Class Discussion Lead 2: Going Ahead or Gone to Smash; Entrepreneur
Struggles 1830’s
Summary: Back in
the 1830’s there was something known as an economic boom, this “boom” gave many
the opportunity to progress and grow financially and career wise. It was a time
when the economy really jumped out and stood out in good ways. One man
benefited from this tremendously, and his success effected many men and women
all around. His name was Benjamin Rathbun. Mr. Rathbun took full advantage of
this period by taking his business to Buffalo, New York. His business you ask;
a brand new hotel. This hotel grew from just a hotel to real estate, building
construction, banks, store, transportation, and more. Rathbun took over and
employed 1/3 of the area. He ran this whole operation with several people, but
mainly his brother Lyman who was the head of financial operations. From 1830-1835 things really took off for
them, but as quickly as they rose, they fell in 1836. The beginning of the end
started for Benjamin with “note shaving” (slang for selling IOUs at a
discounted price). This caused Rathbun to be forced to take out loans, and large
loans at that. But these loans ended up being forgeries, sending Rathbun to
prison for 5 years. And his brother high tailed with a load of money. Starting in
1837 and for 5 years after, there would be several other massive business
failures, which would force the U.S. to create 2 necessary laws to try to help
the economy. The first was, The U.S. Bankruptcy Act of 1841 and second, The
Credit Rating. These laws were created to keep things like this from happening again
in the future. In 1843 Benjamin Rathbun
was released from jail and went back into the hotel business where he would
manage hotels until he passed away.
Question 1:
Seeing that our current economy isn’t at the best, do you think our country
could benefit from more laws like those created in 1841? How?
Question 2: In
the current world today who is similar to Benjamin Rathbun? And why?
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