The Mineral argus., 1884-05-29
WALL STREET PANIC.
Black Friday Recalled by the Scenes Of
Last Thursday.

6AASA GEAuay 6eCd1Aeu ny bAS 6C6ueh OF
Last Thursday.
New York telegram of the 18th say: The
panic on the stock exchange tO-daywas the most
disastrous since 1873. It's approach has been
gradual but certain, and it is one Of the few f.
nancial disasters which have been predicted
The net result of the day was the suspension
of tho Metropolitan bank, the failure of seven
broker firms, a depreciation of values to the
extent of ten millions, and an advance in
money to 3 per cent per diem. OF the brokers,
but two we're large hOuses-those of Hatch g.
Foote and o. M. Bogart Il Co., and the failure
of the Metropolitan bank has probably been
partial As compared with the day of Jay
Cooke q Co. 3 failure and Black Friday, in 1863
this latest panic Is rather a tame atIalr, but 1t
shook the street, and its effects will be felt for
a long time. Brokers were generally at their
offices early, as an exciting day was expected
to follow on change from the temporary sus-
pension of A. Dyett & Co. yesterday and the
Second National Bank complication.
Suddenly a broker rushed in from the New
street entrance, forced himself into the West,
ern Union crowd and offered a thousand shares
u below the market. Instant and redoubled
confusion ensued Blocks of stocks by the
thousands were hurled on the market at any
price. The tape at which hundreds of dealers
stood anxiously in brokers' Offices showed
plainly that a panic had struck the street.
OUlDH IdClllC Il uON II - pei GEAh anu OAAAIA
stocks followed, Orders to sell poured in
from up town and from the country, and pan
demonium reigned / in the room. A few sharp
strokes of Chairman Hatch's gravel brought a
crowded hurriedly around the chair.
"Messrs. Nelson, Robinson q Co.
regret to announce their inability to meet their
contracts" read the chairman, in a clear voice.
The room became more demoralized Then
quickly were announced the suspensions of
COTE & Randall, o. NJ. BogaT5 q Co, j. G.
Williams and Hatch & Foote. The last house
is a large ore, and alarm overtOpped excite
ment Brokers were asking themselves where
the thing was going to stop. When the an
nouncement came that the Metropolitan bank,
at Broadway and Pine streets with its $1,000
GOO surplus, $S,000,000 in deposits. and SlO,-
600, 600 in loans, had suspended, this important
event added greatly to the excitement ana
panic, both in and out of the exchange.
Most exaggerated reports were circulated I'M
mediately after the Metropolitan suspension
One was to the effect that Drexel, Morgan a.
Co. had a 49, 900, 900 account in the Metropoll-
tan bank. This was promptly denied 10y the
firm. 1t was known that a run on the second
National bank was in progress, and the sus-
pension of the United States, the Phoenlx, tne
Bank of the Republic, the Gallatin, the Fourth
National, the Wall Street and other banks was
expected. These banks are ali sound insttu-
tons, and their officers hurried out
statements contradicting the reports:
Depositors anxiously hurried TO several OF
the QOWn-UOWDl nSIltullOuS 10 ufdN LubI nlOhtgs
In some cases the line of depositors reached far
out on the sidewalk, and idle but interested
crowds gathered to watch them but there were
no further casualties.
At l 80 the bank presidents who compose the
clearing house association met to consider the
situation. These gentlemen representing lead
ing financial institutions of New York, and their
action in times of financial trouble has an i'm
portant bearing on the situation. They met
in 1869 and 1878, as they met to-day,
and adopted measures which treasured
the public. They simply
resolved that the associated banks will take
| care of themselves and assist each other with
cash when necessary. The loan certificates,
based on collaterals, will stand for so much
cash in the clearings between the banks, and
in the case of stringency in money must afford
great relief.
Q OF the nine failures announced, byfar the most
important is that of the Metropolitan bank.
Tie firms of o. M. Bogart q Co, and Hatch *
Foot were well known, and were leading firms.
The other firms are comparatively unimportant.
The suspension of the metropolitan one OF the
leading financial institutions of the country, is
a very different matter. This bank is presided
! over by George |. Seney, the great railroad
proprietor, philanthropist and Spectator.
The Metropolitan bank was s5O0,000 debtor
to the clearing house this morning. George l.
Seney, president of the bank, was a partner in
Nelson Robinson q Co. Seney's Sons were al
30 partners. Th5 direct cause of the failure
was a balance of half amillion against the bank
IN the clearing house winch could not De met
The other banks would not consent to any
thing but a cash settlement, until they had ex-
anime into the condition of the Metropolitan
bank. The announcement that Hatch & Foote,
bankers and brokers, of 12 Wall street, had
failed, produced a most depressing effect upon
the already overburdened street.
Henry Clews thought that by pooling their
assets the banks had really mande impossible
further bank failures. Ex-Controler Knox was
of the same opinion, and said he thought a safe
but cautious market would result. Sidney Dill
Ion said: 81 see no adequate cause for fear,
and no reason to believe there will be any
widespread trouble" Jay Gould and Presf-
dent DOwd, of the Bank of North America,
both call it a clearing storm
Jesse Seligman thought the worst over, and
said the failures today were due simply to a
want of confidence.
Secretary Folger was at the subtreasury all
the morning. He was visited by almost all the
prominent tinanciers in Wall street He ex-
presses the determination to use all the power
of the government to prevent a panic, and said
he would act promptly to the utmost limit of
his authority. The secretary telegraphed
Washington ordering the immediate payment
of the Firth call for bonds, and ii necessary he
will order another call for So 00,O coo.
National Ante-NHonopolist Convention.
m ~ "