Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-09-19
place Of both. The SUSPENSION Of houses

| do business on borrowed capital or oftener
on name. The sympathy of the public is
with The unfortunates who try to do slegi-
| innate bust ness and who fall while 10 the
prosecution of it; as In building railroads
and other public works designed to enlarge
the business Of the country. The duty OF
all Is while emitting no care necessary to
exposure or proper regard for the present or
future, to pour oil upon the troubled waters
and restore health and confidence to the
money market and to all hone,t corpora
tons and persons engaged in money tran
sactions." ff
The North Pacific BOndhOlders Safe.
PHILADELPHIA, Sept. 1S.--As in con-
neetion with the suspension of Jay Cooke
s. Co., many holders of Northern Pacific
railroad bonds throughout the country viii
naturally feel concerned about their invest
ment, inquiry has lbeen made and de-
.veloped the fact that the North Pacific Is
largely indebted to its fiscal agents, and
therefore can lose nothing pecunisrily by
their suspension. The railroad company
will have to make other financial arrange-
ments before pushing forward its line. 1t
has its completed road and government
land grant both mortgsged to secure It's
bonds, and the security is considered amply
sufficient. ..5.. \
The why and the Wherefore.
NEW YORK, Sept. 1S.-The Tystsaae
says the Philadelphia house of Jay Cooke &
Co. were under large indebtedness to rail
road companies, involving large sums Of
money, preventing them from maintaining
the reserve ordinarily kept, and they were
unable, therefore, to respond to the demands
OF their creditors. For this reason they
were unable to return to the New York
house advances made them by the latter, or
to supply them with any collaterals available
in New i ork at the present time. OW-
ing to this the cash balances became
exhausted and suspension became inevita-
bic. Fahnestock, member OF the firm
says: Ofcourse different members of the |
firm are possessed OF large amount of |
private and personal property, but none of |
this was available in en- emergency such as
the present. He was not at the present |
time, nor any member of the firm, prepared |
to tell the exact amount Of liabilities or as
sets of the firm. He b slieved all creditors |
would be paid in full, and hoped that the |
would only be temporary. On |
this point nothing positively can be said at |
present and some time must necessarily |
elapse before the exact amount of private |
property Of the firm can be decided.
The Effect Of the Failure.
A Herald reporter interviewed Mr.. Bliss,
Of Norton, Bliss 81 CO., relative to the eff |
feet the failure of Jay Cooke & Co. would
have on the market. He said the effect in |
the country will be felt a good deal, for |
these Northern Pacific bonds have been dis
posed of North, South, East and West.
The country banks will feel the pressure,
and of course there will be much alarm
among country depositors; but after all,
Ibis collapsesis not about to cause serious
evils. The country was never SO prosper
Gus, and except that individuals will suffer
for while, there med be no apprehension
Of general effects.
Street RumOrs.
Early in the day rumors, which form such
IN important part in Wall street op 1rations,
we're revived with increased emphasis. Ths
names of houses, which even the most IN
stock jobbers had heretofore
spared, passed merciessly from mouth to
mouth. First came renewed rumors of
of the New York and Os-
Wego and Midland Railroad Company, and
heir financial agents Geo. Opdyke q Co.
Statements that some banki2g institutions
were on the brink of failure were also
made with depressing effect. These rumors,
ialse as they we're, made the rounds, growing
10 evil influence as they became more ana
more distorted. The crowning rumor of
,he day was this time, unfortunately, too
rue. Jay Cook & Co, Government fiscal
agents, who had s,ood so high in financial
circles throughout the world were impaired
BY reason of their connections with
he Northern Pacific Railroad Company,
aud probably be obliged to suspend. This
-umor, which was in the sir early in the
spread like wild fire, but al
,hough dealers were disposed to believe
almost anything, it was still rather diff.
cult to convince the street that the fore
most American banking house
"a this country was not able to
meet its obligations. Of course
measures were Immediately taken to verify
he statement, and at noon it was officially
that Jay Cooke & Co. had sus-
pended. This news was Immediately fash
ID over the wires of the Stock and Go
Indicator, around which groups
had been lowering all the forenoon,
Ind the dispatch was read to ell within
hearing. The effect was electric, and Jay
Cooke & Co.'s offices were crowded with
IN anxious throng. At about p. NJ, when
he news became generally known, the
sidewalks of Wall, Nassau and Broad streets
we're thronged with q mixed assem-
Olage of people. A few of these
mad any pecuniary interests involved, but
having nothing else to do concluded they
could as well afford to spend their time
here as elsewhere. These formed sway
ng, agitated and excited mass, which it was
difficult to penetrate. The crowd
stretched over the sidewalks into the
centre of the street and even filled
easements of contiguous buildings. Not
content with their places they clambered
over the ratings, filled the basement, peer2d
through windows, and even invaded Offices
So intolerable became the nuisance that
bankers were obliged to have a
detachment of police and detectives,
he former to dispense the crowd and the
after to nullify the operations of pick
pockets and sneak-thieves, who were on
hand to avail themselves of any opportunity
'or plumber. Officers were then permanent
y stationed around the entrances with Or
1ers to dispense all loungers and keep The
sidewalk clear.