The Andrew County Republican. [volume] (Savannah, Mo.) 1871-1876, 1873-10-03
THE FINANCIAL PANIC.

.i | h'tSiEN ItLItN IN hAlfh SlifES-
sIoN-TuE EXCITEMENT AT NEW York.
PHILADELPHIA AND OTHER POINTS
New YORK, Sept. 1s.-Anothcr day Of in
tense excitement has passed over Wall street.
Early this morning predictions were made
that this would be hard day and one that
would see the downfall Of more than one
financial house. The Chicago fire, it was
thought, would accession a drain upon deposits
! and tend to a panic. Stocks for the first two
or three hours tiuctuated wonderfully. West
ern Union fell 10 per cent. without an upward
struggle. but about noon recovered its opening
figure. At noon the report was whispered
tLst the house of Jay Cooke !; Go. had sua-
pended. At first the rumor was considered all
idle one. or at most started by some schcming
faction. However, it had great effect. Men
and boys ran races from Office to office. The
telegraph was incessant in its operations. and
the excitement grew intense. Shortly after
II m. it was officially announced that tho ETs-
pension hnG orcIirrCd. the reasons therefor
being advances made to their Philadelriiis
house. which rendered them rnable TO
meet the demand made upon them l,y tier De-
positors here. As soon a. it became generally
many rumOrs touching oth-r prominent
houses sprang into existence. but all reports
about the suspension of firms excepting Jay
Cooke K Co. Richard Sche'l, rrd the smell
firm of iiobinsor, Suydam X Co.. upon inyesti-
CATION proved to te without foundation. When
this fact was made known on the streets. con-
fidencc was agan restored, and at the close of
business a stronger feeling prevailed.
The liabilities of Jay Cooke X CO. cannot be
ascertaiued. II Hill take some time to make 4
statement of the affairs of the house. The
] creditors are mostly banks and bankers, there
being hut few Individual depositors III the hist
The suspension will greatly interfere with the
operations of the Hvnt,icata, and probably sl!s
pcnd the negotiation of per cents
The Tribune saws Late this evening the
following reasons We're given by Mr.. Fahne-
stock. one of the firm of Jay Cooke ~ Co.. for
the failure of his house. For several weeks
the uneasy feelinr which prevailed in connec-
ton with TIE new railroad schemes caused
heavy drains upon the deposits both of their
.. PhiladoIphia aud New Iorl. houses. The de-
posts ia both cities suffered "oni'ITpi 'iimiu'i
ton Until. ~ tho h-qH'iuihC of the present
month. their deposits were lower than at any
time during the last fall and the spr.ug. The
drain upon the deposits, already 50 heavy. was
still further increased by tle re"en: r1speh-
sions and demand for money WAS incessant,
and Is felt still more severely in Philadelphia.
The Philadelphia house was compelled TO call
upon the New York house for aid. and large
amount of assistance was rendered. The
Philadelphia house was tinker large advance
to the Northern Pacific Railroad Company, III
volving large sums of money. preventing them
from maintaining the reserve ordinarily kept,
and they were therefore unable 10 respond to
the demands Of their creditors. For this rea-
son they were unable to return to the New
York house advances made by the latter, or to
; supply them with any rullateral- available IL
Il Gl,ys,. .
the cash balances became exhausted, and sus-
tension became inevitable. Fahne-t0ck said
that of course the different members of the
firm were possessed of a large amount OF pr
yate and personal property. but none of tins
was available i'll All emergency such a. the
present He not at the present time. nor
was any member Of the firm. prepared 20 tell
the exact Gmot;nt Of liabilities or assets of the
firm. He believed that all the creditors would
be paid III fail, and hoped that the suspension
would only bc temporary. nn tElh point
nothing could positively be said At present.
and some time must necessarily elapsc before
the exact amount OF private property OF the
firm can be decided.
PHIrADTLPHIA Pa. Sept. ls.--Third street
was thrown into an "proar al II O'Clock tins
morning Dy tine report that the old banking
house of Jay Cooke u Co. had suspended The
runor caused the most intense excitement
amid all circles, and the Intelligence New from
moulin 10 MOUTH VIII ills!tS Idt'i'4AAN- VI
soue interested, an We'll az those not intefe't-
ed turned their -t"ps toward the Office q"
Third street to see FOR Themselves TIE cOldi-
ton of aIfaiFs Very soon constant stream
of people were scen dcbOUclinS from all the
adjoining streets into Third, until that street
was till.d with people. all intently and excited
lv looking at the building. The doors were
closed and guarded Ly ofiicer-, and all except
those having business with the firm were pre-
? vented from entuIliIg.
Mr.. Cookc, ST., authorized the posting of 4
notice on the doors. The crowd then rushed
toward the SPOT all being dcsirons of seeing
and reuding for themyelveS what was upon it.
This was impossible. and VOICE from the
crowd cried ont. Read it Aloud The de-
maud for this increased, fifty voices second
ing the request; whereupOn Mr.. u. VI. Long
+ streth read Rioud. to be heard III the middle Of
the street. the following:
TO THE PUBIIc We regret to be obliged
to announce that, owing to unexpected de-
mauds upon us. our Office has been obliged TO
suspend payment. In Il few days We will be
able to present a statement of our affairs to
our creditors. Until that time, we must ark
for their patient consideration. We believe
our assets to be largely i'll excess OF Onr lia-
biIitics JAY CooEE & Co."
This statement settled the existing doubt
which still fingered in the minds Of many of
the crowd, who, notwithstanding the evidence
! which the closed doors of II banking g-hOuHc eN-
hibits, still hoped against hope till almost the
very signature of the firm was read.
The expressions npon every side we're those
of commiseration and of sympathy for firm
that has always 80 highly maintained its cred
it, and which will raise up from this temporary
prostration stronger than ever.
Many reporters tired to gain admittauce
and hut few were fortunate. The reporter Of
the Er~,li,J Telegraph was the fret to enter,
and followed shortly afterward. The bank
ing room was darkened; the clerks were scat
| tered about the building. Some III groups,
chatting about the disaster. and others We're
| busily engaged at their books as upon ordinary
| occasions.
We found Mr. Cooke in his private office
calmly dispatching his ORDERS and unexcitedly
! conyersIng about the sudden and unexpected
! blow that had befalen him. He pleasantly
welcomed whoever called upon him to express
! sympathy and confidence. He said: You
can announce that the firm has temporarily
| suspended. Please state also that i believe
this house will speedily be relieved from en-
barrassment, and that to this end. if needs be,
every dollar of the means possessed by the
firm will be applied. No one who has dollar
on deposit here will lose it. Every liability
will be faithfully discharged. can say no
more now -. .rE..
Mr. Cooke then directed notices of the tenn
| porarv suspension, as couched above, to be
| sent abroad: and stated that this event
| closed the doors OF three Oitices-the three
leading houses of the firm in Washington,
Now York. sand this city. Then, with his
brother members, he commenced an iGvesti-
| CATION to ascertain the exact financial condi-
ton of the firm. The temporary suspension
! of the American firm does not affect III any
| way the London house Of Jay Cooke, McCu-
| loch & Co., from whom came this afternoon
| the following cablegram. Its statement, when
made known to the public, creates the live
| lest satisfaction.
| ssLoSpoS, Sept 1S-The London firm of
| Cooke responds to his suspension by stating
that all drafts and letters of credit on them,
| iasued LIZ Lay Cooke Is Co. Will be duly hol-