The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-11-08
THE PANIC.

While the west seems to bear up muA.u!ly
against the panic, and the Chicago and ST,
Louis banks have not only fully resumed, but
the former at least, are able to extend pretty
liberal accommodations to their customers
and assist in moving our enormous crops the
outlook AT the east continues gloomy and dis
couragng. In New York the shrinkage of
values continues, and on Thursday gold
went down to Oh, the lowest point II has
reached since 1862.
The slight buoyancy that had shown itself
at the close of last week was rudely dashed
by the announcement that the great manu-
featuring firm of A. & W. Sprague, of Rhode
Island, had suspended The firm has for
three generations occupieda leading position
among the manufacturers Of the east, and of
vastly, so that at the present time the Sprague
influence permestes almost every branch OF
trade and finance in Rhode Island, as well as
extending into Maine and other contiguous
states. They control not only all the cotton
manufactures of the state, the national and
savings banks, run several immense dry goods
and general supply stores, but may, in fact
be said to run the entire state OF Rhode Island
commercially, socially and politically. The
assets Of the firm are estimated at from six
teen TO twenty-five millions, and their debts
at SS,000,000. Their complete suspension
would involve the discharge of 10000 factory
operatives. Negotiations are on foot 10 put
their affairs in such a shape as not to close
the factories,
On the heels of the Sprague suspension fol
lowed on Tuesday another disaster-no less
than the suspension Of Tom Scott, the great
Pennsylvania railroad king His case is very
much like that of Jay Cooke. He was carry
ing the Texas Pac itic rs Cooke was the North
ern Pacific railroad. Scott had gone to Eu
rope and negotiated q loan Of $l0,000000 &c
continue work on his road meantime en-
dorsing vast amounts Of the roads paper in
anticipation of receiving the 100000 600 loan
But Just as the loan was being consummated
the news of the Jay Cooke explosion reached
Europe, and the Scott loan collapsed. As q
consequence, his Texas Pacific paper has
gone TO protest, and Tom Scott is tloored
The greatest fear is, that the Pennsylvania
Central will, in consequence, fail to pay its
usual semi.annual dividend of five per cent.
which would greatly add to the embarrass
meat of things.
To add still further to the gloom rumOr
was current on the 4th that the great mercan
tile house of ii. b. Clafin & Co. was about
to suspend, but this proved groundless. The
firm not only show that they are abundantly
solvent, but even refused to accept assistance
rendered them by the New York banks.
AS bit Of sunshine amid the gloom, the
announcement is made Of the speedy resump.
ton of the Philadelphia house of Jay Cooke
u co. a member Of the firm is reported as
saying, on Tuesday The agreements are
rapidly being signed by our creditors and
are coming in with gratifying promptitude
We have every reason to be encouraged. We
have merely asked torbearance of our credit
ors and we shall avoid bankruptcy with per
feet certainty. The house will be able to re.
sumo within few weeks, at any rate just as
soon as the confidence Of great majority of
our creditors is assured to us"