The New York herald., 1873-09-24
THE CRASH In TEE COUNTRY.

WASHINGTON, Sept. %, 1878.
The announcement OF the failure OF Henry Clews
Co. had depressing influence this afternoon in
financial circles, and an explanation of the cause
was eagerly waited for. One OF the leading
bankers said, on reading the explanatory de-
spatch, that he feared a general revulsion more
now than at any time during the excitement last
week. The house of Clews, Habicht Co.. IN Lon
don the financial agents OF the State Department,
have in their possession at this season
OF the year large balance, as the
quarterly salaries OF Ministers and Consuls
fall due on the S0th inst The news did not reach
the Treasury Department before the Secretary
left. Though the wonder has been frequently ex-
pressed during the crisis that this house was able
to stand the crash 1t is hoped here that their
pension will not a1ect their European branch as
the coin belonging to the government in London is
probably not less than $500, o0o The excitement in
Washington has completely subsded. The savings
banks were exempt from runs to-day, and deposit
ors are returning their money.
The run on the Freedman's Savings Bank has
entirely ceased, and comparatively few dcpositors
were at the door of the Washington City Savings
Bank to-day, awaiting their turn.
Suspension In Petersburg-Four Banks
and Two Commercial Houses Yield to
tho Pressurc-No Serious Embn rrn ss-
ment Expectcd-The People Calm and
Hopeful.
PETERSBURG Va, Sept 23 1878.
1t was known as early as Saturday last by few
OF the initiated and confdentiay anticipated
much earlier by others who knew the 'ropes," that
the affairs OF the Merchants National Bank OF this
CITY, of which Mr.. T. +. Brooks is president, were
in most critical condition. Yesterday, owing to
note OF the bank for 100000 going to
protest in New York in consequence Of
recent financial troubles there, the Merchants
banks matters were brought to focus, and to-
day IT'S suspension of payment was announced.
simultaneously the Plapters and Mechanics bank.
ofwhich Mr. S. A. PlumMer is president, suspended,
and the Citizens Bank, OF which Mr. william r.
Mallory is president, though its suspension is not
announced Is not paying deposItors' checks except
in small amounts. The Peoples Savings Bank and
the First National Bank have also closed doors and
suspended payments.
tribute the crash to the result OF larger sums OF
money being borrowed out OF the banks by their
officers, who owned large quantities OF stock the
Petersburg Railroad While this circumstances un-
doubtedly helped to complicate the situation there
were other
CAUSES WHICH LED TO THE CATASTROPHE.
Chief OF these Is the fact that the commission mer-
chants had been making large advances to farmers
market. The banks have advanced these sums to
the merchants, the loans being secured by ne
gotiabe notes on which nothing could be imme-
diatey realized, ana hence The collapse. one
house alone OF the city had advanced between
100000 and $500 600 to North Carolina farmers for
will not be in market for several weeks their
notes viii 60 to protest In the meantime. Neither
burg Railroad management nor the going to pro-
test OF 500 900 OF notes due in New York by the
Merchants National Bank should have justified
THE SUSPENSIONS AND THE CRISIS.
The storm could have been wcathered had people
kept their heads G1S h, Within Ave or six weeks
in North Carolina, would have come in and suf-
feed to raise the pressure sur There ~ Is no danger
anything, as the stockholders in the Merchants
are for the most part wealthy Northern capitalists
Of R. A. Young & Co. have so far been the only
ones announced. Plummer Young Co.. went TO
Young Co. is not involved. It IS stafed posi-, j.
lively that McIwaine & Co.. one OF the Oldest and
s0undest houses, will suspend for the present,
though their assets Will prove ample to pay out.
There are
but any statement in regard to them now would
be premature. The amount OF paper OF The Peters
burg Railroad Company in the banks Is believed TO
Ee P hv tbe Is mere ae
ated in the management OF the company. 1t is
stated that Mr.. Ragland, the President, has lost
chased by him from the city and from private
parties stu stands IN his name and Is secure.
THE DEPOsIToRs IN THE PEOPLES SAVINGS BANK
are,many negroes and other republicans, CON
gresham Platt being President. The Citizens
Bank did not receive s1oo rom the North. which
is stated to have been expected. 1t Is given out
that the Planters and Mechanics and the Citizens
Bank will be able to resume in short time.
give the facts as nearly as they can be ascer-
tanned unoficially and the opinions that are cur
rent on the streets. This evening the feeling is
camer and the situation Is discussed, II not hope
fully at least With iorttude and reason.
Unshabcn Confidence in Richmond.
RICHMOND ya Sept 2s, 1873.
The feeling here this afternoon has been one OF
nervousness, caused principally by the news from
Petersburg There were no runs on any Of the
banks, in tact some OF them claim to have done
more business in receiving deposits than usual.
The Directors OF the Dollar Savings Bank have de-
cded upon suspending tomorrow. The President
states that the assets are more than enough to pay
in coateras thev are not Immediately available.
Al a meeting OF the officers OF the four National
Banks and ,n Of the state Bank Of Virginia
Company this evening, 1t was resolved
that they shall sustain eacn other. They expect to
that may De made. Public confidence in the banks
appears to be generally unshaken
Precautionary Measures of tho BaIti-
more Banks.
BALTIMORE, Sept. %, 1873.
The situation was extremely quiet In financial
circles here to-day, and the first decided shock was
given 1t by the announce;ient OF tne iaiure oi
Clews q co. and dry goods house, !" NqW io'A,
The news came too late to have much visible
effect, but the financial and mercantile community
were much alarmed at this evidence OF Increased
danger. There is nothing, however, In our local
situation to cause panic, but banks and banking
houses are anxlousiy awaiting the next news
resorted to precautionary measures. A meeting Of
the assoclated banks was held this afternoon,
and 1t was resolved to adopt the same course IN
aiding each other as the New York banks took on
saturday committee was appointed and any
bank requiring a loan Will, on depOslting approved
assets with the committee, receive Clearing House
certificates at the rate OF seyenty.Ive per cent,
which Will be used In cancelling their Indebted
ness in the Clearing House. Although the Balti-
sign OF run on any OF them this step is taken as
q precau onary measure OF relief 10 the commu-
nifty. There has been considerable call upon our
banks currency from other cities and IL Is said
that the banks will tomorrow refuse to pay out
currency IN any large amounts, especially II there
Is danger OF lookup.