ombination in this country--the so-called
"syndicate", comprising O.G. Kimball, B.G. Arnold, and Bowie Dash,
sometimes known as the "trinity".

The period of high coffee prices, commencing in 1870, had greatly
stimulated production in many Mild-coffee producing countries, as well
as in Brazil, and as a consequence the syndicate found its burden
becoming extremely heavy early in 1880. In January of that year our
visible supply amounted roughly to 767,000 bags. While this was reduced
to about 740,000 bags in July, the latter likewise proved to be
decidedly burdensome, especially as another liberal crop was beginning
to move in producing countries. The excessive volume of supplies was
especially marked, because distributing trade during the summer was
strikingly dull, as the majority of buyers were holding off, in view of
the prospective liberal new crops. At that time Java coffee was a big
item in American markets, whereas Santos was just about beginning to be
a factor.

The syndicate found that it had its hands full supporting the Brazil
grades, and hence had to let the Javas go. As a result, the latter,
which had sold at twenty-four and three-quarters cents in January, 1880,
fell to nineteen and one-half cents in July, to eighteen cents in
November and to sixteen cents in December. As a matter of fact, the
syndicate was practically the only buyer of Brazil coffee during the
fall of 1880; and as a consequence, Rios, which had started the year at
fourteen and one-half to sixteen and one-quarter cents, were down to
twelve and three-quarters cents in December, 1880, and had dropped nine
and one-half cents when the break in the market culminated in June,
1881.

The first whispers of financial troubles growing out of these adverse
conditions were heard in October, 1880; and on the 27th of that month
the first failure was announced--that of C. Risley & Co., with
liabilities placed at $800,000 and assets at $400,000. This firm had
been doing business in the local market for about thirty years. The
efforts of the receivers to dispose of this company's large stock
naturally served to accelerate the decline; and the final impetus came
on December 6, when the New York trade heard of the death, two days
previously, of O.G. Kimball, of Boston, one of the most prominent
merchants there. This precipitated the big crash of December 7, when
B.G. Arnold & Co., the largest New York firm, suspended with estimated
liabilities of $750,000