The weekly Oskaloosa herald. [volume] (Oskaloosa, Iowa) 1855-1885, 1873-09-25
A STARTLING SENSATION IN FINAN
CIAL CIRCLES.
FAILURE OF JAY COOKE & Co.


WASHINGTON, Sept. 1s-The bank
ink house of Jay Cooke & Co., il
tlis city was closed shortly after
noon to-day, and a notice posted that
in consequence of the suspension Of
Jay Cooke q Co., in New York and
Philadelphia, the doors would re.
main closed tor the present. There
is mnch excitement and a large crowd
is congregated in front of the bank.
ing house of the First National, and
the bank suspended occupies the
same building.
NEW York, Sept. ls-'rhe Lon.
don House of Jay Cooke & Co. res.
pond to the suspension stating that
all drafts and letters of credit upou
them, Issued by Jay Cooke aud Co.,
will be honored.
PHILADELPHIA, Sept. ls-The firm
of Jay Cooke q Co. has suspended.
A great crowd is now collected
around their place of business.
NEW YORK, Sept. ls-There is
great excitement ON the streets in
consequence of the announcement OF
the failure OF Jay Cooke & Co. The
question generally asked is "who
next 2" Stocks took a tumble gen.
orally, caused as much by apprehen-
sion OF the future as by the exciting
condition of affairs. Prominent Wall
street men attributed the suspension
of the firm not so much to the effort
to sustain the Philadelphia house as
operations in the Northern Pacific,
which it is said they sought to carry
beyond their strength. 1t is expect.
ed that the Life Insurance company
with which Jay Cooke 81 Co., are
connected may have to g. under. 1t
is. also said that Jay Cooke had lost
large sums in the recent gold move,
ment, and another rumor Is that the
tightness of the money market and
inability to dispose Of his papers
hurried the suspension. The firm
say that they are unable to make any
further statement, save that they ex-
pect to resume business IN a short
time.
Jay Cooke & Co., have suspended,
as they claim, in consequence of
large advances made to sustain their
Philadelphia house and the heavy
drain upon their own deposits.
The excitement is intense. At the
Stock Exchange Vanderbilt stands
by his Central, and the Lake Shore
and Pacific Mail are cared for, but
the Western Union has dropped from
ss to 7s8. Money quiet at z for gold.
No failures other than Jay Cooke.
Jay Cooke. McCulloch & Co., of
London, are reported solvent with q
large surplus above all liabilities.
Mr.. Abram Hewett, one of the trus-
tees of the New York, Oswego &
Midland Railroad Company, has
been appointed assignee of the con-
Germ, giving security in bonds for
100000.
There is a general breaking of
stock of ten per cent under the rush
to sell, and great excitement contin-
ues. Western Union fell from ss4
to 7s4 New York Central 90t to
7s4 !; Wabash from So to 494 Pre-
ferred from 76 to TAI Rock Island
fell from l.o2 to so ; Pacific Mail 424
to 50.
PHILADELPHIA, Sept. 1s-The fol-
lowing card has been posted on the
Office door OF Jay Cooke & Co., in
this city: We regret to be obliged
to announce that owing to the unex-
pected demands on US our office has
been obliged to suspend payment. In
a few days we will be able to pre-
sent statement of our affairs to our
creditors, until which time I must
ask them for their patient considera.
ZION. We believe our assets to be
largely in excess of our liabilities
Signed, JAY Cooke.
Jay Cooke q Co. make the follow
ing statement The immediate cause
of the suspension of Jay Cooke &
Co., was the large drawing upon
them oftheir Philadelphia house and
their large depositors during the
last fortnight. Both houses have
suffered large drains upon their de.
deposits in consequence of the uneasy
feeling which has recently prevailed,
and which has affected more or less
all houses closely identified with the
new railroad enterprise. The Phila
delphia house had previously been
weakened by large cash advances to
the Northern Pacific Railroad com
pany, and for which they are the
financial agents. The business OF
Jay Cooke, Nc cCulloch & Co., Lon
don, is entirely disencum bered. That
house is perfectly solvent, SO that it
will meet all its outstanding debts
and letters of credit without any in
convenience to travellers, and have a
large cash surplus to apply to the
firm of Jay Cooke & Co., and its
members have a large amount of
real and personal property upon
which, however, they cannot imme
diately realize. They are confident
that the depositors will be paid ir
full. -..