Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1864-10-12
Financial Panic in Chicago

in the midst Of crisis for which 1t would
appear they were inadaquately prepared.
The facts as we find them in the Chicago
papers are simply these. On Friday the
Banking house of the " estern Marine and
Fire Insurance Company received on depos
|. it seven or eight thousand dollars, being a
fund for the relief of drafted men in one OF
the wards OF that city. On Saturday, the
institution suddenly collapsed aud closed its
doors, whereupon the people interested IN
the matter became exasperated and threat
ened TO take violent measures upon the bank
building, and those connected with it.
These circumstances developed the fact that
the institution was unsafe. and unable to
meet the demands of any of Its depositors,
and Immediately other institutions We're put
TO the test. many Of them proving but little
better prepared to meet the demand made
upon them. Two other institutions subse-
quently closed, and several private failures
took place On Monday general panic set
| IN, and all the banks in the city. including
the Savings banks, were so many scenes of
indcscribabIe confusion. Some of the heaY-
Ter business houses were obliged to opaychecks
in large amounts in Eastern exchange, or de-
Ter payment for day or two, but most Of
the banks paid every check as promptly as
1t was presented. In several institutions an
effort was made to sell Eastern exchange,
and it was freely offered on the street at ,
| per cent discount, but very little Of it was
taken. Even the banks who were short of
| ,'creenbacks could show enough Eastern
exchange. FIVE twenty and other [. 5. Bonds
sufficient to pay every depositor two or three
times over, but the panic gained strength
and it was difficult to establish confidence.
| Some Of the Savings Banks tool, advantage
Of their charter, and announced that depo>-
itors would be required to give sixty days
notice before Withdrawing their funds. The
| effect Of this state Of things extended tc
other departments Of commerce. There
was actually DO demand for produce Of any
kind, and prices were entirely nominal.
| Money could not be had at any price by
those who wanted it, and the bulk Of the
merchants who had large balances at the
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| by 50 doing they could have made thousands
Of dollars. The Board of Trade passed res
olutions to the effect that for the present
| they would receive certified checks OF sol
vent Banks, the leading banks and bankers
to designate such certified checks as they
would receive or deposit, and that all sol
| vent Savings Banks protect themselves by
taking advantage o. their chartered rights
requiring notice Of the Withdrawal Of depos-
its. The Chicago Tlij,nae states that as
long as the panic exists ''the entire whole
sale and retail trade OF the city will be par
alyzed, stocks Of goods will be only depre-
| ciated and nothing but failure and ruin will
ensuc. The Chicago Post sums up the
matter by saying that it Is difficult to tell
the rich man from the poor man. There is
| more anxiety to-day behind the counters of
the banks, and III the c0unting-rooms OF the
rich, than there is under the roofs of habi-
tations where there is not food enough Tor
the next meal Many a rich man would to-
day exchange places financially with his por-
ter or drayman.
The J0u,nai in counselling calmness du-
ring the storm, assures It's readers that the
principal banksin Chicago, are as sound as
any in the Union and refers them to the
quarterly statement Of the National Banks,
OF which it says: "a more gratifying exhib-
it could scarcely be made; that is an an
swer to the panic makers, and proves incon-
testibly the soundness and reliability Of
those institutions The Times blames the
Western Marine and Fire Insurance COM
pany for the whole affair, and states that it
Is announced thai parties connected with
that company propose TO organize a new
bank on the ruins of the old one for the
object OF granting accommodations to such
as desire upon their deposits with The de-
funct concern. The Times says This is
singular proposition. Why do not the own
ers Of the defunct concern-al Of whom are
rich-at once pay the depositors their dues
We suppose the real object of the proposed
movement is to preserve the charter of the
Western Marine and Fire Insurance Com
pany for future swindIing uses. In our o
piniOn the public should put its heel upon
the neck of the movement. There is no
appearance of honesty in it. 1t asserts,
1t will be observed, that the owners of the
fallen concern are all rich and abundantly
able to pay all their depositors, if they
would. This We presume to be fair state
ment the case. Ltmustbe confessed that
our Chicago censors are left i'll very humil-