New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-22
vol. XXXIn... .No'IO,l3l.
STAYING THE PANIC.
IMPORTANT CONSULTATION OF GOVERN
MENT AUTHORITIES.
rnr rREAsuRY TO BUY 30 BONDS


THE TREASURY TO BUY $40 BONDS.
yHR PRESIDENT vAINIY KNTREATED TO LOAN THE
RESERVE FUND OF S44,OOO,OOO TO THE RANKS
VANDERBILT PROPOSES To, LEND $1O0oOOOo If
THE GOVERNMENT LOANS S25,0OOO OO-THE PROP
osITToN REJECTED-wRITTEN APPEALS TO THE
PRECEDENT FORTIFIED BY LEGAL OPINIONS AGAIN
DEN1ED-THF sUB-rREAsURY TO BUY BoNp'
WITHOUT LMIT-DIsAsTRoUS EFFECT ON ii'i-
RANKS FEARED-THE CLEARINGHOUSE hASAoh"
pEcr.,REs THE BANKS STRONG ENOUGH ~ SiAND
TIE PRESSURE
m s.u.o of tho Lake Shore Railroad to
nav call loan of S1,75O'ooo on 0a'uiU"'
orecpitated the failure of the Union trust
Compapy, and thus, contrary to general eA-
mediation. the panic that day became worse
tban ever Yesterday great alarm prevailed III
financial circles. Measures of relief were I'M
dertaken. full details of which are published
below. President Grant, Secretary OF the
Treasury Richardson, and Gen. HlllhouSe,
sub-Treasurer in this city, met large num-
Der of the largest capitalists and most prom-
mont financiers at the Fifth Avenue Hotel IN
conference on the crisis. The proposition was
made directly to the President to lend the
Treasury Reserve of $AOOO,0OO to the banks,
and it was at once rejected because without
warrant of law. Commodore Vanderbilt then
proposed to lend S1O,OOO,OOO if the Treasury
would issue $4,000 ,OOO but he was asked why
ne did not paw the call loan of S1,75O,OOO due
the Union Trust Company, and allow 1t to
resume. This he accep pied as declinaton OF
his offer, and retired without explaining his
failure to pay the loan due. Reverdy JOhn-
son, at the request of the capitalists, addressed
an opinion to the President, saving that while
there was no legal authority there was prece-
dent for loan, and urging the President to re-
ply favorably to some such proposition. The
President finally declined again to make
the loan, but decided to direct the Sub
Treasurer to buy unlimited amounts of 5-2O
bonds or bonds of 81, at par as fast as they
were offered by those wishing to realize on
them. This done the President left the city
and returned to Washington.
The result of Saturdays panic in Wall
Street, fully detailed IN other columns OF UhlS
mornings TRIBUNE (pages and 81, may be
thus briefly summed up:
Eleven additional failures of brokers were
announced, making total of thirty-three
houses which have failed and three banks
which have suspended. The Stock Exchange
has been closed until further orders of the
President, and thus speculation has been prac-
tically stopped until settlements can be
made. BY this action confidence was in large
measure restored among the brokers and later
the bankers and merchants and larger army of
bank depOsitors were treasured by the action
of the Clearing House Committee in issuing
$10OOO,OOO of loan certificates, and resolving
OIL concerted action of the mOneyed institutions.
The Government also threw S1O,OO0,OOO of green
backs on the street by the offer to purchase
bonds to that amount and these measures of
relief very much helped to break the force of
the panic on that day.