Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1873-10-02
THE FINANCIAL. PANIC.

The Failure OF Jay COOKE q OO-Other
Suspensions Follow i'm Rapid Success
sfon-The Excitement at New York,
Philadelphia, and other Points.
New YORK, Sept. 1S.-Another day Of in
tense excitement has passed over Wall street.
Early this morning predictions were made that
this would be hard day, and enc that would
see the downfall of more than one financial
house. The Chicago fire, it was thought,
would occasion drain upon deposits and tend
to panic. Stocks for the first two or three
hours fiuctuated wonderfully. Western Union
fell 10 per cent without an upward struggle,
but about noon recovered its opening figure.
At noon the report was whispered that the
house of Jay Cooke & Co. had suspended. At
first the rumor was considered an idle one, or
at most started by some scheming faction.
However, it had great effect. Men and boys
ran races from Office to Office. The telegraph
was incessant in it's operations and the ex-
element grew intense. Shortly after IL m,
it was officially announced that the suspension
had occurred, the reasons therefor being
advances made to their Philadelphia
house. which rendered them unable to
meet the demand made upon them by their de-
positors here. As soon as it became generally
many rumors touching other prominent houses
sprang into existence, but all reports about the
suspension Of firms excepting jay Cooke &
Co., Richard Schell, and the small firm of Rob.
inson & Co., upon investigation proved to be
without foundation. Wlen this fact was made
known on the streets, confidence was again
restored, and at the close o. business stronger
feeling prevailed
The liabilities of Jay Cooke & Co. cannot be
ascertained. 1t will take some time to make
statement of the affairs of the house. The
creditors are mostly banks and bankers, there
being but few individual depositors in the list.
The suspension will greatly interfere with the
operations of the Syndicate, and probably sus-
pend the negotiation of per cents.
The Tribune says Late this evening the
following reasons were given by Mr.. Fahne-
stock, one of the firm of Jay Cooke d Co., for
the failure of this house. For several weeks the
uneasy feeling which prevailed in connection
with the new railroad scheme caused heavy
drains upon the deposits both of their Phila-
delphia and New York houses. The deposits
in both cities suffered continual diminution,
until at the beginning of the present month,
their deposits were lower than at any time
during the last fall and this spring. The
drain upon the deposits, already so heavy, was
still further increased by the recent suspen-
sions and demand for money was incessant,
and is felt still more severely in Philadelphia.
upon the New York house for aid, and large
amount of assistance was rendered. The
Philadelphia house was under large advances
to the Northern Pacific Railroad Company. in
yolving large sums of money, preventing them
from maintaining the reserve ordinarily kept,
and they were therefore unable to respond to
the demands of their creditors. In this sea-
son they were unable to return to the New
York house advances made by the latter, or to
supply them with any collaterals available in
New York at the present time. Owing to this,
the cash balances became exhausted and sus-
pension became inevitable. Fahnestock said
that of course the different members of the
firm were possessed of q large amount of pri-
vate and personal property, but none of this
was available in ali emergency such as the
present. He was not at the present time, nor
was any member of the firm, prepared to tell
the exact amount of liabilities assets of the
firm. He believed that all the creditors would
be paid in full, and hoped that the suspension
would only be temporary. On this point
nothing could positively be said at present,
and some time must necessarily elapse before
the exact amount OF private property OF the
firm can be decided"
PHILADELPHIA, Pa, Sept. 18.-Third street
was thrown into an uproar at ii O'Clock this
morning by the report that the old banking
house Of Jay Cooke Il Co. had suspended.
The rumor caused the most intense excite
from mouth to mouth with lightning rapidly
Persons interested, as well as those not inter-
ested. turned their steps toward the Office on
Third street to see for themselves the condi-
ton of affairs. Very soon constant stream
of people were seen debouching from all the
adjoining streets into Third, until that street
was filed with PEOPLE, all intently and excited
ly looking at the building. The doors were
closed and guarded by officers, and all except
those having business with the firm were pro-
vented from entering.
Mr.. Cooke, authorized the posting of notice
on the doors. The crowd then rushed toward
the spot, all being derious of seeing and read
ing themselves what was upon it. Thie was
impossible, and a voice from the crowd cried
out. ''Read it aloud" The demand for this in
creased, fifty voices seconding the request
whereupon Mr.. D. NJ. Longstreth read aloud,
to be heard in the middle Of the street, the
following:
ITO THE PUBLIC: We regret to be obliged
to announce that, owing to unexpected de-
mands upon us, our Office has been obliged to
suspend payment. In a few days We viii be
our creditors. Until that time, We must ask
for their patient consideration. We believe
our assets to be largely in excess of our liza
bilities. JAY COOKE d Co."
This statement settled the existing doubt
which still fingered in the minds of many of
evidence which the closed doors of banking
house exhibits, still hoped against hope till
almost the very signature of the firm was read.
The expressions upon every side were those
of commiseration and of sympathy for firm
that has always so highly maintained it's cred
it, aid which will raise up from this temporary
prostration stronger than ever.
Many reporters tried to gain admittance,
and but few were fortunate. The reporter of
the Erening Telegraph was the first to enter,
and l followed shortly afterward. The bank
ing room was darkened the clerks were scat
tered through the building, some in groups,
chatting about the disaster, and others as
busily engaged at their books as upon ordinary
occasions.
We found Mr.. Cooke in his private Office
calmly dispatching his orders, and unexcitedly
conversing about the sudden and unexpected
blow that had befallen him. He pleasantly
welcomed whoever called upon him to express
sympathy aud confidence He said: You
can announce that the firm has temporarily
suspended. Please state also that l 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
members of the firm will be applied. Nc
one who has dollar on deposit here will lose
it. Every liability will be faithfully discharged
/ can say no more now"
Mr.. Cooke then directed notices Of the tenn
porary suspension, as couched above, to be