Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1873-10-04
The Suspension Of jay Cooke & Co.
What New York Paper has 20 say on
the Subject.

What n New York Paper has 10 say on
the Subject.
The city, says the New York Herald,
had a veritable sensation in the an
nouncement of the suspension of the
banking house of Jay Cooke & Com
pany. In the circular issued by the
firm it is stated that the suspension
was caused by advances having been
made to the Philadelphia house of the
company and from heavy drain on the
deposits here. This, it is said, was the
immediate cause. But what was the
remote cause, should it be more than
temporary suspension ? Temporary or
not, however, the probability is that
there are causes of a general character,
and dating back some time, affecting all
the establishments, branches and bust
ness of the Cookies. The dispatch from
Washington announcing, Immediately
after the suspension of the bank here,
that the banking house of Henry ID.
Cooke & Co. had closed doors and sus-
pended at noon, gives a serious aspect
W Iu6 IudbbCls anu 1CuOo w tlO llACA-
ence that previous circumstances have
been operating to produce the catas-
trophe.
The pressure must have been great to
have caused such instant action of the
First National Bank of Washington;
for, as the dispatch says, parties were
at the counter drawing out funds when
the order was given to close the doors
and people to leave the premises. Such
prompt action after the short run upon
the bank indicated that the firm was in
bad condition.
The Treasury Department, if not
alarmed, has taken the precaution to
prevent losses or discredit from its con-
nection with the Cooke houses. The
United States Treasurer has ordered
the payment of gold drafts on Jay
Cooke, McCulloch & Co., London, to be
stopped. 1t is to be hoped the govern
ment is not in any way involved and
will not sustain any loss. We are aware
that the Cooke firm in this country and
Cooke & McCulloch, of London, have
had the handling of vast amounts of
government money and securities.
They have, as the famous Syndicate, or
the most important part of it, had q
great deal to do with negotiating the
loans, as they are called, for the fund,
ing of the new five per cents. of the ma
tional debt; have had hand, also, it is
said, in the fifteen million five hundred
thousand Alabama claims payment by
England, and have been the financial
agents or medium of the Treasury De-
partment in other important tlansac-
lions. If, therefore, the government
should escape loss in this tremendous
crash it will be fortunate. That we
have yet to learn. Or if the London
house can stand the shock, that will be
as gratifying as surprising. It is but
fair to say that the firm here asserts
that the house of Jay Cooke, McCulloch
& Go. in London is entirely separate
from the houses in this country, that it
is thoroughly solvent and that it has a
large cash surplus on hand.
More satisfactory than anything the
suspended banks may say is the author
lied announcement, according to the
Washington dispatches, of the Treasury
Department that the banking house OF
Jay Cooke, McCulloch & Co., does not
owe the government cent, but that,
on the contrary, it overpaid in the last
settlement.
Many rumors are afoat as to the
amount of the liabilities of the Cooke
banks, some stating them to be twenty
millions, some more, and others less
1t is known their transactions were or
a large scale, but how much they owe
or will be able to pay is not yet ascer
tailed. Hopes are held out to deposi
tors and other creditors. Though ont
of their banks may say it was COMPEL
ed to suspend in consequence of thu
demands of another upon it, there is NJ
doubt they were.all mixed up in the same
difficulty, and that was principally tn,
embarrassment caused by the NortEerl
Pacific Railroad. This Northern Pacif
Railroad was stupendous speculation
The Cookies were either short-sighte(
in not seeing the doubtful character o
the enterprise, and the burden the,
would have to bear, or they calculated
upon tempting the market and publi
to take the load off their hands by ex
tensive advertising and the prestige o
their financial standing. AS to the dis
turbances of the stock or money mar
ket, or the alleged unusual drafts o
the depositors, having much to do will
their suspension, seems to us doubtful
There has been no such crisis calcula
ted to shake any great, substantial anc
we'll managed bank. How far thes
suspensions will affect other banks
stock-jobbing firms or the market, W
have yet to see. The panic resultin,
from them, as on all such like occa
sions, has Frustrated some speculator
and firms. Richard Schell was one O
the victims, and the firm of Robinson
& Suydam was unable to meet its con
tracts at the Stock Exhange. Their
are runners of others being embarrasse,
and likely to succumb. Stocks tumble,
down more or less according to thei
supposed intrinsic or speculative value
and Western Union run down NOR
: than ten per cent. Gold, of course, fel
the shock, but fuctuated little NOR
than one per cent, which rather indi
Gates no very great trouble is to be ap
pretended.
A Corpse Exhumed to Kill q SIandeI