Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1873-09-25
ripe in anticipation of the GAINESVILLE
fair, for of CO urse everybody goes.
A FINANCIAL PANIC.
SUSPENSION of Jay Cooke & Co..
Excitement in Wall Street
Other Firms Also Suspen-
ded-Jay Cooke s. Co.
have cOnfidence.

Other Firms Also Suspen-
ded-Jay Cooke & Go.
have confidence.
New YORK, Sept Is.
There is great excitement on the
street in consequence of the announce
ment of the failure of Jay Cooke & Co.
The question generally asked is, who
next? Stocks took a tumble generally,
caused as much by apprehensiOns of the
fnture as by the existing condition of
affairs. Prominent Wall street men
attribute the suspension of the firm not
so much to the effort to sustain the
Philadelphia house as to operations in
the Northern Pacific, which, it is said,
they sought to carry beyond their
strength. 1t is expected that the Life
Insurance Company with which Jay
Cooke & Co. are connected, may have
to go under.
It is also said that Jay Cooke had lost
large sums in the recent gold move
ment, and another rumor is that it was
the lightness in the money market and
the inability to dispose of his paper
that hurried the suspension. The firm
say they are unable to make any furth-
er statement save that they expect to
resume business i'm short time.
Another dispatch says: Jay Cooke &
Co. make the following statement: The
immediate cause of the suspension of
Jay Cooke 4 Co. was the large draw
ings upon them by their Philadelphia
house and their own depositors during
the last fortnight. Both houses have
suffered large drain upon their de-
pOsits Fin consequence of the uneasy
feeling which has recently prevailed,
and which has affected more or less all
houses closely identified with new rail-
road enterprises. The Philadelphia
house had previously been weakened
by large cash advances to the Northern
Pacific Railroad Company, and of
which they are the financial agents.
PHILADELPHIA, Sept. 1S.-The fol-
lowing card has been posted on the Of
fee door Of Jay Cooke & Co., in this
city: "We regret to be obliged to an
nOunee that. owing to an unexpected
demand on us, our office has been Obli-
ged to suspend payment. In few days
we will be able to present statement
Of our credit. until which time we must
ask for their patient consideration. We
believe our assets to be largely in ex-
cess of our liabilities.
ISigned] JAY COOKE"
A later dispatch contains the follow
ing: Mr.. Cooke says: N believe this
house will speedily be relieved from
embarrassment,a ,and to this end if needs
be, every dollar of the means possessed
by the members of the firm will be ap-
piled. No one who has a dollar on de-
posit here will lose it. Every liability
will be faithfully discharged. The tenn
pOrary suspension of the American
house does not affect in any way the
London house of Jay Cooke, McCul-
loch & Co., from whom the following
cable was received this afternoon, Great
ing the liveliest 50 tisfaction when made
known to the public.
LONDON, Sept. 1S.--The London firm
of Mr.. Cooke responds to his suspen-
sion by stating that drafts and letters of
credit on them issued by Jay Cooke &
Co. will be duly honored.
Richard Seheli and Robinson & Suy-
dam. of New York, and E. w. Clark,
of Philadelphia, have also suspended.
New YORK, Sept. 18.-Another day
Of intense excitement has passed over
Wall street. Early this morning pre-
dictions were made that this would be
a hard day and one that would see the
downfall Of more than one financial
house. At noon a report was whisper
ed that the house of Jay Cooke d Co.
ha.l suspended. At first the rumor was
considered un idle one, or at most,
started by some scheining faction
However, it had great effect;a men and
boys ran races from Office to Office, the
telegraph Was in its operations, and ex.
,citement grew intense. Shortly after
twelve it WAS officially announced that
the suspension had Occurred, the rea-
Sons therefor being th& advances made
to their Philadelphia house, which rem
dered them unable to meet the demand
made upon them by their depOsitOrs
hero.
!; The Express says. The war upon rail-
roads has produced part Of this panic,
creating as il has q want of confidence
among large capitalists and small in
vestors, and injured both the credit and
progress of railroad enterprises. When
confidence goes credit falls with it, and
q panic takes the place of both. The
suspension of houses like Jay Cooke &
Co., and Kenyon, Cox & Co. are public
calamities, and are events wholly un-
like the failure of those mushrooms
who do business on borrowed capital,
or oftener on no capital. The sympathy
of the public is with the unfortunate
who try to do q legitimate business, and
who fail while in the prosecution. of it,
as in the building of railroads and 9TH
or public works designed to enlarge the
business of the country.
! The Mail saws: 1t Is understood that
the houses which are in trouble are SOL
itary, those that have been carrying
heavy burdens in the way of railway
construction, and that the losses from
their failure will be widely distributed
and will not be long felt seriously
Here it is felt that the events of the
past few days are most unfavOrable for
the prosecution of unfinished railway
enterprises, and 50 a misfortune to the
country, whose resources require for
their development q liberal extension
of credit, but all other branches OF BUSH
ness have an unusually good promise
for the fall and winter. "1i
The Post says: Prices of first class
stocks are now low enough to tempt
capitalists and outside investors to come
in, and while the effect of the failure Of
a house so widely known as Jay Cooke
& Co, cannot be measured in a day,
there is reason to believe that prices
will not long be kept below figures
which represent the Investment value
of dividend paying stock. The follow
:. u H. <~rr Il. l.: III.