that succeeded in bailing the United States and Wall Street out of serious dilemmas.In the Panic of 1893, was a crisis started by events on Wall Street, whose effects were felt in a depression that lasted almost 4 years after its initial strike. The panic occurred less than two months after Clevelands inauguration into the presidency; on May 3rd when the trust that controlled the making of twine went under and filed for bankruptcy, at that point stock prices severely dropped and brokerages began to crumble. Runs on banks and businesses cause them to shut down and the eastern banks were forced to pull money from the west to keep from dying. This in turn caused the western banks to call upon debts from farmers and other loan holders, who then had to foreclose on their land due to their inability to pay their mortgages. For almost 20 years prior to the panic the United States money had been based on the gold standard, preserved by a gold reserve containing over $100 million for paperback redemption. What had happened was that when the redemptions for the money and stocks had been given out, and the gold reserve dropped below 100 million, jitters jolted Wall Street, and the panic began twelve days later, when masses of people made runs on banks trying to trade their paperbacks for the more precious metal. (1) Morgan saw his world crumbling around him and knew that something must be done to stop this serious chain of events from growing any worse. He arrived at the White House that February and stated that he had come to see the president and Im going to stay here until I see him.(3) Morgan had constructed a private contract, with the help for his fathers influence abroad and his own influence in the U. S., to give $62 million in gold for the U. S. treasury, half of which was obtained abroad. Cleveland didnt want to be pulled from the fire by a Yankee banker but he only had $9 million in the treasury and a $12 million draft was looming...
