The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1873-09-25
JAZZ COOKE l. 60.
How the News Was Received in
Chicago aud Along the
Northern Pacific.

Tue new. that Jay Cooke Il Co. hSd gone
where the woodbine twineth furnished con-
venient topic Of conversation round ,osn.
A fresh topic was absolutely necessary. The
bit OF fire On "Wednesday afternoon ~a- oo'
sufficiently exciting 10 make j; worthy o! con-
,inuous comment; .heee WIS a lali ia local
pcl.tics; matters were inactive at police head
quarters, Sheridan and Wsshbaan ieing in
a state of-nasieriv reposs; Their. had no: been
a railroad collision, u shipwreck, n'usGer,
or suicide for iwen'y-ioHr hoars. and
things we're becoming stagn,D', when the
busy telegraph announced ihst Jaw Cooke X
Co had gone under. This Mss worth isik-
ing shout; il was large concern; ii had
occupied prominent place in the public at
tention for a series OF year; It Was intimately
connected with government bond sales dur
ing tue war; i; was the agent Of the SyEdi-
Gates and of the Norne,a Pacific railroad
scheme, and vas general y regarded a one
Of the sOundest and most prosperous bank
ing establishments in the Cai.ed States. Had
the Treasury itseif refused payment, the sur.
prise could hardly Ia sc be: N more general
IN FINANCIAL CIRCLES,
the event was discussed in a business like
way, and the banking house Of Luni, Pres
ton & Kesn, the LEGAL sgen's Of Jay Cooke
4 Co. for the sale Of Northern Pacific bonds,
Was visited by a large numbsr OF persons,
who doubted the meas or were pecuhiaIily
interested in the failure. At frat the firm
were disposed to di-cretiit tie rnmors, bat
they got private advices Which confirmed
ready 10 tell all they knew. As agents for
the sale of the Northern Pacific bonds, they
had Investigated the enterprise before con-
senting 10 act, and Oecnme satisfied that the
bonds would be
A GOOD LONGTIME" INVESTMENT.
such we're the representations they made
to buyers. Happily the buyers were not nu-
merOus in the West, only about $500. 900
worth o! tie bonds having been sold in the
States for which they were agents, and bot
S25, 900 Of that amount ia held in Chicago.
The firm we're agents tor ell the Northwest.
ern States except Ohio. Under instructions
from Jay Cooke & Co., tie bonds were sold
at par, and
LUNT, PRESTON & KEAN
received only the usual commission. In re.
ply to the many inquiries concerning the
bonds, the firm stated that their intrinsic
value could not be affected by the failure OF
Jay Cooke 4 Co, since they we're 8 FIRE.
mortgage on the road and on the land Lunt,
Preston & Keen had an account with the
failed firm, but the balance amountei only to
81, 500. which cannot affect them in the
least, even if they lose the whole Of il.
Mr.. J. IRVING PEARcE.
Presiden, Of the Third National, did No, e.
lieye the failure wonld effect tie Wet,
though it might have tendency to shake
confidence for short period. Very few
Western people did business with Jay Cooke
& Co., though there we're here and there
small banks and brokers who had accounts.
The West was never ID q batter condition
than at present, and the failure was not
likely to he fel..
Mr.. GAGE,
Cashier of the First National, t!iough, tha,,
would not be widely felt, hut the financial
system Of the country WA like spiders
web-,ouch one part, and the whole world
vibrsie: He had not had time to reflect On
the matter, and was not in possession OF the
particulars. IT might be possible that so ex-
tensive firm az jay Cooke X ca. would
drag down smaller institution as 10 Il corn-
mon ruin.
CREDITS IN TIE WET
we're basei on al entirely different line Of
transactions from raiirosd Construction
bonds. There wss no surplus capital in the
West to he thrown AWAY on inch invest
mepis. Loans here were based on the pro-
ducts OF the country. Country hanks lend to
the farmer, and the farmer to tine country
trade, ard 40 il went, leaving little money for
outside specnix.ions like the Northern Pacific
railroad. The failure would hsve tend
ency to
TEMPORARILY DESTROY CONFIDENCE,
and make money tight. 1, would also check
our railroad extensions, which Mr. Gage con
ceived to be entirely too rapid. Roads were
being built too fast, and frequently for mere
speculative purposes. There was an over
construction Of railroads. The failure &C.
CURED at most fortunate time. The Wes,
was never better fixed for failure. We
have on hand the pro !uc.s OF the pFsiries.
which the people OF the world must have,
and mus. send their rnansv II get.
ON THE NORTHEHs PACIFIC
DULUTH, MINI. Sept. IS-Inresse ,e!-
ing here in regard to TIE :s,n,- -, JAY Coke
Il Co.
FARGO, d. T.. Sept. IS -'G2e excitement
along the line Of the Northern Pacific Rail-
road over the reported failure Of Jay Cooke
& Co. extends from Dnlrth to B;smark. Da-
kota. 1t prostrates everything, and noihjrg
else is talked of. Extras have been issued
by most Of the papers, and feeling of the