Assessment of Capron's Estate, 1870 Details
Capron, most of whose money was invested in land, found himself in financial difficulty. His Paris properties, more than any others, lost much of their value, and Capron sold off his Toronto properties to meet his debts.
Letter From Hiram Capron concerning Land Sales Details
The direct effects of the Panic of 1857 were far away from Capron. He no longer lived in the United States, and was neither a banker nor a financial speculator. The long-term effects, however, quickly spread to much of the rest of the world, including Canada. The end of free trade with America hurt him badly as well, closing off to him many of the markets for his goods. Perhaps most disastrously, land prices fell dramatically because of these troubles.
A Bank Run during the Panic of 1857 Details
While Capron’s businesses were successful, there were some outside influences which threatened him. 1857 brought on a major global financial panic. While it began in the United States, its effects were felt all over the world. It started as a bank panic, but it would soon affect every class of business (LOC). Worse, some time later the United States ended free trade with Canada and raised import taxes on most kinds of goods (Canadian Economy Online).