New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-24
A GOVERNMENT BANKERS DOWNFALL.


was informed by bank president that Henry Clews
& Co. had had a large amount of securities thrown
back upon their hands, and would be compelled to
suspend. The reporter at once visited the Fourth
National Bank. which has acted for Henry Clews d
Co. in the Clearing House to learn the truth OF the
report. He was there informed that the bank
had carried $4,000 in checks on Clews d Co..
through Monday, but yesterday additionatchecks
came in to the amount of $4,000. The firm bad no
funds in bank TO take up these checks, and though
they offered securities of varions kinds the bank
officers did not feel justified in accepting them and
taking up the checks. Mr.. Clews had been closeted
with Mr.. Calhoun, the President, during the greater
part of the day. using every means of persuasion IN
his power to prevail upon the President to take up
his checks. This was without avail, and about p.
m. the checks were thrown back upon Clews d Co..
and their suspension became inevitable.
The reporter then went TO the office of Clews d
Co, expecting to find it closed, but it still open
and business was apparently proceeding as usual
but while the reporter standing in the counting
room a check was presented to the paying teller
which was returned by him to the person presenting
il. Soon afterward another check was presented
and met the same fate. At this moment Mr.. Clews
passed from his private Office into the counting
room, and the reporter accOsted him:
Reporter-I hear the statement made that you are
about to suspend. Is it cOrrecti
Mr. Clews-lt is not.
Reporter-What is the meaning of the return of
checks unpaidi
Mr. Clews-I can t tell you what il means.
Mr. Clews then went ont and walked up Wall-st.
II was supposed by some that he had gone to make
another effort to obtain funds; by others that he
was simply getting out of the way before the an
nouncement of his failure should be made public.
Il .ln
and it was known that Henry Clews q Co. had sus-
pended payment. The house was formerly known as
Liverm0re, Clews d Co., and in 1855 became Henry
Clews g. Co. i. S. Fowler is the second member of
the firm.
CHAOS IN THE HOUSE.
In an instant a crowd collected. The news seemed
to spread like the wind. A number of dapper young
messengers bounced into the dOorways, unmindful
of the crowd and seemingly intent only on reaching
the ellers desk before the windows were closed at
3p. m. Quite a crowd, said one to a bystander.
Whats the matter ~ "iMatteri Clews has sus-
pendedw Each messenger blew long whistle
and took from his pocket heavily laden deposit
book Wanted TO deposit these" said one,
"but guess we can wait" In and through the
rooms and dOorways, the crowd thronged, lounging
on the handsomely cushioned sofas and stretching
their legs across the black walnut desks. One old
gentleman became the center of interested group
in the reception room by his lively denuncaton of
the newly-broken banker. 81 had Government
bonds" said he, land Clews persuaded Inc to change
them for Alabama Railway bonds. He has been
dabbling too much in these rotten carpet-ba
securities and SO am in for it," He was somewhat
violent in his gesticulatons and loud in his Ian
Ruage and an affable friend of the firm soon per-
suaded him TO withdraw.
Henry Clews appeared at the bank soon after
his walk, flushed and excited. He made no reply to
the reporter who accOsted him, but strobe rapidly
through the outer to his room in the rear of the
glass-cased countingToom. Here he remained for
some time, and then again plunged into the crowd
and was seen pushing through the busy groups in
Wall-st., intent apparently on his own thoughts.
In the mean time the business, such as 1t was OF the
banking house of Henry Ciews q Co. was left to the
bewildered clerks, who peered through the closed
windows upon the curious crowd in seeming doubt
as to whether they should open the windows and re-
sumo ON their own account or not. Mr.. Greenough,
the managing clerk, busted himself as far as he
could in settling the accounts of the day, but even
he had the bewldered air common to them all.
Do you think you will pay tomorrow 7" asked one
of the check holders. who had come in half an hour
too late. PAY tomorrow repeated the wretched
clerk with an distracted air; "payi Oh, yes, we
are expecting remittances every moment" Among
the substantial men who came in TO condole with
the afflicted firm were Henry G. Stebbins, John
Hoey and others, but they were unable TO afford
much consolation, and soon withdrew AT about
o'clock policemen cleared the halls and took up their
positions at the front door W. !sr~--'~
GOVERNMENT FAvoRs RECEIVED.
On Saturday morning when it was announced
that the Treasury would purchase 100000 OF
bonds the Unien Trust Company could not obtain
any greenbaeks until i2 o'clock, but it is stated
that at 10 o'clock Henry Clews Co. received large
packages of greenbacks from the Sub-Treasury,
which were being opened in their office at that hour
Whether this was for money, paid for purchases of
bonds Of Henry Clews d Co.
"ovERBoRyE BY SCARCITY OF GREESBAcKs."
The managing clerk, Mr.. Greenough, who has been
familiar with the books and details Of the business
| for several years. made the following IN
| formal statement TO TRIBUNE reporter
There has been. Sir, for four days
steady, uninterrupted run upon us. We have
paid out all Qpr available currency and find ourselves
to-day at tie end of all our available money. we
could simply pay no more and closed our doors.
q. What amount do you think you paid out IN
that timei A. million and a.quarter in green
backs. We had no banks TO back US, although we
have all the duties and responsibilities of national
bank, and we could not stand il.
| O. Was the suspension occasioned at all by rail
way investment OF speculation A. Not at all we
had made none were SIMPLY OverbOrne by the
scarcity of greenbacks we have ample securities to
meet every liability but the securities are not avail
| able.