Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-11-03
THE THREATENED PANIC.
Aeyt, Sprague 6 Co.'S. Failure-Ihe
House OF H. B. ClaGiu Shall
Not Stop.
Opening Of the New York Press-Im-
proved Situation in Bank
Circles.

/ NEW YORK, November The failure
of Hoyt, Sprague d Co., and the free ust
made by TnmOr of the house Of 81. q
Clafiin & Co., has called attention TO the
dry goods trade, and inquiry shows that
transactions are slight, and are confined
70 the wants Of current trade, and this
dearth, it Is thought, will continue Bntil
Il can be definitely aScertRined that the
difficulties will be overcome. In this
event business viii take fresh
start Immediately. The course of Claf-
lin in sending word to the clearing
house that they did not deliberate in
/ their case longer, and that their own
banks and mercantile friends were sufii-
eicnt for their necessities, has done a
great deal toward clearing away the
existing difficulties and resuming busi-
less. The community see that the
merchants have faith in one an
other and are ready 90 give
assistance. Mr.. Robinson, of the firm
Of II. B. Clafijn & Co., stopped in his
sales Of goods to-day to say: "This
house will not stop; it cannot fail. 1t is
as solvent as any house in the United
States" While another member of
the firm said: "Our assets are far
beyond our liabilities, and for one to be-
lieve that we can fail is to
stamp the person an idiot.
lt Is true, We are suffering a little en-
barrassment, aud have allowed some
accounts 30 mature, but a. regards our
notes, they nave all been promptly met.
We do not sell our own papeT, but we
do sell that of other houses with our in
dorsement. Perhaps one of the priuci-
pal causes that have led to our embar-
rassment was that we overreached our
selves in our endeavors to assist
HOyt, Sprague & Co. l do not say that
We purchased of them to the amount of
a million this week, bat we bought very
heavily. We are now negotiating for
assistance Of some sort from the banks
and other corporations. If we succeed
% our efforts, everything will run along
in the regular grooves; if we fail
70 get assistance, we will be
compelled to ask an extension. An ex-
tension upon our open accounts, not
notes, for oCr current receipts are ample
to meet calls. Now, don't understand
me to say, if failure Is at all probable. it
is not possible. 1t is simply absurd to
think such a thing possible" The
Express SAYS: Amid the general
gloom of the week the improved situa-
ton in bank circles was a bright spot.
During the week the hanks gained
largely in legal tenders, and now hold
more than at almost anytime since the
pooling arrangement was started. The
associated banks were precipitated into
business by weak cOndi-
ton Of few institutions allowing interests
on deposits, and as soon as pawn-brOkers |
arrsaaI1s.d sIr
should be recognized on such basis as |
will prevent the New York banks from |
again being forced into the disgrace Of !
Of currency payments. In |
this reorganization all banks allowing |
interests on deposits should be excluded. |
Some check should be placed upon
reckless certifcstiOn, and above
all, a daily statements of the
actual condition Of the banks
should be given to the public. The day
iOT reckless banking is passed and We
hope that Clear-headed bank presidents
IA he clearinghouse will give this SUBJ
ect of reorganization their earliest at
lentiOn.
On inquiry at the freight Offices of the
eadiDg railroads, il was ascertained
hat their fright business was suffering
severely from the financial disturbance,
md in many cases the railroad compa-
lies were largely cutting down expenses
Jy a reduction of wages and the dis
:harge of Workmen. Nearly three
hundred men are thrown out
If employment by the partial
Of work at the Planet mills,
IN extensive carpet-weaving establish
nent in south Brooklyn. 1t is said that
he mills viii be closed after Thursday
leXt.
The masCns' reduction Of wages began
o-dsy. Eifty-three of the men at work
" the Delaware and Hudson conlpany's
,uilding struck. The laborers on the
anne job also struck.