New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-22


Commonwealth and of dozen or more brokers' ana the
run r,n other nstuons all made serious havoc with
what was left of the Judgment OF the street Inc depre
citation OF the values had become appalling, ana was
evident that II practical measure were not DEVISED
zero woud be the result Desperation verging upon IN
sanitv eeemed TO succeeded tile buzz OF excitement
small group gathered in corner OF the room and on
aged in earnest discussion Their number had gradually
sweed and thor opinions seemed 10 have earned gen.
era approval They had resolved to close the Exchange
land almost Immediately they approached VceChairman
wheelock, andimade their request.
Mr. Wheeock, however declined toentertain 1t, decar
ING thar 1t was the province Of the Governing Committee
70 close the Exchange and could not be ordered by him.
The determined multitude. however Immediately heida
meeting around the oval table, and motion to declare
the Exchange closed Immediately carried authority
TO reopen Il being left with the Governing COMMITTEE
The unoonstiutonalty OF the act immediately became
the topic OF little later, however the
Governing Committee declared that the members had
only anticipated their action. and formally and legally
declared the Exchange closed until to-day. The follow
ing order was then published and eleraphed to all the
banks and brokers' offices:
The Stock Exchange closed until further orders from
the President All operations in the street outside OF
Exchange are prohibited under penalty OF expulsion
ii. q. CHAPMAN, President.
Subsequently, in interview with reporter, Vice
Chairman Wheelock said
About III o'clock number Of the members Of the Ex-
would all be ruined IL the Exchange remained open any
longer aud asked me to proclaim II closed mi Monday
told them that would do such thing; that only the
Governing Committee had power TO close the Exchange
keep 1t open. The best course for them TO
take, / SAID, was to call meeting OF tine
members and pass resolutions requesting the Gov
ernlng Committee to close the Exchange. While was
giving them this advice delegation from the banks
in 10 make this very demand OF the Committee,
and knew then it was OF to resist any longer
With accord the members took the matter into ther
own hands, and resolved TO close the Exchange, and
the OF
mittee. Under the circumstances 1t was the only thS
to be DONE and my opinion ought TO have been done
Friday If it had been done, the majority Of the
firms which suspended this morning would nave been
rescued from RUM and millions OF dollars saved
Mr. wbeelock said further that just before the Ex-
change closed he put up Western Union at as but could
not get single offer. The result would have been the
same he had offered at 25 In respect to the reopen
ing of the Exchange he said that it would not take
place until the members had time to look about them
and find out where they This might come to pass
time to-day but it might be Wednesday before the
Exchange could be opened. The longer it was closed
the better Its closing has preserved scores OF FIRMS
saved millions of dollars. While it continues closed
member sell on the street under penalty OF ex-
pulsion, and all contracts are in allegiance.
Subsequently a TRIBUNE reporter conversed with H.
g. Chapman, of Ward Campbell Co.. the President OF
the Stock Exchange. Mr. Chapman said that the Ex-
change had been formally closed TO allow the brokers
and dealers how they Stood and TO arrange their
accounts. Men had been dealing in excited fashion,
and they could tell whether their transactions would
be settled. The discrimination exercised against
certain banks and the troubles that had ensued ad-
monished them OF the dangers which attended the fur
her transaction OF business on the Exchange until mat
tiers had reached secure basis.
Although it intended that the closing OF the Stock
Exchange should aay the public excitement. it had
precisely the opposite effect for time, precedent OF
the kind had been established, and the announce
ment of the closing fell with ominous effect upon the
street. II generally conceded, however, that the
a good one and prevented the already de-
pleted exchequer from being actually drained, in
| monetary
THE GOLD EXCHANGE BANK CLOSED.
Not since the eventful epoch of Black Friday
has the Gold Exchange Bank Ghe clearnghO of the
Gold EXCHANGED been obliged to its operations.
According to the rules of the bank payment OF all bal
due the bank must be made at the time the state
ments handed In If currency, by certified checks
II gold by certified checks, con United States Treas
ury gold certificates All checks paid to the bank must
be made payable the order OF the Metropolitan Ma
tional Bank for credit OF the NewYork Gold Exchange
Bank. The bank Will pay all balances due its
dealers in checks on the Metropolitan National
Bank, payable to the order of the dealer
at II D. m, the necessary
animation of statements completed but in will
make any payment OF balances due dealers until all
balances due the bank shall have been handed in.
Owing the bank troubles 1t difficult TO obtain the
requisite cerfcaOn and the rules Of the bank would
not admit of the receipt uncertfed checks
dent Of the Gold Exchange Bank issued the following
order:
Notice is hereby given that general clearance cannot
be effected this day owing TO the fact that Of the
dealers find it impossible TO get their checks certified in
proper manner. All statements, tickets and checks
will be returned to the dealers on application TO the
bank. X. l.. EDWARDS, President.
There were large number OF differences to be settled
at the time this notice received, and there
rush of dealers TO the of their
This.was over, and at early hour the bank
almost deserted.
William s. Matthews, the cashier said that there was
no embarrassment whatever far the bank itself
was concerned years ago the vast had
proved too much for It, when in addition to its work
the Gold Exchange Clearing house. it doing gen.
eral banking business But in this time Of universal
dsrust the bank deemed it wise to forego usual pay
ments of differences and by suspension OF Its business
tacty allow dealers settle they chose directly with
another As as the fever OF the day and the
| shaken condition Of one or two banks were known,
meeting Of the directors called and action deter
mined upOn Tho trouble with the ordinary method OF
clearance such day tenod. In the first place it
was difficult know what banks to trust and II any
attempt made by partial cearances to distinguish
between banks amending complication would arse
which it would be impoltic to court impossible
settle.
THE UNION TRUST COMPANY CLOSED.
IT'S SECRETARY DEFAULTER-AN IMMENSE LOAN
TO TIE LAKE SHORE RAILROAD.
As early as six o'clock On Saturday morning
Cd so1u tho