f the whole difficulty.
The company depended for its means of construction on the sale of its
bonds, as so many companies before it had done. The sale of the bonds
in this country fell far short of the expectations of the financial
agents, and they were equally disappointed in a market for them
abroad. They were thus caught in the unpleasant position of being
pledged to heavy obligations with little or no money coming in to
meet them with. Failing their ability to pay these out of their
own pockets, or relief in some way from the company, the result was
inevitable. As, however, Daniel Drew was believed to be a man of great
wealth, notwithstanding his loss of nearly a million and a half by
the North-western "corner" in November, 1872, the failure of his house
created much surprise and distrust. All new railway undertakings
and the bankers identified with them were immediately regarded with
suspicion, and that suspicion was fatal.

The effect on the Stock Exchange was immediate, though less visible in
the decline of prices than in a reversal of the current of speculation
in favor of the bears, in a disturbance of credits and in general
uneasiness. Jay Cooke & Co., who were known to be heavily involved in
that colossal undertaking, the construction of the Northern Pacific
Railway, and Fisk & Hatch, who had identified themselves with the
Central Pacific, and subsequently the Ohio and Chesapeake Road, as
financial agents, were the first to feel the shock in the shape of a
run on their deposits; and on the 18th of September the former firm
suspended simultaneously at its offices in New York, Philadelphia
and Washington, dragging down with it the First National Bank of
Washington, of which one of the partners, Ex-Governor H.D. Cooke, was
president. The downfall of this great house was regarded as little
less than a national misfortune, and the prevailing distrust was so
aggravated by the event that Wall street went wild over the news; and
"long" stocks were thrown overboard on the Exchange without regard to
price, while the bears were emboldened to put out fresh "shorts" with
a recklessness never before witnessed, the question of real values
being entirely unheeded in the excitement and demoralization that
prevailed. On the following morning the suspension of Fisk & Hatch--a
house only second in prominence--sent another thrill of consternation
through the street. Prices on the Stock Exchange continued to fall
rapidly, and dur