Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-08-28
NEW YORK.
&C.,
Excitement on Wall Street
Effect of California Suspension.
The Cause of the Failures.
Losses of the California Stock
Brokers.
NEW YORK.
Effect of California suspensiO:
The Cause Of the Failure

-hAaH LNAaAf lAE5a ALas-ANAtAA aAAA
commercial circles were thrown into STATE
of greatest excitement at the opening, by
the report Of the suspension of the Bank q
/ California, and for some time the utmost
| confusion existed in the gold and stock ex.
changes, prices Of gold rising plump tC
11444, while stock declined one or two per
cent on free pressure OF sales.
The news Of the suspension of the Bank
Of California this morning produced con.
siderable excitement among depositOrs and
creditors generally, Of that institution in
| this city. The offices Of Ludlow 8 o.,
agents of the bank in this city, have since
they opened the doors at an early hour,
been thronged with anxious inquirers.
In obedience to instructions re-
ceived by telegraph no checks were
cashed. The senior member of the firm
was asked for information concerning the
condition Of the bank and Of the affairs Of
Ludlow & Co., independently Of their
agency for the Bank of California, but he
replied he could say nothing. Among the
visitors who were anxious 10 obtain money
for paper were four or five Cinnamon, who
persisted in lingering about after they being
assured that their paper could only be
cashed in San Francisco en- presentation at
the bank. Fisk & Hatch say the bank had
an interest as investors in the Central Pa
cific Railroad. The secretary of the com
pany in this city confirms this statement,
but says the Central Pacific Railroad had
an account with the bank, and had made
loans from it. He had not heard that the
condition Of the bank had been considered
unsOund by bankers. Persons interested
in affairs Of the bank are positive in their
assertion that the bank will, after a short
time, be able to fully satisfy all its cred
itOrs,
Cause OF the Failure.
The failure of the banks Of California,
while Immediately caused by depOsitOrs'
run, was directly the ou.cOme Of a conflict
between two classes Of California specu-
lators, one the Bank of California party,
headed by Mr.. Ralston and Mr.. Sharon,
and the other headed by Messrs. Flood,
OBrien and Haddenfelt. The latter party
have established bank in San Francisco,
called the Bank of Nevada, with a cash
capital of FIVE million dollars in gold, and
the right to increase 10 twenty millions.
Incidental 10 this fight have been mining
properties known as Savage, the
Caledonia, the California, the Ophir
and the Consolidated Virginia. The
three latter are known as the big bonanza
mines, and the Bank lot California party
obtained control of them. In getting this
control the stock of the California was run
Upfrom sixty to 500 was multiplied BY five,
which wO-ld make the highest price 100.
1t has since declined to 50. The Ophir
stOcs, while they were getting control, ad-
vanced from 50 to 700, was multiplied by
five, making 100 represent As in the new
stock. 1t has since declined to 46. The
consolidated Virginia, during the process Of
getting control, advanced from So to $50.
1t was yesterday 26I. That the bank has
bee2 strained of late and that the -iuch
has been evident 10 bankers here, who have
Stunned their bills from the fact
of the bills offered in the market have
been these of other institutions endorsed
by the Bank Of California, the inference
has been that the Bank Of California had
hypothecated securities with those who
lent their bills, and that this borrowed ex-
change was used to obtain funds needed to
carry on the large operations Of the bank.
In the borrowed bills which have so ap-
peared were those Of the bank of British
Columbia and the bank OF British North
America. The amount of the unaccepted
bills Of the Bank of California in this mar
ket is small. The Banks London cores
pendents we're the Oriental Bank, a strong,
unlimited institution, one Of the best in
London, having a capital Of 9l,000,000, a
reserve 100000, so that direct losses Of
the failure here are comparatively small.
Archibald Baxter d Co,
who suspended payment few weeks ago,
fled a schedule of assets and liabilities in
the city clerks office. Assets about S-75,-
600 and liabilities in the neighborhOOd Of
S250,O00. They think they will at least
be able to pay 90 cents on the dollar, and
if time is given very nearly or quite dollar
for dollar. Assignees bond was fixed at
$4,000.
The Losses OF the California Clique.
A report was current here that the losses
of RalstOn and his clique in California on
mining stocks and other adventures will
reach 100000.
a private dispatch from prominent gen.
tlemen in San Francisco says matters look
better so far as the best interests of the
city and State are concerned. The financial
panic is fearful. The lcSses By the failure
of the Bank of California will be heavy.