The New York herald., 1873-09-25

More interest centred in the Treasury Depart
ment to-day than since the financial crash was an
nounced on Thursday last The Secretary received
more kilograms than on any previous day The
failure Of Howes Macy ana the suspension Of the
London house of Clews Habicht h Co. made
the officias seriously doubt whether the panic
was really over. The President, who Is
warm personal friend of Mr.. Clews and at whose
instance the London firm was made government
depostary, and not government agency, as 1t is
generally reported, telegraphed to the State
and Treasury departments Immediately upon
the receipt of the news of the suspen-
sion of the London house, asking what
their standing was with the government and to
what extent our funds were under their control.
The State Department promptly answered that, so
far as their accounts were concerned, the in
debtedness was probably in favor of the firm.
CLEws 4 co. INDEBTED TO THE GOVERNMENT
The Treasury Department was not so fortunate.
One hundred and eighty thousand dollars, in Con-
sular fees, stands charged against them, and an
unexpended balance of about $12,o of the money
appropriated to defray the expenses OF arbitration
at Geneva was still in their possession.
In conversation with a gentleman who at one
time occupied high diplomatic function in Europe,
your correspondent was informed that at
this season OF the year this house had
not less than 1000 OF government funds
to its credit. Next week the consular agents
would have paid IN the fees which quarterly
amount to about $S0,oO0. From the Treasury
officials nothing definite could be learned.
When there is doubt 1t is always
on the patients side, and, as the physi-
clan says in a desperate case 'recovery Is
doubtful but while there is life there is hope" The
Department does not know how much it has lost
and Is unwilling to give any statement at present.
The truth will be bad enough when it comes.
THE SALES OF BONDS
were Geographically reported as fast as made,
some envelopes received by the Secretary contain
ing as many as seven reports. The amounts toward
the close OF the day showed that parties having
limited securities were dsposing OF them as
fast as possible. This was the worst feature
OF the days reports. The failure OF great
firms, suddenly called upon to meet the demands
of q panicky market could be understood.
but when the sale OF $1,000, $1,000, $4,000
and $4,000 bonds was compared with
100000, 100000 and $5oo,OoO bonds,
dent the money market was Tightening every
hour, and no one could tell where the re-
vulsion would end. The question naturally
ment now trust its funds in Londons All
government business with Jay Cooke McCuoch
Hablcnt 4 co; deprived the government of their
assistance. The house OF
u. y. Il
by the Secretary or the Treasury, who, from per.
sonal acquaintance with the London banking
houses during the operations OF the first ndicate
enables him to speak somewhat positively; and il
is understood that to this firm the government
account will be transferred.
THE NAVY AND POST OFFICE DEPARTMENTS
have been banking with Jay Cooke, McCulloch 4
Co. With the reported suspension OF Clews,
Habicht Co. came despatch from London to the
efect that the panic IN New York had completely
nattened the market for the new loan and that
foreign capitalists would seek investments in the
United States In good securities at their deprecated
values. This was not wholly unexpected, and the
oil dollars to New York confirmed the first despatch.
AN UNHEEDED APPEAL
This afternoon 1t was currently reported that the
American bankers in London had appealed to the
support In their distress. Letters OF credit were
being drawn upon and money must be had. The
stating that he was powerless to help them.
That the legal tender Reserve has beenl drawn
upon to the amount OF about $4,000, 900, there
is no doubt. The unexpected purchase OF so large
an amount OF bonds has reduced the cur
rency balance to nearly nothing. To prevent
the department from being deprived Of the show
OF a currency balance 1t was absolutely necessary
to make the draw as above stated and should the
demand for currency continne every bond pur-
chased will represent that amount Of expansion Of
THE SUSPENSION OF THE PETERSBURG BANKS.
was followed by promptly placing them in the hands
OF receivers. Though Comptroller Knox believes
the natter and had the New YORK banks attempted
temporary suspension 1t would have been his duty
to close them up and appoint receiver for each.
AN INCIDENT OF JAY COOKIES FAILURE.
Among the Incidents OF the recent suspension Is
that OF ]. p. Root, late Minister to Chilli The
balance in Mr.. Roots favor was $4,l7s. He drew
Cooke 4 Co., payable on the 9th inst. SO far az
the government Is concerned II does not owe Mr..
Root q cent. nor is the draft payable for several
days. and Jay Cooke 4 60. having faned' what u