The Dickinson press., 1884-05-24
w~A1nsransr PANIC.

wA1hsTaasr PANIC.
Black Friday Recalled by the Scenes of
Last Thursday.
Now 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 f.
nancial disasters which have been predicted.
Tho net result of the day was the suspension
OF the Metropolitan bank, the failure of seven
broker firms, a depreciation of values to the
extent of ten millions, and an advance in
money to B per cent per diem OF the brokers,
but two were large houses-those of Hatch g.
Foote and O. N. Bogart T. Co., and the failure
of the Metropolitan bank has probably been
partial. As compared with the day of Jay
Cooke & Co g failure and Black Friday in 1865,
this lateay panic is rather a tame affair, but it
shook the street, and its effects will be felt for
a long time. Brokers were generally at their
offices early, as an exciting day was expected
to follow on change from the temporary sus-
pension of A. Dyett g. Co. yesterday and the
Second National Bank complication.
Suddenly q broker rushed in from tho New
street entrance, forced himself into the West,
ern Union crowd and offered q thousand share.
Il below the market. Instant and redoubled
confusion ensued. Blocks of stocks by the
thousands were hurled on the market at any
stood anxiously in brokers' offices showed
plainly that a panic had struck the street.
Union Pacific ran down 2 per cent. and other
stocks followed, Orders to sell poured in
from up town and from the country, and pan
demonium reigned in the room. A few sharp
semblance of order, and the brokers
crowded hurriedly around the chair.
"Messrs. Nelson, Robinson & Co.
regret to announce their inability to meet their
contracts" read the chairman, in a clear voice.
The room became more demoralized. Then
quickly were announced the suspensions Of
COTE & Randall, Q. NJ. Bogart 4 Co., ]. G.
W!iliams and Hatch 4 Foote. The last house
is a large one, and alarm o%vertopped excite
ment Brokers were asking themselves where
nouncement came that the Metropolitan bank,
at Broadway and Pine streets with its s4,NW,-
coo surplus, $8,0O0,O 700 in deposits. and $1O,-
100000 in loans, had suspended, this important
event added greatly to the excitement and
panic, both in and out of the exchange.
Most exaggerated reports were circulated i'm
mediately after the Metropolitan suspension.
One was to the effect that Drexel, Morgan &
Co. had q $2.UN,ND account in the Metropoli-
tan bank. This was promptly denied by the
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-
tons, and their officers hurried out
Depositors anxiously hurried to several of
the downtown institutions To draw their money.
In some cases the line of depositors reached far
out or the sidewalk, and idle but interested
crowds gathered to watch them but there were
no further casualties.
AT l:30the bank presidents who compose the
clearing house association met to consider the
situation. These gentlemen represent the lead
ing financial institutions of New York, and their
action i'll times of financial trouble has an i'm
In 1869 and 1873, 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,
cash in the clearings between the banks, and
In the case of stringency in money must afford
great relief.
Ofthe nine failures announced, byfar the most
important is that Of the Metropolitan bank.
The firms of Q. NJ Bogart & Co., and Hatch &
Foot were well known, and We're leading firms.
The other firms are comparatively %unimportant.
The suspension of the Metropolitan one of the
leading financial institutions of the country, is
a very different matter. This bank is presided
oNoA ~ Noo.So ! oouoy3 ~ SEou0 id1iOdu
proprietor, philanthropist and Spectator.
The Metropolitan bank was 5000 QUO debtor
to the clearing house this morning. George I.
seney, president of the bank, was a partner In
Nelson Robinson e. Co. Seney's Sons were al
80 partners. h direct cause of the failure
was a balance 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 o cash settlement, until they had OK
amined into the condition of the Metropolitan
bank. The announcement that Hatch & Foote,
bankers and brokers, of IL Wall street, had
failed, produced a most depressing effect upon
the already overburdened street.
Henry Clews thought that by pooling their
assets tho banks had really mande impossible
further bank failures. Ex-Controller Knox was
of the same opinion, and saidhe thought a safe
but cautious market would result. Sidney Dill
lon said: IL see no adequate cause for fear,
and no reason to believe there will be any
widespread trouble" Jay Gould and Presi-
dent Dowd, Of the Bank of North America,
both call it q clearing storm"
Jesse Seligman thought the worst over, and
said the failures to-day were due simply to q
want of confidence.
Secretary Folger was at the subtreasury all
the morning. He was visited by almost all the
prominent tinanciers in Wall street. He ex-
presses the determination TO use all the power
of the government to prevent a panic, and said
he would act promptly to the utmost limit Of
his authority. The secretary t%elegraphed
Washington ordering the immediate payment
Of the 127th call for bonds, and if necessary he
will order another call for $40, ,OOO.