St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1873-09-26
Jay Cooke e Co. Suspend.
AN ENTIRELY UNEXPECTED FAILUR

AN ENTIRELY UNEXPECTED FAILURE.
Financial circles were thrown into
excitement. Thursday. by The an
nouncement that the well known bank
ing firm of Jay Cooke X Co. of New
York. Philadelphia and Washington
had suspended payment. The reasons
assigned are various. but the chief caus,
seems To have been imprudeut advauc-
Is To the Northern Pacific railroad.
which prevented the firm from main
tanning their ordinary amount of re-
serve, while the drain upon their de
posts WAS still further increased bv re-
cent suspensions, and ut last they were
unable To respond To the demands OF
their creditors. Current rumor credits
Cooke with having lost large sums in
the recent gold movement, which, com
hlned with the tighgneSs of the money
market. prcClpltatcd the suspension.
The banking houses of the firm at
New York, Philadelphia and Washing
ton all closed their doors about noon.
posting announcements that Il state
mcnt of their affairs would hc present
ed III few days. and that they helicv-
Ell their assets 10 he largely in excess
OF their liabilities. Later i'm the d.,,.
Mr. Cooke WAS interviewed at Pbill-
dciphla and said: Il believe this housr
Will speedily he relieved from cmhar-
faSSmcnt. and. To this end. if needs he
every dollar OF the means possessed bN
the members of the firm will he appli-
ed. No one who has Il dollar on de
post here will lose il. Every liability
VIII be paid Ia the last dollar"
Inc temporary suspension of the
American house does not affect at all
the London house of JAY Cooke. Me
Culloch y Co., from whom the follow
ing telegram WAS received. in the after
noon. creating the liNclicSt satisfaction
Whrn made public: The London firm
oi MI. Cooke responds to his suspeu-
sion 10y stating that all drafts and let
tiers OF credit on them. issued bv JAY
Cooke y Co.. will he daily honorrd :"
II" announcement of the SUSPENSION
caused the greatest excitement in \rw
ork, and stocks Immediately tumhIrd
from 8 to 10 per cent. bur Iccovcr,d
somewhat later in the ,iav. MANY OIL
I'll EliilireS were reported, but when the
excitement had somewhat subsidized il
proved that only Richard Schcll and
hoolhs0h d ShNdam, Wall street bank
- i'''' '9l'll'ltl III New OlII I'h,.
INST national bank at Washinoton
winch V, occupied the same building Win
Cooke a Co., suspended, and the Phil
ahtlphla house OF L. W. Clark x Co..
nut ON ' for few DAYS. Se,r.t,r,
hlchaldSon and Controller Knox wer,.
III consultation at Washington. yester-
"aH AFTERNOON, i'll reference tu tho Sn.-
pension there. and Il receiver will nrnL-
AMY tie appointed, immcdiateIr +,
take charge of the bank. The secrn1
ldIE Oh the treasury states that the GOV
e enn,lleh! Will not lose Il dollar bX th.
suspension, the deposits of gove,nme't
nnSit IS 1 teg fully secured by the de
p post OF that Institution in the nation
d al treasury. AS to the svudicnTn tLo
u! paiahce Is III favor of the royrrnmo,t
= ne suspension Of Jay Co0k e 4 Cn NJ
ne s'I hnig% n, was a precautionary meas
W. being made on account of the New
ti, OK ana Philadelphia houses of Thar
n npin spspending. Late in the at i
's'e WAS something of run on