The Fairfield herald. [volume] (Winnsboro, S.C.) 1849-1876, 1873-09-24
Suspension Of Noted Bankers.

about Wall aud Brood Streets to-day,
Seminded ono forcibly of tho disas.
trous Black Friday, except that the
panic to-day was Of a, shorter dura-
tion, and did not reach tho financial
proportions of that day. At tho
opening Of the Stock Exchange, 90
army Of brokers poured into and
around. livery one was wild with
excitement. Tho brokers made n
uuitcd and terrible charge on tho en-
tlro list of stock, which gavo away
with fearful | crash. Margins, beams
Nc, wero used, and the crowd Of bro.
Kers rushed in to save themselves
The scene i'll the Exchange was equal
ly wild in character, and several
times it seemed AZ if violence would
90 resorted to by tho bulls who were
fairly maddcncd by their terrific
losses. The gallery was crowded
with spectators. Tho gold market
was neglected, and tho whole business
OF Tho stroot crntored upon tho stock
business, which was immense; and
largo blocks Of stock changed hands
ALMOST every moment. The transao-
tlons before noon were equal to tho
average Of many, ordinary days.
About ! o'clvok n wild panic etruck
tho morkct, and amid tremendous
sales, certain that failures were in
cyitable. Certain parties wcro doing
their best to sustain the market whilo
tho opposition wcro fighting with n
desperate cnorgy. Stocks for the
first two or thrco hours huctuated.
Western Union fell ton per cent.
without an apparent struggle. The
house of Jay, Cooke g. Co., havo sus-
pended business. The suspension of
tho firm, it 10 said, will bo but tom
porary. All their own obligations
are provided for. 1t is claimcl that
tho houae held ono million dollars
over thoir liabilities on their side.
The following arc tho particulars,
given by Mr.. Fninstock, one of JAY
Cooke & Go: Ile says that for several
weeks the uneasy feeling which pro-
vailed in connection with tho new
railroad schemes, caused heavy draws
upon deposits both in The Philadel-
phia and Now York houses. Tho de-.
posts of both cities suffered continual
draws until at tho beginning Of the
present month, their cash was lower
than any timo during tho severest
stringcncy during fall and this spring.
Tho draw upon deposits, already SO
heavy, was still further increased by
recent suspensions and tho demand for
money was heavy, and was folt still
more severely in Philadelphia. Tho
Philadelphia house was compelled to
call upon tho New York house for aid
Of largo amount, and assistance was
rendered. Tho Philadelphia house
Was undor largo advances to tho Union
Pacific Railroad Company, involving
largo sums of fmoncy, preventing them
from maintaining tho reserve orlinari.
ly kept and they wcro therefore una.
bio to respond to tho dcmand of credi.
tors.
For this reason they wore unable
to return to tho Now York house the
advances made, or supply tho collat.
erals available in Now York ut the
present timo. Owing to this tho cash
bills became exhausted, and tho sus.
pension became inovitab!o.
Fainstock said tho different mem.
bers Of tho firm wcro possessed of II
large amount of private and personal
property, but none Of this was availa-
bio III nn emergency suoh rs tho pres,
cnt. Ilo was not prepared at present
to tell tho exact amount Of tho liabili.
ties or assets Of tho firm, but ho be.
Loved that ali tho creditor would be
paid in full, the suspension Of tho
Now York house would not affect tho
credit Of tho London house Of Jay
Cooke, Mccullough 4 Go, Their
business, he said, is entirely separate
from that Of the Now York firm, and
they have moreover largo cash surplus
md thoir exchange and lotters Of
credit will not DO injured.
lie said, in conclusion, ho did not
'clievo tho suspension of tho firm
would necessarily embarrass others
IS their chief creditors woro banka
md bankers.
Mr.. Cress, another mcmbor of tho
irm, says tho suspension is merely
temporary, as that firm is, no doubt,
perfectly solvent. lilo had no idea
what tho liabilities amounted to and
tho exact figures could not yet be
obtained with any degree of accura-
cy. go,
Gold roso rapidly from lll4, tho |
opening prioo to ll24. There wero
only eleven bids for treasury gold
aggregatipg $2,3l7,3o0, at prices
from llO 20 lily. 1t is said
that j. Cooke & Co. arc short of gold
to the cxtont Of about $G,000,OO0.
That firm has, within tho Inst fow
days, entcrod into important Gnan-
oial negotiations with numerous
houses, among them being Robt. Tobe
q Co. Of Berlin, and Dresden and Al.
bort Frinsdorf, of Ilomburg, 1t io also
stated that within tho last few days,
they havo boon in negotiation with
Alexander Lemon, of Hanover. Half
past two this afternoon, tho suspcn-