The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1876-04-07
Our New York Letter.
The Big Bank Failure 500, 600 House The
Labor Market-Drew's Failure New
Hampshire Election.
FROM OUR REGULAR CORRESPONDENT.
New YORK, March 25, 1876.

NEW 1ohh3 H1aICn 80, loio.
THE BIG BANK FAILURE.
To the surprise of everybody, the Bank
of the State of New York closed its doors
Tuesday. This was one of the oldest banks
| in the city, and was presumed to be one of
the soundest. and the failure created pro-
found sensation on the street. Stocks went
down frightfully, other banks shivered IN
anticipation Of runs, and for while it
seemed probable that panic would sweep
over the street. But fortunately, the
event passed without widespread trouble.
This failure let's in flood of light on
New York business and New York bust
ness men. When this staid, solid old bank
this eminently respectable "financial in
stitution went under, and it's affairs
came to be investigated, it was found that
none of tile directors, or, for that matter,
any Of the officers, knew anything about
it's management, that not one of them had
ever looked into it, there had never been
regular meeting of the board, and that the
whole management was left in the hands Of
one man, the Vice-P President, Patrick! AS
matter of course Mr.. Patrick had lent
himself $500, 900, he had lent the esAttri-
ton Flour Company 100000 on $780,
600 of its stock, which stock was worth
about four cents a pound, and equally as a
matter of course, every shyster concern in
New York in which Mr.. Patrick was inter
ested, or felt friendly toward, had it's
money on just as worthless security. The
directors were all surprised when the fail
ure was made known to them.
The effect Of the panic will be bad IN one
sense and good in another. It win be bad
because it will unsettle confidence, and
make distrust. It will be good because it
will compel directors to look into the man
agement and see what is being done with
the money with which they are entrusted.
All the banks, with a few exceptions, are in
a tight place. Their securities are un-
sound. Real estate was their favorite Sc
curity, and on real estate loans have been
made quite up to its value. But alas, real
estate has shrunk in value over a half since
these loans were made, and when the banks
come to foreclose only half can be real
lied. Business men dread to have the con-
dition Of the banks looked into, for fear
that they will all be found to be rotten,
which would result in such a smash-up as
this city never saw. They prefer to Shut
their eyes and let things drift, hoping that
something will turn up to let them out.
But it has got to come. New York is not
at the bottom Of It's troubles yet.
a 100000 HOUSE.
Do you remember the failure of the 'sem-
inent:' banking house of Duncan, Sherman
s. COP OF course you do; and you re-
member also that they didn't pay scarcely |
anything on the dollar, and that their cred |
itors were fearfnlly indignant. It is COM
forting to take up Newport paper and |
read that Mr.. Watt Sherman, one of the
partners, is building cottage in that ''city |
by the sea- the cost of which is only |
800, 900! And this for a summerresidence |
only. Failing is not very bad business, |
after all. IF ruined man can afford a |
800, 900 house, what ought one to have
who sticks to his legitimate business, and
goes on regularly? The Vice. President Of
the big bank failure Of Tuesday will prob |
ably build a cottage next year.
THE LABOR MARKET
Is in fearful condition. One publishing |
house has discharged thirty clerks since |
January 1st, every one of whom are now |
out of employment, and will be till trade
revives. The great metal house OF Phelps,
Dodge s. Co. notified their employees that
they should be- compelled to dismiss one
half of them, whereupon the men held q |
meeting and resolved to work for one-half |
wages, provided the whole force should be
kept on. To this the house consented, and
the men are doing the best they can until |
something turns up. One manufacturer IN |
the city who never, till last year, employed
less than 1,2O0 men, has but 400 at this |
time. He discharged 800 last week. These |
are but sample cases. The whole industry !
of the city is paralyzed, and distress is not |
only widespread, but universal. Those
who have work are doing it fvr the barest
and closest possible subsistence, and they
are exceedingly fortunate. Where one has
work, ten have none at all, and what they
are living on Heaven only knows can
hire ten thousand women tomorrow for 50
4 week, women skilled in the labor they do,
and men can be had in iroyes for dollar
week more. When viii the good times
come
DREw's FAILURE.
The failure of Daniel Drew, once tile
king of Wall street, produced no sensation,
for tile old fellow nearly failed year ago.
Hs has been uniformly unfortunate for
some years, and the boys, IS he was