The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1873-09-27
TELEGR APHIC!
the FINANCIAL CRASH.
Tho Pso0 - ~ 4itass3ea.

New York, Rept. ls.-The Esprsss ays:
One cause Of the hnasc,al crash 10 imputed
to the agitation In the Western States threat.
ening legislation hostile to railroada These
reports have caused European bankers to
decline advances on Amer,can railroad se.
cuntics. The New York banks being uns.
bic to meet the extra demand, together with
the usual depletion for the ordinary fall
movements, have been trying 10 curtail
their city call loans. A mary of tho seen.
rites wers uusaleable In Q time of general
prostration, some of the most prominent
bankers have been obliged to suspend until
they can realize on their securities. The
immediate cause of the Suspension of Fisk
& Hatch is due to the frm having advanced
more than 81. 0oo. 900 to the Chesapeake s.
Ohio Railroad Company on construction
and equipment account, taking - security
their mortgage bonds.
The Nimss 10 speaking of the failure Of
Jay Cooke 4 Co. says: The causes of this
deplorable event to one of the first houses
10 the Countrywide house most closely coa.
necsed and identified with the great negot,.
atoms of the government during the war
and after its close. It il too early perhaps to
20 into; but the chief mistake. We have rea.
son to spprehend, originated In the too
generous enterprise, and It may he, excessive
enthusiasm of the senior psrtner-Mr. Jay
Cookc-as connected with the great North.
ern Pacific undertaking. With this inn
mense scheme his New York partner, and
one, at least, of his Philadelphia houses,
were reluctant from the start to sympsihize,
and only consented to advances limited to
&500. 900 On current sales made by popular
subscription to the 730 per cent. land mort.
gage.
Mr.. Hatch, of Fisk & Hatch, when qu~s-
toned to day regarding the causes which
led to the suspension If the firm, said that
the trouble ha: been produced py lack of
confidence 10 railroad enterprises and the
extreme stringency In the money market
produced by late failures. The general dis
trust brought about by the embarrassment
of such we'll known firm - Jay Cooke &
Co., Mr.. Hatch said had caused great de-
mands on their house, which came 20 sud-
denly and Unexpectedly that they could not
be readily met, and there WAS no time left
In which to obtain money from the assets
Of the firm OF to get any funds due the
house. He could not enjeavor to give any
detailed statement of the liabilities until
he calmly considered the whole situation In
connection with his partner and the friends
of the firm. The embarrassment Of Fisk &
Hatch. he could safely say, had NOT been
caused by loan!ng money on hazardous en-.
terprises. The house has not specialized
nor met with losses. The trouble he'd been
produced by general feeling Of distrust in
regard 10 u,ouied insli tutions, which precip.
i,sted demand upon the firm that they bad
not sufficient time to meet. He would make
no statement 1t present which be might be
called upon to rstract He hoped for the
hest and thought that II the hrm were al.
lowed 10 manage the business Of the house
without interference every creditor would
undoubtedly be paid in full.
London, Sept. 20ih.-The London TGme,
commenting on the financial panic In New
York, Gays, In view of the extraordinary
prosperity Of the United States and the high
price Of Government bonds, the present gust
can but be remarked - simply ~ effort OF
the financial system to get nd Of iis dishon.
ct element.
The Daily Telegraph says such local trou.
be - the Suspension 10 New York seem to
be, ore merely the outgrowth of An exuber.
ant prosperity, and accessories to progress
which does not for moment halt.
The continental bOurses are disturbed
by news from New York.