The cry of an acute financial crisis emanating from the fear of war with Argentina was now raised in Chile.
Instead of facing the difficulties, the president preferred to put off the day of reckoning by flooding the country with inconvertible notes, with the result that the financial crisis became more and more aggravated.
Leo's lively interest in art and literature, to say nothing of his natural liberality, his nepotism, his political ambitions and necessities, and his immoderate personal luxury, exhausted within two years the hard savings of Julius II., and precipitated a financial crisis from which he never emerged and which was a direct cause of most of the calamities of his pontificate.
The financial crisis of that year caused an increase, which continued until the imminence of the Civil War, when it rose from 65 millions in 186o to 91 millions in 1861, to 514 in 1862, to 1120 in 1863, to 1816 in 1864, to 2681 in June, and its maximum (2846 millions) in August 1865.
The depression was accentuated by the financial crisis in America, which affected adversely the wool trade, and in a more marked degree the diamond trade, leading to the partial stoppage of the Kimberley mines.
In 1818 he saved Paris from a financial crisis by buying a large amount of stock, but next year, in consequence of his heated defence of the liberty of the press and the electoral law of 1867, the governorship of the Bank was taken from him.
In May 1879 the misgovernment of Ismail Pasha and the resulting financial crisis rendered the deposition of the khedive inevitable; in order to anticipate the action of England and France, who would otherwise have expelled the erring viceroy, the sultan deposed him himself; the succession devolved upon his son Mahommed Tewfik Pasha.
He continued successfully in the management of this business through a financial crisis incident to a wildly speculative time, until in the spring of 1857 the house, by his advice, withdrew from Californian affairs.
In spite, however, of the improvement in trade that ultimately resulted from these measures, there was great depression; in 1825 there was a financial crisis that caused widespread ruin, and in 1826 the misery of the laboring poor led to renewed riots and machinery smashing.
The amount of capital which parliament authorized railway companies to raise was about 42 millions on the average of the two years 1842-1843, 174 millions in 1844, 60 millions in 1845, and 132 millions in 1846, though this last sum was less than a quarter of the capital proposed in the schemes submitted to the Board of Trade; and the wild speculation which occurred in railway shares in 1845 contributed largely to the financial crisis of 1847.