River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1884-05-22
WALL STREET PANIC.
Black Friday Recalled by the Scenes OF
Last Thursdav

Last Thursday.
New York telegram of the 14th 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 II
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, a depreciation Of values 10 the
extent Of ten millions, and an advance In
money to per cent per diem OF the brokers,
but two we're large hduses-those of Hatch &
foote and o. NJ BogaTt & Co, and the failure
Of the Metropolitan bank has probably been
partial As compared with the day 81 Jay
Cooke 4 Co s failure and Black Friday, in 1869.
this latest panic is rather a tame affair but il
shook the street and it, effects viii be felt for
long time. Brokers were generally al their
Offices early, as an exciting day was expected
TO follow on change from the temporary sus-
pension of A. Dyett q 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 a thousand shares
Il below the market Instant and TedOubled
Confusion ensued Blocks of stocks by the
thousands we're 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
Union Pacific ran down per cent and other
stocks followed, Orders to sell poured in
from up town and from the country, and pan
demoulum relgued in the room few sharp
strokes Of Chairman Hatch's gravel brought a
seniblanee Of order, and tie brokers
crowded hurriedly around the chair
''Messrs. Nelson, Robinson & Co
regret to Announce their inability 10 meet their
Contracts" read the chairman, in a clear voice.
The room became more demOraiIZcd Then
quickly we're announced the suspensions Of
COTE Il Randall O. NJ Bogart & Co, J. G.
Wllliame and Hatch & Foote. The last house
IS a large one, and alarm OyertOpped eYcltc
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 It's s4,OO,-
600 surplus, ss,0OO,O0O in deposits. and slO,-
100000 in loans, had suspended, this important
event added greatly To the excitement and
panic, both in aud out Of the exchange
Most exaggerated reports we're circulated i'm
mediately after the Metropolitan suspension.
One was to the effect that DreXel, Morgan &
60. had a s.. 40 600 account in the MetTopOli-
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
expected These banks are all sound institu-
lions, and their officers hurried out
Depositors anXiously hurried ~ several of
the down town institutions TO draw their money.
In some cases the line of depositors reached far
ont 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 10 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
-Tfrr
in 1862 aud 1870, as they met to-day,
and adopted measures which treasured
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 collaterals will stand for 80 much
cash in the cleariugs 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 unlmpOrtant.
The suspension of the Metropolitan one of the
leading financial institutions of the country, is
n very different matter This bank J. presided
over by George T. Seney, the great railroad
proprietor, philanthropist and specuE tor.
The Metropolitan bank was $500 D debtor
to the clearing house this morning. George J.
Saney, president Of the bank, was a partner in
Nelson Robinson " 70 Neney SOnS were al
80 partners The direct cause Of the failure
was b.lance of half a million against the bank
in the clearing house which could not be met
The other banks would not consent to any
thing but cash settlement, until they had eN
amined into the condition of the Metropolitan
bank. The announcement that Hatch & FoOte,
bankers and brokers, of L. 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 Fix Controller Knox was
of the same opinion and said he Thought safe
hut cautions market would result Sidney Dill
lon said. Il sec no adequate cause for fear,
and no reason 10 believe there wIll he 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 We're due simply to
want of confidence.
Secretary Eoger was At the subtreasHiY all
the morning He was visited by almost all the
prominent iinanciers in Wall street He OK
presses the determination to use all the power
al the government To prevent panic, aud said
he would act promptly to the utmost limit of
his authority. The secretary telegraphed
Washington ordering the immediate payment
of the 131th call for bonds, aud if necessary he
will order another call for Sl0WO,oo0.