The bee., 1884-05-24
THE FINANCIAL FURRY.
Details of the Exciting Scenes In
Wall Street.
Many Millions Involved in the Sus-
pension Of Large Firms,

A great financial storm which had been
brewing in New York since the failure OF
James r. Keene, and which the suspensiol /
pf the Marine hank and the failure of Grant
& Ward precip.tatel, bgrst over Wall Street,
and for trieg Ierio1 threatened to destroy
.ven the most firmly established m oneyed
institutions of the city retails of the fnan-
rial crash and Of the excitement which sue
,eedel, are taken from the metropolitan pa
3ers as follows:
The Metropolitan bank, one of the largest
sn1 best known of the national bank; in
New YORK, and Of Thi,h Mr. George L.
Seney, tn celebrated railroad tinancier and
philanthl opi,t, is PRESIDENT, closed its dools,
and the Atlantic State, of Brooklyn, also sus-
pended Theirs were runs on other banks and
financial in 'titutionS and no less than seven
large banking and brokerage firms an
nounced TO the Stock Exchange their
inability to meet their engage
nents as follows: Hatch & Foote. IL Wall
street: HotchkiSs, Burnham 6 Co, 36 Broa1
street; Nelson Robinson & Co., Is Wall street; !;
0. NJ. Bogart 6 Co, l0S Broadway; Don
nel, Lawson & Simpson, 100 Broadway: j.
c. Williams & Co., So Broad street, and Gof'
& Randle, 5 New street. In addition there
were reports affecting the credit OF scores
Of other banks and firms, which proved
incorrect, but which added TO the general de-
moralizat ON caused by the actual failures.
For a 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
Of Jay Cooke q Cos TAI ure in 1913. For a
time the decentralization was complete. Con-
6dence was shattered. Banks refused to GER
lily except against cash deposits; loans were
called lii, securietieS of all kinds were thrown
out as next to worthless, and the loaning rats
for money was run up to 315 FER cent. per
lay. Great banking houses refused to ac-
Uept certified checks on reputable banks, and
demanded actual cash payment in all trans
actions.
1t was reported that Jay Gould and his
secretary, Mr. tForosni, hal been seen
fastening from the Trust Company, where
they deposit their securities, with boxes
contain NJ their vast holding, the inference
icing that they were endeavor:ng to pledge
them in order to IA Sc money. One re-
port was even bulletined, that Mr..
Gv Id was in serious trouble. This was em-
phatic3lly deni d, however, by Mr.. Gould,
but during the day it tranSpired that a vast
number Of puts had been unloaded on hus-
sell Sage, and that operator later in the day
declin to a c pt any further deliveries,
the demoraliZat on.
Then came a reaction. Secretary Folger
rame TO the reScue with an order dire ting
the treasury department 10 ray the Sl0,C0 o.
900 bonds included in the 12ith call in al
vance OF the tine set, June 20. The Clear
ing-HOuse association, comprising SAt;-
three banks, with an aggregate capital of
Sl2O 2O03O,OOO held meeting, appointed a
strong committee and resolved to stand by
"a III other in this crisis. The action served
to calm the temreSt and allay the excitement,
it Icing seen that this timely step would
serve to prevent any further trouble As the
night closed il the panic of May il, 1884, a
34y which will be Memorable in the annals
Of Wall street, endel in renewed confidence
and hone
The scenc on Wal strCe5 following the an
nouncement OF the failures was Cne Of tie
widest excitement thlt defe3 adequate de-
scri .tion. The great Gep: ession OF Tuesday,
the action OF the Continental bank in efus-
ing to certify the checks of y. Dyeit &
Co., the est aordinary Developments
in tie matt OF the Second
National bank and the dis
astrous sre sula i rs of its young president,
Mr. john c. Emo coming on the heels of the
Marine bank failure and the crash of Grant
& Ward, caused the day to open with the
blacklist clouds han Eng over tn street: The he
lightning soon cleft the. ci6id ccii6.i.ds away and the
storm burst. ---iSlisne IS began at the stock ex-
cllYGsi re 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 o. Nelson Rob
in>on IL Co, at II a. m. As soon as this was
known members began to rush into the beard
room AMI the galleries 10 fill with spectators
In fifteen minut s Chairman Mitchell tapped
for order again and Fad to a room
IS silent as ii IL were emyty the no.
tics from o. IL. Bogart q Co., announcing
tltir suspension. A m mute or two later an
the omnouS raps of t le chairmans gavtl
were again heard, an1 the IA lure of Goffe &
Rand,e was announced. The excitement now
bee ame intense. Stocks which had opened
one and six Te- cent. lower than the closing
prizes Of Tuesday fell thro and four per cent
more. Brokers awoke to the fact that the
storm dreaded for so many days had begun,
and generalization set in for time.
Again the hammer iell, and the brokers
crowded around the rostrum. This time, how
ever. the ann 3Uncl ment was not one of disas-
ter, bit of reassurance The chairman read a
notice from Bank Examiner Serbia, to the
etfe that lie hal Investigated the affairs
Of tie Second National bank, and that it
was perfectly sound and solvent. This
caus ed a slight relief, but the gene. al belief
was thai the notice would have been of an
made COOL the losses OF his son, the president,
amounting to $1,000 00l, and caused by spec
ulation. Scarcely had The effect of this notice
pass ID away when the failure of j. c. Will
LA us d Co. was announced This was fol-
lowed by the notice of the fall of the great
house of Hatch 81 Foote
Ex it 1ment was now at fever heat. When
the nal of the last firm fell from the lips of
the chair1n IN the Goor OF the Exchange was
crowded with mem 1erS, The announcement
was received with a trem 9ndouS shout. Bro
keTs made for the door and hastened to their
offices to look alter their a1airs and their
accounts with the suspended houses. Trading
was then to all intentS AMI purposes sIs-
pended. Meanwhile the news had spread
throughout the street. The announcements
of the failures We're received in every Office
Dver the tapes and the news was carried from
lip to lip with a rapility aim st
IN 3rvelous. Cutiders Iegan to crowd
into the galleries. At IL O'Clock
There were fully 500 tlectators in thu two
narrow galleries. They were 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 ID
enter the bui ding. This was immedi-
a'ely executed and two s5alwarG pol.ce-
men were Station d az the Wall street
entrance to prevent t2a mob from stepping
within the building For a minute it was
even suggested as a lyisable 10 suspend bui-
ness on the Exchange, as was done for sew
eral days during 1915. This, however, was
not seriously colSi,e ,ered, as the condition of
affairs did not warrant such an extreme
measure.
During the rest of the session there was no
further indications of undue excitement, even
after it Ia become known that the Metro
polital bank nd closed its do1rs Only q
comparatively few members remained on the
floors, AMI thee were stlndny arounl dis
cuSSing the sitlaton ard awaiting develop
mentS. Trad ng was ohiely Contined to the
buying in under the rule or stocks so d for