in these trust companies were being misused by the bank officers for the
promotion of various speculating schemes. The disclosures which came
with the investigation of the insurance companies fixed these beliefs
more firmly in the minds of the people, and the first break in
confidence precipitated runs on the New York banks.
The third explanation was that the panic was due to the defects in our
American currency system.
These were the popular explanations, but there were deep-seated causes
which had worked to bring about the existing conditions. The crisis was
world-wide and was felt most in the countries where there was a gold