ysterical traders shouting and waving their arms. The
room has a 30 foot ceiling and a balcony. ]
The New York Gold Room on "Black Friday," September 24, 1869.

The Chicago fire of October, 1871, was the most disastrous yet in the
chronicles of our country. It began in the evening of October 8th and
raged for over twenty-four hours. According to the best estimates 250
lives were lost, 98,500 persons made homeless, 17,500 buildings
consumed, and $192,000,000 worth of property destroyed. The main
business portion of the city was included in the tract burned. Thirteen
months later the most destructive conflagration that had ever visited
Boston swept the district below Washington Street from Summer nearly to
State, and eastward to the water's edge, being the most solid business
portion of the city. The loss was placed at $75,000,000.

[Illustration: People running away from smoke and fire.]
A Scene during the Chicago Fire.

The shocking destruction of wealth by these fires was part cause of the
hard times which began in 1873. But others concurred. During 1872 the
balance of trade was strongly against the United States. The
circulation of depreciated paper money had brought to many an apparent
prosperity which was not real, leading to the free contraction of debts
by individuals, corporations, towns, cities, and States. An
unprecedented mileage of railways had just been constructed. During the
half decade ending with 1873, $1,700,000,000 had thus been spent in the
country. The supposed wealth of many consisted in the bonds of these
roads and of other newly created concerns, as mining and manufacturing
corporations. Thus the entire business of the country was on a basis of
inflation, and when contraction came by the resumption of specie
payments and the demonetization of silver, disaster was inevitable.

In the course of the summer solid values began to be hoarded and
interest rates consequently to rise. In September panic came. Credit in
business was refused, debtors were pressed for payment, securities were
rushed into the market and fell greatly in price, railway stocks from
ten to forty per cent., even United States bonds from five to ten. There
was a run upon savings banks, many of which succumbed. For ten days,
beginning September 20th, the New York Stock Exchange had to suspend, so
dubious was the value of most stock contracts. Manufactured products
were little salable, and the prices of agricultural painfull