Depression of 1893
A period of prosperity in the 1880s led to a wild speculation in land and buildings, and money was poured in from England. Land companies, mortgage societies, municipal bodies, building societies, and a host of other organisations all clamoured for a share in the good things that were on offer, and probably £40,000,000 flowed into Victoria during a period of six years. With so much easy money In circulation, a fictitious prosperity of a feverish sort resulted. The banks issued notes to the value of millions, and trade and Industry flourished as never before. The reaction came quickly. Public confidence subsided like a pricked balloon. A run commenced on the banks, and the bursting of the boom brought with lt widespread disaster.
In 1893, 14 banks failed, twelve of those, with 905 branches throughout Australia, had liabilities assessed at £166,000,000, and thousands of people lost the whole of their possessions. Bank notes in many cases were worthless, and Victoria reached the farthest depth of a financial depression. Unemployment became widespread, wages and prices dropped and bankruptcies followed one another In disturbing sequence. The most drastic retrenchments were made by the Government and public bodies.
Read more about this topic: History Of Victoria
Famous quotes containing the word depression:
“Someone is always at my elbow reminding me that I am the grand-daughter of slaves. It fails to register depression with me. Slavery is sixty years in the past. The operation was successful and the patient is doing well, thank you. The terrible struggle that made me an American out of a potential slave said “On the line!” The Reconstruction said “Go!” I am off to a flying start and I must not halt in the stretch to look behind and weep.”
—Zora Neale Hurston (1891–1960)