Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-09-22
The Financial Crisis.
CONFERENCE WITH THE
PRESIDENT.
The Affair Unsettled.

New York, POI P. NJ. At this hour there
are more evidences Of calmness than during
the past three days. The action Of tile banks,
the announcement that the Trust Company
and tile Commonwealth Bank will both be
able to iesunie business on Monday, have all
combined with assurances from authoritative
sources that the Government will give all aid
IN Its power To beget a sold feeling of conf
dence. That the worst 10 thoroughly over
ana That the wonted round OF business in our
| financial circles will be resumed again next
week.
| The Committee Of Bank Presidents are in
session yet and propose to remain in session
| all night. The issue vi ten millions of dollars
loan certificates by the Clearing House il TO
be succeeded by further issues If necessary.
The legal tenders OF banks are to be pooled,
and any bank in trouble are to be helped
| therefrom. Loan Certificates are to be issued
| against Governments bonds At par, and other
good securities and approved business paper
| at 15 per cent. Vt their market value.
A Washington special says that Secre-
tary Richardson has instructed Assistant
treasurer Hilihouse at New York to purchase
| ut private sale, bonds to the amount Ut ten
million dollars At the the average price paid
to-day. Similar instructions have been
sued here and in Philadelphia.
hicago, 20. The Franklin Bank, private
banking institution, closed to-day, being una
BILE to settle at the Clearing House. The
amount short was only $1,000. S. A. Briggs,
Vice President, states that the embarrassment
is merely temporarily. lis stated that a ma
jority OF the public schools are depositors,
therefore its early resumption Is hoped for.
New York, 20. Shortly before noon, in the
midst Ut the panic, the governing committee
OF the associated banks met at the New York
Clearing House, and it was voted by all the
associated banks that they would issue certi-
| hcates pledging the association as whole.
These certificates to be issued by the mana
ger of the Clearing House to any associated
bank against the deposit Of the banks securi
ties or assets. The effect OF this action is to
enable all solvent concerns in the financial
community TO convert their assets.into money
temporarily and without any sacrifice "
themselves. The Stock Exchange is ordinarily
medium for converting securities into cash.
In the prevailing panic the scarcity Of money
prevented this from being accomplished. Sc
curities being offered tor sale at constantly
decreasing prices without finding buyers, UNI
less to an enormous loss Of sellers. BY the
| Issue Of the banks certificate any bank can re-
| alize money upon its assets, and will be thus
able to extend 70 its customers all the accom-
mediation for which they can find security,
| NltuOul CODptituR bdle Ut edCIIuCe ol Tue as
sets offered. The whole machinery therefore
of conversion is once more set in operation,
and is iikely to run smoothly, ana all con-
Germs which have assets will find no difficulty
in converting them into money. This action
of the banks at the Clearing House meeting,
gave rise to q feeling of confidence on the
street that no additional failures were likely
to occur, and the impression was obtained
that the panic was over.
Leading foreign exchanges are firm, such
as Brewer Brothers, August Belmont, Henry
Clews 8 Co., and Drexel, Morgan Co. do
not give any sign OF feeling The pressure Of
the three days crush.
London, 90. Dispatches from Frankfort,
Hamburg, Bremen, and Vienna, cay that no
failures have occurred in these cities on &C.
count of the New York panic, but anxiety ex-
lists in financial circles.
Philadelphia, 20. The excitement over the
failures has abated, and matters are assuming
right shape, although the stock market is
somewhat teyerish to-day, yet affairs on the
| street are more settled, owing no doubt to the
promise OF the Secretary OF the Treasury to
make use of forty-four millions of reserve
fund ii desired.
The failure of the Union Banking Company
of this city had but little effect on the public
mind AS it was small concern.
New York, 81. AT a late hour last night it
was stated in one Of the clubs that Collimu-
dore Vanderbilt had paid into the Union Trus,
Company during the day, two million dollars,
the amount due the Company by the Lake
Shore Company, to. resume business on Mon
day morning.
The dry goods men believe Jay Cook Co.
will pay the last cent of their liabilities.
A conference between President Grant and
the Mercantile representatives begun at noon
to day. No definite action is expected before
this evening. ~.--.
New York, 2I--S p. M. The following is
the result Of the conference at the 9th Avenue.
Hotel to-day in relation to the best means of
overcoming the difficulties resulting from the
recent financial disasters.
! The President positively declines to inter-
fere in the matter, as any action of his would
be unconstitutional.
| The Committee of Bankers and Merchants
had come down to the final proposition of the
Government issuing $50 900, 900 of the legal
resources.
Beverly johnson is said to have given bis
opinion TO the effect that to use legal reserve
for this purpose is upcon institutional, but that
| if he (Johnson) were President, he would be
disposed in an emergency like the present to
make the utmost efforts 10 arrest the impend.
ing disastes.
| The rumor which spread with lightning "a.
pidty, and was generally believed, that Grant
aud Richardson had come to tho stern decis-
ion that they could place no part of the legal
reserve at the service of the New York City
Banks, created intense CONSERVATION among
the crowds who thronged the corridors of the
hotel. There were some who said that no
decision on the subject had been arrived at,
and that another conference was to be held
during the evening.
At an informal meeting Of the Presidents of
the Savings Banks Of this city and Brooklyn,
at which some thirty Banks were represented,
resolution was adopted, unanimously, tina,
the rules and by-lawss governing Savings
Banks, requiring notice previous to payments
be rgidly enforced.