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 of railroad building, by means of bonds floated in the eastern market. The rate of interest had also been rising year by year. In the summer of 1873, a Granger agitation at the West frightened investors from the railway securities, and brought distress upon the new railroad enterprises, and upon the bankers who were negotiating railroad securities. September 8th, the New York Warehouse and Security Company failed, followed by two or three banking firms with railroad enterprises on their hands. A run for legal tenders began at New York, where a certain arbitrary and artificial preference had been established for them. September 18th, Jay Cooke & Co. failed on account of a crisis which had occurred in the affairs of the Northern Pacific Railroad, for which they were negotiating bonds, and to which they had made advances. The run for deposits now began in the country towns, although without excitement or panic. The country banks called home their deposits from the redemption cities, and the latter from New York. The New York banks called for it from Wall Street, where it was in use. Rates for money rapidly advanced and prices fell. On the 20th the Union Trust Company and two or three other banks and trust companies suspended. The stock exchange became a scene of panic and prices fell with great rapidity twenty per cent. or thirty per cent. The stock exchange was closed, as the only means to arrest the panic, and it remained closed for ten days. On the following Monday, the 22d, the gold exchange also closed; gold at 112. On the 20th the Associated Banks had pooled their stock of greenbacks and issued certificates at seven per cent., good at the clearing house, which were to be loaned for seventy-five per cent. of the value of the securities deposited. The amount of these issued between that date and January 14, 1874, at New York, was $26.5 millions; at Philadelphia, $6.7 millions. The President and Secretary of the Treasury were in New York on Sunday, the 21st, and refused to use any part of the $44 millions of the withdrawn greenbacks, but they ordered bonds to be bought by the Assistant Treasurer, with his cash on hand. This produced the same result, for before January 1st, over $26 millions of the withdrawn greenbacks were issued. The amount of bonds purchased was $12 millions. The situation was one really of a suspension of paper payments in New York City. There had been no panic amongst the merchants, nor outside of New York, except among some savings bank depositors. Nevertheless the shock to credit was very deep; speculation was completely arrested; industry was checked; hours of labor and wages were reduced; and a liquidation was commenced, which lasted five or six years. The number of bankruptcies in 1873 was 5,183; liabilities $228.1 millions. The failures in 1874 were 5,830; liabilities, $155.2 millions.

The session of 1873-4 was full of currency schemes, which at last issued in an act to increase the note issue of the national banks, distributing the increase amongst the States; and the banks were to keep, as a part of their reserve, one-fourth part of the coin which they received for the interest on the bonds deposited for circulation. The President vetoed this as an