40 



Ira Ryner 



our store of bullion fell from $49,000,000 to $35,000,000.^ The 

 effect of the French revolution of 1848, however, must also be 

 given some weight as a condition affecting commerce in general, 

 especially for that year. 



yinnual Stock prices. 



■Pn^sm 



a 



'33 



^J3|'j?^^-5^i|'5^■ 





ipij-cent 



C^arT 13. 



from Stcl^ Ixchan^tSa 

 by M O.ffen. 



CRISIS OF 1857 



The panic of 1857 ^^ characterized by Evans as a banking 

 panic which broke out first in the United States and from there 

 spread to Europe. This, however, does not necessarily place the 

 entire responsibility for the crisis upon America. There is no 

 question but that England and other European countries were do- 

 ing business upon an unsound basis. Particularly to blame was 

 the system of "open credits" practiced in England. By this plan 

 "certain English houses allowed persons abroad to draw upon 

 them to an extent previously agreed upon." As an illustration 

 of how this led to abuse of credit," a particular firm suspended 

 which had been doing business upon a capital of i 10,000, with a 

 liability of £900,000; it had permitted "itself to be drawn upon 



* Dewey, Financial History of the United States, 260. 



182 • 



