The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1873-09-23
Mli0oltburp Aegistcr
TUESDAY, SEPTEMBER 30, 1874.
The Financial Crisis.


The excitement Of the week, in finan.
cial circles, is the suspension of the
we'll known bankers, Jay Cooke a. Co. q,
aud the general crash which followed.
Almost simulta cously the New York
house, the Philadelphia house, aud the
First National Bank of Jay Cooke Il
co. in Washington, d. e., announced
their suspension. There was tremendous
excitement on Wall street, and else
where, among those interested in banks
and stocks, connected with the operations
Of this firm. 1t is claimed that the ma.
tional government is entirely secure, and al.
so that the suspension will be but Temporal
ry, and that the firm is solvent. Whether
this is SO or not will be better known in
few weeks, or, possibly, days. The
habit Of business men who find themselves
embarrassed, is too much in the way OF
going on, getting in deeper ana deeper,
until when the crash does come, they
carry many others down with them, or,
at least, cause them to suffer severely.
We hoped 1t might not be the case in this
instance. Tho true and only honest and
honorable cour-o for business men to
take, when they fad they canrot meet
their liabilities aud that there is no rea.
sonablo probability that further progress
and delay Will improve their condition,
then the true urso to take is to sus.
pend and clcse up at once In nine
cases out Of ten, il is to be presumed
failures would bot necessilata the terrible
shriukago which in most cases we iind
to be the order Of the day.
The later accounts Of the financial
crisis portray the scenes Of widest excite
mcnt and the general crash Of firms sup
posed to be upon basis which could moi
be moved. Friday was said to surpass
BLACK Friday" Of terrible memory. a;
one suspension after another was announc
ed at the stock exchange, the cry wa
raised The whole street is gone" Fri
day night the list Of failures had reached
twenty-five III number, some of then
among those rockoncd strongest in thC
country. Monday morning long addi
tional list of failures was added to the
list already reported
Strong appeals have been made tc
President Grant and Secretary Richard.
son for the issue, if necessary, OF the
whole legal reserve to The New York city
banks, some $l4,000.000 Secretary
Richardson opposed this issue aud up to
sunday escuius President GRAFT had de.
clined TO do So
The cause Of the crisis is said to be The
general want of confidence in railroad
management and railroad securities, caused
by the developments OF the last ten
months operating with an irredeemqble
and huctuating currency, added to the
circumstances, well known to every body,
namely, the general use Of banking funds
for the purchase of stocks, as well as
other reckless speculations, and the en-.
deayor to carry enterprises too large for
tle capital at band. In fact Jay Cooke
himself asserts the latter to be the cause
of his failure. He was carrying the
Northern Pacific Railroad project by ad.
vlncing large sums Of money on the bonds
which were not absorbed as was expected
The panic extends to Washington, Phil.
adelphia and other cities, but New York
suffers most severely. 1t is said that Bos.
ton is nearly exempt from the excitement
of the crash. 1t is at least free from the
terrible panic which spread through Wal
Street Oh Friday.
1t must Of oour affect uniavorably, the
business OF the whole country, but as il i,
rather financial, than commercial
crisis, we shall expect only the trouble o.
sympathy, except where, here and there
the financial and commercial lines touch
each other We need not fear any diff
Guilty with our country banks which arc
doing only legitimate banking business
1t is to lJe hoped some good will come
out Of this disaster. May we not expect
that the tendency will be toward a gold
basis for our currency, and commercial
exchange and Il general gathering in OIL
spaces, among our reckless business mer
and especially banking institutions.
The suspension Of Jay Cooke q Co,
continued to DC a topic oil absorbing inter.
est in New York Saturday. As their de.
positors are known TO consist generally Of
bankers aud country banking houses, the
effect uuon the finances OF such ins;itu-
tions was largely discounted in money
dealings. The following firms figure
among the dcvosiiors and correspondents
of the house Henry Merrel, Camden
Ark. Emerson, West q buckingham
Greeley, Col John Mclean 81 Son
Wilmington, Del; Georgia Banking and
Trust Company j. +. Culver e. Bro.
Pontiac, ILL.,; Donovan, Woodiord q Co
Watseka, lii; Hamilton 4 Co. Fort
Wayne, Ind Moore q Co indianapolis
A. *. Wells, Boone, Iowa; Ockobock
Bros, Corydon, Iowa; Head Bros, JEFF
ferson, Iowa; j. 9. McMullin d Co,
Arkansas City, Kansas Olmstcad, Free
man & Co, Blue Rapids, Kansas; Mar
ion County Bank, Florence, Kansas
Nicholson 4 Co., Baltimore; Foote q
French, Boston; Fuller q Co., Boston
Walker d Merriman, Boston; Easton 4
Milne, Fall River; Rice, Whiting q Bul
lock, Worcester Mass. f; Gallagher q Co
East Saginaw, Mich; f. w Clark d Co.
Duluth, MINI; L. *. Barker, Kceseville
N. Y; g. T. Paddock, Watertown, n
Y. ; Peoples Bank, Beleiontaine. Ohio
Scott, Biddle 4 Co., Bucyrus, Ohio Com
mercial Bank, Columbus, Ohio: Ninton
Stout q Vinton, Canal Dover, Ohio; i
S. Rickly, Columbus, Ohio Mitchell