Great and unusual depression naturally followed the cessation of hostilities. Although wars and famines, however unfortunate and disastrous to the nation, afford rich sources of emolument to shipowners, the adverse reaction is frequently sudden and severe. Before the close of 1857, our markets had become so overstocked with vessels of every kind, that it was hardly possible to obtain for them, in any branch of trade, remunerative freights. [Sidenote: Depression in the United States.] Nor were the Shipowners of the United States in any better position. They, too, had overbuilt themselves. Their exclusive Californian trade had offered so many inducements, and, in fact, such large fortunes had been realised out of it, that many more vessels than could be profitably employed were built in the Northern States between 1849 and 1854. Some of these were placed on the trade with Europe. A very large amount of capital had been invested in the famous ships thus employed; but even these, before the close of 1854, were becoming unremunerative, owing to the competition of British iron screw-steamers, which I shall very fully describe hereafter, as they were the main weapon, whereby we bade defiance to the competition of all other nations, in the general ocean race then just commenced. As these splendid iron ships soon commanded all the passenger traffic, and, at the same time, secured the preference by shippers of high-classed and valuable goods, which could afford to pay the heaviest rates of freight, many of the American clippers were obliged to seek employment elsewhere. As the _Great Republic_[177] was one of the finest, as well as the largest of these famous vessels—indeed, she was the largest _sailing_ vessel in the world, I furnish an illustration of her at page 360. But though this vessel and a large number of the American liners found temporary employment in the French transport service, they on the cessation of hostilities were obliged to seek employment elsewhere; and, so great was the depression, that American shipowners, in 1857, suffered quite as much as did the generality of those persons who owned sailing vessels in Great Britain. Indeed, on the 1st January of the following year, there was not a single vessel building on the stocks of New York for the mercantile marine, and, for many months previously, the shipbuilders throughout the United States had been at a complete standstill. [Illustration: THE “GREAT REPUBLIC.”] [Sidenote: Disastrous years of 1857 and 1858.] But all branches of trade throughout the world were now suffering to a greater or less extent, and 1857 and 1858 will long be remembered as gloomy years. The outbreak of the mutiny in India, the consequent suspension of remittances from the East, and the demand for specie, together with an uninterrupted outflow of the precious metals to the Continent, led to an alarming drain of the bullion in the Bank of England. [Sidenote: Many banks stop payment.]