The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1884-05-22

MACK friday Recalled By the Scene, OF
Last 3huxaAav

1aaek friday Recalled By the Scene. OF
Last Thursday.
Now York telegram Of the 18th saw: The
panic on the stock exchange to- daywas tho most
disastrous since 1873 Its approach has been
gradual but certain, and it is one of the few f.
nanclal disasters which have been predicted
Tho net result Of the day was the suspension
OF the Metropolitan bank, the failure of seven
broker firms, depreciation of values to tho
extent Of ten Millions and an advance in
money to per cent per diem. OF the brokers,
but two were large houses-those of Hatch l.
Foote and O. NJ. Bogart 4 Co., and the failure
OF the Metropolitan bank has probably been
Cooke 4 Co. 8 failure and Black Friday in 1853
this latest panic il rather tame affair, but it
shook the street, and its effects will be felt for
long time. Brokers were generally at their
offices early, as an exciting day was expected
pension Of A. Dyett 4 Co. yesterday and the
Second National Bank complication.
Suddenly broker rushed in from the Now
street entrance, forced himself into the West,
srn Union Gro crowd and offered thousand share.
confusion cnsued. 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 panic had struck the street
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
sembiance of order, and the brokers
%essps hS %ossn R RaG%%a the chair air
regret to announce their inability to meet their
contracts" read the chairman, in clear voice
Inc room became more demoralized Then
quickly were announced the suspensions of
COTE & Randall, O. NJ Bogart ( Co., &c.
Williamp and Hatch 4 Foote. Ahe last house
Is large one, and alarm oyertopped excite
ment Brokers were asking themselves where
the thing was going to stop. When the an-
n M came that the Metropolitan bank,
GOO surplus, $S,0OO,OOO in deposits and So
oOooOo in loans, had suspended this important
event added greatly to the excitement and
panic, both in and out Of tho exchange.
Most exaggerated reports were circulated i'm
medatoly after the Metropolitan Suspension
One was to the effect that Drcxel, Morgan &
Co. had S2.Mo, 0O account in the Mctropoh-
tan bank. This promptly denied by the
firm 1t was known that run on the Second
National bank was in progress, and the sus-
Bank of the Republic, the Gallatin, the Fourth
National, tho Wall Street and other banks was
expected These banks are all sound institu-
tons, and their officers hurried out
statements contradicting the reports
the down town institutions to 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 :3Othe 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 co!laterals, will stand for so much
cash in the clearings between the banks and
in the case of stringency in money must afford
great relief.
Of the nine failures announced, byfar the most
important is that of the Metropolitan bank
The firms Of Q. NJ Bosart l. Co., and Hatch T.
The other firms are comparatively unimportant.
The suspension Of the Metropolitan one of the
leading financial institutions of the country, is
very different matter This bank is presided
over by George |. Seney, the great railroad
proprietor, phianthropist and Spectator
The Metropolitan bank was $500, 600 debtor
to the clearing house this morning George I.
Seney, president of the bank, was a partner in
Nelson Robinson Il Co. Seneys Sons were al
80 partners. The direct cause of the failure
was balance of half million against the bank
in the clearing house which could not be mot
The other banks would not consent to any
thing but cash settlement, until they had OK
amincd into the condition of the Metropolitan
bank. The announcement that Hatch 4 Footc,
bankers and brokers, Of II Wall street, had
failed, produced most depressing effect upon
the already overburdencd street.
Henry Clcws thought that by pooling their
assets the banks had really mande impossible
further bank failures. Ex-Controllcr Knox was
Of the same opinion, and said he thought safe
but cautious market would result. Sidney Dill
lon said: 81 see no adequate cause for fear,
and no reason to believe there will be any
widespread trouble Jay Gould and Presi-
dent Dowd, of the Bank of North America,
both call it Clearing storm"
Jesse Seligman thought the worst over, and
said the failures TO- day 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 panic, and said
he would act promptly to the utmost limit of
his authority. The secretary telegraphed
Washington ordering the immediate payment
of the l.7th call for bonds, and if necessary he
will order another call for 100000.