Little Falls transcript., 1884-05-23

WALL srnEEr PANIC.
MACK Friday Recalled BY the sosnes 8,
I.ast rhu,1day. 81
New York telegram Of the 14tth say: The
panic on the stock exchange to -daywas the most
disastrous since 1874 It's approach has ibesn
gradual but certain and It is one Of the faw Fl
nancial disasters which have been predicted.
The net result Of the day yas the suspe
Of the Metropo Titan bank, the failure OF seven
broker firms, Q depreciation Of values to the
extent OF ten millions, and an adyance in
money to3 per cent per diem. OF the brokers,
but two were large houses those Of Hatch 4
toote and O. M Bogart q Co, and the failure
OF the Metropolitan bank has probably been
partial AS compared with tho day OF Jay
Cooke a Co.. failure aud Black Friday, in 1859,
this latest panic is rather tame affair, but it
shook the street, and its effects will be felt for
a long time, Brokers we're generally at their
offices early, as an exciting day was expected
to follow on change from the temp porary xs1s-
pension Of 5A Dyett & Go. 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 . thousand shares
II below the market Instant and redoubled
confusion ensued. Blocks of stocks by the
price The tape at which hundreds Of dealers
stood anxiously in brokers Offices showed
plainly that d 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
II.
strokes Of Chairman Hatch's gravel brought
semblance of order, + and the brokers
crowded hurriedly around the chair:
''Messrs, Nelson, Robinson g. Co.
regret to announce their inability to meet their
contracts" !" read the chairman, i'll clear voice
quickly were announced the suspensions OF
COTE & Randall, o. NJ. Bogart & Co., J. C.
Williams and Hatch & Foote The last house
is q large one, and 'alarm oyertopped excite
rnent Brokers were asking themselves where
the thing was going to stop. When the an
at Broadway and Pine streets with its $1,000,
600 surplus, $S,00o,O00 in deposits. and $10,-
O0O, 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
One was to the effect that Drexel, Morgan Il
Co. had a 50, ,OOO, 0O account in the Metropoli-
tan bank This was promptly denied by tho
firm. 1t was known that q run on the Second
National bank was in progress, and the sus-
pension Of the United States, the Phoenix, the
National, the Wall Street and other banks was
expected These banks are all sound institu-
tons, and their officers hurried out
statements contradicting the reports
Depositors an1iously hurried to several Of
the down. town institutions to draw their money
e,
out on the sidewalk, and idle but interested
crowds gathered to watch them but there were
no further casualties.
At 80 the bank presidents who compose the
clearing house association met to consider the
situation. These gentlemen represent the lead
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 reassured
the public. They simply
resolved that the associated banks will take
cash when necessary. The 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, far the most
important is that of the Metropolitan bank.
The firms Of O. NJ Bogart l. Co., and Hatch&
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 L Seney, the great railroad
proprietor, philanthropist and speculator:
The Metropolitan bank was $500, ,0O0 debtor
to the clearing house this morning George L
Seney, president of the bank was a partner in
Nelson Robinson & Co. Seney's Sons were al
so partners. The direct cause Of the failure
was a balance Of half million against the bank
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-
anined into the condition of the Metropolitan
bank. The announcement that Hatch {, Foote,
bankers and brokers, of II 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 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
prominent tinanciers in Wall street He ek-
presses the determination to use all the power
Of the government to prevent panic, and said
he would act promptly to tho utmost limit of
his authority The secretary telographed
Washington ordering. the Immediate payment
of the Firth call for bonds, and if necessary he
will order another call for SIC, 100000.
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