27,660 reputation
237113
bio website BG.SE
location Earth
age 38
visits member for 3 years, 1 month
seen Oct 26 at 6:11

The economy is in fact over-expanded, particularly in railroad construction, and the weak link turns out to be the banking house of Jay Cooke and Company, which helped the U.S. Government finance the Civil War and also underwrote the construction of the Northern Pacific Railroad. Jay Cooke and Company, a large and respected banking house declares itself bankrupt, and announces its failure on September 18, 1873.. (The bank's collapse precipitates the "Panic of 1873" and the ensuing three yea depression during which more than 10,000 businesses fail.     The basic economic problems are overproduction, a declining market and deflation. Investors in Europe, where a depression is already underway, begin to call in American loans. The New York Stock Exchange closes its doors for 10 days; other businesses fail; and railroad construction is curtailed, with some railroads defaulting on their bonds. The unemployed begin to move about the country seeking jobs, and bread lines appear in the cities. The hard times drove numbers of laboring people and those in humble circumstances to the West and other portions of the country, to seek the rewards which the stagnation of business in the great commercial centre denied them.


27,660 Reputation

50 Feb 20 '13
70 Feb 19 '13
45 Feb 18 '13
40 Feb 17 '13
20 Feb 16 '13
66 Feb 15 '13
20 Feb 14 '13
40 Feb 13 '13
53 Feb 12 '13
65 Feb 11 '13
25 Feb 10 '13
25 Feb 9 '13
20 Feb 8 '13
20 Feb 7 '13
60 Feb 6 '13
70 Feb 4 '13
10 Feb 2 '13
15 Feb 1 '13
25 Jan 31 '13
30 Jan 30 '13
20 Jan 29 '13
20 Jan 28 '13
10 Jan 26 '13
20 Jan 25 '13
25 Jan 24 '13
40 Jan 23 '13
125 Jan 22 '13
20 Jan 21 '13
35 Jan 20 '13
45 Jan 19 '13