The Portland daily press., 1873-09-25
THE STOCK PANIC.
Action Of the Banks.
q Rave APPR NSIONS.
A Quiet Day.
The Stock Exchange Still Closed.

NEW YORK, Sept. 24-Henry Cews & Co.
say they will remain closed until the tigbtness
Ill the money market gives way and affairs be-
come more settled
Hawes & Macy have suspended.
EH,oecretary of the Treasury, McCulloch.
stated in an interview last night that he could
nafuiy believe his senses when on arriving here
from Europe he was told What had taken place
before leaving he never for moment dreamed
.hat with country SO prosperous anything of
this Kind could happen. There were good crops
ana good prices for them, and country was gen
orally in good condition. Financial panics
were always senseless. When that of 1857 sub
SIDED IT was found that there was actually no
reason fer it; so it would probably be in this in
stance Everything depended on the mainte-
bance of confidence. The great trouble was
tnat IN times like the present men became
1r9hiei ed and held on TO all the available finds
they possessed
The Clearing House at its meeting to-day re-
solved, in addition to issuing S10,000,000 loan
certlflcates and the suspension of currercy pay
mehts Tor large amounts, to stand by each 9TH
er with all assets, and any bank failing to do so
shonld be Expelled. The following resolutions
Were adopted: That all checks, when rtified
by any bank, shall be first stamped or written
payable through the Clearing House, that in
order to sup ly the public demand for legal
tehder notes and renew impaired conference.-the
Clearing House committee be authorized to pur-
chase any part of $10,000,0O0 United States
oo'ldS and to procure the redemption of the
same by the Secretary of the Treasury; that
each member of the association consider himself
a special committee to ascertain when such
bonds could be had to invite participation IN
this effort OF every Institution and Individual in
the community and report the result to the
chairman of the association to-day; that the
President of the United States and Secretary of
the Treasury be solicited by the chairman of
the association, by telegraph, to prepay the out
Sfa TTnifad StataS hands on tho first
of January. 1874 The association adjourned
till half past three.
The Executive Committee of the Clearing
House refuse to let any money so out of the
city, aud their action gives general satisfaction.
Further testimony IS published this n Oruiug,
showing that there was absolutely no founda-
tion whatever for the reports yesterday after
noon of the failure of leading New York dry
goods firms.
1t is said that a rumber of New York deal
ers have tee2raphed western shippers to stop
sending grain east owing to the difficulty of
procuring money with which TO meet sigdt
drafts.
Bank says that the amount paid out by them
yesterday was one-quarter less than the aver
age The run or the savings banks here it is
believed has stopped. Ciews & Co. say their
securities would be far more than ample to set
them right in ordinary times; when the money
market improves they may resume. The four
days there was an uninterrupted run on them.
They published list of their correspondents
which embrace 249 loans of State banks and
156 private banks. The firm consisted of Henry
Clewes and L. S. Fowler 1t is reported that
several financial friends have offered to come to
their relief.
Augustus Schell pronounces false the state
ment that 81, ,708,O00 loan made bv the Lake
Shore Company from the Union Trust Com
pany was to pay dividend. 1t was, he says,
for the laying of the second track.
1t is asserted on authority of one of the ex-
amining committee of the Union Trust Com
pany that Carleton's defalcatiou is much less
than at first supposed. Up to noon yesterday
the defalcatIOn discovered aggregated b. S75,-
600 Many of The securities on which he loaned
the funds of the company are believed to be of
better character than at first supposed
Judge Fanoher this ofternoon, on application
of counsel. modified the injunction against the
Union Trust Company so as to permit 1t to issue
registers aud countersgn the certificates of the
stock, ETC., for parties with whom terms were
agreed upon for such services prior 10 Ser tenn
ber Goth.
