Western sentinel. [volume] (Winston [i.e. Winston-Salem], N.C.) 1856-1886, 1884-05-29
THE WALL STREET PANIC.
THE FAILURE OF THE FIRM OF
GRANT AND WARD.
Their Liabilities $14. 600. .0OO--Thefr Assets
Collaterals $IO.OOO.OOO--MoneyL Loan.
ed at Three and a Half percent per
day.
Special Correspondence of the Sentinel.

Special Correspondence of the Sentinel.
NEW YORK, May 23.-The wonder
is, not that we have picnic now, but
that we did not have one two or three
years ago. Systems of banking and
of business generally have altogether
changed. Many of them are totally
without bottom, and have nothing to
warrant the confidence which is the
only thing on which they live. Let
breath fall upon this confidence and
it melts away. There is nothing where
with to enable it to sustain the slight
est shock. When little of it is de-
| stroyed the rest goes as a natural re-
suit. 1t is not one bank that fails,
nor two or three. The shock goes
| from one to another, and still others,
for the new systems are widespread
| and the chains of connection are very
long.
| So far as Mr.. Davies, the receiver
for Grant & Ward, has been able to
ascertain the liabilities of that hope
Iessly suspended firm amount to up
wards of 100000. He has as yet
no definite knowledge of the value of
the assets, but estimates the collateral
held by creditors at possibly s12,000,-
900, but probably not more than SlO,-
100000.
1t appears from the statements of
Mr.. Ward, to whom the entire finan-
cial management of the concern was
entrusted, that he had manipulated its
affairs mainly in his own interest ;
that his partners knew comparatively
little of what was going on, and that
as he became deeper and deeper in
volved, he was time and again COM
PEELED to make large loans, at rates as
high as five percent month, in order
to meet prior engagements, until the
usual and unavoidable result of bor-
rowing from Peter to pay Paul over
took him and the game was up.
| When the announcement was made
that the Metropolitan Bank, (Which
by the way, resumed business few
days since) had failed, 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 Of Jay
Coke & Co.'S failure in 1873. For O
time the decentralization was complete
Confidence was shattered. Banks re
fused to certify except against cash
deposits loans were called in, securi
ties of all kinds were thrown out al
next to worthless, and the loaning rate
for morey was run up to 81 percen
per day. Great banking houses re
) fused to accept even certified check:
on reputable banks, and demanded
actual cash payment in all transac
tons
1t was reported that Gould ane
Morosini had been seen Fastening
from the Trust Company, where the.
deposit their securities, with boxe
: containing their vast holdings, THEM
: ference being that they were endeav
7 oring to pledge them in order to rais'
5 money. One report was even bulle
tined that Mr.. Gould was in seriou
8 trouble. This was emphatically de
MED, however, by MIR. Gould, bu
during the day it transpired that
vast number of puts had been unload
ed on Sage, and that operator later il
! the day declined to accept any fun
ther deliveries, which increased tn
excitement and added to the demoral
ization. TARHEEL.