The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-19
WASHING ON.
The Suspension Of Henry D. Cooke &
Co. and the First National Bank.
A BOLT FROM THE BLUE.
Neutrality-suspicious. Aghast at the Down
fall Of the Great House.
THE RUN ON THE SAVINGS BANKS.

WASHINGTON, Sept. 10, 1878.
This has been a gloomy day for Washington.
The stock indicator showed in its first report from
New York this morning that there was something
OF an unusual financial breNze in that city. First
came the announcement that Jay Cooke & Co. had
suspended, and few minutes after denial OF the
rumor. At noon, however, the flash was
In washington. Only those who watch the
faithful chronicler or the New York money market
knew anything about 1t. The report was regarded
as canard-sOmething ridiculous The family
printed words 'Jay Cooke Co. suspended" were
eagerly scanned by the Washington merchants,
who have had 80 much confidence in the house for
eight years past Then the stock quota
tions were examined. 1t was evident there
was something wrong, but still the supporters OF
Jay Cooke could not would not believe that
anything could possibly happen to affect their
financial status. "Why," said an old Washing
tonan, ~ never liked tue house bit, but Its men,
bers have earned the reputation they enjoy, and I
suspect this is another Wall street job to hurt
somebody. l don't believe you could affect the
credit OF that banking frm." In this the eager
crowd about the instrument in the main
ONCE In Washington generally sympathized. 1t
was however, like the old problem OF the fish put
into full bowl OF water, and not drop was
could not be, but the attempt disproved all the
reasoning of the philosophers. So, too, in this
the sceptcal would not believe because the Wash
ington branch or the house still transacted bus
ness at the banking house on Fifteenth street.
No sooner, however, had the New York and
Philadelphia reports reached Washington than the
curb stone brokers and stock dealers began to feel
chilly. There was hail in the air somewhere. but
nothing to indicate a storm about the marble build
ing OF Jay Cooke Fifteenth street. At the hour OF
noon, while depositors were standing at the paying
tellers counter with checks properly drawn,
and atmosphere OF serenity about the
establishment, a lat, ruddy-faced gentleman. com.
monty called Mcgowan, with the authority of
special policeman. ordered everybody out Of the
banking house of Henry D. Cooke & Co. II mid.
day robbers had assaulted them and attempted to
seize their checks AND drafts they would not have
been more ast6nished. y,
'Get out, gentlemen. get out-the or.
ders are to close the doors ~ Unpaid checks
were extended over the counter, but no one ap-
peared to receive them. Gentlemen, you must
get out; my orders are to close the DOORS and you
must leave" A half dozen business men, who
have deposited with this firm for years, reluct-
antly turned their backs on the counter: and, as
they reached the marble steps and heard the slam
Of the doors, stared In each others
face and said, SIS 1t possibes What
time is it The house of Jay Cooke & co. has
really failed. For firm with their backing would
never have suffered a moments financial embar-
source of relief"
"Just think of it," said another, "the firm that
helped to fund the United States bonds during the
war suspendng payment now"
Just after the doors closed a number OF deposit
tors who had heard Of the rumor in front OF the
banking house. The cheerful faces Of business men
suddenly changed, and TO continue the gloom the
following announcement was posted upon the plate
glass window
In consequence of the suspension OF Jay Cooke
Co. in New York and Philadelphia we have con-
cluded to close our doors until we hear further
from them. 2
BY this time the crowd had teen augmented by
the noon day lunchers, who stared at the notice
though it had been a house to let.
Secretary Richardson and Comptroller Knox are
in consultation this afternoon in reference to the
suspensions here, and receiver will probably be
appointed immediately to take charge OF the First
National Bank. The Secretary OF the Treasury
states that the government does not lose a single
dollar by the suspension, the deposits OF the gov.
eminent officers in the First National Bank being
fully secured by the deposit Of that institution in
the National Treasury.
II
favor of the government, they having overpaid at
the last settlement. The suspension of Henry ID.
Cooke & Co. was a precautionary measure, being
made on account Of the New York and Philadelphia
house of that firm suspending. The suspension has
not caused a run on other banks.
Late this afternoon there something OF a run
on the washington City Savings Bank. All demands
so lar have been promptly met
There was a slight run on the Freedman's Saw
ings Bank and the Washington City Savings Bank
to-day commencing about one O'Clock. All de-
mands were promptly met There was consider
aole excitement in the early part Of the day, but
II quieted very materially late in the afternoon.
The payment of gold drafts on Jay Cooke, McCul-
loch Il Co., London, has been stopped by the United
States Treasurer.
American Bar Iron In Liverpool.
The Chief OF the Bureau OF Statistics says, in
reference 10 the alleged sale of American bar iron
IN Liverpool, that he has caused careful exami-
nation OF the statements OF domestic exports
from the United States during the thirteen months
ended July 81, 1S73 to be made, which resulted in
the discovery that not single pound Of American
bar rail- Dad iron had been exported from tho
United states to England direct during that pc
Rod. II any reached England II must have been
through canada, to which five tons OF bar iron and
326 tons of rails were exported during the fiscal
year 1878.