There was really a severe business depression.
Money was so scarce that it could fairly be said not to exist at all.
Capital, frightened by uncertain trade and money conditions, everywhere, retired to its hiding-places in banks, vaults, tea-kettles, and stockings.

The country seemed to be going to the dogs.

War with the South or secession was vaguely looming up in the distance.

The temper of the whole nation was nervous.

People dumped their holdings on the market in order to get money.