The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1851-12-17
THE NEWARK BLOW UP.


We copy. says the Ohio Statesman, from
the Newark GazHtte, a whig paper, the tol
lowing account OF the recent financial eX
ploson in that place. Pha people will
draw their own conclusion from the facts
here detailed. They do not reflect much
credit. we must say, on som" Of the finan
ciers Of Ohio. Such break downs as we
have seen in this quarter Of Ohio. lately
are new to our citizens What is to come
next, no body can guess, or tell the extent
Of ruin already in train:
TREMENDOUS EXPLOSION. The last and
present are eventiul weeks in the varied
annals Of the rown OF Newark and county
Of Licking. A. J. Smiths splendid fnan-
cal bubbles have exploded A famine or
hurricane could scarcely have left more
damage in their track, or at least produced
more conslernation. His liabilities are es
tmated to exceed 100000. OF this
amount it is supposed near $500 900 were
on deposit Over Sl5O,000 have been
specified, and there are undoubtedly many
small sums ranging from $50 to $500.
which have not been counted in the aggre-
gate. Many heart-rending instances Of
privation and distress caused by this ex-
plosion have come to light. We have not
room to detail them. Aside from this part
of the matter. the catastrophe is a terrible
blow to the business affairs OF Newark.
Without having wholly broken up more
than one business concern, yetit has great.
ly crippled the ready means for commercial
operations. ...
We cannot pretend to give full history
Of the affair. The details, even if known
to us, would occupy more space than we
can afford. a general statement must
suffice. ... ........
Its known that several weeks since there
were rumors in circulation affecting the
credit of Mr.. Smith, and many Of the more
cautious and jealous of our citizens drew
out their deposits Yet the confidence OF
our heaviest business men seemed to be
mistaken. and the little furry was passing
over. But the storm was only gathering
force. On Saturday, the Esd of Novem-
ber, the President of the Licking County
Bank is known to have gone TO Columbus,
from whence he returned on the following
day bringing with him Mr.. W. B, Hubbard.
a member Of the Executive Committee Of
the State Board Of Control. For several
days Mr.. Hubbard was closely engaged
with the officers Of the Bank, probably in
vestigaling the state Of its relation fnan-
cialy with A. J. Smith, and fixing up
things so as to save the bank from losses.
1t was evident to outside observers that bu-
siness ofimportance was going on. Things
remained quiet, so far as the public was
concerned, until Friday morning. twas,
however, the fearful quietness which pre-
ceies the Tornado. On Friday morning
the public was startled by the announce.
ment that A. ]. Smith had resigned the
Cashiership Of the Bank, and that Mr.. J.
Z. Blythe had been appointed in his place.
As the report buzzed through town, the ex-
element began to rise. Depositors began
again to draw. One man, hearing of the
resignation, is said to have broken into a
rapid run, and did not stop to pick up his
hat which fell in his haste. The small
amount OF ready means in the Brokers'
Office was exhausted during the day and
the forenoon orSaturday. Even yet. how
ever, the general confidence was not bro.
ken.
1t appears that on Thursday night, by
personal request of Mr.. Smith a private
meeting of some Of the heaviest depositors
was had in Birkeys store. Mr.. Smith un-
dertook to give a statement OF his affairs,
the most material paIt of which was that
some fifty or sixty thousand dollars Of his
paper would mature in New York. during
the months of December. January and
February. lie also represented that he
was short OF currency. but could worry
through if his depostors were lGnirnt and
would give him time. and especially if
some few of his friends there present, would
help to sustain him until the public excite
ment passed over. -.. .....
Mir. Hubbard, who with Mr.. Brady, d.
recter Of the Bank, was present, then ad-
dressed the small assembly in very feel.
ing and eloquent manner. He stated that
he had found every thing right with the
Bank, that Mr. Smith had settled his ac-
counts fairly and squarely, and did not
owe the Bank dollar. that he had been
an able and efficient Cashier, and he Mr.
H. regretted that Mr.. Smith thought it ne
cessary for him to resign. He further said
that of course he knew nothing of Smiths
private affairs, but that he had the conf
dence Of Bankers throughout the State,
and the State Bank would sustain hm.
while the Directors Of the Licking County
Bank had already offered him lnan OF
10000 to help him weather the Storm
Mr. H. also read circular letter which he
and VIM. Il. Otis, OF Cleveland, would
sign and send to every Branch Bank in the
State, and which spoke Of Mr.. Smith as
.eminently worthy OF confidence" besides
using other and highly commendatory and
iattering terms.