Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1882-03-07
NEW ENGLAND.
Massachusetts.

Reported Failure of Banking Firm.
BOSTON, March CIT was reported to-day
that the firm of Charles A. Sweet & Co.,
prominent bankers and brokers, at 40 State
street, had failed. The first intimations
financial circles of this city had of the sus-
pension were numerous reports from New
York SO possible that no mistake could be
made about their authority. For hours it
was impossible to trace the rumors to any
reliable foundation. Messengers few thick
and fast in many directions in and out of the
banks, endeavoring to found out whether
there was any bank or firm in trouble A
call at the banking house of the above named
firm revealed the fact of its suspen-
sion. This firm has always stood high
in this community, and has been supposed to
do a profitable and growing business since its
organization some years ago, when some of
its members separated from the house of
Brewster, Sweet q Co., and two strong firms
were formed. These firms were rated all the
way from $500, 600 to $780, 700, and were
given the very highest credit at the CONNER
cial agencies. The cause of the failure Is ad
mitted to be due to the fact that the firm had
been carrying and gradually placing $780,
600 to $500, 900 in Massachusetts Central
bonds. These bonds have fallen from
101 last summer to 80 on Saturday.
The sales have been small. The firm
has been obliged to buy largely to sustain the
| market. Very recently the house has re-
ceived certain calls for several very large
| loans which they had previously obtained on
| these bonds. At once an effort was made to
change other securities held by them and
| also to place the Massachusetts Central bonds
| elsewhere in order to meet the aforesaid de-
| mands In this the house was unsuccessful,
and the banks refusing to accept the bonds as
collateral and suspension followed. 1t is re-
ported that recent declines in Toledo, Del
| phos and Burlington and Connoton Valley
| Securities has affected the firm, but this is
| not confirmed. No suspicion of weakness
| existed until the suspension was announced
| at noon to-day. The firm was one
of the most energetic in Boston as
| regards their operations, and their
been very great. Exactly why the firm were
unable to place their Massachusetts Central
| bonds is now matter of surmise and good
deal of curious inquiry is made. as to the
| amount of bonds carried for the western line
| of which mention has been made above.
| Clerks are busily employed preparing COM
prehensive and complete statement as to the
liabilities of the firm, which are unknown, but
| believed to be about s., 000, 900. The firm
claims it can pay dollar for dollar, and it is
stated on the best authority that if the
firm could sell its securities at present
market rates it could pay all indebtedness
and have handsome surplus. The firm
dealt only in investment securities, and it is
not thought therefore that the general stock
market will be seriously affected. 1t is be-
| lieved no other banking firms are affected
seriously, as the heaviest creditors of Sweet
Il Co. are prominent and staunch banks.
| Russells Mercantile agency. estimates the
liabilities of Charles A. Sweet Co. at 49,
| 900, 900.