Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-09-24
THE FINANCIAL SITUATION
Summary OF LAST NIGHTS Ne VS.
The Failure of Henry Ciews a Co.
What senator Morton Seys-What
Mc(ullOch Says, dc.


McCullOch Says, dc.
By the failure of the firm of Henry Clews &
Co., in New York yesterday, announced in
last evenings starr the business community /,
threatened with a renewal of the excitement OF
the last few days, which al almost wholly sub
sided. Attachments have been issued agains'
the real and personal property of Carleton, the
Union Trust Company defalter.
HENRY CLEws AND co.
have no statement to make relative TO their sus.
pension except it was deemed advisable by the
firm. During the past four days they have pais
out one ami half millions in money. They
made the utmost effort yesterday TO raise none,
on securities, but finding it impossible 70 do 50
were compelled to suspend. Their suspension
had a tendency to renew the excitement in New
York. The cashier Of the Fourth National
oank, which threw out Clews * Co.'S checks to
the amount of $500, 900, says the bank did 50
simply because their account was not GOOD.
There was no overdraft, but would have been
had the bank allowed it. The firm paid until
no greenbacks remained on hand, and as they
could not negotiate the securities (of which thev
hold large amount) nothing remained but sus-
pension. Clews & Co. say they had $500 900 in
securities in the Fourth National bank, against
which checks to the amount of $4,000 only had
been drawn. Several capitalists offered assist
ance to Henry Clews, one alone yesterday ten
dering over $780, 200.
RxCITEMKNT IN NEW YORK LAST NIGHT
The corridors of the Fifth Avenue Hotel were
crowded TO excess last night, the suspension OF
Henry Clews s. Co. being the general topic OF
COuVtTsdIOu. ne sentiment in SympathN
with Mr.. Clews, who it was conceded had fought
manfully against the troubles incident to the
financial crisis; and it was thought he would
resume at an early date. The sentiment was BY
no means hopeful, and to-day it was though
would usher in day of greater excitement
than has been witnessed during the present
crisis.
RANK OF THE COMMONWEALTH
Isaac ID. Bailey, receiver of the National
Bank Of the Commonwealth, and Mr. Meigs
government bank examiner, have gone through
examination fha Of fhah haul
express full confidence that depositors will re
ceive every dollar due them. The president of
the bank states that there is no intention what
ever OF making an attempt to resuscitate the
bank, as 1t is felt that it never could be done.
l.. L. Bayne & Co., of 81 Wall street. hay,
brought suit against George Ellis and the Off
GERS of the Bank of the Commonwealth for
$4,000. Plaintiffs allege that they procured
from the bank a small loan, which has not vel
matured, giving as security railroad bonds t.
the amount OF 900, and that on Offering 70
the bank the amount of loan and demaniins
the securities, they we're infOr med that they had
been disposed of and the proceeds thrown into
the general assets OF the bank.
SENATOR MORTON ON THE SITUATION.
The New York Tribune reports that Senator
Morton, i'll an interview yesterday, said, Will
he was not authorized to speak for Presiden
Grant, he believed when the President lei
town Sunday night he was convinced the rem
edy he had adopted would be sufficient. VIVA
he could now do further it was impossible TO say.
He knew the President was DESTROYS of keeping
within the letter of the law, hence it was diff
cult to devise ways of relieving Wall street with
money from the treasury. The failure of Hen
ry Clews & Co. would hit him hardest of any
thing. Senator Morton did not think the Pres
ident would come to New York again. as when
there he was Immediately surrounded by a croyyG
of self-constituted advisers. The course 10 be
pursued could as well be decided at Long Branch
as In New York. Senator Morton earnestly
hoped the situation might not be SO discouT-
aging as was thought.
VIEWS OF EX-sRCRETARY M'CULLOCH
Ex-Secretary McCulloch, of the firm OF
Cooke, McCulloch & Co., stated to a Tribune
representative that adyices from the London
firm were of most cheerful character. When
he left London there was no suspicion of a
financial revulsion here. There is a demand
for our abundant crops at good prices. He saw
no reason for the spread Of the present panic
All financial furries were senseless, and that o.
1857 was caused by the failure of the Ohio Trus;
company. When that panic subsidized it was
found that there was no reason for il, and IT
will probably be the same in this instance
Everything depends upon the maintenance o
confidence. The chief trouble is that men be
come frightened and hold on to all the fund
they possess. He counseled confidence in the
resources OF the country and ability of the
greater part of the mercantile community to
pay its liabilities; distrust and suspicion only
aggravate and extend a calamity which could
be avoided if the community would only act
senSibly and diScreetly.
ACTION OF THE BALTIMORE BANKS.
At a meeting Of the Associated Banks OF
Baltimore yesterday it was resolved that in Or
der to enable the banks of this association 10
afford additional assistance to the business com
munity, and also for the purpose of facilitating
the settlement of the exchanges between the
banks, il is resolved that any bank in the Clear
ing house Association may, at its option de-
post with a committee of three persons to be
appointed for that purpose, an amount of bills
receivable, or other securities, to be approved
by said committee, who shall authorize the
manager of the clearing house TO issue there
upon to said depositing bank certificates of de
post bearing interest at per cent per annum
1.-THE New York Herald of yesterday in its
money article has the following:
1.-THE ACTION OF THE PRESIDENT
on Sunday night was very generally canvassed,
but the preponderance Of opinion was in favor
of the course he selected. Had he yielded to
the clamor of the big guns of the monetary
world and stepped outside the law by loaning
the currency reserve to the banks, those who,
in the rash thought of the moment, implored
him to commit the Illegally might have been
the first to condemn him."
MYSTERIOUS ARREST OF BANK PRESIDENT
Pinckney, banker, of No. 6S Wall street, was
arrested yesterday by Detective Elder, taken to
the district attorneys Office, and subsequently
taken to the Tombs under a commitment by
Judge Sutherland. Inquiry at that Office as to
the charge against Mr.. Pinckney ELECTED only
the broad statement that one Matthews had
made complaint that he had been victimized by
Pinckney. 1t was thought that Mr.. Pinckney's
arrest, like that of Mr.. Hartog was for supposed
completely in the recent Buffalo, New York and
Erie bond forgeries; but 1t was subsequently as
certained that the charge is grand larceny.
THE SITUATION In WASHINGTON.