Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1873-10-02
EATON, OHIO, THURSDAY OCTOBER 2, 1873.

within twenty-four hours after the collapse of
Cooke & Co. nineteen failures were announced
among railway operators in that city. Only
one of them, that of Fisk & Hatch, is really
important, and it is said their suspension is
only temporary. Their failure is attributed to
large advances to the Chesapeake and Ohio
railroad. There were nine failures in Phila-
delphia on the day following the suspension of
Cooke. The excitement in that city was even
greater than in New York, and there was
great run on the savings banks, all of which
stood firm.
Gen. Grant hastened to the capital,
and after conference with Secretary Rich
ardson, at once determined that the Secretary
of the Treasury should come to the rescue of
the New York market. Accordingly, at mid
night of Friday, the 18th, the Secretary sent
message to the Sub-Treasurer at New York,
directing him to purchase $40, 900, 900 imme-
diately. By this action over SIC, 200, 600 was
thrown upon the market, which, it is thought,
will give relief and avert a general financial
crash. The press, as general thing, take
hopeful view of the situation, which has gone
a long way in allaying the public excitement
and averting universal panic. The New
York Express of the 10Th says:
"The day closes ON the whole with fewer
killed and wounded than might be expected,
suspended no bank has refused payment; all
the great railway corporations are apparently
as firm as rock. Rumort however, ls not yet
satisfied, and warns everybody to beware OF
rumor Stock values have shrunk enormous
", but when the bottom is fairly touched a
rebound, as usual, is inevitable. Business IN
nearly all branches of produce is at stand,
still, and in fact, almost bordering on general
decentralization"
Among the New York failures was E. P.
Randolph a son-in-law and the New York
| L e H., TI,-0o lyTr
1t is stated that the National Life Insurance
| Company will not be affected by the failure OF
Jay Cooke.
4 Washington dispatch says: "The head of
| one of the most important Bureaus in the
| Treasury says the Government will not likely
lose anything directly by the failures, or finan-
cial panic, but may suffer to some extent in
consequence of the diminution of revenue
| that will doubtless follow"
| L. c. Steadman, the poet, and for several
years a Wall street operator, takes an interest
| ing view of the panic. The following state
ment of his views on the financial situation is
telegraphed from New York: "The present
| trouble dates back to the time when Secretary
Boutwell, tried to fund his loan from pei
dent men said it could not be successfully
done, and they were right. Boutwell, KEEP
money easy for five or six months, in order tC
| get people to take his loan but instead o1
funding his own loan to any extent, he enabled
small houses to float private loans, and enabled
large houses to expand. We should have beer
| DaCk to specie payments DuL IOr IHeSe TdllTOdt
bond spectators. There has been a grea
Western railway expansion, and the bubble hat
| finally burst, as it was bound to do sooner or
later. We have known that the crash was i'm
pending, but did not expect it this fall. There
is no true reason why the trouble should ex
tend to the mercantile world; it can do 81
only through sympathetic process. Th'
losses will fall chiefly on speculating firms
who have for years been doing everything tt
retard resumption. If the Government vii
| sit still and let them fall. then W.
shall be a long way advanced toward
specie payment. The break hast not surprised
anyone who knew how business was transact
ed. Brokers have been able to buy bonds o
new roads at or 10 per cent. less than the ad
vertised rates at which they were furnished t
private persons purchasing for investment
This was the case with Jay Cooke as regard
the bonds of the Northern Pacific, the Os
wego and Midland, and most of other railwa
loans. 1t was not so with Fisk d Hatch
roads. Their bonds we're good, and they be
lieved in them. This panic is peculiar. 1t
different from any that has occurred sine
1857. That was caused by undue mercantil
expansion, and this by railroad expansion
One thing is certain, it has cured the disease
there will be no more lending oflarge amount
on large railway enterprises. When tn
wreck is cleared away, there will be a healthie
condition of things than there has been"