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Panic of 1893

This article is very interesting. We had a depression that was caused by almost the same things we are doing today, except back then it was with silver and not FRN.

http://en.wikipedia.org/wiki/Panic_of_1893



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Banking was backed by Siver & Gold. Banker promise, that was.

[Open fireplace screen. Toss another illustrated & embossed stock certificate into the fire. Slump back in recliner chair.]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Panic of 1893.

Panic of 1893 In Pictographs & Illustrations

A Brief History of U.S. Banking Problems A rather conventional summary of horrific banking crises.

      Banking Panic of 1893

Take a ride on the Reading Railroad? Bankruptcy of the Reading Railroad, 1893.

Bank runs. Credit crunches.

People could not redeem silver certificates for gold. The US Treasury quickly ran low on gold. United States Notes no longer be redeemed for gold. Alas, not "as good as gold!"

National Cordage Company (most actively traded stock) went into receivership as bankers called their loans in response to rumors... The company, a hemp rope manufacturer, failed to corner the market for imported hemp.

Unemployment reported near 17%-19%. Life savings lost in failed banks. Mortgage defaults. Many walked away from recently built homes.

$65 million [line of credit supposedly backed] in gold from JP Morgan, Wall Street Bank in order to meet the US gold standard reserve requirement.
---------------------- Reference ------------------------
Baum, Lyman Frank and W. W. Denslow. The Wonderful Wizard of Oz (1900); see Political interpretations of The Wonderful Wizard of Oz

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul