Panic of 1884

A newspaper illustration from Harper's Weekly, depicting the scene on Wall Street on the morning of May 14, 1884.

The Panic of 1884 was a panic during the Recession of 1882-85. Gold reserves of Europe were depleted and the New York City national banks, with tacit approval of the United States Treasury Department, halted investments in the rest of the United States and called in outstanding loans. A larger crisis was averted when New York Clearing House bailed out banks in risk of failure. Nevertheless, the investment firm Grant & Ward, Marine Bank of New York, and Penn Bank of Pittsburgh along with more than 10,000 small firms failed.

Causes

The immediate cause of the Panic of 1884 was the failure of Grant and Ward and Marine National Bank of New York City. These two firms were joined closely together as James D. Fish was a partner in both. When these two major firms collapsed, it had a ripple effect across Wall Street causing many firms to fail. Another major cause was the Panic of 1873, in which many of the practices such as speculative bonds and over extension of credit to fund the construction of infrastructure. In addition, this failure undermined the confidence people had in Wall Street as it rebuilt after the events of 1873, especially after it became known that James C. Eno embezzled over $3 million and fled to Canada. Even though the bank replenished the missing amount and avoided failure, the news was still a huge blow to any remaining good will and confidence Wall Street had and furthered the panic. Overall, the panic was mostly contained to New York but acted as a foreshadow to the Great Depression.

References

Fels, Rendigs (1952). "The American Business Cycle of 1879-85". Journal of Political Economy 60 (1): 60–75. doi:10.1086/257151.
Sobel, Robert (1968). Panic on Wall Street: A History of America's Financial Disasters. New York: Macmillan. Chapter 6. ISBN 1-893122-46-8.
Sangkyun, Park (2012). Contagion of Bank Failures. New York, New York: Routledge. ISBN 978-0415751698.
Kane, Thomas (1981). The Romance & Tragedy of Banking: Problems & Incidents of Government Supervision of National Banks. Anro Communications. ISBN 978-0405136597.

Banking panics in the United States

1792 1796–97 1819 1825 1837 1847 1857 1866 1873 1884 1890 (Baring crisis) 1893 1896 1901 1907 1910-11 1929 2007-08

Stock market crashes

17th century	Kipper und Wipper period Tulip mania Bubble

18th century	The Mississippi Bubble South Sea Bubble of 1720 Panic of 1792 Panic of 1796–97

19th century	Panic of 1819 Panic of 1825 Panic of 1837 Panic of 1847 Panic of 1857 Black Friday (1869) Panic of 1873 Paris Bourse crash of 1882 Panic of 1884 Encilhamento Panic of 1893 Panic of 1896

20th century	Panic of 1901 Panic of 1907 Depression of 1920–21 Wall Street Crash of 1929 Recession of 1937–38 1971 Brazilian markets crash 1973–74 stock market crash Souk Al-Manakh stock market crash (1982) Japanese asset price bubble (1986–1991) Black Monday (1987) Rio de Janeiro Stock Exchange collapse Friday the 13th mini-crash (1989) Dot-com bubble (1995–2000) 1997 Asian financial crisis October 27, 1997, mini-crash 1998 Russian financial crisis

21st century	Economic effects arising from the September 11 attacks (2001) Stock market downturn of 2002 Chinese stock bubble of 2007 United States bear market of 2007–09 Financial crisis of 2007–08 Dubai debt standstill European debt crisis 2010 Flash Crash August 2011 stock markets fall 2011 Bangladesh share market scam 2015 Chinese stock market crash

See also: List of stock market crashes and bear markets

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Panic of 1884

Causes

See also

References