Visits to the establishments of the Leading
grOcerS and petroleum dealers aud hardware
men throughout the city were made to-day. Que
and all of them deny that the present financial
Crisis had any effect whatever IN their business,
and that the rumors current are gotten up by
spectators who are anxious for a continuance
of the panic
There is nothing new in relation to the run
on savings banks. The larger ones are paying
| out sums as on yesterday, aud will continue to
| do SO.
Carleton is in consultation with his friends
and making arrangements to turn over 10 the
Union Company all he has. He is in friends s
house in New jersey and could be arrested at
| any time. large black trunk belonging to
| him has been discovered in the vault of the
| Trust Company building containing a consdera-
hla amount of securities on which he had loaued
| funds OF the compouy.
| The Clearing House Committee issued
| $4,000, 900 in loan certificates to-day. The Sub
Treasury paid out $233.000 in gold coin on ac-
count and in crest, and $S8, ,000 for called bonds
800 p. m.-Brown & Watson, brokers, have
suspended.
Getting Frightened.
The evening papers call on the President to
call an extra session of Congress to take mea-
sures to relieve the panic. The feeling On the
| street continues strongly in favor of keeping
| the Stock Exchange closed. In fact, this mea-
| sure IS absolutely necessary to save any fresh
| excitement.
Dollar for Dollar.
The Union Trust Company directors say the
company will be able to pay dollar for dollar,
| aud that the amount of the late secretary's de
falcation will not be over $20O,00O
The banks to day paid the manufactures lay
| rolls in greenbacks.
The Dry Goods Dealers.
A number of interviews with the leading dry
goods men are published this evening. All
affirm that though business is rather dull the
houses themselves were never in better condi-
tion and the rumors of failures among them
are entirely groundleSs.
Meeting of the Clearing House Associa-
At the meetiugof the Clearing House Asso-
citation this afternoon, resolutions were adopted
appointing special committee to consider
what reforms are required in the practical oper-
ations of the banks with each other and with
the public, with view to increasing the securi-
ty of the business Also that the Secretary of
Treasury be solicited to confer with the com
mttee with the view of adopting some meas
ure no relieve the present difficulty in moving
crops from the interior for shipment abroad
and also in relation to paying such bonds of
the government as may 0e practicable to fur
nsh the required currency to meet the present
demands. The last resolution was telegraphed
to Secretary Richardson Immediately.
No More Purchases of Bonds at Present.
!, Gen. Hi'lhou Sc states that he has exhausted
his limit aud will make no further purchases
tomorrow of $40 bonds till he receives further
instruction from Washington. having alleady
pad out the 100000.
stock Proposals.
The committee of the Stock Exchange ap-
pointed to confer with the Clearing House
committee in regard to the reopenIng of the
Exchange has addressed the latter louy COM
munication in which they suggest that the true
way t., solve the difficulty is that those banks
content to make clearanceS with each other
should to the extent of their associated capital,
guarantee the payment of checks certiti ID by
the banks allowed to enter the Gle ,ring house.
To enable the banks which assent to our pro-
posal to feel that they are not entering into an
intmate guarantee of those whoset condition
there is now time to investigate, we would
suggest that the bank clearings be made an
hour earlier than at present, aud on the dis
covery of the Clearing House of auy weakness
on the part of bank. the President of the
Stock Exchange should be at once notified that
such bank would thereafter be excluded from
the guarantee of the association.
Encouraging signs.
To-day closed with SIGNS of encouragement.
although the feeling il anything but what
might be wished. The banks, which institu-
tons are bearing the brunt of the fight, stand
as they stood Monday morning-that is united
and strong. They are resolved not to suspend,
and when that fact is appreciated fully by bus
mess men, confidence will be restored in them.
They have utilized 100000 900 more of their
assets for use il place of ], gal tender notes in
the settlement of clearing house differences
To day of the $1O,0U0,000 of certificates au-
thorized, $3,000,000 were issued Their actio"
amounts to issue of $20, 100000 of legal ten
ders so far as the clearing house settlements
are concerned. This is the basis for
$S0,0O0,000 of loans, if used as such basis, and
III 1t is not necessary to pay out legal tenders