CHAPTER II.

A CLOUD ON THE HORIZON.

On the first day of January, 1847, the financial condition of these United States was 66 most satisfactory." So said leading bank presidents and directors in the coteries to which they severally were attached; so observed the prominent members of the Stock Exchange, conversing daily between the "boards;" so echoed the principal merchants. Eminent bankers talked soothingly over their sherry of the "remarkable prosperity of the country." With the second bottle they demonstrated how we were now beyond the reach of panic. The resources of our land were so great, so various, so extraordinary, and its extent almost illimitable. Such room for development, for the employment of capital, which could never fail in returning its legitimate increase. No, thank HEAVEN! we were at last on a sound basis, and none but the most reckless need fail in any lawful enterprise.

Russell, too, was of the same opinion.

There was not even a speck in the commercial horizon giving token of the storm which was so soon to burst. Only it began to be ascertained that the failure of the harvest in Great Britain (which had been for some time known) was even more deplorable than at first reported; and, with the blight of the potato in Ireland, there was threatened for

that unfortunate isle the visitation of the Angel of Death in the shape of FAMINE! But to most people this served as an additional argument that our prosperity was founded on a rock. We should find, at high prices and gold for payment, a market for all our surplus breadstuffs. Some, unappalled by the terrible calamity which threatened a friendly nation, chuckled over the news brought by each successive steamer of the great rise in the prices of food; while with all there was an ill-concealed satisfaction at the existing condition of things. But there were others who shook their heads, and said such condition was unnatural; that affairs could not go on ruinously for any length of time in England without reacting forcibly here, so intimate were the relations between us; besides, they said, an unfortunate state of affairs in one country is never beneficial to another country with which it has a close business connection. These individuals were set down as croakers; people who were behind the age; men with antiquated stage-coach ideas. The great majority of moneyed men declared that the country was in a most prosperous state, and accordingly it was generally so accepted.

To come to my own affairs. The position of the firm of Charles E. Parkinson and Company, on that same first of January, was essentially and absolutely a sound one. The year after I commenced business anew, my mother died. The five thousand dollars I received from her proved, as was anticipated, to be about what I was entitled to from the estate, and thus that was settled. I had within a twelvemonth repaid my friend the five thousand dollars borrowed from him. It was indeed so much in reduction of our capital, and the money to us was worth much more than

seven per cent; but something whispered to me, "Pay it !" and I did so. Strange to say, many years later this circumstance proved to be the final turning-point in my earthly career. Since we began, our capital had increased from the sum of twenty-eight thousand dollars, as the reader will recollect, to one hundred and thirty-eight thousand seven hundred and sixty dollars in stocks and assets, after deducting all probable bad debts and what the firm owed. In other words, that was our "balance-sheet." This was certainly doing well; at the same time we had acquired the reputation of having made still greater gains, so true is it that "to him who hath shall be given."

I was one of the few who were not carried away by the excitement consequent on the great rise in all species of produce. I believed when, stimulated by the high prices, the north of Europe began to pour in its large stores of grain, that a reaction must take place, especially if the coming season in Great Britain promised well. For this reason I did not permit myself to be tempted into a speculative course, in which my neighbors were clearing large sums rapidly. In April and May the financial distress in England, and distress from hunger in Ireland, were very great. An American government store-ship, loaded with provisions, was sent to the relief of the Irish people, thousands of whom were dying from starvation. Still were we on this side prosperous; still taking in gold for food at high prices; still counting on more gold at higher prices. About the first of June these prices came to a stand-still in Europe. From the ports in the Baltic rich granaries were shipped to the British Isles, the harvests promised well, and

the potato appeared to be without blight. We were then carried into the summer in the midst of a great speculation in produce; with falling prices in Europe, and purchases and contracts maturing here; grain shipped to a tremendous extent, bills drawn heavily against it; bankers, ancient and honorable firms, breaking all over the Continent, all through England, Scotland and Ireland, till the panic there reaching its height, the market here became utterly depressed, and bills of our best houses were floating about in all directions, offered at enormous rates without buyers. Then was Wall-street one morning taken suddenly aback by the refusal of some of the largest bankers in London to honor the bills drawn on them, of an old and leading house here! What confusion, what consternation! It was all a mistake: oh! certainly a mistake! A matter of precaution only, till the arrival of the next steamer, then all the bills would be protected, all accounts arranged, and every thing be put right. Just wait for the next steamer.

The steamer never arrived!

But if the firm of Charles E. Parkinson and Company did not speculate, what had it to fear? Reader, you know little of commercial affairs if you suppose in times of general financial distress it is possible for any house engaged largely in business to escape unscathed. Quite early in the season I attempted to act with great prudence and circumspection. I came to the conclusion that such were my then business relations with correspondents in the South, we should undoubtedly meet with large losses. I was prepared to accept this as the "fate of war;" for my gains had been large. During the summer I was applied to by a lead

ing banking-house in Wall-street to make purchases of large quantities of grain for foreign want; these were to be made through the West, and I was to charge a certain commission, and receive in payment bills drawn by this banking-house, on Baring Brothers and Company, in London. Nothing appeared surer or safer. The produce was to be consigned to the Barings, and since that house stood so high, and the drawers themselves were so undoubted, I did not consider it a risk. For all that, I stopped short in this arrangement before the parties had finished buying, and left them to select another agent. This was in consequence of the disheartening news brought by every steamer. Resolving not to make another business transaction, I joined my family, who were at Newport, in order to enjoy some relaxation. I enjoyed but little. Week after week brought intelligence more and more gloomy. I determined not to prolong our stay, but that we would all go to town the first of September, instead of my going in alone. I cannot say I experienced any presentiment of coming evil. I do not know why, but I wanted my wife and children around me.

On Wednesday, the first day of September, in the afternoon, we reached our handsome house in Broadway, a little above Bond-street. How pleasant it looked; that dear, happy home! By evening we were comfortably installed. The next day I was early at my counting-rooms. Affairs were threatening, but I maintained a courageous self-reliance. I believed, although I might be considerably damaged, that I should weather the storm. Rollins, who had greatly improved in sagacity, and now become an experienced merchant, was untiring in endeavoring to carry out my sugges