Crisis of 1873

"In view of the disastrous and widespread effects of economic crises, involving the danger of the collapse of capitalism and the potential for social revolution, the outcome of which no man can foresee, no phase of economic history is of greater importance than the scientific study of business cycles. True, history never repeats itself, yet there are certain common features in all of these movements, which may lead to profitable comparison and generalization. These features can give warning of unstable conditions, suggest measures of prudence and safety, and, after the worst has passed, may indicate with some reliability the road to recovery. Of all the crises of the past hundred years, those of 1873 and 1929 are probably the most comparable, as each followed a long war, a period of rapid economic progress, monetary and credit inflation, and unbridled optimism and speculation. Dr. McCartney has therefore made a timely and meritorious contribution to our knowledge of an important period of American history. While he has by no means exhausted the subject, he has shed light on dark places, brought others into bolder relief, and thereby strengthened the historical foundation for a more perfect theory of the business cycle."