FREE BOOKS

Author's List




PREV.   NEXT  
|<   103   104   105   106   107   108   109   110   111   112   113   114   115   116   117   118   119   120   121   122   123   124   125   126   127  
128   129   130   131   132   133   134   135   136   137   138   139   140   141   142   143   144   145   146   147   148   149   150   151   152   >>   >|  
machinery in great railroad routes, in vacant city lots, and uncultivated farms held for future sale, or in warehouses and elevators full of the products of industry,--especially such products as do not immediately deteriorate in quality, such as grains, cloths, raw materials of every kind and machinery of general use. This is apparently the property of the holders, but against it are the claims of all those who have contributed by loans on time, by credit for sales, by labor unpaid for and by provisions on account. One can easily see that with all these people bound together by credit a single failure may be far-reaching in its effects. The inability of a single man to meet his promises, if those promises are widely enough distributed, may bring a panic among his creditors, their creditors, and so on down to even the solid men, supposed to hold the accumulation of years untouched by speculation. For every channel of trade is full of credit, which now everybody loses. In 1873 the promoter of the Northern Pacific railroad had borrowed everywhere, even the small savings of widows and workmen, through his intimate connection with banking. All this accumulation of savings had been expended for labor upon what was only a huge embankment, making no possible returns to any owner. The only possible means of continuing the work was continued borrowing, or the sale of additional stock. The revenue promised upon the means already used could be given only by larger borrowing. On a certain day the amount to be borrowed was less than the amount to be paid, and the failure of Jay Cooke to meet his expectations and promises was known. Within six hours every village in the land felt the disaster. The financial crisis was seen and realized. Bargains partially completed were stopped in the midst. Materials about to be shipped were held at the station. Deposits at the bank were needed immediately, notes due at the bank could not be extended, collectors of accounts appeared at every corner, thousands of workmen directly and indirectly employed on the great railroad building were out of employment and out of wages due, the banks were unable to furnish even paper currency to their depositors, and the whole world felt absolute loss of confidence in any undertaking or any expectation. I select this particular panic because its beginning was so comparatively simple, its progress so evident and its results so well defined. Any other failure o
PREV.   NEXT  
|<   103   104   105   106   107   108   109   110   111   112   113   114   115   116   117   118   119   120   121   122   123   124   125   126   127  
128   129   130   131   132   133   134   135   136   137   138   139   140   141   142   143   144   145   146   147   148   149   150   151   152   >>   >|  



Top keywords:
failure
 

promises

 

railroad

 

credit

 

single

 
creditors
 
accumulation
 

amount

 
borrowed
 

workmen


borrowing

 

products

 
machinery
 

savings

 
immediately
 

additional

 
continuing
 
realized
 

continued

 

crisis


disaster

 

financial

 

revenue

 

larger

 

village

 

promised

 

Within

 

expectations

 

Deposits

 

undertaking


confidence

 
expectation
 

select

 

absolute

 

currency

 
depositors
 

defined

 
results
 

evident

 
beginning

comparatively
 

simple

 
progress
 
furnish
 

station

 

shipped

 
needed
 

extended

 
Materials
 

partially