The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-09-19
Failure Of Jay Cooke & Co.
Liabilities Two Million Dollars.
Excitement in Financial
Circles.

PHILADELPHIA, September lo.-'
Third street is in a whirl OF excltemen
on account of the failure of Jay Cooke
& Co. When the first reports were re-
ceived here from New York they were
discredited, but by noon the truth ol
the rumor was ascertained, AMI the
firm then made it known 10 the pubic
that they were compelled to suspend
They stated, however, that they would
present a statement Of their affairs TO
their creditors in few days, and that
they believed their assets to be largely
in excess OF their liabilities. The streets
ere filled with brokers, and present a
scene OF the widest confusion.
The liabilities of the house are relIa-
bly stated at two millions,
This unexpected failnre has been the
cause of the utmost alarm, for many
people had their whole financial wealth
in the hands OF this firm. The Penn,
sylyania Central stock has declined
from SO. at opening to 80 at second
call.
The News on Wall Street.
New YORK, September lS-The
scenes in and about Wall and Broad
streets to-day reminded one forcibly OF
the disastrous Black Friday, except
that the panic to-day was OF shorter
duration ane did not reach the financial
proportions OF that day. At the open
ing of the Stock Exchange an army OF
brokers poured into the room, wild
with excitement, and the Bears
made q united and terrible charge
upon the entire il5t oil
stocks which gave way with a fearful
crash. The market became suddenly
exhausted and throngs o. bankers
rushed in to save themselves. The
scene at the Exchange was OF the Wild
est character, and several times it SEEM
ed as ifviolence would be resorted to
by the Bulls, who were fairly madden
ed bv their terrific losses. The gale
ry was crowded with spectators. The
gold market was neglected aud the
whole business OF the street was cen
tered on etocke. The business was
enormous and large blocks OF stocks
changed hands almost every moment,
swelling the aggregate transactions
before noon, to an amount equal to the
average OF many ordinary days. About
eleven o'clock wild panic struck the
market, and amid the tremendous sales
made il was certain that failures were
inevitable. Vanderbilt and party were
doing their best 10 sustain the market,
while the opposition were fighting with
desperate energy. Stocks tor the first
two or three hours fluctuated wonder
fully. Western Union fell 10 per cent
without an upward struggle, but about
noon recovered their opening figures,
SS!. :.
At about uoon the report was whis'
pered that Jay Cooke d Co. had sus-
tended, and at first the rumor was con-
sidered as idle or as started by some
scheming faction. However 1t had
great effect, apd men and boys ran from
office 10 office; the telegraph was in
cessant in lie operat;ons,and the excite
ment increased. In ten minutes the
failure of Jay Cooke & Co. was an
nounced from the rostrum OF the Stock
Exchange, and rush was made to the
Compsny's office to learn the partlcu-
lars. Crowds began to gather about
the Office as soon a5 the rumor
got abroad and in a short
time the crowd became so dense that
travel was impeded, and the police
were compelled to clear a passageway.
Wall, Broad and Nassua streets were
hacked with dense mass OF people.
The suspension of the firm, it is said,
will be but temporary. All foreign OBJ
legations are provided for. 1t is claim
ed that the house holds one million
dollsrs over and above all liabilities.
On the other side the following are
the reasons given by Mr.. Fornstack,
one Of the firm OF Jay Cooke d 20.
He SAYS that for several weeks
the uneasy iealing which has prevailed
in connection with the Few railroad
scheme called for q heavy drain upon
the deposits, both on the PhlIadelphln
and New York houses. The deposits
in both houses suffered q con-
tinual diminutioa, until, at
the beginning OF the present
month, their deposits were lower than
q, any other time during the severeet
stringency 0! last fall anG this spring.
The drain upon deposits already 50
heavy was still further increased by
the recept suspensions, and the demand
for money was increased, and is felt
still more severely in Philadelphia.
The PhiIadelrhia house vas compelled
TO call upon the New York house for
aid, and large amount OF assistance
was rendered. The Philadelphia house
was under large advances TO the North
erD Pacific railroad, involving
large sums OF money, prevent
ing them from maintaining the
reserve orlinaria.ly kept, and they
were therefore unable to respond 20 the
demands Of their creditors. For this
reason they wele unable TO return TO
the New York house the advances
made OF 20 supply eollaterals available
New York 81 the present time. OT-
ing to this the cash balances became
ixbaus;e! ana suspension became irev-
cable.
san FRANCISCO