Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-09-24
JAY COOKE & CO.
THE GREAT FINANCIAL FAILURE.
Great Excitement in Consequence Of The
suspension.
Suspension of Jay Cooke d Company.

suspension OF Jay NOOAe a company
NEW YORK, Sept. 1S.-Jay Cooke d Co.
have suspended. Their suspension is in
consequence of large advances made to
sustain their Philadelphia house and n
heavy draw upon their own deposits
PHILADELPHIA, Sept. 1S,--Jay Cooke
& Co. have closed. A great crowd assem-
bled in front of their banking house when
the fact of their suspension was known.
WASHINGTON, Sept IS. Jay Cooke d
Co. have closed.
The First National Bank, Henry D..
Cooke President, has suspended.
WASHINGTON, Sept 1S.-There are as
surances that the Freedman's Savings
Bank had only eight hundred dollars in
the First National Bank, and no balance
with Jay Cooke d Co. The Bank holds
only four hundred dollars of Northern
Pacific bands collateral for a small loan.
Excitement in New York.
New YORK, Sept. 1S.-Great excitement
prevails in consequence of the Cooke fail
gre. The question is, who next? Bush
ness men attribute the failures to opera
tors in the Northern Pacific Railroad 1t
il feared the National Life Insurance
Company will go under with Cooke. 1t
is said that Jay Cooke lost largely in gold.
Members of the firm say they are unable
to make any further statement, save that
they expect to resume business in short
time.
The London Firm Stands by jay Cooke "a
LONDON, September 1S-The firm of Jay
Cooke, McCulloch IL Co. responds to his
suspension by stating that all drafts and
letters of credit on them, issued by Jay
Cooke q Co., will be duly honored.
PHIDADELPHIA, September 1S.-E. w.
Clarke d Co., bankers, have suspended.
Statement of the Suspended Firm.
Jay Cooke & Co. make the following
statement:
The immediate cause of the suspension
of Jay Cooke & Co. was the large drawings
upon them by their Philadelphia house
and their own depostors during the last
fortnight. Both houses have suffered
large drain upon their deposits in conse-
quence of the uneasy feeling which has
recently prevailed and which has effected
more or less all houses closely identified
with the new railroad enterprises. The
Philadelphia house had previously been
weakened by large cash advances to the
Northern Pacific Railroad Company, of
which they are the financial agents.
Jay Cooke, McCuIIoch d Co., are solvent.
The business of Jay Cooke, McCulloch
d Co., London, is entirely distinct, and
that house is perfectly solvent, so that it
will meet all its outstanding drafts and let
tiers Of credit without inconvenience to
travellers, and have a large cash surplus
to apply to the American house. The firm
of Jay Cooke & Co., and its members have
large amount Of real and personal prop
erty upon which however they cannot inn
mediately realize. They are confident de-
positors will be paid in full.
No Firm OF Prominence will Probably Sue
cumb.
NEW YOBK, September 1S.-All the re-
ports about the suspension of firms. ex-
cepting Jay Cooke & Co., Richard Shell
and the small firm of Robinson, Snydall &
Co., upon investigation, proved to be
without foundation. This fact was made
known on the street and confidence was
again restored, and at the close of business
a stronger feeling prevailed. 1t is not
thought that any other firm of promi
nence will succumb,