & Ward.
Grant & Ward suspended two days later.,
_May, 1884._—During the panic the New York banks issued Clearing House
certificates to the extent of $24,915,000, of which $7,000,000 went to
the Metropolitan Bank. Similar certificates, to the amount of
$26,565,000, were issued in the panic of 1873.—The height of the panic
was reached on the 14th. The storm had been brewing for nearly three
years, but it was in no sense a commercial panic. Stock Exchange values
had shrunk to an unparalleled degree, and the crash was precipitated by
the developments regarding Grant & Ward, John C. Eno, Fish, of the
Marine Bank, and a few others. The disturbance was over by July 1.—The
Metropolitan Bank failed. Eno’s frauds on the Second National Bank
discovered. George I. Seney failed. The Atlantic Bank failed.
_June, 1884._—The greatest depression following the May panic was
reached. Large overselling led to a sharp rally.—Charles Francis Adams,
Jr., became president of the Union Pacific.
_August, 1884._—The Wall Street Bank failed.
_November, 1884._—The Metropolitan Bank, on May 15th had $11,294,000 in
deposits; on October 1st $1,338,000, and in November it went into
liquidation and retired from business.
_December, 1884._—The Lackawanna pool of 1884 closed out its holdings on
the 12th, and there being no further support to the market prices
declined, and the year closed with much depression.—The largest corn
crop ever grown in the United States was that of 1884. It was estimated
at 1,800,000,000 bushels.
_January, 1885._—Henry N. Smith, a noted bear operator, failed, and
carried down with him the brokerage firm of William Heath & Co.
_November, 1885._—The trunk lines came to an agreement and advanced
rates. This gave confidence, and an upward movement was started. The
Vanderbilts and the Grangers were the features of the market.
_December, 1885._—Texas Pacific stock collapsed. A receiver was
appointed for the property on the suit of the Missouri Pacific, a large
holder of its floating debt.—William H. Vanderbilt died suddenly on the
8th. The fact was not known down town until after business hours, but it
had a very unsettling influence. The next morning the market opened 1@3
points lower, but the bulls had combined to support prices, and bought
freely. In many instances prices were higher at the close than on the
previous day.
_February, 1886._—The trans-continental pool was ruptured. The railroads
declined to continue to pay the subsidy demanded by Pacific Mail.
_March, 1886._—Western Union declared a scrip dividend of 1½ per cent.
for the quarter. The scrip was made convertible into stock, and carried
the same rate of interest as the stock.—The representatives of the coal
companies met at a dinner party and reached “an agreement among
gentlemen” that the anthracite coal production for the year should not
exceed 33,250,000 tons.—F. B. Gowen joined the Drexel-Morgan syndicate
for the reorganization of Reading. The announcement caused a rapid
advance in all coal stocks.—The great strike on the Gould system of
railroads, inaugurated on the 7th, failed.—Heavy engagements of gold for
shipment abroad were made.
_April, 1886._—Wabash, St. Louis & Pacific were sold in
foreclosure.—Labor strikes at their height. The Lake Shore switchmen
struck in Chicago, and the Third Avenue horse car drivers in New York.
The troubles had a depressing influence on the stock market.
_May, 1886._—Charles Woerishoffer, bear operator, died May 9.—Chicago
anarchists attacked the police with bombs, killing and wounding many.
Police used revolvers freely and many rioters fell. Anarchists were
sentenced to death.—The strike on the Southwestern system was officially
declared off on the 1st. The men were completely beaten after a contest
of six weeks.—Tasker Marvin, bull operator, failed. Marketing of long
stock caused decline. The depression was aided by existing labor
troubles.
_June, 1886._—Western Union passed its dividend.
_November, 1886._—The managers of the trunk lines reaffirmed the
presidents’ agreement of the previous year to maintain rates.—Richmond &
West Point Terminal became very active and strong on the purchase by the
company of the control of Richmond & Danville.—There were extraordinary
buoyancy and speculative activity in stocks. Low priced non-dividend
payers were largely dealt in. One specialty after another was “boomed,”
and in some instances large profits were made.
_December, 1886._—About $10,740,000 in gold was imported at New York
during the month.—Prices toppled over on the 15th. All kinds of cheap
stocks had been boomed by cliques, when, on money becoming tight, there
was a rush to realize. Sales reached the unprecedented figure of
1,095,159 shares. The most conspicuous stocks in the decline were
Philadelphia & Reading and New York & New England. No financial disaster
or failure of importance occurred. There was much uneasiness for several
days, but a better feeling soon set in, although speculation was checked
by the prevailing high rate for money.—The Inter-State Commerce bill was
introduced in Congress.
_January, 1887._—On a report that Hocking Valley had suffered by
irregularities of former directors, stock broke 1½ points. The
consumption of iron in the United States exceeded that of Great Britain
for the first time in 1886. The Inter-State Commerce Bill was passed by
the House Jan. 21, by a vote of 5 to 1. European war rumors caused
foreign selling and a break in the market of 2 to 5 points. There was a
complete recovery on the following day.
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