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Panics, Depressions and Economic Crisis Prior to 1930
 
The Panic of 1819
 
Panic and Depression 1832

Panic and Depression 1836

The Panic of 1837

Six Year Depression 1837-1843

The Panic of 1857

Panic and Depression 1869-1871

The Panic of 1873

The Panic of 1893-Financial World

The Panic of 1893-Presidential Papers

The Panic of 1901-Market Fails, Panic Reigns-Part I

The Panic of 1901-Market Fails, Panic Reigns-Part II

The Panic of 1901- At The Stock Exchange

Panic and Depression of 1929

Brief Financial Notes based on 1875-1907

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That when construction started in 1834 on the first buildings of New York University, the contractors used prisoners from Sing Sing to cut the marble. This hiring was the catalyst for the famous Stonecutter's Riot.
 

 

 

The break started shortly before 1 o'clock, and when the market closed, some two hours later, quotations had slumped in the interval anywhere from 1 to 20 points. Many fortunes that had been made in the last six months by men who never before had a dollar, and who, encouraged by their great successes in the phenomenal market since Mr. McKinley's election had "pyramided" their accounts, were in some cases wholly wiped out as a result of the crash, and others so considerably reduced that little remains. Even some of the so-called "big" men have been badly hit, and there was talk also of serious trouble on the part of some brokerage houses.

So threatening, indeed, is the situation that conferences of important bankers and banking interests were held late last evening to discuss the matter and to consider ways and means to prevent a far-reaching financial catastrophe.

Hence is was that after the market's close last night there was gloom in many parts of the financial district, where for some months past only smiling faces have been seen. The youths and others, who, elated by their new-found fortunes, have been slapping one another on the back and half playfully, half in earnest, referred to themselves as "financiers," were chewing the "bitter cud" of despair and disaster, and wondering how it all happened. These are the men of whom before election Wall Street had never heard. Of many of them Wall Street will probably never again hear.

When the Break Came


The break itself came as out of a clear sky. All speculative eyes on the Street had in the early dealings been centered upon a further phenomenal rise in Northern Pacific common stock, which, the "corner" in it still operating, had jumped up by leaps and bounds to 180, as compared with Tuesday's close of 143 1/2- a gain of 70 full points in three days had then reacted to 145, only again to advance from that figure a dozen points or more, with $200 bid for it after the close of the market, and $70 a share paid for the use of it over night by the shorts. It was all so spectacular, all so interesting, all so phenomenal, that concerning the rest of the market the Street, generally, gave little serious heed and certainly saw little prospect or probability of the collapse that came so soon afterward.

Here and there some of the more conservative in the Street shook their heads ominously and declared that any such "corner" was always disastrous to the general market. But the rank and file paid no attention to these warnings and went blithely ahead buying stocks and sending them higher.

Of a sudden, Burlington stock, which had been more or less heavy all the morning, began to show unmistakable signs of weakness, while almost coincidently the Erie issues were depressed. The rank and file watched and wondered, and as they watched, the prices of the issues went lower still. Then in the general list, prices also began to fall. First it was St. Paul, then it was Missouri Pacific, and then it was Union Pacific. Finally the whole market was declining. Some holders of stocks not knowing the why and the wherefore of it and thinking it only one of the many ordinary reactions that have from time to time appeared in the market since election, "sat" on their stocks and looked for a recovery. Other holders, more timid if might be more conservative, of even less able to hold proceeded, however, to part with their holdings. Soon the contagion spread, the professional bears on the floor of the Exchange the while aiding in this by hammering the whole list.

Quotations thereupon began to break, not quarter or half points between sales, but one and two points. That settled it. The entire Street proceeded to sell. Where before the cry had been only. "Buy, buy, buy," it became, "Sell, sell, sell." Stocks were literally tumbled out sold without rhyme or without reason-anything "to get out."


 
 

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