The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1873-09-25
A FINANCIAL CRASH!
Jay COOKE & co. FAIL.
Failures in New York-A Tempest in
Wnu Street.

HI SNLC1NH
On Thursday last. week the business
world was startled by tie announcement
Of the failure of Jay Cooke & Co, and the
closing of their banking houses in PAila-
delphia and New York and also Of their
National bank in Philadelphia.
This of course unsettled things, and
"Friday was the most disastrous dav
known in Wall street siHce 1857. Firms
considered among the soundest on the
street suspended early in the day, and the
panic consequent thereupon compelled the
suspension Of many smaller houses. The
failures of the heavy concerns have nearly
all, If not all, resulted from Endorsements
of new railway enterprises. The expan-
sion Of enterprise in this direction has
been enormous within the past few years,
more miles of railway having been con-
structed in the past six years than were
built altogether before the war. Nearly
all of this construction has been done on
credit, houses in every other respect con-
servative have shouldered the enterprises.
relying wholly upon the sale of the rail-
road bonds to meet accTuing obligations.
Dull times must come occasionally, and
such have been experienced by these
houses IN the past few months. The de-
posits of Western firms IN New York
banks and banking houses have of late
been less than usual, and this, added to
the fact that some currency has been lock-
ed up by spectators, has made money
tight, and rendered the negotiations of all
kinds of securities difficult, sven when
backed by the best houses. Prominent
firms carrying railroad enterprises have
consequently been forced to shoulder their
load alone, and the drains upon them for
interest and cost Of construction have been
enormous. ShreWd operators Ike Daniel
Drew andJay Gould foresaw the neces-
sary result, and went short on stocks to 4
large amount, at the same tine throwing
all their influence to hasten tile general
catastrophe. The result is that they are
said to have reaped a golden harvest amid
extensive disaster"
The stock exchange was . wild scene of
excitement during much Of Friday. Nine
teen firms failed and-as the reports came
in different were the manifestations. Some
times hats were thrown up and cheers CIV
en- and occasionally q mournful wall
When word came.of the failure Of Ran
dolph Go, the Pa. Central establishment,
and Randolph, too, being Tom Scott's SON
in-law, Il broker excitsdly said, "My
God, who neXt?'
After the close of the Stock Exchange
at 5 p. m, and it had become known that
the government would come in with ten
millions next day, q we'll Ehown and IN
luential broker said:
"The Government has come 10 the res
cue of the fellows who have gone under.
All of them, with the exception Of Dick
are truly loyal and that's why the
fNA-1v1-,A-A 4-t--. 49, ILL n H.
were Democrats or hostile to.
Mr.. Grant do You suppose any assistance
be rendered from that source Not
4 bit of IT,"
At the close Harlem had fallen from
1881 TO 90; Lake Shore from 9lS to So;
Wabash, from 61R to $751;. Northwestern
common from 59I to 405; Rock Island,
LOG to SIS; st. Paul, irGn 46S to so;
Western Union, from 96l to g.; Pacific
Mail, 43a to 324; Union Pacific, from 24&
to IG; c c I and c., from 2S3 TO l9I.
Ohio and Miss, from 373 to 26S: and New
York Central, from 1908 to 81.
The failure of the Lake Shore Railroad
to pay a call loan of 81, 10000 on Satur-
day precipitated the failure of the Union
Trust Company, and thus, contrary to
general expectation, the panic that day
~ hC-1C NAasA-A WI <&AAAlAN AAEAE
alarm prevailedin financial circles. Meas
ures Of relief were undertaken, full details
Of which are published below. President
Grant, Secretary Of the Treasury Richard
son, and Gen. HillhoEse, S~ub-Treasurer in
n y city, met a large number of the Iarg-
est capitalists and most prominent fnan-
at the Fifth Avenue Hotel in con-
On the crisis. The proposition was
made directly TO the President TO lend the
Treasury Reserve Of $44, 100000 to the
banks, and it was at once rejected because
without warrant of law. Commodore
Vanderbilt then proposed o blend $4,000
BOO If the Treasury would issue S25,O00,-
300, but he was asked why hedld not nay
The call loan OF SI,Is1FJO0 Gae tIe Union
Trust Company, and allow + TO resume.
This he accepted as q d~eclination of his Of
lei, andretired Wishout explaining his fail
Qre to pay the loan due. Eleven addition
2l failures of brokers were announced,
making q total of thirty-three houses
which have failed and three banbs which
have suspended. The Stock EXCHANGE
has been closed until further orders of the
President, and thus speculation has been
practically stopped until settlements can
be made. By this action confidence was
IN large measure restored among the brok-
ers; and later the bankers and merchants
and larger army Of bank depositors were
reassured by the action of the Clearing
Committee in issuing $~l0,000,000
Of loan certificates, and resolving on con-
eerted action of the moneyed Institutions:
The Government also threw $l0,0C0,0 600 Of
greenbacks on the streets by the offer to
purchase bonds to that amount, and these
measures CT relief very much helped 70