September 17, 2010

Tim’s Market Report
September 19, 2010
We reach to the past to find our future. I’ve said that dozens of times and its true. And in that vein, I
was thinking about the economy last week and whether or not we’re likely to recover soon. And in that
vein, I was reconsidering the Panic of 1837. In my mind, the Panic of 1837 very much resembles what
we’ve been struggling with. It was a time when “the American people gave themselves to an amazing
extravagance of land speculation”. . . when fraud was doubtless existent “but was incidental to the
honest delusion of intelligent men who had all drunk in the national intoxication over American success
and growth.”
The Panic of 1837 was a 5 year national depression that was brought‐on by the several previous years of
rampant real estate speculation; where you could buy government land for $1.25 an acre and resell it
“at the market”. That speculation was promoted by Federal Government and banking interest’s policies;
and while businessmen and bankers were “prostrate with anxiety or irremediable ruin”, the only
remedy for recovery was time, industry and frugality.
Rich and po’ folk alike were paddling the same canoe in 1837. They were all broke and inhaling the
brackish smoke drafting from the fire of revolution present in the highly charged political and financiallychaotic
atmosphere of the time. Seth Luther, (one of the great orators of the time) said during his 1837,
4th of July rally speech, crying for effective financial institutional reform, “We will try the ballot box
first. If that will not affect our righteous purpose the next and last resort is the cartridge box!” Wow!
That’s passion. An Albany newspaper wrote, “Remember the fate of the working men. They were soon
destroyed by rolling parties. . . They admitted into their ranks broken‐down lawyers and politicians.
They became perverted and were unconsciously drawn into a vortex from which they never escaped.”
(Hmm . . . Sounds like it was time for their tea party! . . )
Sincerely,
TJL Tim Leigh
719-337-9551
Tim@HoffLeigh.com