Daily Kennebec journal., 1884-05-15
THE WALL STREET Panic,
A financial 9yerturR-Spec.
ulatOrS and Stock Gam
blerS Gone Under.
Heavy Fall in Stocks--Sec-
retary Folger Comes to
the Rescue.

the management of the Second National
Bank, which resulted in the resignation OF
its president, brought about such feeling
OF uncertainty in the financial situation that
at the opening of business on the stock ex-
change this morning il was felt that a disas-
ter was imminent. Before long
One Failure After Another Was An
nouneed
until FIVE stock firms had announced their
suspension and the Metropolitan National
Bank had closed its doors. Its president,
George Seney, has been one of the most
prominent spectators on the exchange and
was rated high in the commercial world. The
failure OF Hatch & Foote is likely to involve
some country firms, they held accounts of
MANY private bankers outside of New York
as well as Of individuals in the West and
South.
o. NJ. Bogart & Co, have announced their
suspension to the stock exchange. TIE
chairman of the exchange announced from
the rostrum that the Second National Bank
is solvent and worth of confidence.
o. N. Bogart & Co. have assigned to John
Wheeler, preferences $4,000. All stocks
guaranteed bv Nelson, Robinson & Co. are a
good delivery.
o. NJ. Bogart & Cos. failure is considered
the most important as they have been large
dealers in commercial paper. They dealt
somewhat in privileges and were considered
solid house. Wall, Broad and New streets
and surrounding stock exchanges were
Filled with Surging Masses
and the galleries overlooking the trading
room were crowded to repletion. On the
floor was all confusion and though there is
bu: little business except sales for the account
of suspended firms. there was still a show of
business. The situation is decidedly panicky
and further failures are looked for. Dis
trust is the most prominent feature and the
banks are carefully scrutinizing all accounts
The Ph9nx Bank refused to certify the
checks of Hatch & Foote and this was the
immediate cause of their suspension. The
situation is regarded as one of great peril.
Secretary FoIxer Was at the Sub-Treas-
urs all the Morning
and was visited by almost all the prominent
fipanciers of Wall street. He expresses his
determination to use all the power of the
government to prevent a panic, and will act
promptly to the utmost of his authority. At
noon Wall street was a mass of people from
Trinity church to the Gu tom house. Both
the sidewalks and carriage ways were i'm
passable. At the doors of the suspended
houses the masses of humanity were denser,
and many disconsolate faces gazed on the
closed doors.
A tele gram from 23d street reported that
lines of depositors were at the Second Ma
tional bank demanding their money. 1t was
feared that the bank would stop paying out
money.
The friends of Dyette & Co. say they will
protect their contracts. This will save them
from the anticipated failure.
Not Since Black Friday
has Wall street presented such scenes as
those that were witnessed in the vicinity of
the stock exchange this morning. The mar
ket which had been so steadily falling off for
davs opened in disorder and depression
reigned supreme. The street then began to
go wild; men and boys were rushing to and
fro, forcing their way through the crowds
that gathered on the sidewalks and in the
middle of the street. The offices of the un-
fortunate firms were filled with masses of
people that made ingress an egress almost
impossible. In front of Hatch & Foote's
Office on Wall street, the crowd was so great
that stages turned into side streets to get to
and from Broadway. The people asked one
another, "Is this another Black Friday?"
Nobody seemed able to anewer. Old men
shook their heads in grave anxiety and the
young ones we're for olce silent and perplexed.
Messenger boys were hurrying hither and
thither and some women who we're evidently
on a tour of inspection through that part OF
the city asked their escurts to leave the
eroaning bedlam. The cause Of the failure
is generally put down to the depression of the
market The principals of the defunct houses
had little or nothing to say about their At
fairs. Mr.. Foote of Hatch and Foote said
'.Our failure is entirely due to the shrinkage
in stocks. There is no other cause" That
voiced the sentiments of his colleagues. 1t
was impossible to get even an approximate
idea of the amount of assets or Liabilities.
Hatch & Foote state that their suspension
was not caused by the refusal of the Ph9nix
bank to certify their checks, but was caused
wholly by the exhaustion of margins, the re-
fusal of customers to renew them and their
inability to sell stocks without an undue sac
rifce. At the Phanix bank everything was
quiet and serene. An officer says there is
not the slightest trouble and no run on the
bank. Secretary Folger says that
The Break 10 Due to Reckless sPecelatien
BY a few men. The situation is not inhe-
rentlv weak. He will do everything in his
power to prevent a stringency in the money
market. The secretary further saws there is
plenty of money in the country and he does
not anticipate any extensive panic. The sit
uation is not 90 weak ~ people suppose.
The news of the disaster seems to have
spread with lightning rapidity. Private car
riages With Inverted servants, from up town
districts we're flying through the streets and
many stood outside the doors of various banks
and banking houses. The directors of all the
other banks were either in session or present
in their buildings ready for any emergency.
The doors of the stock exchange we're guard
ed bv policemen, and the visitors galleries
we're closed. No one was admitted to the
building except members. clerks and mes
seurers. This was done because the crowd
endeavoring to gain admittance had grown
too large for the capacity of the building.
sensasioaal B1mors Have Been Circu-
Affecting the solvency Of several banks, but
Investigation in each case proved them to be
false except in the Jungle instases Of the Ne