Adding to the confusion in financial circles was paper currency unbacked by hard cash. During the Civil War, money had been printed in great quantities. Paper currency lost the trust of many businessmen; some felt that a return to the gold standard was necessary. Silver prices fell and, although industrial production rose, prices for many A brief economic recession followed the Civil War. This era was quickly followed by a period of speculative investment. Railroad companies, provided access to public land in the West, began to sell bonds in order to expand. At first the bonds were backed by the value of the buildings and equipment but soon overzealous buyers snapped up shares on phantom companies still in the planning stage.
Investment poured into the railroad boom and shipping suffered.
“The Northern Pacific Railroad has been given forty million acres of public land,” exclaimed Joseph Titcomb. He put down the newspaper and frowned. “This trend cannot continue. The market is over inflated!”
In 1873, banker Jay Cooke sought $100 million in new capital by issuing bonds. Sure enough, the bonds issued found few takers; and a run on the Fourth National Bank in New York City occurred on September 18, 1873. goods declined.
While it is speculative to imagine Joseph Titcomb’s political views, he was a Democratic candidate for governor of Maine in 1873 and 1874. He would have embraced the Democratic platform, which opposed giving away public land to railroads, and supported hard currency. Joseph’s views were decided. “People should govern themselves. Left to themselves, people will do the right and proper thing.”
Did Joseph Titcomb realize how closely he agreed with his ancestor in Newbury who wanted his church to be governed by its members? No wonder Joseph was so staunch a supporter of his church: a generally accepted moral standard was crucial for elected officials.
“Elite business leaders should oversee the economy. We should manage and take control,” Joseph told himself. “After all, God has entrusted a select few (surely I am one!) to lead this country to prosperity.”
Joseph Titcomb succeeded in securing the Democratic Party’s nomination to run for governor of Maine in 1874.
A close reading of Joseph Titcomb’s acceptance speech, dated June 29, 1874, reveals that he
* favored coinage as currency, not “promises”
* believed in taxation for government expenses but not for “pet projects”
*supported self government first, then state government; and, last, national government
*disliked monopolies
*hoped for an “uprising” to “sweep away” corruption

It is interesting to note that an opposing viewpoint (written by a Republican) called Joseph Titcomb a “Bourbon” democrat. This referred to a belief in the freedom of an individual to pursue aspirations unimpaired by government. The Republican opponent further wrote that while Republicans did not support giant monopolies, they did believe that government aid was key to the construction of railroads across the Rocky Mountains.
A series of events resulted in a loss of financial support for shipping. At the conclusion of the Civil War, hard currency was scarce and paper currency was widely held, with uncertain backing. Such acceptance of paper facilitated speculation, particularly in the expansion of railroads.
Originally, railroad companies had enough iron, real estate, and equipment to pay off their shareholders. Ultimately a “bubble” of investment surged up, backed by easy credit. The bubble burst in 1873 when a large New York bank was unable to meet its demands.
Despite the volatility of these investments, the financial backing of the government gave railroads a tremendous lift and commerce overwhelmingly switched to rail for its transportation needs. Shipping interests contracted; revenues shrank.
Had there been a more even handed approach to dividing investment between railroad cars and ships, might this have made ship building more appealing to investors? Or was shipping around the tip of South America simply too time consuming, not to mention dangerous?
Joseph Titcomb’s two campaigns were unsuccessful; Nelson Dingley, editor of a large newspaper, defeated Joseph at the polls and was elected governor of Maine.