, 1873-09-19
THE NEWS IN CHICAGO.

The nowa that Jay Cooke l. Co. had Rono vhoro The
"oodbino twineth furnished convenient topic Of
conversation round town. fresh topic WIS absolute
~ necessary. The Bit OF fro Of Wednesday after
noon ~ss not Sufficiently exciting to ako worthy Of
continuous comment; thcrp ul In local politics
matters were Inactive at police headquarters Sheridan
anu "aehburn being In state Of mastery rppose !:
thore had not boen railroad collision, shipwreck,
murder, or suicde for twcntyfour hours md things
were becoming stagnnnt, when the busy telegraph
announced that Jay Cooke b Co. had 8one under
Ihis WAS worth talking about; It was
largo concern; It had occupied a prom
inent place IN tho public attention for aey1ea
OF years; 1t nas Intimately connected with Govern
ment bond sales during tho war 1t waa tho agent OF
the sSndicAeh and Of tho Northern Pacific Railroad
eehemo, and was generally regarded as one Of the
soundest and most prosperous banking establishments
in tho United States. Had tho Treasury itself reuecd
payment, tho surprise could hardly haYo boon moro
general
m FINANCIAL c1noLEs
the eTent was discussed In busi,,esu ko way and the
hankins house of Lunt, Preston b Keau, the local
agents Of jay Cooke l. Co, for tho sails Of Morrill,
ern Pacific honda, waa visited by d largo
number Of persony, who doubted the uews,
or wero pecun!ar1ly interested In the feilure.
At nrat tho firm wore disposed to screit tho ruors
but they got private advcea which confirmed the press
dispatches, and then ready to tell all they knew
As agents for the sale Of tho Northern Pacific bonds
to act, and became satisfied that the bonds would 10
4 GOOD "LoN0-T1MEh INyEarMENr
sach were the representations they made to buyers
dhpp1f tic buyers wcre not numerous in tho Wcat,
only about 100000 worth Of tho bonds having been
sold tu tho Suites for which they we're ngots and but
e2oooo OF that amount is hold in Chicago. The firm
"ero agents for MI the Northwestern atateo except
Ohio. Under instructions from Jay Cooke h Co.. tho
bonds were sold at par, and
1uHr, PnEsToN KEAN
received only the usual commlsaon, In rcplv to
many Inquiries concerning the bonds the firm stated
that their intrinsic value could not bo Infected by tho
Failure OF Jay Cooke l. Co., eince they were arot
mortgage she road aud on tho land Lunt. Preston
Kean had IN account with tho failed firm, but the
baance amounted only to $780, which cannot affect
them In the leaat, even If they loae the whole ofi
Mr.. }. 1nvTNG PEAnoE,
President OF tho Third National did not believe tho
failure would affect tho West, though 1t might have
tendency to shakc confidence for short period Verv
few Western people did business with Jay Cooks (
Co.. though thcre here and there small banks and
brokers who bad accounts. Tho West was never in a
better condition than at present. mud the failure wae
not likely 10 be fel
a1H. GAGE,
Cashier Of tho Firat National, thought Tint by ses
ahe collapse Of Jay Cooke Co. would not bo widely
felt, but the financial Bysom Of the country ,yas like
hpsders ~eb-touch one part, and the whole would
T1brnte He Ind not bad time to reflect on the atter
and was not In possession OF the particulars It might
b. possible that 80 extensive firm as Jay Cooke Co.
would drag down smaller institutions to common
ruin.
CREDITS IN THE w'Es-
Tero based on an entirely different 1ine Of traneac-
lions from railroad construction bonds There was no
surpua capital In the Weat to be thrown away on such
Investments. LoanB here were based on the prod,cts
OF tho country. Country banks lend to the farmer
and the sarmer to the country trade and 10 It went,
1Jirr fla
Northern Pacino Railroad. The failure would have
tendency to
TEMPORARILY nKsTHoY CONFIDENCE,
and make money tight. It would also check cur rail-
roma eftenalons, which Mr. Gage conceived to 10
ennrely too rapid. Roada wcge bong bull,
100 9ast' and frequently for me:o spcc-
ulativo purposes. Thcra was IN oyer-cops, ruction
Of railroads. Tho fai1uro occurred at o.t forunn,o
time. Iha "eat was never better tlxod for f.IIura
we hayo on hand tho products OF the prairtes which
the pcoplo Of the world 1nust hare, and must aond
thur money TO got. oNs@~
MI. Mcalu1LEN,
Of Canada Pacific Railroad uoorety yaa In hia onc.
hut had not heard Of tho suspension. 10 dld not az.
press any opinion on tile failure, aud could not see
any similarity botWeen tho Northern Pacific and tho
Canada Pacific Railways.
ANOTHER HANE oFF1uIAL
"a gcntlomsn eminent iu Ills prossson-vho did mt
deaire hta name published, stated Tint It was
Ano"h III anancial elrces that JAy Gould L Co. was
not sound, mud their collapse yas not enttrc,v
unexpected H1fFe months ago D}rector Fl, I'm |
uahk OF England, on ha way to California called IN
Al1 ahd IN the course OF conyersatlon nuired IA Ia
tho standing Of Jay Cooke h O.. Tho banker. with
nankor's reconco,-ana they are rotlcont iot,-ro
anarkea tAt they we're very ntco gent!emon poreoa,.
IT, but docilnel to criu!so their financial atat,a 1ho
Englishmau froe enough In bis cou,mcntn st,tin.
mat they did not ntand well In London and that thu
BANK OF England declined having ANYTHING tn ao win