The Portland daily press., 1873-09-19
THE STOCK PANIC.
FAILURE OFJAY COOKE & co.
A Financial Crash Feared.


NEW York, Sept. 1S-Jay Cooke & Co.,
uane ANNOUNCED their suspension in conse-
quehce OF the Mrge advances made to sustain
uner rhlladelphie house, ana the heavy drain
upon their own deposits. 1t is hoped the sus-
peusion VIII be only temporary. There is
greaolexcltement on Wall St., i'll consequence of
ene announcement and the question generally
asked IS, Who next?' Stocks took tumble
i i three to ten per cent. caused as much by
ny ehe apprehension of the future ar by Il ex-
lsling condition of affairs. Prominent Wall
ST. men attribute the suspension of the firm not
81 uuch To the efforts to sustain the Philadel-
Plia mouse as to the operations in Northern
,aclnc, which it is said they sought to carry
,peyouu thelr strength. 1t is expected that the
t .. ~ INSURANCE company with which Jay Cooke
q 90 are connected, may have to go under.
~ p m-The excitement in Wall ST. con-
0hues and there are rumors of additional fall
tIes. :tls said that Jay Cooke has lost large
sums IN the recent gold movement. Another
Tumor is that the tightness of the money mar
Ket and the inability to dispose of his paper,
hurried if it did not actually cause the susppn-
slou; HIS having advanced considerable sums
on the Northern Pacific is mentioned by others.
Al present the members of the firm here in
Sew YORK say they are unable to make any
Iurlner statements save that they expect to re-
sumo business in short time
\, ashlngton special says that the First
National Bank (Jay Cookies, has suspended.
ne excitement is still intense at the stock
exchange. Vanderbilt stands by his Central,
ana Lake Shore and Pacific Mail are cared for.
but Western Uuion dropped from So to 1871
n.ohey is quiet at seven per cent. No failures
other than Jay Cooke 4 Co., have been an
nounced. 1t ssad Jay Cooke, McCulloch &
70, OF Lon lon, are solvent with large surplus
apoVe an liabilities, and that all drafts and let
ters of:credit upon them, issued by J. Couke &
20, wi'lsbe duly hcnored. Packard Schell, in
timately associated with the VanderbIt's party,
has failed
There seems to be general feeling that the
panic IS over, and with crcumspection on the
part OF heavy operators aud capitalists, combn-
ed with the probable assistance from the Sec
rotary OF the Treasury if deemed essential,
there need be no further depression in moneta-
ry circles.
Northern Pacific.
AS in connection with the sasDension of JAY
Cooke q Co., among holders of Northern Pa
chic 1alroad bonds throuah out the country
Will naturally'fell concerned about their invest
ment Inquiry has been made aud developed
the fact that Norchern Pacific is largely iu-
deoted to Its fiscal agents, and therefore can
lose nothing pecuniarily by their suspensiod
The railroad company will have to make other
financial arrangements before pushing forward
It's line 1t has its completed road and Govern
ment land grant both mortgaged TO secure its
bonds, and the security is considered amply
sufficient.
Jay Cookies Statement.
PHILADELPHIA, Sept 1S-Mr. Cooke saws
II believed this house will speedily be relieved
from embarrassment, and to this end If needs
be every dollar of the means possessed by menu
ber> of the firm will be applied, No one who
has dollar on deposit here will lose it. Every
liability will be faithfully discharged The
temporary suspension of the American house
does not affect in any way the London house of
Jay Cooke, McCulloch & Co., from whom the
following cable telegram was received this af-
teruoon, creating the lvest satisfaction when
made public:
LONDON, Sept. 1S.-The London firm of Mr..
Cooke responds to his suspension by stating
that all drafts and letters of credit on them is
sued by Jay Cooke & Co., will be duly honor
ed.
There are no new Developments tonight in
financial troubles here. Mr.. Cooke will not be
able to present statement of his affairs for
day or two yet. The temporary suspension of
e. w. Clarke 81 Co., was on account of an ad-
vance of securities not now available. The
house will resume business at an early day.
WASHINGTON, Sept. 1S-Secretary Richard
son and Comptroller Knox were in consultation
this afternoon in reference TO the suspension
here, and a receiver will probably be appointed
Immediately to take charge of the First Ma
tional Bank.
The Chronicle to morrow, abiding to the
closing of Jay Cooke & Co.'s banking house in
this city, says il has the best authority for say
ing that the failure is as complete a surprise to
the leading members of the firm as to the pub
lie