Savannah morning news. [volume] (Savannah) 1868-1887, 1884-06-15

the former road. II mad Deen considered
doubtful whether or not Jay Cooke could
weather the storm produced by the in
dOrsement Of the bonds which could not
be disposed Of.
The first blow fell when, on the Monday
preceding the failure, large amount Of
this indOrsed paper came due at philadel-
phia. The house there was unable to
make payment, and sent to New York for
funds. Next day a further demand for
$500, 900 was made, and on the day Of the
suspension the New York house received
dispatch asking them ''fOr Gods sake
20 convert every available security into
money. This was done, and it was
thought that the house could pull through.
Not many hours later, however. another
demand was made from Philadelphia, but
it was soon learned that the great banking
house had reached the end Of its reserve.
1t was then, on consultation, that the
members Of the New York firm decided to
suspend.
Alter the members Of the Stock Ex-
change-driven from the rooms by the
tidings Of the failure-had CLEANED what
news they could upon the street, they
rushed back to the Exchange, where
brokers yainly strOye, with terrible en-
ergy. to save their fortunes or ruin their
neigh5Ors. At 2 O'Clock the crier rose,
the babel ceased and the announcement Of
o.
read. Two hours later the crier announced
that Richard Schell could not meet his
liabilities. Excitement increased among
the maddeneQ operators, and though the
gong sounded and the close Of business
was announced. the brokers would not
leave the crowded Exchange until they
were driven from its doors by the employees
Of the place.
The news Of the trouble soon reached
the national capital, and the Secretary Of
the Treasury, Mr.. Richardson. decided not
10 accept any bids for gold during the
day. in order to prevent the further ac-
eumulatiOn Of currency in the vaults
News had come, meantime, Of the sus-
pension Of SIX heavy Philadelphia houses,
but il was announced from Washington
that a feeling Of greater security pre-
vailed, Notwithstanding the failure Of two
banks on the previous day. At midnight
Secretary Richardson announced that he
would afford relief on the morrow by buy
ing so, 100000 Of bonds.
The following sunday was anything but
a dav Of rest. President Grant, with sec
rotary Richardson and other high officials
Of the government, were in conference
at the Filth Avenue Hotel, in the morn
ing. and at noon were ready to hear sug-
gesti0ns from prominent fnanciers who
called. among them Commodore Wander
bilt William b. Claflin, Henry Clews,
William orion and Gen. L. ;. Sanford.
Various propositions were offered by these
gentlemen. among them one that the gov
eminent should, if necessary, place the
whole legal reserve OF S4.0OO,OOO in the
New York city banks.
Secretary Richardson lacOuically re-
piled: This, gentlemen, IS not my tu-
neral"
After a time Commodore Vanderbilt
"a nj
$4,000. 900 of the reserve in the New
York banks, to which he agreed to add
$4,000, 900. But neither the President nor
the Secretary was disposed TO have the
Commodore enter into business with the
government, and al the propositions were
declined.
As the day passed ugly rumors were set
aflOat, but nothing Of new and great I'M
pOrtance could be positively learned.
Savings banks prepared for run, and
decided to require the thirty days notice
previous TO payment JAY Gould advised
the general suspension Of the banks as
the only safety for the mercantile COM
munity and the public. News came Of a
few suspensions in the West and South,
but they were not Of special significance.
Monday was a day Of comparative
calmness, and the Governing Committee
of the Stock Exchange decided not to
Z
keep down prices and reduce all stock
transactions, thus permitting further time
to the banks. The bonds bought by the
Secretary of the Treasury footed up
100000 for the day, and confidence
seemed to be greatly improved. Secretary
Richardson regarded the outlook as more
promising, and spoke Teassuringly to
scores of inteTYiewers, insisting, how
ever, that the government could not le-
Q !,
of $44,000,00O with an existing currency
balance Of $14,00000O.
The next day-Tuesday, the Odd
| brought a setback. Soon after noon the
announcement was made that Henry
Clews Il Co. had suspended payment,
having paid out within the few days pre-
ceding more than 81, 200, 600. This suspen-
sion, creating almost as much excitement
as that of JAY Cooke Il Co., was followed
by the collapse of several other houses,
while news from other cities of the cOun-
try was far from reasSuring. Up to date
the bonds purchased by the Secretary
amounted to $12, 200, 900. During the next
two days TUmOrs Of many stupendOus
frauds in Wall street were circulated.
Howes Il Macy, Brown IL Watson Bros,
/ and several smaller houses went under,
an extra session of Congress was urged,
steamship companies and railroads suf-
fered for freight, and news came that
/ Western and Southern merchants were
seriously affected. 1t was thought, how
ever. that the fury Of the storm was
passed, and that the New York banks
would be able TO breast 1t. Matters were
at a complete standstill, and the govern
ment decided to buy no more bonds, the
purchase having reached $l3O0O,0 900. The
following day saw the resumption of Hen
~ Clews Il Co. and Howes Il Macy, and
il was declared that Fisk, Hatch & Co..
would resume within a short time. Bank
suspensions continued in the West and
South, word came that the Bank of Eng
land was about to shut down on the out
flow Of specie by raising its rate, and the
United States Government continued to
decline granting further aid.
The administration, however, suddenly
reversed its decision on the following sum
day, being pressed by appeals from thou
sands of business men, and decided, after
a Cabinet conference, to furnish gold for
the relief OF the foreign exchange market
by anticipating the payment, with rebate
at the rate of per cent. OF the November
interest on the $40 bonds. The 10Th brought
reassuring news from all quarters, and
the Assistant Treasurer at New York
telegTaphed to Washington that the worst
was over, while the foreign exchange
market showed steady improvement, and
the export trade promised to 20 ON as
usual. The next few days saw returning
confidence. though failures continued to
be announced here and there throughout
the country.
On the morning of the 3Oth the New
York Stock Exchange was opened, and
the news of the day was encouraging. The
volume of business was not large, but all
signs were good, and steady restoration
of confidence was perceptible. 1t was
decided at Washington to take one more
step and grant the application Of the Ma
tiOnal banks to anticipate the interest on.
the registered bonds held in trust by the
government, thus freeing $3,000,000 more
of coin. The crisis had passed. Various
cTippled firms suspended soon after stock
operations were resumed, and Wall street
was feverish for many weeks that fol-
lowed, but the great panic of 1873 was
practically ended on the 30th day of Sep
TENDER.
They Did Not Appreciate 1t.
Musical Herald.