Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-15
WALL STREET IN A PANIC.
TWO BANKS AND EIGHT BROK-
ERAGE FIRMS GO UNDER.

The Metropolitan National Bank, Geo
L. Seney, President, Leads the Tumble
| The Atlantic Bank, of BROOKLYN.
Promises to Reopen TO-day-Four of
the Other Firms Large Ones and Heavy
Liabilities Certain-East Tennessee,
Virginia and Georgia Stock Still Fur
ther Depressed by Seney's Embar-
rassment-Secretary FOlger Not Ap-
prehensive of a Repetition of the Days
of 1873, and Measures Being Taken
to Ease the stringency-The Country
at Large Not Much Affected by the
Crash.
New YORK. May IA, 10 A. M.-The
scene at the Stock Exchange was one of
intense excitement this morning. There
was rush to sell stocks, partly for ac-
| count of brokers who soon announced
their inability to meet their engagements.
| Before 1915 O'Clock Nelson Robinson &
Co. and Gotf & Randall announced their
suspension at the Stock Exchange. There
was drop in prices of 1@52l per cent. as
compared with yesterdays closing, the
downward movement being accelerated
by rumors that several bulls
were being forced to liquidate. As COM
pared with last night Louisville and
Nashville broke 81 per cent, to So;
Western Union 81, to 5115; Union Pacific
2ts, to 43; Northern Pacific preferred 31s,
to AZ; Pacific Mail 81, to 80; st. Paul 21l,
to Il; Lackawanna ~, to Ill: North
| western ~, to 1867; Oregon Transconti-
mental 4, to IL; Pullman Palace Car Co.
2, to lO4, and Canada Southern 134, to 3S.
Then there was rally of to 4 per cent.
/ before O'Clock ms Lat
! to decline again. A. Dyett & Co. have
| issued the following notice: "William
Heath will settle with the members of the
| Stock Exchange for stocks bought, sold,
borrowed or loaned by us previous to this
date"
o. NJ. BOgart & Co. have announced
| their suspension to the Stock Exchange.
The Chairman of the Stock Exchange has
Just announced from the rOstrum that the
| Second National Bank IS solvent and
| worthy of confidence. Nelson Robinson
! Il Co. announced that all active stocks
carried by them were sold yesterday at
| good prices, and people carrying them in
loans need not be alarmed, as they will
show their books proving that money is
obtainable for them.
j. Q. Williams, a broker, says in refer
ence to the report that he has suspended.
that he will make the announcement later
! in the day. Several stocks were bought
| IT,.
The New York clearing house has the fol-
| lowing from National Bank Examiner
| Serbia: ''After an investigation of the
Second National Bank, find it in an ab-
solutely sound condition"
HATCH & FOOTE GO UNDER.
NEW YORK, May IA, II A. M.-Hatch &
| FOOte have announced their SUSPENSION
at the Stock Exchange.
The share market at this hour is ragged,
some stocks showing a sharp recovery,
| while others are at the lowest prices for
the day. Failures have stopped for the
| moment, but the air is thick with rumOrs
| of further suspensions. Few know pre-
| cisely where they stand, and the situation
is strained.
| THE METROPOLITAN BANK CLOSED.
NEW YORK, May IA, 11:4O A. M.-The
| Metropolitan Bank has just suspended.
| The doors are shut tight.
o. NJ. Bogart & Co. have assigned to
John Wheeler, with preferences of $685.
600. All stocks guaranteed by Nelson
Robinson & Co. are good delivery.
A GLIMPSE AT THE SITUATION.
NEW YORK, May IA, 11:45 A. M-The
financial complications of the past week,
supplemented by the revelations regard
| ing the management of the Second Ma
tiOnal Bank, which resulted in the resig-
nation of the President, has brought
about such feeling of uncertainty in the
| financial situation that at the opening of
| business on the Stock Exchange this
morning it was felt that a disaster was
imminent. Before long one failure after
| another was announced. Five stock
| firms had announced their suspension
and the Metropolitan National Bank had
closed its doors. Its President, George l.
! Seney, has been one of the most promi-
| nent spectators on the Exchange and
was rated high in the commercial world.
The failure of Hatch & Foote is likely
| to involve some country firms, as they
held the accounts of many private bank
| ers outside Of New York, as well as indi-
viduals in the West and South. Secretary
| FOlger, who is in the city, has telegraphed
to Washington to take up the bonds of the
| l2lth call on presentation. The bonds are
| not due uutil June 30. The Secretary fur
| ther promises that such steps shall be
taken as will relieve the present situation.
WALL STREET PACKED WITH PEOPLE.
NEW YORK, May IA, 1915 P. NAT
| this hour Wall street is one mass of peo-
pie from Trinity Church to the custom
house, both sidewalks and carriage-ways
being impossible. At the doors of the
suspended houses the masses of humanity
are denser, and many disconsolate faces
gaze on the closed doors.
FOLGER IN NEW YORK.
NEW YORK, May Il, 1P. M.-Secretary
FOlger says that the break is due to spec
ulatiOn by a few men. The situation is
not inherently weak. He will do every
thing in his power to prevent stringency
in the money market. He further stated
that there is plenty of money in the cOun-
try. Il don't anticipate any extensive
| panic," said Mr.. Folger. "The situation
is not as weak as people suppose. l shall
do everything in my power to restore con-
fidence." At the Phoenix Bank every
thing is quiet and serene. An officer says
that there is not the slightest trouble and
no run on the bank. A telegram from
Twenty-thiTd street reports three lines of
depositors demanding their money from
the Second National Bank. 1t is feared
that the bank will stop paying out money.
EXPLAINING WHY IT HAPPENED.
NEW YORK, May IA, P. M.-Hatch &
FOote state that their suspension was
caused wholly by the exhaustion of mar
gins, the refusal of customers to renew
them. and their inability to sell stocks
without an undue sacrifice. HOtchkiss &
Burnham assigned reasons identical with
those Of Hatch & FOote for their trouble.
| DOnnell, Lawson & Simpson are deposit
tors to the amount of $2,000,000 in the
Metropolitan Bank, and as their money
there was locked up it was neces-
sary to suspend until they could
find out how they stood. 1t was thought
that the suspension would be only tenn
pOrary one, and it was not failure.
There was heavy run on the Second Ma
tional Bank, but its stockholders are all
solid men, and it has been sustained by
them. Amos r. Emo, an owner of the Fifth
Avenue Hotel, is the principal stockhOl-
der. He is the father of John c. Emo,
who resigned the Presidency of this bank
yesterday. Amos X. Emo spent the great
er part of the day in the bank reassuring
depOsitors who came for their money.
Many went away without drawing, and
some added to their deposits.
ACTION OF THE CLEARING HOUSE.
The clearing house committee went
into session early this morning as soon as
it could be convened after the announce
ment of the panic in the street. They re-
manned in session until 2:3O O'Clock, when
it was announced that it had been decided
not to eXpel the Metropolitan Bank from
the association. 1t was ascertained that
the shortage of the bank at the clearing
house was in the neighborhood of $500 600,
and this amount was made good by the
bank during the day. The following reso-
luton was also passed, which Mr.. Camp,
the Superintendent, stated was similar to
a measure adopted in 1878, and which
saved several banks from ruin:
Reso1ued, In view of the present crisis, the
banks in this organization for the purpose of
sustaining each other and the business COM
munIty, that a committee of five be appointed
| by the Char to receive from banks
members of the association bills receivable or
| other securities to be approved by said COM
mittee, who shall be authorized TO issue there
upon to such depOsiting banks certificates of
| deposit bearing interest at per cent. per an
NJ i'm NOT in of nf no