The New York herald., 1873-09-23
THE DAY IN PHILADELPHIA.

stone and the Citizens Closed.
PHILADELPHIA, Sept. 20, 1878.
On Sunday the startling developments Of the
past week was the universal theme Of conversa-
tiOn, all the hotels and public resorts generally
wearing aught but their accustomed solitude and
silence. The rumor of the failure OF Jay Cookies
London house caused all the numerous sympa-
thizers OF the banker to entertain the gOomiest
tOrebOdings, and their faces were only frightened
to-day when the rumor met with contradiction.
Upon my arrival at the street this morning the
most ridiculous rumors were anoat, one OF which
was to the effect that Commodore Vanderbilt had
failed, the origin OF the rumor being in the story
that the Commodore had refused to loan the
900 conditonally promised to the Union
Trust Company. Ridiculous as this rumor was, 1t
really met with the ready credence Of many par
ties upon the street, and to cnch 1t, along came
telegram that the banks OF New York were nu-
merously suspending. Soon after another came
tnat all the banks had really closed. This news
swept the street like wildfre and for the moment
the universal opinion seemed to be that the financial
ruin was beginning to extend its proportions and
1asten its claws upon the general business In
terests OF the country fastening into the nearest
banking house inquired OF the firm whether the
kilograms were true or not, and was informed that
they were
BEYOND DOUBT CORRECT.
next sought Mr.. Drexe and during my inter-
view with him was assured that the telegram
had just received authentic Information that such
was not the case. He said that in mis- opinion,
everything upon the street was gradually clearing
up, and that he thought all future developments
must De In the direction OF more wholesome con-
dition OF financial affairs.
was informed in Mr. Drexel's once that Penn
sylvania Railroad stock was selling at Al and 4s,
Reading at 494, and Lehtgh Valley at 6S and SO.
Hence all reliable e. stocks are selling at about their
here as safe, easy and quiet Thus tar
NO NEW FAILURES
anh fhn fhA
Fidelity and other Institutions OF similar nature
have very greatly diminished. have visited
last week with the view OF obtaining, If possible,
their different statements, which, in many instances
were TO haye been ready by banking hours tnis
tney were not yet made out. nor could receive
any satisfaction as to when they would be- In face
OF this 1t is evident that the financial affairs of
many houses are in a state OF greater perplexity
than was first imagined, and that the statement
will not be made much before the close Of the week.
IL they are ready then. Still, II houses go
under to-day things will no doubt assume brighter
will at last find their actual level. The only doubt
entertained among Philadelphia bankers seems to be
that foreign capital will be reluctant to involve
itself In tuture In American railroads have been
among the banks and banking companies, and
have been assured tnat the worst Is doubt over;
made use OF remarks directly consistent with that
which have quoted above from Mr.. Drexe.
been released the treasury auTna the U
gradual fuflment OF contracts, this sad catas-
trophe could have easily been averted.
He says, further, that even great q thing
as the immediate release OF 81, 100000 could not
rebuild the wrecks with which the country is
strewn, but that it might restore public conf.
dence. Judge Kelly says, aso that he believes the
next Congress will remove certain
RESTRICTIONS IN THE PRESENT BANKING LAW,
and that 1t will devise means OF giving greater
nexibility to our currency.
Mr.. Edward Robbins, well-known Third street
broker, says that had not the Fidelity so bravely
weathered the storm four-nths OF the banks In
town would have been obliged to suspend.
n 10 lear Hausa
mittee assures the public that the Clearing House
here win not be necessilated TO resort TO an action
ike that Instituted In New YORK, and that there
Will be no meeting to-day.
Failure Of the keystone and the
Citizens Bank.
PHILADELPHIA, Sept. %, 1873
Despite the assurances given above, the day
closes with two additional suspensions-one of the
Keystone Bank and the other OF the Citizens
Bank The Keystone Bank is located on Chestnut
street, is State institution, and about one year
ago its assets and liabilities were shown by the
Auditor General as $685., ,427 II. or the former
were discounted bills and notes amounting
to $430,000; mortgages valued at $42,S0O;
real estate, attended with an expenditure OF
$50s30 and $780, I'll due from solvent institutions.
Included in the list OF liabilities at that date were
$197,0 in capital stock actually paid in, 1894 946
In deposits; $751;, ,492 due to other banks, and
surpus contingent or sinking fund of s46,9O0
While the authorized capital Of the Keystone was
100000, the bank had ON hand good
SECURITIES TO ANY AMOUNT,
and suspended because 1t could not secure bank
bills in sufficient quantities to meet the present
extraordinary demands The National banks this
morning were to have furnished certain amounts
Ia currency instead OF which they simply sent their
checks. For every check offered to-day the officers
could furnish abundant securities and they to
think that they can meet the emergency with cur
rency in the morning. The Citizens Bank is also
q state institution, the authorized capital OF
which Is $500, 900. The Citizens has stood thu
storm maniully for the last few days, and on Sat
urday paid out over slOo, 600. This amount exceed
ing that oil ordinary occasions by about $4,000.
THE CITIZENS BANK
entertains no good feeling towaros the national
banks, ana the President, Mr. Keim, declares that
they are the cause Of the failure, lnasmuch as they
threw out the checks of the state banks whenever
they were presented. The Citizens usually de-
pOsit their country checks with the Girard National
Bank, which institution, instead Of cashlng them
as usual, last saturday returned them. The OIL
GERS, believing that there was an effort being made
upon the part OF depost0rs to drain the banks,
notified them that no more money would at
present be paid out. The State banks seem to find
1T almost impossible to stand through the struggle,
while, on the other hand, the nationals find no
dinlculty whatever in doing so. There have been
three failures In state banks since last saturday
morning, and the public, under the circumstances,
may well 1eel alarmed concerning the solidlty or
the rest OF them.
As the result OF o meeting held to-day by d.
rect0rs OF the
UNION BANKING COMPANY,
which suspended last Saturday, the following
card appears upon the door,
Payments of notes drafts &C. lately held here, be
made at the Grand National Bank.
Thus each day appears 10 ada new victims to the
wreck, and the warm assurances OF the morning
seem to be regularly supplanted by the disastrous
announcements oil the afternoon.