On the Crises of 1837, 1847, and 18^7 35 



The different states devoted their quota of this distribution to 

 various uses. In some states there was a per capita distribution ; 

 in others the whole fund was invested in internal improvements, 

 and so on. In practically all cases, however, it gave an addi- 

 tional impulse to the speculative movement. 



As in England, and perhaps to an even greater extent, the 

 prices of stocks were booming. Not only were there plenty of 

 home investors, but foreigners also were investing in railways 

 and in state and municipal bonds. ^ Foreign ca|)ital was being 

 used to develop American resources. 



CRISIS OF 1847 



In England there seem to have been no important financial 

 operations, preliminary to the crisis, except that of launching 

 great railway enterprises. Still it is estimated that something 

 like £70,000,000 to i 100,000,000 was asked for in contribution 

 to foreign projects after the speculative movement had begun. 

 This amount is small, however, in comparison with the f6oo,- 

 000,000 which it is estimated would have been required to com- 

 jjlete all the lines projected in Great Britain.- The speculation 

 was confined chiefly to English railways. 



In addition to this demand for money for railways other de- 

 mands arose during 1846 and 1847. Owing to the fact that 

 France had an inadequate supply of silver to 'meet current needs. 

 Baring Brothers agreed to assist the Bank of France to the 

 extent of i 1,000,000, early in 1846. Again, in March, 1847, 

 owing to the suffering in Ireland due to the potato famine, Roths- 

 child and Baring Brothers negotiated a loan of £8,000,000.^ 

 Some relief came to France and indirectly to England when 

 Russia purchased 50,000,000 fr. 3 per cent rentes belonging to 

 the Bank of France. 



Finally, the general crop failures necessitated unprecedented 

 importations of various kinds of food in 1847. The cotton crop 



* Dewey, Financial History of the United States, 22G. 



* Evans, The Commercial Crisis of 1847-48, 10-11. 

 "Ibid., 55-56, 



177 



