PANIC OF 1864.--The crisis of 1864 was mixed up in the United States
with the War of Secession; it was a political crisis, and is not
properly to be considered here.

PANIC OF 1873.--During the last two months of 1872 the American market
had been very much embarrassed; the lowest rate of discount was 7 per
cent., and in December it was quoted at even 1/32 of 1 per cent. or a
quarter of 1 per cent. a day!

The year 1873 was anxiously awaited in hope of better times. In the
middle of January, 1873 the rate of interest declined a little to 6 or 7
per cent., but soon the rate of 1/32 of 1 per cent. per day reappeared
and continued until the month of May.

In the first days of April the market was in full panic; it grew
steadier in the first week of May, and in the month following. It
relapsed on September 1st, and requests for accommodation redoubled
until the sharpest moment of the panic. On that day there were no quoted
rates; money could not be had at any price: some few loans were made at
1-1/2 per cent. per day.

This panic broke forth on September 18th, through the failure of Jay
Cooke, after a miserable year, during which money was constantly sought
for and was held at very high prices in all branches of business. As to
the loans for building railroads, they followed one another so rapidly
that, from the month of October, 1871, to the month of May, 1873, they
could not be placed at a lower rate than 7 per cent. Bankers succumbed
beneath the burden of their unsalable issues. This was a grave
misfortune for the railroads. In the single year 1873 there were