Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-05-15
THE STOCK GAMBLERS, PANIC.
Review OF Yesterdays Events.
THE FAILURES; THEIR ORIGIN AND EXTENT.

The wild excitement in Wall street, which COM
menced at O'Clock yesterday morning, continued
until after business hours. Values at the stock
exchange were demoralized; the Metropolitan bank
OF New York and the Atlantic bank OF BROOKLYN
were forced to close their DOORS and to the stock
exchange We're announced the failures Of the fol-
lowing banking and brokerage houses Hatch &
FoOte; HOtchkiSS, Burnham & Co.; DOnnell Lawson
co Williams and Con Sf ID n B @aeT
banks and banking houses were seriously threat
ened or involved by rulnOr. The Clearing house
association. In the afternoon, decided that the
bankers would work together for general support.
as In 1873 and the Secretary of the Treasury or,
dered the prepay lnent without rebate OF slOOOOOO
lnfee per cent bonds called for June 2Oth. These
actions tended greatly TO aay the feeling of alarm
and there was an easier feeling at the close
THE IMMEDIATE CAUSE OF THE PANIC
among the stock brokers and the alarm OF the
banks was caused by the Marine bank failure
They commenced TO call In their loans: brokers
took them as fast as possible, expecting to get
loans elsewhere. They found this impossible and
there was nothing TO do but TO sell gradually This
broke down the market making matters worse
Win each fractional appreciation In values until
the banks practically threw out all but gilt-edged
securities The final blow came YESTERDAY The
defalcatiOn In the Second National bank DESTROYED
al confidence. Then came the refusal of the banks
10 certify checks In advance OF deposits as is their
usual custom for brokers' business Yesterday the
BANKS smut down on this Kind OF business. They
demanded money, not securities The consequence
was That when business opened yesterday morn
ing the brokers had nothing TO do but TO Sell for
Cash Those who he'd plenty OF securities but no
cash. and could not sell what they had mad noth-
Ing 10 do but TO suspend This is the real cause
which preclpltated the panic which began with the
opening OF The Stock Exchange at 10 a. In. yester-
day.
JAY GOULD,
1t is said. found difficulty in securing some re-
newals He was seen coming out of the United
States Trust company with carpet-bag, which, It
is said was full OF securities and which he after
wards succeeded In placing He has been largely
short OF stocks. and yesterday Sreadied the market
by purchasing some $1,000 shares stock to cover
Ms shorts contracts. Other bears followed his ex-
ample and thus steadied the market and prevented
any such serious decline that which followed the
failure OF Jay Cooke In 1873
RE PORTED RUPTURE BETWEEN JAY GouID AMI RITZ
SELL SAGE
The y. Y. Commercial says: 'It is reported, on
excellent authority, that a serious rupture took
place yesterday between Jay Gould and Russell
Sage In consequence OF this, q large block OF
western Union was thrown upon the market, and
SO broke the price from 60 to 81. The bad feeling
between the two great financiers continues and to-
days catastrophe Is believed TO have been largely
Induced by this circumstance"
TIE SECOND NATIONAL BANK DEFICIT 100000
At4 O'Clock yesterday afternoon II was estimated
at the Second National Bank that $500 had been
paid out during the rush. A rumor prevailed that
the deficit amounted TO 100000, and that Amos
X. Emo. proprietor OF the fifth Avenue hotel and
Inc Iither OF the president. John G. Emo, paid
$3SVUU, While The directors made good $5OOOO0
THE ACTION OF THE CLEARING HOUSE
OF associated banks In resolving to issue clearing
house certificates for IS per cent OF the bills re-
ceivable, or securities held by the banks the same
TO be received and paid In settlement OF balances
between banks at the clearing house. had very
reaSsurng effect late in the afternoon and led to a
more hopeful feeling, particularly as this plan was
tired with inarhed success In checking the panic Of
1913 The committee appointed by the clearing
Rouse reported decision 10 sustain the MetrOpOii-
tan Bank.
GRANT WARDS LIABILITIES NEARLY &15,OOO0OO
In the hearing OF the suit brought by John Fl.
Morris against the firm OF Grant Ward. in New
York yesterday, Julien T. Davies the receiver of the
firm. testified He believed that Gen Grant and
his sons were ruined, and that they had 10 part OF
the firms property In their possession From his
investigation thus far he believed that the firm
owed about sl2.4i9.5N borrowed on collaterals:
81 2ss sI1. borrowed money due depositors accord.
Ing To the ledger account; s2227 ,2a4, balances of
stock transactions, and 1894 $50, due general credi-
tors, including the Marine bank, making total of
s1i.5ol 81. The insecure debts were between
S2U00.G00 and s3,0C0,0O0. he thought. He knew
nothing In regard TO the assets.