Beaufort Republican. [volume] (Beaufort, S.C.) 1871-1873, 1873-09-25
A Financial Crash.

Business circles from one end Of the
country " another were startled Oh
Thursday last by the suspension of the
great banking house of Jay Cooke & Co.
L. w. Clarke & Co.. of Ph.lalell h'c,
| an old aud wealthy firm followed and Oh
Friday the following houses suspended:
New York-Fisk & Hatch, White De-
Freets & Rathbone, Beers & Edwards
Eugene Jackson, Thomas Reed, Il Co.,
". III. Warren, Greenleaf & Norris,
George B. Alley, Theodore Bedell,
Whittemore & Andersog, Smith, Searn
& Co., A. NJ. .Kedder, Day 4 Morse,
Hay & Warner. Fitch T. Co., Il: ID,
Randolph 4 Co.. bankers of the Penn
sylvania Railroad Company.) VIM. II.
Connor, Vernon & Hay, Jacob Little.
Philadelphia-DeHaven & Co., Ii: IL.
Douglass, Bayard, j. II. Yerkes, John
Loyed, Gilborough & Co., and Bond,
DeHaven s. Co., and Gilborough q Co.;
all are stock houses.
In Washington, Henry d. Cooke, a
brother of Jay Cooke, suspended and
the First Natio.al Bank of Washington
closed its doors. The Freedman's Sav-
ings bank, the Citizens Savings bank
and several banks were subjected to a
run. The Freedman's bank paid away
on Friday $4,000, and on Saturday
S65, 200. It's officers predict that it will
be able to weather the storm. On Sat-
urday the Union Trust Company failed
in New York, A defalcation having
been discovered amounting to S5O0,OOO.
The stock exchange was closed by
vote of its members to prevent the panic
from being increased by the wild rumors
of the bears.
Early on Saturday the presidents of
the banks held a meeting, and determ'
ined to stand by each other. In the at
ternoon the officers or the banks and the
Clearing House Association unanimously
resolved, that until November lst, any
bank in the Clearing House may receive
bank certificates to the amount ot sevci ~
five Der cent of the cash value Of It's
assets, which certificates shall be accep-
ted, in place of legal tender notes, in the
settlement of Clearing House differences.
They further resolved to pool al their
legal tender notes, and make common
cause against any attempt to break down
any of their number The issue Of the
hank certificates will be made equal, #
necessary, to the entire assets of the
banks, and the practical effect will be u
remuneration of the use of legal tenders,
the place of which will be taken by the
certificates. 1t is an expansion of the
bank credits and facilities, but not OF
irredeeniable paper. The banks to which
loan certificates may be issued will be
charged seven per cent, interests, aud
in addition, one quarter of one per cent.
to repay the expeuses Of carrying out tie
plan.
On Saturliy q ;sI t mt riasl r bought
2lO, 900, 900 of government bonds, which
gigantic operation tended to restole con-
tidence and to confirm the belief that the
worst of the trouble was over. 1t Is said
that Secretary Richardson will, If neces-
sary, issue a part or the whole of the
S44 900, 900 Of reserve currency in the
treasury of the United States. This
rumor, however, lacks continuation
Jay Cookies failure is due to heavy
advances, TO the Nothern Pacific rail-
road company and a.subsequent lnab.
ty to sell the bonds.
On Tuesday, Henry Clews u Go.
suspended, aud The progress made
toward Il qiieter market was checked.
Ga the sane day, four banks suspend
I'd in Petersburg, Virginia.