Weekly expositor. (Brockway Centre, Mich.) 1882-1894, 1884-05-22
PANICON WALL STRt Ell
A National Bank Failed and Many
Brokers.
Financial Embarrassments.

soon after Inc nour OF opening business on the
morning OF May IA, 1t was announced On the
Stock Exchange in New York that Hatch &
Foot, one OF the largest banking and broker
age concerns on the street, were unable TO
meet their liabilities. The concern is one OF
the Oldest aud richest on the street, and has
made specially of handling the best char
acter OF securities. IL handled more Govern
ment securities than almost any other concern
on the street. Great excitement was occasion
ed by the announcement. The liabilities will
aggregate up inlthe millions. There were 9TH
er announcements of failures up TO 10 o'clock.
e. Williams, another large broker. was also
alleged TO have suspended, and very soon
Nelson, Robinson IL Co. sent notice ON
Change that they had failed.
A. NJ Bogart d Co., Nelson, Robinson g. &c.
and j. L. Williams also sent word that they
certain that many Others will be compelled to
follow suit. stocks Immediately took tum-
ble and the scene on the stock exchange was one
OF the widest excitement, such as has not been
witnessed since the memorable year Of 1873.
The Metropolitan National Bank, corner of
Wall and Williams streets, was obliged to
c close It's doors. The deposits were over $l0,-
OOO,OOO: Geo. l. seney, the great railroad
capitalist, the president, has failed, too, and
owes on the street, 1t Is figured, over $1,000
600. Seney was the great modern maneuyerer
OF the street. BE began when cashier of the
Metropolitan. He raised the funds for build
ing the Nickle Plate and the system of roads
known as the seney system. Secretary of the
treasury Folger Is In town and has telegraph
ed to Washington ordering the treasury to
take up the bonds included in the 127th call
on presentation. These bonds are not due un.
III June; The secretary promises that such
steps Will be taken by the government as shall
tend to relieve the present panicky situation
The failure of Hatch Il Foote was precipi-
tated by the Ph0nix Bank refusing to certify
their checks and is likely to involve country
firms, as they held accounts of many private
bankers outside Of New York, as we'll as indl-
viduals OF the West and South.
THE CAUSE.
The financial complication OF the past week,
supplemented by the revelations regarding the
management OF the Second National Bank,
which resulted in the resignation OF the presi
dent, brought about such feeling of uncer-
| tainty on the financial situation that at the
| opening OF business on the Stock Exchange on
| the l4th It was felt that disaster was imminent.
Before long, one failure after another was an
nounced, until five stock firms had suspended
| and the Metropolitan National Bank closed Il s
doors. Its President, George l.. Seney, has
been one OF the most prominent Spectators on
the Exchange, and rated high.
The interest shown In the panic in New York
] by men In Congress and other official positions
| In Washington amounts To nothing less than
| great excitement. Many lost their heads and
the corridors leading from the House to the
telegraph offices about the capitol we're filed
with excited congressman, few of whom were
In their seats at all during the day, and all OF
whom are closing their stock accounts.
Prominent New York bankers telegraphed
Speaker Carlisle asking him to urge the House
TO pass a refunding bill without delay. 1t Il
claimed by leading financlers that Il $40,0~0,.
600 OF bonds are thrown on the market nu
| merous failures may be averted. Mr.. Carlisle
consulted at once with the committee on bank
ing and currency, but no action was taken.
LATER FROM THE PANIC
The financial tempest which stirred
up Wall street on the 18th inst. sub
sided almost as quickly as it arose, ant
when business was resumed on the 18th
inst. decidedly better feeling pre-
vailed. On that morning the Metro
politan bank resumed payment anC
confidence was fast being restored
when the failure of Fisk d Hatch
one of the largest firms on Wall street
was announced. The son of Hatch /
quoted rs saying the suspension wa
wholly unexpected and occasioned b,
the inability of the firm TO obtain LOAF
of 100000 on government bond
from a financial institution. The effec
ofthis suspension seems to be more feare,
by the bankers and brokers than tina
of any of the 10 previous failures. l
is thought that much stress will be lai
upon the fact, which will become know
all over the worli, that the president O
the New York stock exchange failed
Hatch having been reelected as presi
dent few days before the failure. Tn
firm is composed of Harvey Fisk an,
Frederick S. Hatch. They were Spoken
of in Bradstreet's report February lit
as worth over 1000, 900 and rs one o
the few houses which paid up in full
after their failure in 1873. Their per
sonal regulations are stated as unsur
passed. They were free from railroa,
complications, though interested in tn
Chesapeake and Ohio railroad, whicl
was in good shape, After their failur
in 1873, the firm obtained long exten
tiles and by 1878 got on their feet again
In that year they. began to max
money, principally in the placin,
of the 4 per cent government
loan and other refunding opera
tons. Since that time they have BEEF
the leading house in the country in tn
government bond dealings. In tn
three years between 1873 and 1873
they were very prosperous in thoir gen
eral business and also made good dea
by the advance in chesapeake and Obi,
securities. In the latter year they pal,
off their last Indebtedness, four year
ago they were reported to have had
surplus of 100000. Hatch was tn,
president of the Rockaway Beach rail
road and Improvement company, an,
IL is said the firm hold $500, ZOO Of tina
company's bonds as security for loans
This company has not been fortunate
The firm have also been interested il
placing the bonds of the Elizabeth ant
Big Sand and Norfolk, Susquehann
and Western railroads which are tribu
taries of the Chesapeake and Ohio, an.
are also said to bs large holders of Cen
trail Pacific bonds. Great sympathy
expressed on all sides for the suspendc,
firm. A leading broker says: eth
men who, after the panic of 1877
had paid off at 100 cents on the dollar
with interest, have conducted an hon
orable and conservative business an,
deserve the sympathy of the whole com
munity. They deserve to be able to re
establish themselves and regain thei
fortunes.
GETTING BETTER.
New York advices Of the 10th say that Wa
street is returning TO Its normal condition, an
much more confident feeling existing. D
this day the failure OF the Newark savings In
stitution II Newark, N. j., and of Hardy
L tha ,1v rtaA