Morning clear though cold, but it afterwards clouded and rained in the afternoon. I went to the Office and was occupied much of my time with Mr. Ayer and Mr. Whiting, my Carpenter and Mason who came in for plans and money. I am becoming a little startled at the difficulties of keeping in funds for my undertaking and considering the expediency of stopping the work. Yet I do not much wish it.

The commercial tornado increases in violence from day to day. The accounts today from New York are worse and worse, they show the last stage of panic. A run on the Banks, the failure of one and the fear of the consequences of refusing the bills inducing the others to take them with almost a certainty of loss. The consternation here is also very great. The factories have large amounts of suspended paper, which they cannot convert. Drafts for their cotton are now coming due and their workmen are constantly requiring money. Of course the only alternative is to stop which most of them are doing. But the distress as well to operatives as to stockholders must necessarily be very consider-240able. And the prospect is undoubtedly alarming even to the sternest nerves.

I felt my own spirits somewhat affected today although to me individually there is very little of this kind of trouble comparatively speaking. But there is much sympathy in all these cases and one thing is certain that my next year’s income is probably fifteen hundred dollars less, which is bad for a person just laying out money. Mr. Brooks too appears at last to be much alarmed. Gorham Brooks is here from Baltimore, I fancy in some difficulty, but this is mere conjecture and unfortified by any evidence.

Home. Read Homer. Afternoon, Plutarch and Agathon. Evening, Mr. and Mrs. Frothingham came in and passed a couple of hours very pleasantly. Then I read Moore’s Life of Byron.

The morning was showery with thunder and lightning and prevented my going to Quincy as I had intended. Office where I rather idled away my time. My spirits not very easy from the difficulty I was under as to money engagements. I have engagements for this week for which I am not yet prepared and somewhat uncertain if I shall be. This is a state of things so new to me that I dislike it much. Accounts.

The news from New York of today is not calculated to relieve us. A packet from England announces that the chance of the American Bankers depends upon the remittances by our packets which were trifling as we know although they did not. Another fact brought was that there was a heavy and steady drain of specie upon the New York Banks generally.

Home to read Homer. Afternoon, read Moore’s Life of Byron in order if possible to finish it before the hour for returning it to the Athenaeum, it being the commencement of the annual examination.1 Then Agathon in which I go on rapidly. Mr. P. R. Dalton and Mr. Walsh called in the evening. Conversation mainly upon the present aspect of things which is bad enough. Nobody expected it would fall down so soon. Afterwards, Congreve’s Way of the World.2

The day was fine. I went to Quincy very early and found them getting along very rapidly. They have nearly covered in the whole with 241boards and are carrying up the Chimneys pretty fast. The other work of clearing, digging &ca is also going on with some rapidity. I then called upon Mr. Brigham with respect to an Instalment that had been called upon the Stock of the Quincy Canal and made a settlement with him by a surrender of as many Notes as amounted to the sum, receiving the balance of Interest due upon them. Thus far being settled, I returned and then home.

Found the whole of State Street in most unparalleled agitation caused by the intelligence from New York that all the Banks in that City had suspended specie payments. Thus is this matter at length brought to a crisis and from an apparently high state of prosperity we are at once plunged into utter bankruptcy. So much for General Jackson’s better currency and the whole train of fine theories which depend from it.

Home late. Afternoon Plutarch and Agathon. Evening, made a call at Mr. Brooks to see Gorham, but found them going out, so I would not stay.

It seems there has been a popular meeting at Faneuil Hall to recommend a stoppage here, and the Bank Directors meet tonight to the same effect. Such is the consequence of the extraordinary reaction which has taken place within two months. The prospect for the future is now more unpromising than ever. On my return home, T. K. Davis called and we had a talk upon present affairs, and the consternation of the monied men.