expressed by a comparatively few Abolitionists against
slavery, while the great body of the north were either indifferent
to or sympathized with them in their opposition to the Abolitionists.

CHAPTER VII.
RECOLLECTIONS OF THE FINANCIAL PANIC OF 1857.
Its Effect on the State Banks--My Maiden Speech in Congress on
National Finances--Appointed a Member of the Committee on Naval
Affairs--Investigation of the Navy Department and its Results--Trip
to Europe with Mrs. Sherman--We Visit Bracklin's Bridge, Made Famous
by Sir Walter Scott--Ireland and the Irish--I Pay a Visit to
Parliament and Obtain Ready Admission--Notable Places in Paris
Viewed With Senator Sumner--The Battlefield of Magenta--Return Home.

In the summer of 1857 there occurred one of those periodical
revulsions which seem to come after a term of apparent prosperity.
On the 24th of August the Ohio Life Insurance & Trust Company
failed. That single event, in itself unimportant, indicated an
unhealthy condition of trade, caused by reckless speculation, high
prices, the construction of railroads in advance of their need, a
great increase of imports, and the excessive development of cities
and towns. All credits were expanded. The immediate results of
the panic were the suspension of credits, the diminution of imports,
the failure of banks, and the general or partial suspension or
lessening of all industries. The revenues of the government were
greatly diminished.

On the 1st of July, 1857, the balance in the treasury was $17,710,000.
On the 1st of July, 1858, the balance was reduced to $6,398,000,
and during the year preceding, the United States borrowed $10,000,000.
On the 1st of July, 1859, the surplus was reduced to $4,320,000,
and during the year preceding the United States borrowed $20,774,000.
This sudden change in the financial condition of the treasury was
an indication of a like or greater change in the condition of every
person engaged in productive industries.

The panic especially affected the state banks. These banks were
authorized by the laws of several states to issue notes as money
payable on demand, with no common system or methods of redemption,
and varying in value according to the solvency of the banks issuing
them. The banks in a few of the states maintained their notes at
par, or at a small discount, but the great body of the notes could
circulate only in the states where issued, and then only because
their people could get no