New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-19

being very wealthy, there need be no apprehension
on the part of the public in regard to the speedy
sumption of payments by the house.
THE FIRMS EXPLANATIONS.
Subsequently the firm issued the following state
ment:
The immediate OF the suspension OF jay Cooke
Co. In this city the large drawings upon them by
their Philadelphia house and their own depositors.
During the last fortnight both houses have suffered
large drains upon their deposits In consequence OF the
uneasy feeling which has recently prevailed and which
has affected all houses closely identified
with new railroad enterprises The Philadelphia house
had previously weakened by large cash advances
10 the Northern Pacific Railroad Company, OF which
they tho financial agents The business OF jay
Cooke, MoCuoch & Co., London. Is entirely
distinct. and that house is perfectly solvent.
that it will meet all its outstanding
drafts and letters OF credit without Inconvenience
to themselves, and have a large cash surplus to
apply to the American house. The firm OF Jay Cooke
Co. and its members have large amount Of real and
personal property, upon which however they cannot
immediately realize. They are confident OF paying de-
positors in full
Still later the following reasons were given by Mr..
Fahnestock of the firm of Jay Cooke q Co.
For several weeks the uneasy feeling which pre-
vailed in connection with new railroad schemes
caused a heavy drain upon the deposits, both of
their Philadelphia aud New-York houses The de-
poss in both cities suffered continual diminutiOn,
until at the beginning of the present month their
deposits were lower than at any time during
the seyerest stringency of last Fall and this
Spring. The drain upon the deposits. already
so heavy. was still further increased by re-
cent SUSPENSIONS and the demand for money was
ncessant and is felt still more severely in Phila-
delpbia. The Philadelphia house was compelled to
call upon the New-York house for aid. and large
amount of assistance was rendered. The Philade-
phIa house was under large advances TO the North
ern Pacific Railroad Company. involving large sums
of money, preventing them from maintaining the
reserve ordinarily kept, and they were therefore
unable to respond TO the demands of their creditors
For this reason they were unable to return to the
New-York house the advances made them by the
latter OF to supply them with any cOllaterals avail
able in New-York at the present time Owing to
this the cash balances became exhausted and sus-
pension became inevitable. Mr. Fahnestock said
that of course, the members of the rim
were possessed of a large amount OF private ana
personal property but none of this was available IN
an emergency such as the present. lie was
not nj the present time, nor was any
member of the firm, prepared to tell the
exact amount of the liabilities or assets OF
the firm. He believed that all creditors would be
paid i'll full, and hoped that the suspension would
only be temporary. On this point nothing could
positively be said at present and some time must
necessarily elapse before the exact amount of the
private property of the firm can be decided. MI
FahnestOck also said that the suspension OF the
New-York house would not affect the credit OF the
London house of Jay Cooke, McCulloch a Co. Their
business he said very conservative and is entirely
separate from that of the Newlork firm. They have,
moreover a large cash surplus, and their exchange
and letters of credit will be affected. He said III con-
clnsion that he did not believe that the suspension
of his firm would necessarily embarass others, as
their chief creditors were banks and bankers.
Mr. Fahnestock also stated that neither Jay
Cooke g. Co. nor the Syndicate are in anywise in
debted TO the United States Treasury.
The firm also sent a letter to the Stock Exchange
embodying the points OF the statement presented
above.
BANK PRESIDENTS ADVISE HE SUSPENSION
an officer of one of the largest corporations IN
this city stated, yesterday, to reporter OF HE
TRIBUNE that early in the day, eight of the Presl-
dents of the leading banks met in the banking
house of Jay Cooke q Co. The members of the firm
gave brief statement Of the condition of the Affairs
of the firm their convertible assets, and liabilities
A consultation was had by the Presl-
dents the result of which was that they deemed 1t
hest for the firm TO suspend payment By adopting
this course it was believed that the best interests OF
the creditors would be subserved and the firm be
the better enabled TO convert their assets into cash
without making too great a sacrifice This course
was agreed TO by the members of the firm, aud
formal notice of the suspension was then communl-
Gated to the Stock Exchange