Port Tobacco times, and Charles County advertiser. (Port Tobacco, Md.) 1845-1898, 1873-09-26
Financial Disaster.

On September 18th, the tremendous bu-
siness houses of Jay Cooke & Co., in this
country suspended payment. The closing
of their doors created futter in business
circles that almost amounted to a panic.
Jay Cooke & Co., published the following
card on that day, which is at once explain
atory and seems to have stayed the panic
somewhat. They say:
'The immediate cause of suspension of
Jay Cooke & Co., was the large drawing
upon them by their Philadelphia house
and their own depositers during the last
fortnight. Both houses have suffered a
large drain upon their deposits in conse-
quence of the uneasy feeling which has re-
Gently prevailed and which has affected
more or less all houses closely identified
with new railroad enterprises. The Phil
adelphia house had previously been weak
ened by large cash advances to the North
ern Pacific Railroad Company, of which
they are the financial agents. The bust
ness of Jay Cooke, McCulloch & Co., Lon
don, is entirely distinct, and that house is
perfectly solvent, so that it will meet all
its outstanding drafts and letters of credit
without inconvenience to travellers and
have large cash surplus to apply to the
American house.
The firm of Jay Cooke & Co., and its
members have a large amount of real and
personal property, upon which they, how
ever, cannot Immediately realize. They
are confident depositers will be paid in
full"
The branch of this firm in London seems
therefore to be entirely distinct and sepa-
rate, is affected in no way by the failure
of the American houses; will be able to
meet all their demands promptly and have
a large surplus with which to aid the
houses here.
On Saturday more failures were announc-
ed among the Stock Brokers, making in
all over fifty of these houses that have
gone. It is useless to publish the names.
Such names as Fiske 6 Hatch and Jacob
Little, coupled with Jay Cooke 6 Co., show
that the largest as well as the small gave
way to the immense pressure.
On Tuesday last another tremendous
crash came. We copy the following from
the Baltimore american of Wednesday:
Unfortunately the indications that the
financial panic had spent its strength on
Monday were not confirmed yesterday
The, day opened well, and up to noon it
seemed that affairs were settling down to
peace and quiet, when series of disturb
ing rumors threw Wall street back into the
agitation of the past few days, and before
the close of business they were confirmed
by the announcement of the failure of the
house of Henry Clews & Co., an institution
that for supposed stability and the mag
nitude of its operations was equal to Jay
Cooke & Co. and Fiske & Hatch. This
renewed the Generalization, and the day
closed with the gloomy prospect that the
trouble may be indefinitely extended. The
feeling of alarm has begun to .permeate the
mercantile community, and the course of
the New York banks in refusing ample &C
commodation to merchants upon reliable
paper, while in state of virtual suspen-
sion themselves, has tended to increase it.
Notwithstanding these unfavorable ind1-
cations, and the signs that the crash is be-
ing felt outside of New York, we are hope
full that matters must soon take turn for
the better. Such storm as we have had
could not pass away without leaving some
final evidences of it's fury, and even if the
situation should become graver to-day, we
think that there is no good reason for de-
spair. Our Baltimore banks have acted
wisely in pooling their assets in the Clear
ing House and thus making ready for an
emergency, but this must be regarded as
merely precautionary measure and not
taken as any evidence of distress. We are
all right in Baltimore, and if we keep cool
and courageous we shall not be scathed.
1t must be remembered that the doleful
prophecies and reports which come from
New York are exaggerated by the fears
and impressions of men who are in the
midst of the excitement, and should there
fore be taken at considerable discount.
We copy the following remarks from
the Baltimore Gazette of Thursday:
In this city the day closed quietly
There was no demand for currency beyond
the requirements for the usual transactions.
There was no excitement other than that
growing out of the kilograms from New
York, and the arrangement of the calcula-
tions of business men consequent thereup-
on-all our banks manifesting great eau
ton in taking drafts on that city, and de-
clining, in most instances, to enter them
to the credit of depositors until advised of
payment. Discounts were made as usual
though sparingl y-to customers; but
money in large sums was hard to obtain,
even on the best securities, although high
rates were offered for its use. On the whole,
the aspect at the close of business was more
favorable than might have been expected
from the gloomy outlook of the morning,
and so far as the banks themselves are con
cerned, their healthy condition in general
is best exemplifed in the fact that the de-
mand for clearing houses certificates was
Unexpectedly small.
A Precautionary Measure.
The following is from the Baltimore
Gazette of Wednesday:
Simply as measure of precaution-the
wisdom of which we think none will dis
pute-the associated banks Of this city met
yesterday, and passed resolution which
will effect two salutary purposes: 1t will
afford protection to all the banks in any
unforeseen contingency that may possibly,
but not probably, grow out OF the troubles
in New York, and it will have no tenden
cy to ease that Temporary tightness In the
money market which is the natural conse
quence of those troubles. In both respects,
the course taken by our banks will accom-
plish much good. Under the resolution, as