Does not this prove that after these epochs of
expansion and activity characterizing prosperous periods (and there is
no prosperous period without a rise in prices) a stoppage is necessary,
a panic allowing a period of rest to permit the liquidation of
transactions employed in helping to make a series of exchanges at high
prices, and to allow the capital and savings of countries which had been
too rapidly scattered and exhausted to reconstruct themselves during
these years of tranquillity and of slackening business?
Confidence had already returned in New York despite the steady demands
of the country bankers upon their correspondents, which pulled down the
reserve below the legal limit; nevertheless in the midst of all the
failures there was no suspension of specie payments.
The crisis of 1884, according to the Comptroller of the Currency, had
been less foreseen than the crisis of 1873, and this notwithstanding it
was sufficient to observe the number of enterprises and schemes flung as
a prey to speculation, in order to foresee that financial troubles and
disasters to the country must result.
The continuation of payments in gold, the low prices, and the outlook
for a fine harvest gave courage, preserved the remaining confidence, and
already allowed a speedy resumption of business to be anticipated.
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