Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-09-19
THE FAILURE OF JAY Cooke & Go. The

The FAILURE OF JAY Cooke & Co.-The
announcement of the suspension ofthis extensive
banking firm yesterday, occasioned much excite
ment, and is, Of course, the principal theme
to-day. The following is from the financial
article of the Baltimore Sun;
Following the embarrassments which have
been announced lately Of several railroad cor
porations, the financial operations IN benat OF
which conferred IN New York, came yesterday
the announcement Of the failure of the large
aud e''-knoyn banking house OF Jay Cooke i
Co., both OF Philadel phia and New York with
a branch also in Washington, while 10 London
is also the house of Jay Cooke, Mccullough 4
Co., which latter, however, it is authorltatlvely
stated, stands Grn, and will honor all drafts
and letters of credit issued by Jay Cooke i
Co. as upon the London house There had
been considerable panic in the New ! ORR mark
ct the dag previous, and Western sod other
Railroad stocks were pressed down rapidly, Oh
rumors of an e6tangement VI several Ot them
with the Southern Canada Railroad, whose cm-
barrassments had but recently suspended the
the house of Kenyon, Cox 4 Go. These gu-
mors were denied, but about noon that day It
became known as u fact that the New crk
and Oswcgo Midland Railroad Company was
again in trouble. end It was asserted that Geo.
Opd!ke l. g., who were its 6Dancla agents,
had suspended, or were about to do so. In.
luiry developed the fact that the construction
and equipment paper OF the company had
gone to protest, but that George Opdyke Go,
were ling business as usual.
The suspension yesterday sent stock down
still further, and caused gold TO advance, the
effect of which was the suspension Of other New
b.y IL, pt r1
Schell and the firm Of Robinson, Suydam & Co.
Others were at first included, but the reports
proved unfoundei.
AT philadelphia the old banking firm Of g,
W. Clarke & Co. suspended. Mr.. Jay Cooke
was member Of this firm before the war but
retiring from it organized the firm Of Jay Cooke
& Co., and was entrusted with the negotiation
of the large 730 and 500 loans Of the govern
ment which Of course paid the house we'll
The FIRST National Bank Of Washington, d.
c., of which MIR. Henly D. Cooke. is president,
suspended with the closing Of the houseof Jay
Cooke 4 Co. in that city. 1t appears that the
house in Philadelphia was the first to suspend,
and the primary and main cause of the trouble
Of the firm is its undertaking to carry through
the great scheme Of the Northern Pacific Rail
road, whose bonds it has been exerting itself to
market for long time, with more or less sue
cess. But latterIy, Ii is evident, the bonds have
not been placed to the extent and as rapidly as
desired, for the construction of the work, and
the firm is disabled by its advances upon them.
The resources of the house are believed to be
large, and it is declared that the suspension of
Jay Cooke 4 Co., as we'll a. Of the First Ma
tional Bank of Washington, will only be tenn
porary. I ct It Is O curious assurance which Is
even to holders of Northern Pacific railroad
securities, an upfaished work, that that COM
pany is largely Indebted to thei! 6scs! agents
Jay Cooke l. Co., J and therefore can lose 10th
ing by their suspension. It's stated, also, 10 the
Washington Star, that the suspension does no,
affect the Syndicate taking tue government hv=
per cent loan"