The Warner weekly sun. (Warner, Brown Co., Dakota [S.D.]) 1883-1885, 1884-05-23
A STREET pArrc.
Black Friday Recalled by the soen.. ).
last Thursdav-

&e1 &AuG60&Xs IS
New York telegram Of the l4th sav. X.
panic. on the stock exchange to-daywas tbat.s..
disastrous since 1878 Its approach has hsss
gradual but certain, and it is one Of the fav !
nancial disasters which have been predictea
The net result Of the day was the suspenaies
of the Metropolitan bank, the failure 81 seysn
broker firms, o depreciation Of values to NJ
extent of ten millions, and an advance 4
money to 3 per cent per diem. or the broha,s
but two were large housea-those az Hatch
Foote and y, NJ. Bogart & Co. and the fa;lrrs
of the Metropolitan bank has probable hsas
partial. As compared with the day az Jas
Cooke a. Co. stature and Black FRIDAY. n 1SS32
this latest panic ia rather i, tame affaiI. hnt
shook the street, and Its effects viii be felt foy
a long time. Brokers were generally At tbs;s
Offices early, as an exciting day was expecsed
TO follow on change from the Temporary Nc
pension of A. Dyett & Co. Yesterday and ~
Second National Bank complication.
Suddenly a broker rushed in from tho Neu
street entrance, forced himself into the West
ern Union crowd and offered q thousand sharass
"a below the market Instant and redoublea
confusion ensued Blocks of stocks nv M
thousands were hurled ON the market Al anu
price. The tape at which hundreds Of dealers
stood anxiously i'll brokers' Offices showed
plainly that a panic had struck the street
Union Pacific ran down 2 per cent and ofbow
stocks followed, Orders to sell poured -
from up town and from the country, and nan
demonium reigned in the room. few sharn
strokes of Chairman Hatch's gravel brought Z
semblanco of order, and the brokers
crowded hurriedly around the chair
'Messrs. Nelson, Robinson 4 ca
regret to announe their inability to meettheir
contracts" read the chairman, in a clear voice
The room became more demoralized Then
| quickly were announced the suspensions az
COTE Il Randall, o. M. Bogart & Co, JIG
| Williame and Hatch 4 Foote. The last house
is a large one, and alarm oyertopped 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 $4,000
GOO surplus, IS, 10000 in deposits. aud Si0,-
600, 600 in loans, had suspended, this important
event added greatly to the excitement and
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 &
Co. had a 5000, 600 account in the Metropoli
tan bank. ibis was promptly denied by 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 Phoenix, the
Bank of the Republic, the Gallatin, the Fourth
National, the Wall Street and other banks WIS
4 NAIC(tGNL 1AC60 i'm HAQ 01 HOUitu WI
tons, and their officers hurried out
statements contradicting tbs reports.
Depositors anxiously hurried to several 81
the wninstitutionst 10 draw their money.
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 i 80 the bank presidents who compose the
clearing house association met to consider the
situation. These gentlemen represent the 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 1873, as they met to-day,
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, viii stand for so much
cash in the clearings between the banks, and
in the case of stringency IN money must a1oro
great relief.
OF the nine failures announced, byfar The mos
important is that of the Metropolitan bank
The firms OF o. M. Bogart a Co, and Hatch 4
Foot were we'll known, and were leading firms
The other firms are comparatively unlmpOrlanI
The suspension of the metropolitan one o. tn'
leading financial institutions Of the country, =
a very different matter. This bank u presiue'
over by George j, Seney, the great raiiroa'
proprietor. philanthropist and Spectator.
The Matrenneli.sa bark s%@sss 7 ~ 90 SSSsS
to the clearing house this morning. George !
Seney, president of the bank, was q partner !
Nelson Robinson a Co. Seneyas Sons were al
so partners. The direct cause OF the ialiur..
was a balance OF half q million against the BAN
in the clearing house which7seTid NOT p Essi
The other banks would not consent q any
thing bat a cash settlement, until they had eA
amined into the condition of the Metropoiita
bank. The announcement that Hatch y toot
bankers anti brokers, OF IL Wall street, ha
failed, produced a most depressing efect upo
the already overburdened street
Henry Clews thought that by pooling tnel
assets the banks had really mande impossipi
further bank failures. Ex-ControIler hnox W.
of the same opinion, and said he th0ught q "a
but CAUTIOUS market would result Sidney ~
lon said: 81 see no adequate cause ior Tea
and no reason to believe there VIII pc az
widespread troublen Jay Gould anu fres
dent Dowd, of the Bank OF North Amerlc'
both call il q sclearing storm"
Jesse Seligman thoughtthe worst over, an
said the failures to-day were due SIMPLY 70
want Of confidence.
Il Secretary FolgeE2 was at the subtreasary z
the morning. He was visited by almost al y
, prominent ~financiers in Wall street ne @
presses the determination to use all the pow
Of the government to prevent a panic, and ca
he would act promptly to the utmost limlt,
u his authority. The secretary telegraph'
! Washington ordering the immediate payne,
III IF the 191th call for bonds. and IL necessary !