Exchange rates were much more depressed; from 109.45, representing par,
they fell to 107.25 for the best 60-day paper. This paper was much
sought after by speculators, who, when discounting it, procured bonds
authorizing them to transfer the titles unless payment was made promptly
at maturity. Prices fell so low that it was often impossible to
negotiate paper at any price. The activity reigning at the beginning of
the year showed itself in the Exchange movement; the excess of imports
over exports rose in the first months to $100,000,000, whilst in the
preceding year it did not exceed $62,000,000; prices ruling in the
American market attracted goods from all quarters.

PANIC OF 1884.--The panic which burst upon the United States in 1884 was
the last thunder-clap of the commercial tempest which had reigned since
the month of January, 1882. Public opinion already recalled the
decennial period which separated the existing panic from that of 1873.
The acute period was of short duration; the crash occurred on May 14th,
and the decline of values had touched bottom by the end of June. From
the 9th of June the people began to steady up, they felt the ground
firmer under their feet. The situation gave evidence of great strength;
and, notwithstanding the dearness of money, and an enormous fall in
prices, there were only a few failures, and at the close of the year
equilibrium was re-established, although the liability of the losses had
risen to $240,000,000. These losses, it is true, were almost entirely
borne by financiers and speculators, rather than by manufacturers and
traders.

The month of May, 1884, concludes the prosperous period which followed
the crisis of 1873. During this period the most gigantic speculations in
railroads occurred; the zenith of the movement was in 1880, and as early