ON the first day of January, 1847, the financial condition of
these United States was '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 reäcting
forcibly here, so intimate were the relations between us; beside,
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, however, 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
twelve-month 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 reäction 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 in 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 all 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 leading 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 still I felt as if I must have 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 suggestions.
Things were no worse than I expected to find them. Rollins had
anticipated one or two very important steps which I had proposed to
take, and with a favorable result. I had occasion to go that morning
to Jersey City, with reference to a number of storage receipts,
about which some question had been raised, and I told Rollins that
I should not return to the counting-room, but would go directly
home, having many little matters to look after at the house, and if
he had any thing of importance to communicate I requested him to
call in the evening. I transacted my business, and reached my house
with spirits much improved, and my courage a good deal exalted. The
children welcomed me with great glee as I entered. Mamma had invited
two or three of their own age to spend the evening with them.
Beside, young Havens was coming, (Miss Alice, my eldest, was already
sixteen, and did not appear vexed at this last announcement,) and
I was expected to contribute toward the entertainment. I smiled
with a father's pride and joy as I beheld the glowing countenances
around me. There was nothing which whispered to me that the
atmosphere was loaded with fatal intelligence. How happy was I in my
unconsciousness!
At dinner we were all animated. I partook with a relish of our own
cheer, and was gladdened beside by a bottle of generous wine, which
the old cellar had held for many a year; my return home; a favorable
business-day; the cheerful voices of my wife and children; a good
dinner; and the fine old Madeira wine: all combined to produce a
comfortable and confident state of mind. 'We will weather it yet,'
I exclaimed aloud, with a complacent nod.... There were some young
people gathered in the parlor in the evening. They had danced a
quadrille; they had talked and laughed. Now Alice was requested
to sing. She seated herself at the piano, and began the convivial
song from _Traviata_. The music was particularly adapted to her
voice, and as the tones floated through the room, I was gradually
carried away by the _abandon_ of the air. Insensibly I closed my
eyes to enjoy it. Just then I heard the door open: the servant
pronounced: 'Mr. Rollins, Sir.' I looked up. Rollins stood before
me. He was very pale, but otherwise not excited; betrayed no unusual
excitement. 'I want to speak with you a moment,' he said. I rose and
walked with him as far as the pillar which separates the parlors,
and leaning against it, I waited for him to speak. Alice meantime
was continuing the song from _Traviata_.
'Have you heard the news?' he said, in a low tone.
'No; what news?' I replied.
'The 'Caledonia' arrived this morning. We have her advices by
telegraph. Barings have refused acceptance of ----'s bills.'
'How many with our indorsement must be still out?'
'At least seventy thousand dollars.'...
Alice was finishing the last strain of the convivial song. With
the last strain I beheld fading away like a dissolving view those
beautiful velvet carpets; vanishing, the fine sofas, and soft
couches, and handsome furniture; gone, the rosewood piano; gone,
the choice damask and silver; gone, the luxurious board, with the
old wines and delicious _liqueurs_: and the house, our HOME, lost
is the house; recorded against it is that mortgage for fifteen
thousand dollars and interest; the value of property depressed, and
we in the hands of a prompt creditor. Oh! why had I not paid off
that mortgage? Oh! why? Wife and children; yes, wife and children
remaining; but to suffer what discomfort, what unhappiness, possibly
what destitution!
Not one quarter of a minute had elapsed since Rollings answer, 'At
least seventy thousand dollars,' yet behold how much had rushed
through my heated brain! I turned, for I felt a soft hand on my arm:
it was my wife.
'Charles, what is it?'
'At present nothing, only I must step out for a few moments with
Rollins.'
'Papa, papa, where are you going? Come back! You are always running
away!'