The New York herald., 1873-10-31
Effect of the Failure of the
New York House.
NO Ic EL LIE Il Y Il II.
The Committee Of Investigation
to Report To-Day.
Political and Rival Inter
eStS at Work.

The financial situation here to-day assumed
rather o changed and alarming aspect upon the
receipt OF telegraphc news OF the failure OF Hoyt
Spragues q Co., the New York agents OF A. w.
Sprague, and the fears and excitement OF yester-
day, which were In large measure allayed by the
encouraging reports and the action OF the mer-
chants and bankers, have been revived and greatly
augmented. Bulletins containing news OF the New
YORK failure were posted up at the newspaper
ofices and eagerly read by thousands OF persons
who thrOnged the streets, and tue real danger OF
the situation became apparent, going far also
to substantiate and prove the first pub
lished reports, then deemed by some OF the
Sprague adherents as being without foundation.
The Importance and necessity OF prompt and ener-
get1c action to save A. & w. Sprague was fully
realized, and steps have been taken to that end.
The committee appointed by the Governor to
examine into the condition OF the Franklin Instltu-
| tion for Savings and the Cranston Savings Bank
| are Cyrus Harris Jesse e. Metcaf and William B.
| Green for the Franklin, and Edward Pearce. Will
| liam Whitaker and Alexander Farnum for the
| CranstOn. These appointments, an evening paper
| says, are exceedingly judicous The names OF
| these gentlemen a guarantee that the investi-
| CATION will be thorough and the report will CON-
mand the public confidence
! TWO sPRAGUE SAVINGS BANKS SUSPENDED.
The first result OF the New York failure mani
! tested was the stopping payment by the Cranston
| Institution for Savings, one OF the Sprague estab
| lishments, which was examined BY the Commits
| sioners and the Franklin Institution for Savings,
\ also controlled by the Spragues, soon followed by
temporary stoppage.
A. AND w. sPRAGUE.
| The bankers and merchants met again this noon,
| according to adjournment, to hear the report OF
the committee OF investigation into the affairs OF
! A. & w. Sprague, but the committee stated they
! were unable to report at present. and requested
further time, and they we're therefore granted un-
til tomorrow, at noon, to finish their investigation
The apparently sudden and unexpected failures put
or promised relief measures for the present, and
caused. it must be confessed, renewed uneasness
| and lack of confidence. The meeting without tax
ing further action, adjourned until tomorrow.
The newspaper organ Of the Spragues here.
which concealed the knowledge OF the threatened
suspension until actually forced to say something
by the universal talk in the city and the wide
| spread press dispatches abroad. at last reluc-
tantly comes out to-day with news Of the fnan-
cial embarrassment and coniesses that
the corroboration OF the reported failure
OF Hoyts Sprague & Co., causes an
uneasy feeling. This paper says it is particularly
unfortunate that they IA & w. sprague) should
have found themselves so exhausted at q time
when such a financial panic should have seized the
market.
HOPEFUL VIEWS.
This forenoon called at the ONCE OF A. Il W.
Sprague to learn IL possible. what effect the New
York failure had upon them and was informed that
they have not suspended, Notwithstanding the
failure OF their New York house. l obtained the
following statement, which looks somewhat en-
couraging, though the uncertain state or
anairs hardly warrants any very hopeful
anticipation. The committee OF investigation into
the A. d W. Sprague Manufacturing Company ap-
pointed by the representatives OF all the banks In
this city, viii be prepared at the meeting to be
held tomorrow at noon to make report which
cannot fail to be highly satisfactory to the credi-
tors of the company and also Of Hoyt, Spragues 4
Co. The surplus OF available property at a low
valuation over all outstanding liabilities includ-
ing liabilities upon the acceptances OF Hoyt.
Spragues Co., will not be less than $11, 600 o0O
plan will be proposed at the meeting, accom-
panied by detailed report Of the situation OF the
firm which WILL II carried out, 1t ia believed, rem
der the embarrassments OF A. d w. Sprague and
Hoyt, Spragues Co., OF but temporary duration
The local journals, with view OF restoring
confidence in the community, contain articles
this evening seeking to convince the people OF
the needlessness Of any run upon the savings
banks
NEWSPAPER CONFIDENCE.
An evening paper thus assuringly speaks upon
this matter:-
There is no need OF any alarm. leaving out OF the
question the two savings banks that are under in
now TecevGo mo- denosts The deposts in the
savings banks and the national banks OF our State
are great oeal SAFER than they would be Kept in
private hands. Our savings banks are managed
not only honestly but with great business shrewd-
ness Taxing the depostors OF the State as body,
ance that their money is safe. 1t IS SAFE II we
look at the other savings institutions OF
Important nG ana ssrvnS villages Of 18th the state s
Rhode Island Is rich; her monetary Institutions
are So s o@ there
any necessity for panic or alarm on the part OF
those who have deposits in our banks the truth Is
they are quite as sure to-day that they viii get
their money when they wantit as they were the
day they deposited IT.
The excitement materially diminished towards
evening upon the reported hopeful expectations OF
the committee, and the friends OF the depressed
firm are now aaxiously awaiting the developments
Of tomorrow.
NOT GREATLY AFFECTED BY THE NEW YORK FAILURE.
This evening mad an interview with Mr.. George
r. wilson, member OF the committee OF investi-
cation, who says that the committee are diligently
| pursuing their Investigations and feel confident
that they will report favorably tomorrow. Rela-
tive to the inquiry as to whether the New York
failure would produce the suspension OF A. W.
spraguc, he emphatcaIly said ''no;" and If any
firm is solvent to-day beyond ans liability to fail
it isA. w. Sprague
An Interview was also obtained with A. B. Dixie,
vice President OF the Franklin Institution for
savings. He says. relative to the savings bank,
that in the event OF the Spragues not paying any
thing their paper the loss TO depostors will not
be more than twenty per cent, or may not exceed
twelve. Mr.. Green, the Commissioner for the
Franklin Savings Bank, appointed by the Governor,
has concluded his examination and reported. The
Cranston Committee have also finished but no
copies OF the report can be had tonight from them,
| as they must first present 1t to the Governor, who
| Is temporarily absent Mr.. Green's report about
| the Franklin is as follows:--
LIABILITIES.
The liabilities are $2,s9,Oo0 including s2,6s5, 900
| deposits and $780, 900 Interest.
| ASSETS