New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-25
SUSPENSION OF HowEs & MACY.

THE sTRINGENCY OF THE MONEY MARKET AND AN
UNwIIIINGNEss TO SACRIFICE SECURITIES THE
cAusEs-AN EARLY RESUMPTION PROMISED.
On Tuesday afternoon Mr.. HOwes of Howes &
Macy, assured a TRIBUNE reporter that the house
was an Z" old fogy" concern, and could not by any
possibility fail. Yet the business day was not an
hour old yesterday before the news flew from mouth
to mouth that Howes & Macy had suspended. Idle
brokers who had been standing lstleSsy about with
their hands in their pockets hurried toward the
offices of the firm to seek confirmation of the
port but their interest in its truth fasity seemed
to be limited to curiosity. In the language of
the street. the suspension had been discounted"
since Tuesday afternoon, and, beyond increasing the
general feverishnesS, was productive of no excite
ment whatever The concern carried on business as
usual under a very heavy run until IL o'clock when,
having exhausted their cash balance at the Leather
Manufacturers Bank, through which they cleared,
they decided to suspend, and a notice was pasted
upon the glass fronting the cashiers desk announc-
ing that they had concluded to pay more checks
e present. --.--.... s Ia. -
"A TRIBUNE reporter Immediately sought out Mr.
Macy and asked him the reasons for the SUSPENSION
He answered that the tightness OF the money mar
ket had made such step advisable lie added
1--WE have unlimited securities. but we can't turn
them into cash at present. Our suspension IS only
temporary As soon matters on the street take
their course we shall resume business We can pay
dollar for dollar, and more if necessary None of
our depositors will lose cent. In fact, we have
been compelled to do this to their interests"
The reporter expressed his surprise that the suspen
sion should have followed SO quickly upon the heels
of Mr.. Howess assurances of the firms s0undness.
MIR. Macy answered sharply that at the time of the
interview alluded to he had no anticipation that
they would be compelled to resort to extreme meas
ures but that the false reports Of the firms failure.
circulated on the street. Tuesday afternoon, had
precipitated run upon them, yesterday morning,
for which they were not prepared. This run was
the immediate cause of the suspension. In answer
To a question as TO the amount they had paid out
during the panic, Mr.. Macy said that he could not
tell lust then; nor could he furnish any statement
regarding the standing of the firm until the books
should have undergone a thorough examination,
which was then in progress.
Later in the day, the reporter had more satls-
factory interview with Mr.. Howes, in which the
fact was elected that the firm had been paying out
between $4,000 and 100000 day since Jay
Cooke g. Co.'s failure They continued to pay out
funds as fast as called for until their cash balance
became exhausted, and then they stopped Mr.
Howes said that they had not borrowed dollar,
and did not intend to borrow one. 1--WE have
plenty of the very best of securities" he added,
but we do not purpose to sacrifice them at the
prices now current The fact of the matter Is that
general suspension of the large banking institutions
| has become a necessity, and the sooner 1t takes
place the better. The small houses can afford to
hold out perhaps but the larger ones must suspend
or 20 under. People who bring their money to u.s.
and expect TO get per cent interest, must not
think that we put it into a corner to look at. No.
we invest it, aud we cannot convert our invest
ments on the jump without great damage to our
selves. At any rate. we don't purpose to be the
authors Of our own ruin; so depositors will
have TO wait"
Mr.. Howes said that the depositOrs OF the firm
were about equally divided between the city and
the country. He could not say positively that the
suspension would not affect two Ont-of-town
houses While the reporter conversing with
MI Howes several persons entered to make deposits
notably Deputy Sheriff Judson Jarvis who handed
in certified check for 5000 Mr.. Jarvis expressed
! the utmost confidence ia the stability Of the firm