Gold flowed away from the country, and cash on hand decreased
each day.
On the 1st of January, 1884, the New York & New England Railroad was
placed in the hands of a receiver by order of the court. The same thing
happened on the 12th of January to the North River Company. In February,
March, and April many houses exhibited their balance sheets. The fall in
prices grew accentuated not only on the Stock Exchange, but in all
markets. The discomfort increased until the 6th of May, the day on which
occurred the failure of the National Marine Bank, whose President was
associated with the house of Grant and Ward, which went down shortly
afterwards with a liability of $17,000,000. This financial disaster made
a great stir. Anxiety spread everywhere, when on the 13th of May the
President of the Second National Bank of New York was also forced to
suspend payment with a liability of $3,000,000; this was the final blow
to credit. Every operation was suspended, all exchange became
impossible; not securities but money was lacking. At one time the panic
was such that the rate of discount and loans rose to 4 per cent. a day!
Although the panic was general, it was rather a panic of securities in
the chief places of the United States, especially in New York.
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