The Lake County star. [volume] (Chase, Mich.) 1873-current, 1873-09-25
The Great Money Panic.

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throughout business circ' % Of ,h,
country, with considerable feclin:
Of nneasiness anil alarm. Til,
rninOra as to the cause Of snspcn
sion are various, and nothing do
finite has as ye: been arrived at,
probably will not b. until th,
promised statement Of the firm
above alluded to IL forthcoming
They claimed ut tho outset thai
the suspension was rs much Of ,
, .urprise to themselves az others
md that they would DO able I,
resume in few days. Their New
York, Philadelphia and Washing
ton Iouscs closed, bnt u dispatch
from the London House of Jay
Cook, McCuIloch & ca. stated /,
was not affected, aud that cal
drafte and Letters OF credit on
them, issued by Jay Cook & Co.,
would bc duly honolod."
On Thursday and tho lay fol-
lowing the excitement seemed Ia
increase rather than decrease, and
pretty severe runs were made by
dcposiiors Of various banks. Al
the close Of business Friday nine.
teen firms were reported suspend
ed in. New York. There was MI
uneasy feeling in London, but the
day closed without failures, and
with sound financial condition.
The market in Liverp~l was ex =
cited and oppressed Ly run"rs .
impending failures. Munro Il Gu.
Vi Paris telegraPhed their New
York House that they would pro.
'ect all bills Of Jay Cooke Il Co.,
drawn upon them. On This day,
also the Secretary "t the Treasury
directed tho Ass slant Treasurer
ut New York to purchase bonds
to the amount Of SIC, 0OO,O 900.
Telegraph dispatches of Satur-
day, from Philadelphia, Wash
ington, Chicago and Milwaukee,
reported no serious disturbances
in money m,tters at those prints,
but that the banks were prcpar-
ing for any emergency that
might arise durin. the coming
week. Dispatches from Frankfort,
Hamburg Blemen and Vienna
stated that no failures had occurred
in those cities on accmnt OF tie
New Y ork panic, yet much anx.
icty prevailed. President Grant
arrived in New York from Long
Branch Saturday evonin! AMI
tclcgraphed to Secretary ofthc
Treasury Richardson to meet him
the following morning, which was
done.
At confcrer &C held on thc2lst
u Committee OF bankers recon
mcndcd that the Government
issuc $3O,OOO,OO" Of legal
reserves. Tho President de-
clined to interfere for want
of authority. Rcverdy johnson,
who wus consulted, gave it as
his opinion that to use the legal
reserve for The purpose Expressed
by tho Coinmhsee was nncOnsti-
luiional, Int it ~ sssid, he added,
ali he (Jol,nso.'> were President,
he would DC disposed in III c'ner-
gcncy like tho present one, to
make the utmost efforts to aver,
the impending disaster" Conmo-
Iore Vanderbilt proposed that il
Inc President authorize the Treas,
urcr to place s3o,OOO,OOO Of the
b.gal reserve in the banks in New
York, he (VanderlilD would add
TO the s.nD W the banks $4,000.
900. The President and Secretary
were Of diverse opinion regarding
Inc cour.c to lie Pwsspcd by the
Cover. mcnt, but it was fi"ally
agreed bet wecn them to instruct
the Assistant Treasury to buy al
Government bonds offered for sale
to any amount.
The National Trnst Company,
81 New York, which suspended
Saturday, states that its liabilities
do not exceed $4,00O,000, and
that the capital and asscts exceed
that amount. The officers state
they have enough to satisfy both
dc,wsi,"rs and stockholders.
Owing to the financial panic
the Canada Southern Railroad
Company have been obi ged to
cancel all contracts for tho prcse
aud ordered the discharge Of all
their workmcn not employed IN
regular trains running over tho
Road.
z~.~.-.:.. - L.