ABSTRACT
But similar ea.uses to those which operated in 1857, and to a le:ss degree in 1869, were at work in the United States, and it needed but a slight shock from without to bring on another very serious crisis in that country. The astounding growth of business and the extension of railways in America., accompanied by an ever-increasing prOSflet·ity for the whole nation, in the sixteen years from 18;;'7 to 1873, in spite of the heavy loss of life and enormou.q expenditure during the Civil War, have already been spoken of. It was ft·om this wealthy nation that the next blow was to come which would fall with redoubled force upon the trade and finance and industry of Europe, already most injuriously affected by the Vienna crash, which had spread to other countries and had involved every branch of business. New Yo1·k at thi~ titne was literally swamped with railway securities for which, especially after the outbreak of the Vienna crisis, no outlet could be found in Europe. To such an extent had the overbuilding and rash financing been carried, that the moment one bank failed a succession of bankruptcies became inevitable. The crisis there began with the downfall of a firm which had made heavy advances on the securities of the Missouri, Kansas, anti Texas Railroad, followed by the suspension of payments on the part of another firm which had acted in the same capacity towards tl.te Canada Southern.
