Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-09-18
THE SUSPENSION OF LAY COOKE & co
TEMPORARY CLOSE OF THE FIRST
NATIONAL BANK OF THIS CITY
rhe Cause of the Suspension.
The Northern Pacific Railroad 10.
Heavy a Load 60 Garry.
THAT tho Bank Men Say
The other Banks Net Affected hy the
Suspension.

The other Banks Net Affected by the
Suspension.
Quite an excitement was created to-day in the
nei Rhborhood of the banking house of Jay
Cooke s. Co., upon the placing of the following
notice in q conspicuous place over the window :
SEPTEMBER 10, 1S73.-In consequence of the
suspension of Jay Cooke & Co., in New york
and Phiadelphia, We have concluded to close
our doors until we hear further from them"
All kinds of speculatious were INDUCED in as
to the cause of the suspension. 1t was asserted
by some that the large amount of gold required
to be purchased by the Cookies at high rates to
pay the interest on the Northern Pacific rail-
road bonds contributed to the result.
INTERVIEW WITH MANAGER rRNNRY.
few minutes before one O'Clock the reporter
of THE STAR had an interview with Mr.. Ten
ney, who acts in the capacity of general man
ager of the bank, when the following CONVEX
saton ensued:
Reporter.-"Mr. Tenney, what is the cause
and extent of this SUSPENSION"
Mr.. Tenney.-" Ii is only tie mpOrary: we have
heard of the suspension of our philadelphia and
New York houses. The Philadelphia house sus-
pended frst-then the New York. The directors
of the house in this city are confident that in a
short time the houses in each place will be able
to resume, as the European house is solvent,
with large surplus. 1t is a matter of as much
unable at present to give any facts in regard to
the suspension. We are in the dark regarding
the action of the other houses, and were forced
to suspend on their account The bank can
now open its doors and pay dollar for dollar,
but we do not deem it expedient to do so until
further advised. At all events, the members of
the firm individually are wealthy, and can paw
the deposits. 1t is my belief that the weight of
the Northern Pacific railroad bonds bore down
so heavily upon our houses that we were forced
to suspend"
ANOTHER SUSPENSION.
As soon as the news of the suspension became
general, something of rush was made upon
the First National Bank, of which ex- Governor
Cooke is president. at one o'clock this firm
also closed their doors and caused to be placed
thereon the following notice:
1.-The First National Bank of Washington D.
G., has found it necessary to suspend business
to day. III. C. SWAIN Cashier, >,
This announcement caused the gathering of
number of persons, depositors and others, but
not very large crowd.
THE BANK OFFICIALS.
Mr.. Tenney, the assistant cashier, was quite
overcome when Intercepted by THE STAR re-
porter; it was with difficulty he could speak and
give his statement, the blow evidently coming
upon him like athunderbolt. Mr.. Ii. D. Cooke
jr., left for Philadelphia on the noon train, and
was not aware of the anticipated suspension.
In the rear room of Jay Cooke 81 Co.'s Office
John Jay Knox, of the Treasury department.
Mr.. Tenney and Mr.. II. c. Swayne, cashier Of
the First National bank, together with several
directors, were in consultation.
THE LONDON HOUSE ALL RIGHT,
At half past one o'clock the following was
received:
ID. W. Middleton 6 Co., Bankers.
1.-The London firm of Cookies responds TO this
suspension that all drafts and letters of credit
honored."
HOW THE GOVERNMENT Is AFFECTED.
just how much government money is held by
the First National Bank cannot be ascertained,
either from the bank or Treasury officials. Mr..
Middleton states that they always had the
credit of keeping considerable amount of
government funds on hand. He believes the
cause of the failure to be dealings in Northern
Pacific, as he cannot attribute it to any other
cause.
FURTHER PARTICULARS.
1t has been rumored that the Freedman's
Savings Bank was q heavy loser by the suspen-
sion, but this is a mistake. That bank had a
collection account at Jay Cookies, but had only
about $500 on deposit there.
Ex-Governor Wells, of Virginia, had deposited
$1,000 with the bank just before 1t suspended,
but expresses confidence that the depostors
will not lose anything.
Judge Macarthur, Of the Supreme Court, had,
u is stated, some S11,0 900 on deposit with Jay
Cooke & Co.
NO RUN ON THE OTHER BANKS.
For a short time to-day there was some ac-
tivity at one or two bank counters, but nothing
amounting to run, and as it soon became ap-
parent that there was no danger Of any other
bank here suspending the drawers began to
return their deposits. The banks Of the Dis
we're ns1er hattsr M, et ~ c9nduon, anu
an emereency of this kfnd. VII
THE FIRST 1AT1oNAI
TWAS rumora1 that .ha F;rs. Nat,nn,, p.,,,
~ sn"' INC rst Naoionai bank
was suspended upon an order OF John Jay
Knox, comptroller Of the currency. He visited
the bank soon after hearing of the suspenson
Of jay Cooke & Co., but il Rad been Closed ba-
fore his arrival.
INrxRvIrw WITH nm ,,n,.ur
.-. -. IN .. D
0%noo upon ~. q. D. Diahe'
and "r,as., ~ a1 NsaonAi MeIopon.an Dahk
sha duo'so n, n,ni apoas ING Possipie enec' VI
otS.r henIs IN Vi t OVns q ~. upoH ~ t sie
bank beina 49, nSaty ~ u v1 a t t
Docf,r 10 ,,a tII anu unu asod ~. vou, .ne
ion that the hanLs oS ~ nit, seseu JUG
n, .naI Sne banks OF the CITY, both national and
much as jaw Cooke e. Co Were transacting
business Outside Of Washington CITY, and were
connected more especially In business relations
PresSsnt RsaTe throughout the country.
banks OF the CITY wonlS not ha th , snst s f
fected bv this snsnenson o' W III ZIG least al
INV cIry ~ -nnmo,,,
All the deposits Of taxes collected by the CITY
were placed In the list National Rank hnt Few
DAYS since. accordino 70 NJ S,nanna,s 60