The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1884-05-30
WALL STREET PANIC.

WALL STREE PANIC.
0lack Friday Recalled by the Scenes OF
last Thursday.
Now York telegram of the l4th say: The
| panic on the stock exchange to-daywas the most
disastrous since 1873. Its approach has been
gradual but certain, and it is one of the few fl
nancial disasters which have been predicted
The net result of the day was the suspension
Of the Metropolitan bank, the failure of seven
broker firms, q depreciation of values to the
extent of ten millions, and an advance in
money to 3 per cent per diem. Of the brokers,
bnt two were large houses-those of Hatch &
Foote and o.. NJ. Bogart Il Co., and the failure
| of the Metropolitan bank has probably been
partial AS compared with the day of jay
| Cooke 4 Co. IS failure and Black Friday, in ISIS,
this latest panic is rather a tame affair, but it
shook the street, and its effects will be felt for
a long time. Brokers were generally ut their
| offices early, as an exciting day was expected
to follow on change from the temporary sus-
pension of A. Dyett Il 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
* 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.
Union Pacific ran down 2 per cent and other
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
semblance Of order, and the brokers
crowded hurriedly around the chair.
"Messrs. Nelson, Robinson & Go.
regret to announce their inability to meet their
The room became more demoralized. Then
quickly were announced the suspensions Of
COTE & Randall, O. M. Bogart & Co., j. c.
Williams and Hatch h Foote. The last house
is d 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
600 surplus, $S,U0,UD in deposits. and &c.,
100000 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 Il
Co. had a S3,0OO,UD account in the Metropoli-
tan bank. This 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 was
tons, and their officers hurried out
statements contradicting the reports.
Depositors an1iously hurried to several of
the downtown institutions 10 draw their money.
In some cases the line of depositors reached far
out on the sidewalk, and idle but interested
no further casualties.
At 1:30the 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,
and adopted measures which treasured
the public. They simply
resolved that the associated banks will take
cash when necessary. TIL 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.
OF the nine failures announced, byfar the most
important is that Of the Metropolitan bank
The firms Of O.. NJ. Bogart & Co., and Hatch &
Foot were well known, and We're leading firms.
The other firms are comparatively unimportant.
The suspension of the Metropolitan one of the
a very different matter. This bank is presided
over by George !. Seney, the great railroad
proprietor, philanthropist and Spectator.
The Metropolitan bank was $50O,0O0 debtor
to the clearing house this morning. George /.
Seney, president of the bank, was a partner in
Nelson Robinson & Co. Seney's Sons were al
80 partners. The direct cause of the failure
was a balance of half a million against the ban
in the clearing house which could not be met.
The other banks would not consent to any
thing but a cash settlement, until they had ex-
amined into the condition Of the Metropolitan
bank. The announcement that Hatch & Foote,
bankers and brokers, of IL 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-Controller 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 presi-
dent Dowd, of the Bank of North America,
both call it a clearing Storm
Jesse Seligman thought the worst over, and
said the failures to-day were due simply to .
want of confidence.
Secretary Folger was at the subtreasury all
the morning. He was visited by almost all the
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 FIFTH call for bonds, and if necessary lie
will order another call for $10,000,000.