The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-09-25
The Financial. Crash |!
Failure of Jay Cooke & Co.,
ANOTHER BLACK FRIDAY.

WHICH occurred on thursday last has
been the all absorbing topic in finan-
cial circles during the past week.
There are three Americas houses be-
longing to this firm, one in New York
one in Philadelphia, and one in Wash
ington, all of which suspended. =
Mr.. Cooke 1s also connected with q
London House, which, it'is claimed
viii not be affected by the disaster.
As may well be supposed, the failure
of this firm, which was supposed to
possess abundant resources for all
emergencies, produces panic in
financial circles! throughout the
country. 100 yai
In reference to the great excitement
eccasioned by this great financial
crash, we copy the following from the
New York Sum- of Saturday :5aa'3
Yesterday was the most disastrous
day known IN Wall street since 1857.
Firms considered, among the soundest
on the street suspended early in the
day, and the panic consequent there
upon compelled the suspension of
E
the heavy concerns have nearly all, If
not all, resulted from endorsements of
new railway enterprises. The ex-
pansion of enterprise in this direction
has been enormous within the past
few years, more miles of railroad hav-
/ ing been constructed in the past six
years than were built altogether be-,
fore the war. Nearly all Of this con-
struction has been done ON. credit,
houses IN every other respect consery
alive having shon1defed the enter
prises, relying wholly upon the sale
of railroad bonds. to meet accruing
obligations. Dull times must come
occasionally, and such have been ex-
! perienced BY these houses in the past
few months. The deposits of, West
ern firms in New York banks ana
banking houses have Of late been less
than usual, and this, added to the fact
that some currency has been locked
up by spectators, has made money
! tight, and rendered the nesotiations
of all kinds of securities difficult,
even when backed by. the best houses.
Prominent firms carrying railroad en-
! terprises have Consequently been
forced to shoulder their load alone,
and the drains upon them for nterest
and cost of construction have been
enormous. Shrewd operators like
Daniel Drew and Jay Gould fofesaW
the necessary. result, and went short
of stocksto q large amotiht throwing
all theft influence to hasten the geher-
\ Il catastrophe. The stiesul Is, EEllat they.
are said to have reaped q golden har-
vest amid extensive disaate
Most of the Smaller firms which
have failed are mere stock brokers and
spectators WHO hap pened TO be long
OF stocks and Were unable to cover in
time to save themselves from rifin.-
Many larger operators are believed to
| be seriously Injured, and important
suspentions to-day are expeGted.-
| Nineteen concerns Suspended ycster-
day, of Which the Ifi0st Important
Fisk & Hatch, GreenIeaf, Norris 81 Co.
I Al. NJ. Kfdtier a. Co., White, Deffeitas
s. Rathborne, Hay & Warner, Jacob
Little, and e. d. Randolph s. Co. A
run was made upon the Union Trust
| Company, which continued up to 4
O'Clock, the hour of closing. 1t how
ever, met all its obligations, paying
out about q million lofi dollars, and
claims to be able to. do as well to-day
and hereafter; until allbits creditors
are entirely satisfied. One of the di-
rectors says thato abontz noon aOme
United States bonds were2 semitic the
Manhattan Bank, where the! Union
Trust Company deposits, as collateral
for a greenback loan, but the bank re-
fused to advance any money upon
them Possibly the Manhattan was
not in a condition tOlalend5 on the best
security, aEsthe CsouAdest institutions
are just now carefully u guarding
against large Withdrawals of funds by
their qdepesitoFs,o butn such extreme
cautionI Is jusEifabl only 4on the
ground Of absblHte nocessity. ad3 80
MiThe failure Of iFiska 81 Hatch sur
prised the best informed men. of the
street, as they were considered among
the safest Of firms. Their trouble was
however, owing to their interest in a
railroad enterprise i5Viz: the Chesa-
peake and Ohio. It is understood
that large amountaof money are due
them from the Central Pacific Railroad
and other responsible companies; and
the general impression is shat their
suspension is merely afeInpeEafy.-
GFeenleaf, Norris Sc Coahavb also been
considered emin entity sound; and Mr.,
Norris was one of the Nice-P Presidents
of the Stock Exchange 5as
'a3saA aaia'who Is sAFE25 aa1 sno14
One of the worst featufes Of this
panic is that the suspension OF firm
heretofore believed to be pre-eminent-
| " safe and conservatiY ifapairs con-
I tidence in all firms JAY Cooke has
been looked upon as the RothchiId OF
Ametfca, He was the exponent of
! the national credit. Bonds which !
passed through bis hands were held
/ in every town and county thfonghout
the Union. Fisk & Hatch were also
/ large dealers in GoveFnmeht securities
and people say, tfWhen Jay Cooke, /
Fiske g. Hatch, the New Yoik Ware
house Company, aud such firms fail,
/ WIN IL safe pol ~ olfA f5yssE s3atss
There IS, however, no reason why
/ this panic should. extend beyond the
Immediate neighbofhood of the Stock
Exchange. With, the exception of
have suspen1ed did not hold large
deposits from outside houses. Neither
have the larger firms failed disastrous
lily. Most Of them are said to require
only time to enable them to meet their
\ obligations in full. Very few, II any,
New England, Southern, or. w Western
| concerns will tail because of 4ossss
sustained by the failure of any New
Y ork institutions which have yet been
reported, Besides, the present con-
dition of the country at large is more
than NEUTRALITY-SUSPICIOUS. The pro-
ducts of the soil during the past sea-
\ son have been very bounteeus, and
business men are generally doing well.
But one thing can produce a general
| crisis .tike that of. 1857 or that of 1887,
and that is the feeling of apprehen-
sion that may be- produced in the
country by The e4citsmelt of the past
two days in this, meaey centre. The
feeling has almost, spent itself here.
] for there is limit to mans endurance
aud the strain to which men, ofdinari-
1 ly ceql and spacious, have subjected
themselves cannot be smaintainad in
1 definitely, .Thefeeiing may, however
Fextend throughout the country, and if
every man who has any money in a
bank makes rush to get it ont and
- sV, efn f,oE