New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-20
FRIDAY. Sept. l9-P. VI.

no recollection of lust such crisis in Wall-st. as
that of to-day. In the great revulsion of 1887 the
losses were more dIffused because the shrinkage in
values embraced general merchandise and real estate
as well as paper securities and carried down most Of
tho banks and bankers of every degree. The failure
at that time Of the rich Jews, Messrs. Josephs,
then famous banking house, is a well-remembered
incident Our mercantile houses suspended so
rapidly that it impossible TO record their names
The notes of the best merchants had been selling at
9 to per cent per month for some weeks, until
finally they could not be sold at all In the panic OF
1857 the notes of the strongest houses, like Moses
Taylor & Co., and Spoford 81 Tfeston,
sold at a discount of 4 to per cent per
month, while railroad bonds that have
since been redeemed. principal and interest, were
sold in the midst of the excitement at 20 cents on
the dollar One Of our largest banking houses, that
had drawn upon George Peabody. in London, for
$1,5O0,OO0, sent over a special messenger, with
portmanteau full of deprecated and unstable
bonds of the face value of just that amount,
and informed him that he must protect his
acceptances as best he could. That was all they
could do. This was the occasion when Mr.. Peabody,
frightened out of his propriety by the unexpected
announcement, made statement of his affairs to
the Bank of England, and in the midst of panic
also prevailing in London. borrowed sufficient sum
to pay all his maturing acceptances upon the suppo-
sition that of his American correspondents
would put him in funds to meet their drafts 1t is
said that he collared the messenger and
led hlmd portmanteau and all, into the
presence of the chief bank manager, and
made him tell his own melancholy tale of the pros
traton of everything American. The present panic
is similar to that of 1857 in that it from build
ing and extending railroads in advance of the
growth or the needs of the country. most of them
destined to be good in time to come but all of them
built on credit II the present excitment and dis
turbance are more violent it may be due to the fact
that the country has greatly increased in wealth,
resources, and the extension of railroad credits.
The list of failing brokers contains many strong
and much respected Names and those who survive
will be deserving Of the highest credit for never
were pecuniary strength, moral physical, OF mental
endurance put to a more severe test Checks were
given out for hundreds of thousands in payment for
stocks-all uncertain whether the money would ever
be returned few may have succumbed too soon,
but generally the brokers, to protect their credit,
have stood up manfully in fight that
seemed utterly hopeless. SO far the panic has not
extended to the generality of business men, nor
could our banks, properly speaking, suspend pay
ment, because they already in state OF sspen-
SION Nor is this panic likely to materially affect the
abundant, with the prospect of an excellent foreign
demand so that the real foundation of the countrys
wealth Is as strong as it ever was. Those who have
oyertraded in railroads and railroad credits, with
their immediate following, are the greatest suffer
ers and next to these come large number OF per
sons of moderate means who have been led into the
purchase of bonds by the high character OF the
houses engaged in their SALE
! ON mat al
of Jay Cooke g. Co., yesterday, to believe in almost
any disaster yet the street could scarcely credit the
new ruin caused by the late whirlwind in new rail
road securities. which involved in at least tempo
rary ruin the house of Fisk & Hatch, whose reputa-
ton for enterprise, integrity. and straightforward
dealing was known throughout the length and
breadth of the country Other failures Of Stock Ex-
change houses followed in this train, and these
reported elsewhere. In summing up the causes
which led to the suspension of the house in question
we must repeat the old story of advances to new
railway enterprises which have dragged down other
concerns within the last few months. The mmedi-
ate trouble was in advances to the Chesapeake and
Ohio Railroad Company, road already completed
and earning money in advance Of the most
sanguine expectations of its projectors. The Cen
trail Pacific Road, of which Messrs. Fisk 81 Hatch
were the bankers is the strongest of any of the Pa
cific roads, its bonds here having commanded sew
eral points above par, and marketable, and in de-
mand at high prices in all the European marts. To
the successful placing of these bonds and the prom
inent part taken by the firm during the war i'll
popularizing the United States loans the firm may
well point as a record upon which they may go be-
fore the people For integrity and honorable business
dealing, they rank second to no house in the
country and many have been the offers OF pecuniary
assistance received to-day. We need not observe
that Messrs. Fisk 81 Hatch have the sympathy of
all who know them. We are assured by both part
ners of the house that their assets, both indi-
vidual and collective, are in excess of their
liabilities; that if they are permitted TO
conduct their matters according to their own vol-
ton. every depositor will be paid in full They will
prepare an official statement of their assets and
liabilities soon. Among the other houses In trouble
we mention that Of L. d. Randolph & Co.. with
house in Philadelphia who hope to resume at once.
The firm of DeHaven & Co. of Philadelphia is re-
ported suspended. A heavy run has been made upon
the Union Trust Company, as also upon the Fourth
National Bank, but it is likely both concerns will
weather the gale at least they have thus far paid all
demands as presented. But affairs have become 50
apprehensve, and the situation one OF such an
alarming nature that the city bank officers have
felt compelled to meet to-day to take some action
for mutual protection. Various plans have been
suggested and further meeting will take place to-
morrow morning at o'clock, ut the Clearinghouse.
10 decide upon some united action by
which the banks will stand by each other
in case of upon any particular
banks. As we have before stated, the present
panic is entirely financial rather than commercial
and the concerted action of the banks will tend to
limit il to Wall-st houses. This proposition Of the
banks tended to give more assuring tone 30 the
street in late transactions.
The onslaught upon the stock market following