The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-09-19
SUSPENSION of Jay Cooke & 20.

We suppose the greater portion OF business
mon having some knowledge of banking
and finance, were not surprised by the news.
This firm has been quite prominent one
for some years, and probably was more than
ordinarily indebted to printers ink for a
very extended fame. 1t had the luck to get
into favor at Washington, and turned us
luck to good advantage. We suppose II
its chief had rested where he was TWO
years since the house would have been
strong; which, indeed, it may be now out
1t has received sharp blow.
The source of its trouble now is ITS con-
nection with the Northern Pacific rallroao'
which il has pushed with great yigor. But
there is one great Pacific railroad hn>sneo'
and another besides the Northern uhoer
wav The nation has been smartly strained
in the great work that has been done; ana
besides taking up the Northern one, mot
second in magnitude 10 the first,) under this
disadvantage, the exposures of the corrup-
tons that grew out Of the first--thc Creolt-
Mobilier. &c.-haye been no doubt seriously
detrimental to the financial strategy OF COOKE
& Co. Thus clearinghouse that was
furnishing has been seriously strained IN the
back by trying TO run continental railway.
We have looked upon that road as sort
of fraud, intended to sell immense sections
Of public lands high up above the forty-flfth
parallel of latitude. 1t was declared that
this line was more mild in temperature than
that of the Union and Central Pacific line
an assertion that could not be credited.
WHY. in November last the work OH the
Northern Pacific was suspended, and near by
4 thousand of the ;aborcrs upon it escaped
freezing or starvation by almost miracle.
All the beautiful descriptions of the line
written by Mr.. GARFIELD, OF ONO, TO sell
the lands were little less than fable. we
doubt whether the road ever will be built.
TO what extent the cmbarrassmcntS OF
COOKE Il Co. may affect capitalists and trade
remains TO be seen. The amount OF money
appropriated to railways in this country IN
the last few years is prodigious; but it has
all been put in circulation in this country
save that expended in railroad iron abroad.
The dispersion Of SO great SYN Weakens
the sources of loans, tightcns the market.
cmbarrlsSes corporations and affects Their
credit. At such time. without calmncss,
and loibcarancc, and trust, these causes may
end in aggravated disasters. II is TO be hoped
that where the causes are so well understood
CAPITALISTS will know their mutual interests
too well to make things worse by rashncss
and folly.
One thing is every way gratifying to tie
country; and that is, the national currency IS
too firmly based to he disturbed by these
financial cmbarra>Sments. When The coun-
try was full of State banks panic caused I'M
mediate di>trliSt Of the currency, ana that
was followed by runs upon the banks ana
general suspension. The panic became so
great that distrust prevailed everywhere,
aud failures OF men in business were numer'
Gus, causing widespread distress.
With this great advantage in our favor,
and moderate exercise OF good Judgment
and forbcurance amongst capitalists, we be-
licyc that there will be no serious ana pro-
lonyrI embarrassment in the money ana
commercial world from the failures that have
occurred.
We suppose that JAY Cooke Il Co.'S rela-
tions with the southern States were very
limited hut anything that produces pres
surc in New York must he felt to some eN-
tent in all sections Of the Union.
Whatever be the extent of the present
embarrassment, the resources OF this coun-
try are 50 immense that financial depression
cannot long endure. The railroads, sup
posed to be the cause of the present con-
Striction in money matters, are the powerful
agents of Development and of national
wealth, and will in Il brief period furnish
the means to restore the country to condl-
ton of financial ease, Steadiness, and health.
=. S.-The reader will find an interesting
special from Washington to the Dispatch on
the subject ofthis suspension. 1t will befound
that the First National Bank of Washing
ton. of which Ex-Governor WILLIAM ID.
COOKE is president, has also suspended, and
that Mr.. KNOX, Controller of the Treasury,
has determined to place it in the hands of =
receiver.
1t will be seen that JAY COOKE & Co. an
nounce positively that the real and sole cause
of their suspension is the heavy advance
ment made to the Northern Pacific railroad.
CuIypsppAPE saws that "the humorous