Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-09-25
THE COURSE OF THE PANIC.
Summary of Last Nights News by Mail
and Telegraph.


leading grocery, petroleum, and hardware mer-
chants in New York deny that the panic has
affected their business, and say that rumors to
the contrary are got up by spectators, who de-
sire continuation of the excitement. Sub
Treasurer Hillhouse, of New York states that
he has exhausted his limit, and will make no
further purchases of fve-twentIes until he re-
ceives further instructions from Washington,
having already paid out the sl2 900 900 author
lied. Judge Blatchford refused to grant au
order OF Involuntary bankruptcy against the
Union Trust Company. When business IS re
sumed at the stock exchange it is pr posed to
incorporate the clearing house into the ma
Chinery of the board. Leading dry-goods men
affI IN that though business is rather dull. the
houses themselves were never in better condi-
ton, and rumors of failures among them are
groundless.
SUSPENSION IN BALTIMORE
Brown, Lancaster & Co., well-known bankers
and brokers in Baltimore, and agents of the
Chesapeake and Ohio railroad, having branch
houses in New York and Richmond, suspended
yesterday afternoon. The firm state that the
suspension is caused by an unexpected and I'M
precedented run. 1t is said statement will be
made to-day.
MEETING OF BUSINESS MEN IN RICHMOND.
The meeting OF merchants and manufac-
turers, including members of the various com
mcrcial associations, of Richmond, Va, held
yesterday afternoon, was the largest gathering
of the kind ever held in Richmond, and the
greatest interest was manifested. series of
resolutions were adopted with great unanimitv
"ceprecatng the uneasy feeling prevailing in
the city as tending to produce panic and run
suspension, as well as to arrest and overthrow
all business; that in view of the undoubted SOL
vency of the banks, and to prove their conf.
dence therein, the members of the meeting
pledge themselves to abstain from runsiny the
banks, and confine themselves to strictly regu-
lar and necessary checks and drafts in the course
OF business, making them as limited as practical
BILE, and continue as heretofore to make deposits,
and that they urge upon all persons having
business with banks to pursue a like course OF
confidence, thus avoiding the greatest contin-
pPnpips of prQstration adj ",
Their suspensions are reported. The banks all
held out up to the closing hour paving up
promptly. The excitement has greatly sub
sided.
EFPECTs OF THE SUSPENSION OF HENRY
CLEWS & co.
Yesterdays Y. Herald says: The opinion
generally expressed down town is that the sus-
pension of Henry Clews ~ Co., will have a most
disastrous effect on country bankers, who have
large deposits there. In addition to this the
dry goods trade of the city. who avail them
selves largely of the banking facilities offered
them by Henry Clews & Co., will lose consider
ably. SO rapidly are lies manufactured con
the street" that within five minutes after Clews'
suspension 1t was reported two well-kuown
uptown dry goods houses OF high standing had
come to grief. OF course the Invention was a
Wall sire ct canard propagated either heedIesslv
or, perhaps, with a malicious motive.
JAY COOKE * co.'s MOVEMENTS.
The New York Sun says: "The members of
the firm of Jay Cooke & Co. We're in session all
day yesterday at the house of MIR. Fahnestock
They are prepai ing plan of settlement, which
Is to be submitted TO their creditors with a full
statement OF their liabilities as soon the latter
can be ascertained. A private dispatch from
London received yesterday said that the London
house of Jay Cooke, Mccullough &, Co. are
throwing out al the drafts of Jay Cooke & Co.
received since the suspension. f. o. French
has been appointed attorney of fact to represent
the London house in the liquidation of jaw
Cooke q Go: The financial statement of the
New York branch has been completed, and
those of the Philadelphia and Washington
houses are expected in day or two'
MA rho Ma HAvE TEh ADVICE TO pErosIToRs.
meyer as saying "when came down to nv
once yesterday morning and read about the
panic, thought 1t was my duty to advise the
boor people, VINO are ef0wdlng the savings
Inc reckless management of an institution can
not be made just excuse for a run on the saw
t tgs. bsnss, They have to loan the money in
trusted 10 them, and of course thew cannot nav
ltoyer TO depositors at any momenl. / think the
savings banks acted properly in taking adyant-
age OF their legal right to suspend payments for
thirty days. In the meantime they can convert
their securities into cash, and meet any demands
that may be made upon them. MY object in
advising the working people not to demand a
return OF their deposits at this time to protect
them from the loss Of both principal and inter
est, by the sacrifice of the securities in which
their money has been invested"
NORTHERN PACIFIC BONDS,
Following the trouble now experienced will
be on the LIST OF January the next semi annual
Perlod ioI the payment Of the coupons on the
y.
OF which the Philadelphia Ledger saws: "rhase
bonds are largely in the hands Of comparatively
poor people, and the 1-30 per cent. annual in.
terest Oh them has been so positively promised
as to be by most holders confidently relied upon.
1t Is earnestly hoped this reliance NAV not fail
In the future. But 1t is well known that Mr.
Jay Cooke has been the life of this enter prise;
his zeal, his efforts, and his pledge of payment
have kept 1t alive and given to its securities ali
the credit that they have obtained. BY the
steady sale of bonds he has been able to borrow
most If not all the means necessary to meet the
interest as 1t has periodically accrued. The in
complete road has not been IN condition to earn
much, AMI the land sales have not realized any
very considerable sum above expenses. All
that the bonded creditors have received
in interest has come from their own money,
paid in on the purchase Of their bonds.
In the absence of earnings credit has bsen
maintained and interest paid from further bor-
rowings. In the failure OF the firm having the
bonds and the debt arising from them in charge
fun Their direct borrowing Of money and further
sales of ponds at former prices, II at any price,
is at an end. What means can be devised to
meet the claims Of hungry holders OF coupons,
In private hands maturing in January next we
are at present at loss to conceive. That
something practical may be suggested and car
RED out foi the many poor creditors is ear nestly
able at any price, and it is greatly to be la
mented that their great patronis without power
or credit to give them the least vitality. There
Is fearful responsibility resting upon him."
=
large numbers OF these bonds have been placed
In Maryland, scattered in various counties
wherever there was money for fancy invest
ment The amount is so great as to consulate
serious draft on the resources of our people.
The Chicago Tribune takes the ground that
the road must be given mp. 1t says Il the bond
holders let the enterprise come to stand still,
their property is absolutely valueess. That Dor.
ton OF the main line already completed wal not
pay operating expenses, even conceding that
the branch roads that have been bought by the
Northern Pacific may be operated at a profit
III the road as 1t stands cannot earn enough TO
pay expenses, Of course the interest on the bonds
will not be paid. 1t has been paid heretofore
only by the sale of new bonds This resource
has been cut of, or Messrs. Jay Cooke 81 Co.
would not have suspended. II the interest on
the bonds Is not to be paid, then the bonds are
absolutely worthless 30 long as the road Is In its
present condition.
The DEMOCRATS AND LIBERALS of Wisconsin
have nominated state ticket headed " For
governor-Wm: <. Taylor" The reformers'
convention united with the democratic and Iih-
eral convention, and adopted resolutions favor
ing cheap transportation, the Improvement of
the nAvi0abl0 WHfera WfacOnajn tho