New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-04-13

Ci,eois,,on........ 68i4S3l 7sBSs7 Incl, i04 266
recent number Of TIE ST. Louis Democrat, in
noticing the second and probably final suspension Of
Page & Bacon gives brief history of its career,
from which we learn that the house commenced bust
ness at St. Louis, under the mos. favorable auspices,
in ls4s Its credit was of high chaIa ter from the
very beginning "snd its doors we're ,arcely opened
when deposits from all classes flowed into its vaults
II enjoyed entire confidence, and every felt that
money, when committed to the keeping Of this frm
vas safe. Its business grew to be immense, control
ling by lite magnitude the operations Of other bankers
and making the Bank of Missouri perform a course
subordinate TO the great money power it welded.
The Democrat goes on TO show that the gold discov-
cries In California at sub,equen date, tempted the
Junior partner Of the firm into the Idea that wide
field was open to them for the profitable extension Of
the house. which led to the establishment Of the
branch at San Francisco.
"Up to this tine," says The Democrat, "the house
"had not deviated from its legitimate business OF
"bsnkine, and 20 long as that was legitimately pur
sued its profits were large and ample. But in 40
unhappy hour the firm of Page g. Bacon took upon
" themselves the Herculean contract for building the
Ohio and Mississippi Railroad involving no less
responsibility than ten to twelve millions OF dollars,
land from that hour the credit Of the house began to
ware'
Sbrewd business men, even at that early period,
foresaw trouble when the business Of the house
sumed the three fold aspect of bankers, agents and
contractors.
The cash means Of the road becoming wholly mad
eousie to It's enormous expenditures ts bonds with
out market, and its credit impaired, no alternative
was at commend but for Page & Bacon, the bankers,
70 furnish Page & Bacon, the contractors, whatever
wa, required to sustain the latter in their engage
mepts. Thus were all their resources and cash
means dra wn from their regular and legitimate bust
ness Thus also may the troubles Of this great house
be traced TO two prominent causes, the departure
from tbeir legitimate business Of banking and becom-
Ing railroad contractors.
We make this reference - this faithful history to
show how upjust and absurd has been tho idea, in
whatever quarter il may have existed, that the fail
ure Of this unfortunate frm has been pro-
ducS,, y. y, s.; other canses than Its own enormous
and improvident engagements, ranging widely
from the sphere Of legitimate banking and encum
bering itself with stupendous railroad undertake
ipgs, which. as we all know have through the
severe fnsncia pressure Of the past year, brought
ruin and disaster upon thousands. In some quarters
gres, censure has been bestowed on the correspond
ents Of Page & Bacon in this city. for ao wing the
The failure then by some supposed to have bsen
unnecessary, and to have been csused more by the
hmidhy Of their correspondents than from any real
weakness or inability OF Page & ,con Such, no "
ever was not the &c neral sentiment ard subsequent
events have abuOdsnily proved that Messrs Dune an
Sherman & Co. were much better Informed of the
true state Of the case than were those vac so freely
censued their course. II cannot no be doubted
that they acted most wisely. That they had to the
latest oment been liberal to the very verge of pru-
dence Is manifest for il lie current rumor that when
tbe month Of January came in, they under cash
advances to Page & Bacon, by way of loans on
Stocks paper under discount credits in Europe, and
over dIas OF account 10 aggregate Of over half
smiliop Of dolars-sn amount, surely, that but few
bakers in this or any other country, would or could
advance in such a severe money pressure Sc we had
during the period that this large amount was furnished
The very fact Of furnishing such large aid, in times
30 stringent and trying, is abund ant evidence OF
the esrnest eeere Messrs ID. 5 & Co hal to pre-
serve this house. They had a strong indncement
and interest 10 preserve them, because z. * H. we're
valuable customers. But in process of time all the
available securities OF p & B. became exhausted
ard sni soey continued from day TO day, 20 require
heavy sdvances Without fande aud without author
fy to Go 50, the 81 Louis house drew daily on D. s.
a. Co. to pay their depcsitors and other creditors
until the amount assuming magnitude that d..
S.&. Co. naturally unwilling to increase. unless
positive ard absolute securities were furnished
Throughout The months of November and December
he embarrassed state Of p. e. B. was a. we have
since lesrned the subject Of frequent private consult
stion between Mr. Bacon Mr.. Aspipwsll and D., s. &
Co. Various suggestions and efforts were made for