The Lake County star. [volume] (Chase, Mich.) 1873-current, 1873-10-02
The Situation.

iioWe az MACY, VI NcW AoIkt ""
the 23d and Gath, Of Sept, respec
tiyely. The reason given 10 that
depositors, becoming alarmed, derw
heavily, thus precipita'ing the
very calamity all wished to arrest.
Both the above were large firms.
The House fCleArs, Habecht Il
Co., London, on learning Of the
suspension Of Henry Olcws.& Co.,,
suspended payment. They have nos
lost dollar, and have assets suf-
ficlent to meet their own liabilities,
but not those Of Henry C'ews &
Go. The liquidation Of affairs de-
ponds npon the condition Of the
New York uousc. These suspen-
sions are generally reg:r, cd as
matters Of precautiop rather than
evidences of permanent disaster,
as they claip t. be able to pay
d llarforraollar, as soon as :they
can collect demand Ions and re-
realize on other papers. The sus-
pension of Howes IL Macy caused
considerable excitement in Chica-
60, as they had large western deal
ings, but no serions disasters i'm
mediately resulted.
There was more or less excite
mcnt throughout the country dur.
ing the week, and several banks
in the West and South reported
MS having suspended. Most Of
the trouble with smaller banks
seemed to originate in the feeling
of insecurity pervading The minds
of The people and the disposition
to hoard money.
On Thursday, Sept. 25th, ow-
ing to the "runs" made upon
them by depositors, the private
banking firms of David Preston
IL Co., ard Leitz & Co., Of De
trOit, were compelled to suspend.
In speaking of the first named
institution the Tribune says !:
.Vcry few persons here have any
doubt Of the complete solvency Of
the bank, or that it will resume
its regular payments iH-t as soon
as its securities can be converted
into cash. 1t is theaght the eff
fects OF the suspension may be
somewhat unfortunate in tending
to diminish public confidence in
the CITY," The came paper, says,
"Our National banks feel undi-
miuishel confidence in their abil.
ify 10 carry through all legitimate
business
Adviccs from New York on
Friday stated that Fisk & Latch,
Henry Clews & Co., and lIowes
& Macy proposed to resume bust
ness as usual by receiving special
deposits in trust to new accounts,
pledging themselves to uso those
deposits only in payment of checks
against new accounts. As soon
as they conlf collect hams, etc,
they would make the payments
pro rata, until their former in
Indebtedness should be liqnidated.
The statement of Jay Cooke s.
Co., prepared by them for the
purpose of submitting to their
creditors, places their liabilities al
$3.50, 400, and assets at S15,-
96G,2l1. The handsome showing
made leaves no doubt of their
ability to pay every dollar Of in
dcLtcdncss, and still have a sur
plus of some millions.
On Friday the Union National,
Manufacturers National, G,ok,
Comfy National, Second Nationa
and National Bank Of Commerce
Of Chicago, suspended. 1t was
but the old story repeated over
again., Of dapositors becoming
alarmed and demanding eurrsnc,
from the banks until they were
forced to close. These banks arc
positively asserted to be perfect,
good, and the ultimate svlvency
# them all is certain.
While VIC have no intention o
under estimating tho seriousness
Of the present monetary distnr-
bance, We wish to canton al
against an exag.eratioD Of it's fen
lures. One Of the great and poe
tive needs OF the hour is GOODNESS
1t is wholly unnecessary, and very
damaging to the interests Of .th'
people at large to organize "runs'
upon banking institutions. OnI
present. trouble is confined b
Railway banking houses and the
stock-brokers of New York. Ths
only way in which it can be made
to extend to general business, il
for those who have money de-
txo..I. 4 4 :