The Middlebury register and Addison County journal. [volume] (Middlebury, Vt.) 1883-1885, 1884-05-23
THE FINANCIAL FURRY.
Details of the Exciting Scenes in
Wall Street.
Many Millions Involved in the Sus-
pension of Large Firms.

James r. Kecne, and which the suspension
of the Marine bank and the failure of Grant
& Ward precipitated, burst over Wall street,
and for a brief period threatened to destroy
even the most firmly established moneyed
institutions of the city. Details of the finan-
cial crash and of the excitement which sue
ceeded are taken from the metropolitan pa
pers as follows:
The Metropolitan bank, one of the largest
and best known of the national banks in New
York and of which Mr. George l. Senev
the celebrated railroad financier and phi
lanthrOpist, is president, closed its doors, and
the Atlantic State of Brooklyn, also sus-
pended. There were runs on other banks and
financial institutions and no less than seven
large banking and brokerage firms an
nounccd to the Stock, Exchange their
inability to meet their engagements
as follows Hatch & Foote. II Wall
street. Hotchkss, Burnham q Co., 81 Broad
street; Nelson Robinson q Co., IS Wall
street; o. NJ Bogart 81 Co., los Broadway;
Donnell, Lawson a Simpson, 100 Broaway; J.
C. Williams e. Co., IS Broad street and Golf
81 Rande, New street. In addition there
| were reports affecting the credit of scores
of other banks and firms, which proved incor-
rect but which added to the general democrat
ization caused by the actual failures
| For n few hours the excitement in Wall
! street and in financial and business circles
! generally was the most intense that has been
known for years; certainly not since the day
4 of Jay Cooke d Cos failure i'll 1878. For
time the Generalization was complete. Con-
fidence was shattered. Banks refused to GER
tify except against cash deposits; loans were
/ called in, securities of all kinds were thrown
/ out as next to worthless, and the loanng rates
/ for money was run up to SO per cent. per
( day. Great banking houses refused to accept
certified checks ON reputable banks, and de-
manded actual cash payment in all transac-
/ tons
1t was reported that Jay Gould and his sec
rotary, Mr.. Morosni, had been seen fastening
from the Trust company, where they deposit
/ their securities, with boxes containing their
vast holding, the inference being that they
were endeavOring to pledge them in order to
raise money. One report was even buletined,
that Mr. Gould was in serious trouble. This
was emphatCally denied, however, by Mr.
Could but during the day it transpired that a
vast number of puts had been unloaded on
| Russell Sage, and that operator later in the
day declined to accept any further deliveries,
| which increased the excitement and added to
the Generalization
Then came reaction. Secretary Folger
came to the rescue with an order directing the
| treasury department to pay the $10,0O0,O00
| bonds included in the Eth call in advance of
the time set, June 90 The Clearing House
{ association, comprising sixty three banks with
an aggregate capital of Sl4O,0)O,O0) held n
meeting, appointed n strong committee and
resolved to stand by each other in this crisis
The action served TO calm the tempest and
allay the excitement, it being seen that this
timely step would serve to prevent any further
trouble As the night closed in the panic of
May II, 1854, a day which will be memorable
in the annals of Wall street, ended in renewed
confidence and hope.
The scene on Wall street following the an
| nounCement of the failures was one of the
widest excitement that defes adequate de
scription. The great depression of Tuesday,
the action of the Continental bank in refus-
ing to certify the checks of A. Dyctt & Co.,
the extraordinary developments in the matter
of the Second National bank and the dis
| astrous spcculations of its young president,
| Mr.. John {. Emo, coming on the heels of the
Marine bank failure and the crash of Grant
I d Ward, caused the day to open with the
blacklist clouds hanging over the street. The
lightning soon cleft the clouds away and the
storm burst. Business began at the stock ex-
change shortly before 10 A. NJ, the hour for
opening. The market opened weak and list
| less
The opening sensation of the day was the
. announcement of the failure of Nelson Robin
son a Co., at 10 a. IN. As soon as this was
/ known members began to rush into the board
room and the galleries to fill with spectators.
In fifteen minutes Chairman Mitchell raped
for order again and read to a room as silent as
If it We're empty, the notice from o. NJ. Bogart
~ Co, announcing their suspension. A
minute or two later and the ominous raps of
the chairmanS gave were again heard, and
lue Idllillt Oh NTONt N Iitlltlle was announced
. The excitement ~ became intense. Stocks
which had opened one and six per cent lower
than the closing prices of Tuesday fell three
and four per Ger more Brokers awoke to
the fact that the storm dreaded for so many
days had begun and Generalization set in for
/ a time
Again the lrmmer fell and the brokers
crowded around the roStrum This time, how
ever the announcement was not one of dis
aster, but of reinsurance. The chairman read
notice from Bank Examiner Serbia, to the
effect that he had investigated the affairs of
the Second National bank, and that it was
perfectly sound and solvent. This caused a
slight relief, but the general belief was that
the notice would have been of an entirely
different tenor had not Amos h. Emo made
good the losses of his son, the president,
amounting to $4,000 0O0, and caused by spec
ulation. Scarcely had the effect of this notice
passed away when the failure of j. G. vii
liams a Co was announced. This was fol
| lowed 10y the notice of the fall of the great
house of Hatch & Foote
Excitement was now ut fever heat. When
the name of the last firm fell from the lips of
the chairman the door of the Exchange was
crowded with members. The announcement
was received with n tremendous shout Bro
kers made for the door and FASTENED to their
offices to look after their affairs and their
accounts with the suspended houses. Trading
was then to al intents and purposes sus-
pended Meanwhile the news had spread
of the failures We're received in every Office
over the tapes and the news was carried from
/ lip to lip with rapidity almost
marvellous Outsiders began to crowd
into the galleries. At II o'clock there
We're fully 800 spectators i'll the two
narrow galleries. They We're jammed in and
those who could not get there crowded the
corridors and stairways The officials of the
Exchange then gave the order to clear the
galleries and allow only members to enter the
lUl1inp This FOL t.l n, 4
two stalwart policemen We're stationed at the
wan street entrance to prevent the mob from
stepping within the building. For a minute
it was even suggested as advisable to suspend
business on the Exchange, rs was done for
several days during 1875. This, however, was
not seriously considered, as the condition of
affairs did not warrant such an extreme
measure.
During abe rest of the session there was nc
further indications of undue excitement. even
after it had became known that the Metro
politan bank had closed its doors Only q
comparatively few members remained ON the