The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1873-09-26

important, and it is said their suspension is
only temporary Their failure is attributed to
large advances to the Chesapeake and Ohio
railroad. There were nine failures in Phila-
delphia on the day following the suspension of
Cooke The excitement in that city was even
greater than in New York, and there was a
great run on the savings banks, all of which
stood firm.
Gen. Grant returned to Washington,
and after a conference with Secretary Rich
ardson, at once determined that the Secretary
of the Treasury should come to the rescue of
the New York market. Accordingly, at mid
night of Friday, the 18th, the Secretary cent
message to the Sub-Treasurer at New York,
directing him to purchase 10000 900 imme-
diatey BY this action over 80, 900. 900 was
thrown upon the market, which, ii IL thought,
will give relief and avert a general financial
crash. The press, as general thing, take
hopeful view of the situation, which has gone
long way in allaying the public excitement
and ayerting a universal panic. The New
| York Express of the 10Th says:
1.-THE day closes on the whole with fewer
killed and wounded than might be expected,
all things considered. No trust company has
suspended no bank has refused payment all
the great railway corporations are apparently
as firm az a rock Rumor however, is not yet
rumor Stock ,alues have shrunk enormously,
but when the bottom is fairly touched, u re-
bound, as usual, is inevitable Business in
nearly all branches of produce is at stand
STILL and, in fact, almost bordering on general
decentralization.
Among the Now York failures was E. p
Randolph, son in-law and the New York
banker OF Tom Scott the railroad king.
1t is stated that tho National Life Insurance
Company viii no be affected by the failure of
Jay Cooke.
A Washington dispatch says: The head of
one of the most important Bureaus in the
Treasury says the Government will not likely
lose anything directly by the failures, or tinan-
cal panic, but NAV suffer to some extent in
consequence of the diminution of revenue
that will doubtless follow
T.. c. Steadman, the poet, and for several
years Wall street operator, takes an interest
ing view of the panic. The following state
ment Of his views on the financial situation is
telegraphed from New York: 1.-The present
trouble dates back to the time when Secretary
Boutwell, tried to fund his loan from per
cent. to per cent, which was in 1871. Pru-
dent men said it could not be successfully
done, and they were right. Boutwell, kept
money easy for five or six months, in order to
get people to take his loan but instead of
funding his own loan to any extent, he enabled
small houses to float private loans, and enabled
large houses TO expand. We should have been
road bond spectators. There has been great
Western railway expansion, and the bubble has
finally burst, as it was bound to do sooner or
later We have known that the crash was inn
pending, but did not expect it this fall. There
is no reason why the trouble should extend TO
the mercantile world it can do 80 only
through sympathetic process. The losses
will fall chiefly on specializing firms, who have
for years been doing everything to retard re-
sumption. The Government will sit still and
let them fall, then we shall be a long way adj
vanced toward specie payment The break
has not surprised anyone who knew how bust
ness was transacted. Brokers have been able
to buy bonds Of new roads at or 10 per cent.
less than the advertised rates at which they
were furnished to private persons purchasing
for investment. This was the case with Jay
Cooke as regards the bonds of the Northern
Pacific the Oswego and Midland, and most of
the other railway loans. 1t was not so with
Fisk & Hatch's roads. Their bonds were
good, and they believed in them. This panic
IL peculiar. 1t il different from that of any
that has occurred since that OF 1857 That
was caused by undue mercantile expansion,
and this by railroad expansion One thing is
certain-it has cured the disease. There will
be no more lending of large amounts on large
railway enterprises. When the work is
cleared away, there will be healthier conGi-
ton of things than there has BEEN"