Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1884-05-22
PANIC IN WALL STREET.
A Black Day for stock speculatOrs-sus-
pension OF Several Banks in New York
City-The Effect Elsewhere.


City-The Effect Elsewhere.
Wednesday, May 14th, win be one of the
days long to be remembers by fnanciers
In New York, and probably in all parts of
the country. The financial complication
OF the week before, the failure of Grant and
Ward, and the suspension of the Marine
NauonaI Bank, supplemented by reVela-
tlons concerning the management of the
Second National, which resulted in the
resignation of the President, brought about
such feeling Of uncertainty in the f1nan-
cal situation that in OPENING the business
OF the Stock Exchange it was felt that a
disaster was imminent before long. One
failure after another was reported until five
STOCK hrms had suspended and the Metro
pol1tan National Bank closed. Its Presi-
dent, George Z. Seney, has been one of the
most prominent Spectators at the Ex-
change. The failure of Hatch & Foote is
likely to involve country firms, as they hold
the accounts of many private bankers out
side OF New York, as we'll as individuals
South and West. Secretary Folger, who was
in this city, Jelegraphed to Washington to
take up the bonds of the 127th call. on
presentation. The bonds are not due until
June 10th. The Secretary further promised
to take such steps as will relieve the present
situation. Among other failures announced
are J. q. Williams, a broker on the Stock
Exchange; 0. NJ. Bogart & Co., who gave
preferences for $50, 000 and Hatch g. FOote
The last named say their suspension was
caused by the exhaustion of margins and
the refusal of customers to renew them, and
their inability to sell stocks without undue
sacrifice. The Metropolitan National saws
1t closed to prevent a run, for which it was
unprepared. The firm of Nelson, Robinson
u Co., a firm composed or relatives of Sc
ney, also closed it's doors, but Robinson
says all loans are well protected, and hold
ers will get their money. From the an
n + of hn
tan the widest excitement prevailed in the
street. A mass of people extended from
Trinity Church to the Custom House, and
both sidewalks and carnageways were i'm
passable. At the doors of the suspended
houses there were masses of humanity more
dense than those in the streets. Many dis
consulate faces gazed at the closed doors.
Among the crowd were seen several well
dressed ladies, some present from motives
other than curiosity. The news of the dis
asters seemed to spread with lightning "a
pld1ty, and private carriages with Hveried
servants, from up town, were seen flying
through the streets. Many stood on the
outside Of the doors of the banks and bank
ing houses. The directors of nearly all the
banks were either in session or present in
the buildings, ready for any emergency.
The doors of the Stock Exchange
A run was made on the Second National,
three lines of depositors having been formed
at the doors. Among depOsitOrs in the Met
ropOlitan who appeared to know anything
about the suspension it is said the immedi-
ate cause was the demand for more than half
million by the clearing house to make
good its account in railroad speculatiOns of
President Seney, which is generally sup
posed to be the real cause of the suspension.
Mr.. Seney is President of the East Tonnes
see & Virginia railroad, the stock of which
is selling to-day at 5 for common and for
preferred. Large blocks of this stock were
bought less than year ago, it is supposed
for account of Seney at II or II for common
and "a for preferred. The stock has been
sinking ever since, Notwithstanding the
constant support of what is known as the
Seney syndicate. Ohio Central is supposed
to be another of Seney's favorite stocks, up
on which large sums were lost in sustain
ing the stock. A director of the bank stated
that the depositors would be paid in full.
Hotchkiss & Burnham also suspended.
Drexel, Morgan & Co. received word from a
Philadelphia house that they could have all
the money they wanted. Donnell, Lawson
& Simpson, who are the fiscal agentsin New
York City for the State of Kansas, closed
their doors This firm has more cor
respondents in Kansas than any
other Eastern bank. The firm said
it suspended in order to see how it stood.
The amount that the State of Kansas had
with this firm was unusually small, amount
about to send 100000 more to pay bonds,
which will be due in June and July. In
tervieWs with members of the Executive
Council result in the information that they
have long felt dubious about Donnell Law
son & Simpson, and have endeavored to re-
move the Fiscal Agency to some other bank,
but several have declined to take it, owing
to the bond of ahalf-million required by the
State. The Clearing House association held
a meeting during the day and adopted res
Olutions to stand together and prevent
panic. The Atlantic State Bank of Brook
Ign closed its doors. Haggerty & Son of st.
Louis, made an assignment. Chas. M.
Bayard, of Philadelphia, also suspend
ed. In Chicago the feeling is not pan
icky, the general belief being that the coun-
try is in good condition, and thatthe Black
Friday of 1873 cannot be repeated. In
Boston the brokers claim to have antiCipa-
ted some such condition of affairs and were
prepared to meet it. Large blocks OF Mex
lean and A.. T. & S. Fe r. r. stocks we're
thrown on the market, the Mexicans drop
ping from AZ to 40 and rallying to A.
Atchison fell off five per cent. Cincinnati
is not seriously disturbed. Kansas City is
not seriously affected. The State Savings
Bank of st. Joe, closed on account of the
failure of DonnelI, Lawson & Simpson.
In London there was great excitement and
American stocks dropped heavily. The New
York papers say the panic was emphatical-
" panic of stock gamblers and nothing
else, and business will soon resume its nat
ural course. In Washington, an effort was
made in the House to pass the DINGHY bill,
which authorized the Secretary of the
Treasury to invest in bonds the lawful
money deposited by banks for retirement
circulation, but there was objection and the
matter went over.
The news on the day after the panic made
| its aDDearanCe was encouraging. The Me-
! tropoIitan Bank was examined by the bank
examiners, and then resumed. Henry L.
Jacques was elected President in place OF
Seney, who resigned. Hotchkiss & Burn
ham announced that they would resume
next day. The rush on the Second Ma
tionaI was promptly met, and before the
close of banking hours on Thursday had
practically ended. .lOrders for stocks
and bonds came from London
the market advancing one-half to four pei