The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-09-19
TELEGRAPHIC NEWS.
Suspension Of a Great Banking
House and its Branches.
Failure OF Jay Cooke d Co. IN Ne"
York, PniIadclphin, and wash
ington-The London House
said TO be Holding
Out-Other Failures
Renortcd.
rsnec,al telegram to the Dispatch.l


of the suspension of Jay Cooke & Co. in
New York and Philadelphia they had con-
cludett to close their doors until they
heard further from them. This pubic
announcement produced for t'me
wild sensations, and a large crowd
congregated in front of the marble building
occupied by that clearinghouse, just opro-
site the United States Treasury Department,
and INDUCED in all kinds of speculation con-
corning the suspension of the great firm. 1t
was universally expressed that the house nao
fallen victim to the demands upon IL on &C
count of the Northern Pacific railroad, ana
dispatches from New York prove this to be
the fact, The firm has been assiduous IN It's
attention to the demands of the railroad Which
it attempted to carry through, and the burden
has been entirely too heavy, until at last the
New Y rk and Philadelphia houses have been
forced to succumb to the pressure and the
branch house in this city, being in the DARK
as TO the exact condition of the affairs OF the
firm in the two aforementioned cities, be-
lieyed it best to close doors. This ACTON Oh
its part was very quickly followed by the
First National Bank, of which Dir. henry
D. Cooke, member of the nrm OF Jay
| Cooke 6, Co., and Ex-Governor OF the Dis
trict, is president. This bank occupies
the Upper story of the building IN
which the clearinghouse of Jay COOKE
e. Go. is located, and its suspension
added TO the excitement which already eX-
isted. Mr.. Knox. the Controller OF the Cur
rency. repaired immediately to the fUst
National Bank, and after review OF Tue
situation concluded that it would be proper
70 appoint 4 receiver and wind up the affairs
of the bank.
The Secretary of the Treasury was inter-
viewed to-day upon the relation OF the Gov
ernmcnt to the suspended banklng-houses,
and 50 far as affairs belonging to the Syndl-
cate are concerned, declares that the Govern
ment will not lose single cent, as all the nego'
tiations that have been made have been with
advantage to the Treasury Department, and
that for all bonds given over to the Syndl-
cate the Government has been fully prepaid,
and is even now in debt to the Syndicate.
The First National Bank contained some
deposits of public funds but these are Sc
cured by bonds deposited with the United
States Treasurer, so that there will be no
loss on that score.
Among the depositors in the bank OF Jay
Cooke Il Co. here are said to be the Presl-
dent. several Cabinet officers, and several
members of Congress. The poorer classes
are not thought to be affected by the Su$pen-
sion to any great extent.
Dir. Teuny, the manager OF the
bank here, in giving an account OF
the suspension, says it is only temporary.
We have heard Of the suspension OF our
PHILADELPHIA and New York houses. The
Philadelpha house suspended first; then
the New York. The directors OF the mouse
in this city are confident that i'll short time
the houses in each place Will be aG!c 10 re-
sumo. as the European house Is solvent, with
a large surplus. 1t is matter OF Us much
surprise TO lis rs TO the public, ana we are
unable ut present to give any facts III
regard to the suspension. We are III the
dark regarding the action OF the other
houses. and were forced to suspend on their
account. The bank can now open its doors
and pay dollar for dollar, but we 10 not
deem it cxpedicnt to do so until further adj
yised. At ali events, the members of the
firm individually are wealthy and can pzs
the depositors. 1t is my belief that the weight
of the Northern Pacific Railroad bonds bore
down so heavily upon our houses that we
were forced to suspend.
For short time to-day there was some
activity at one or two bank-counters, but
nothing amounting to run: and as 1t soon
became apparent that there was no danger
of any other bank here suspending the draw
ers began to return their deposits. The rush
seemed principally on the Washington City
Savings Bank and the Frecdmen's Savings
Bank: and though it may be renewed to-
morrow. the officers of both institutions to-
night express absolute confidence in their
ability to meet every demand.
The excitement about the Jay Cooke sus-
pension was materially lessened by the re-
ception of dispatch that their London firm
would honor all drafts and letters of credit
upon them by Jay Cooke & Co.
A dispatch from Philadelphia says jay
Cooke & Co. say their failure has been caused,
more than anything else, by individual ad-
vances to the Northern Pacific Railroad Com
pany. They deny positively that they have
ANYTHING to do with the gold-minipS opera.
tons. They make this statement in conse-
ouence of reports telegraphed from New
York.
Ex-Governor Wells, of Virginia, deposited
3 700 with the bank just before it srls-
nended. TMoN.
| Associated Press telegram
Suspension OF jay Cooke d Co.
| New YORK, September 1S.-Jay Cooke &
| Co. have announced their suspension in con-
sequence of large advances made 10 sustain
their Philadelphia house and heavy drain
upon their own deposits,
PHILADELPHIA, September 1S.--Jay Cooke
& Co. have closed. There Is great crowd
about their office.
WASHINGTON, September 1S.-Jay Cooke
G. Co. have closed. The First National
Bank of Washington, III. D. Cooke presi'
dent, has also suspended.
EXCITEMENT OVER THE FAILURE.
New YORK, September 1S.-There is much
excitement in consequence of Cookies fail
ure. The question now is, Who next!"
Business men attribute the failure to ope-
rations in the Northern Pacific railroad. 1t
is feared the National Insurance Company
will 90 under with Cooke.
1t is said that Jay Cooke lost largely in