Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-09-24
The Great Failures.

flnancldi Circles were thrown into excite
ment, Thursday, by the announcement that
the well known banking firm of Jay Cooke
Il Co. OF New York, PaIIadelp hia and Wash
lngton had suspended payment. The reasons
assigned are various. but the chief cause
seems to have been imprudent advances to
the Northern Pacific railroad, which pre-
vented the firm from maintaining their ordI-
nary amount Of reserve, while the drain ur on
their deposits was still further Increased by
recent suspensions, and at last they were an
able to respond to the demands of their cred
itors The banking houses of the firm at New
York, Philadelphia and Washington all clos
ed their doors about noon, posting announce
ments that statement of their affairs would
be prese nted in few days, and that they
believed their assets to be largely in excess
OF their liabilities. The tempory suspension
OF the American house does not aft ct the
London house of Jay Cooke, McCulloch d
Co. The secretary of the treasury states
that the government will not lose dollar
by the suspension, the deposits of govern
ment officers being fully secured by the de-
posits OF that institution in the national
treasury. As to the syndicate the balance
is In favor of the government. Friday
there became panic on Wall street, such
us has only been paralleled by the experien-
ces of'' Black Friday" four years ago The
suspension OF Jay Cooke & Co., the previous
day, had lett most uneasy feeling, aud a
general lack OF confidence was evident at the
opening of business. Early in the day 1T was
announced that White, De FrIesas il Rath-
bone, gold and stock dealers on Broad street,
had failed, but, as this was d small firm, the
announcement did not cause much excite
ment. 1t was quickly follow ed, however, by
the startling news that the well-known bank
ing house OF Fisk & Hatch had suspended,
and The widest excitement followed. The
stock market, which lad opened low, exper
fenced a grand tumble, the leading stocks
falling from l ! to 80 per cent, the fall being
most marked IN Harlem, which tell from 120
to 90. Many OF er failures were soon an
nuunce1, among them being Thomas Read
& Co., w. Ii. Warren, Greenleat, Norris &
Co., George B. Alley A. NJ Kldder, Day &
Morse, Hay Il Warner, w. Connor, George
Bolton, Beers & Edwards, Eugene j. Jack
son, and Theodore Bedell. With the an
nouncement OF each new failure the excite
meut increased, and the scene tor a time
beggared description; the crowds at the stock
exchange became so great that the police had
| TO be called to prevent the entrance of any
but members. In the afternoon, however,
there was a somewhat better feeling and a
slight recovery 10 some stocks, and by the
close of the day it was generally believed
that the worst of the crash was over. The
leading bank officials held meeting in the
afternoon, at which steps were taken to sue
cesstuly meet all demands on them, and the
know edge of this TACT dld much to restore
confidence in commercial circles. 1t also
came to be generally believed that the secre-
tary of the treasury would buy from five TO ten
millions of ivetwenty bonds, and dispatch
from Washington, announced positively that
he had ordered the purchase OF ten millions
Fisk Il Hatch say that their suspension will
be OILY temporary, and attribute the disas-
ter to the lack OF confidence in railroad en-
terprises, whether strong or weak, and the
extreme stringency in the money market
produced by the late failures. The firm had
made large advances to the Chesapeake and
Ohio and the Central Pacific railroads. The
former road is completed and earning money
and the Central Pacific is the strongest Of
the new Pacific roads, and has not only paid
the interest on its bonds but has recently de.
clared dividend on its share capital.
The financial panic at New York contin
ued on Saturday. the excitement OF Friday
had somewhat abated during the night, ano
the proposed union of the banks for mutua
defence, combined with the announcement
that the government had resolved to buy tie,
millions of bonds, and so let loose large
amount of legal tenders, caused calmel
feeling on Saturday morning, and hope tina
the storm was over. Hardly had business
opened, however, before it was announced
that the Onion Trust company, which hae
successfully withstood run on Friday, hat
suspended. This was all that was needed K
convert the calm into storm the feverIsf
excitement of Friday was at once renewed
and panic seized upon the market. Th'
Trust companY's failure was quickly follow.
ed by the suspension of the National banl
of the Commonwealth, and Wall street wa
thrown into a state of excitement that hal
seldom been equaled. Stocks dropped S ant
| 10 per cent without intermediate sales, ant
TIE ieellns Of insecurity became 60 ssrops