The Portland daily press., 1873-09-22

GOVERNMENT REFUSES TO
INTERFERE.
SITS None of Their Funeral
New YORK, Sept 2O.-The following suspen-
sions have been announced during the day: G.
g. White & Co., Brown, Wadswor, b & Co.,
Edward Haight & Co., National Bank of the
Commonwealth, Union Trust Company. The
following is posted on the doors of the Union
Trust Company: SIN consequence of the large
amount due the company, all call loans not
having been paid this morning. the company
has been obliged to suspend payment until Mol
day morning at 10 o'clock
A meeting of Jay Cooke & Co.'s creditors,
announced for to-day, does not take place until
Monday.
Stocks opened with an advance of four to six
per cent. on the failure of the Union Trust
Company and the Bank of the Commonwealth.
Nnmerous kilograms have been received by
Postmaster James, requesting him to stop the
delivery of letters addressed to gay Cooke &
Co., but by former ruling of the Post Office
Department ne has no authority to do SO.
Numerous other failures of stock firms are
rumored, but nothing official can be known
until their announcements are made at the
onening of the Stock Exchange, probably on
Monday
Vanderbilt was closeted with Augustus Sche1l,
in the Union Trust Companys Office immedi-
atey after the suspension.
Notice is given in the Gold Room that gen.
eral clearance cannot be effected to-day, owing
to the fact that dealers find it impossible to get
checks certified in proper manner. All state
ments. tickets and checks will be returned to
dealers on application at the Gold Exchange
Bank. Gold ll13 to 1l1s
The National Trust Company have just closed
their doors. Certificates of the Mechanics
Banking Association and the Continental Bank
have been thrown out of the Clearing House.
Certificates of the Bank of North America
have been thrown out of the Clearing House,
which gave rise to the rumor of its suspension.
The Bank Presidents: at their meeting this
afternoon, passed resolution to issue immedi-
ately ten millions in loan certificates
The Stock Exchange Closed.
The Stock Exchange is closed to enable mem.
bers to set tie their accounts. twill help them,
as many can settle>outside without closing.
The Exchange had so many stocks to sell that
1t was impossible to do it and keep up with the
current business.
President Chapman has issued an order for
bidding all outside operations of members, un-
der the penalty of expulsion The Exchange
will not be co vened except on his orders
Though there are some grumblers there is a
general acquiescence in the wisdom and propri
can assert herself ON the street. Considerable
disappointment has resulted to outsiders who
came down in considerable numbers during the
day to purchase stocks and take away for in
vestment
The HOboken Bank.
The Hoboken. N j., bank it is thought will
have to go under. After the reorganization
following the recent defalcation of $67 600,
$4,000 realized from convertible securities
were deposited for safe keeping with Fisk &
FL Itch, On the announcement of the crash
yesterday morning the treasurer came over for
this mouey only to learn that FISK q Hatcn
had suspended. Unless it is recovered the
bank is in hopeless state, and will carry down
with it the First National Bank of Hoboken,
the funds of the two being common property,
and both being controlled by the same board OF
directors.
Fisk s. Hatch say that having been engaged
in no speculation they are confident of the re-
covery of themselves when the storm has spent
itself.
A Defnlcation.
A defacation in the Union Trust Company
amounts to S5C0.000 1t has been extending
over considerable time and was committed by
Chas. t. Carleton, the Secretary, who las fled
the city. He has made loans to friends or rela-
tons on security which is remarked as doubt
full. One loan of twenty thousand dollars to
his father, of the Methodist Book Concern no.
tority. The security for one loan is good, the
other one of no value
CaImer Feeling.
a. NAT this hour there are evidences of
calmneSs than during the past three days. The
action of the bankers, the announcement that
the Trust Co., and the Commonwealth bank
will both be able to resume business on Mon
day, have all combined with assurances from
authoritative sources that the Government will
give all aid in its power to beget solid feeling
of confidence that the worst is thoroughly over
and that the wonted round of business in our
financial circles will be resumed again next
week.
Concerted Action of the Ranks.
committee of the associated banks met. at
the New York Clearing House and it was voted
by all associated banks that they would issue
certificates pledging the association OF whole.
These certificates to be issued by the manager
of the clearing house to any associated banks,
, securities or assets The effect of this action
is to enable all solvent concerns in the financial
community to conveot thhir assets ia money
temporarily and without any sacrifice to them
selves. The stock exchange ordinarily me-
dunn for converting securities into cash. In
the prevailing panic the security of money
prevented this FROM being accomplished Sc
curites are being offered for sale at constantly
decreasing prices without finding buyers unless
to the enormous loss of sellers. By the issue of
| the banks certificate any bank can realize mon
| ~ upon it's assets and will thus be able to ex-
tend to its customers all the accommodation for
which they can find security without compell-
| ing sale or sacrifice of assets offered. The
whole machinery therefore of conversion is
once more set in operation, and IS likely to run
| smoothly, aud all concerns which have assets
| will find no difficulty in converting them into
money.
| This action of the banks at the Clearing
House meeting gave rise to feeling of conf
dence on the street that no additional failures
| were likely to occur, aud the impression was
| obtained that the panic was over. Leading for
| aiup a r,A firm SIch Brown Bros
| August Belmont, Henry Clews & Co. and
! Drexel, Morgan & Co, and do not give any
! sign of feeling and the pressure of the past
three days crdsh
Vanderbilt to the Rescue.
| New YORK, Sept. 21.-At late hour last
night it was stated in one of the clubs that Com
modore Vanderbilt had paid into the Union
Tr1st Co. during the day $2.0OO.O00, the amount
due the company by the Lake Shore road, thus
| enabling the Union Trust Company to resume
| business Monday morning:
Cause the uspensions.
The general cause of the suspension of banks
| and bankers yesterday was their inability to
convert securities into cash. Even government
| bonds could not be disposed except at an i'm
mense loss. By action of the bank officers yes
| terGay this difficulty is done away
with Any bank by depositiug in tie bands of
! the commissioner good securities can obtain
an equal amount of cert ticates which can be
|
tenders. The certificates will go into effect to-
| morrow.
City FINN $ all Safe.
The city chamberlain denies the rumor circus
lated yesterday that S1,50O0CO of the city funds
were IN the bank of the Commonwealth s. IN
ion Trust Co. He says that all the city funds
were in other institutions. The dry goods men
believe Jay Cooke & Go. will pay the last cent
| of their liabilities
| Conference of Bankers with President
| Grant.
conference between President Grant and
mercantile representatives began at noon to-
| day, at the Fifth Avenue Hotel The follow.
ing is the result: The President DO lively de-
clines to interfere in the matter as any action
| of bis would be unconstitutional The com,
mttee of bankers and merchants had come
down to the final proposition of the govern
ment issuing $3.50, 0000 900 of legal reserves
| Reverdy johnson is said to have gwen his
| opinion to the effect that to use legal reserves
| for that purpose is unconstitutional, but that if
| he (JohnsoD, were the President he would be
disposed, i'll an emergency like the present, TO
make the utmost efforts to arrest the impend-
ing disasters.
A proposition made by Vanderbilt was de-
I l.. IL.