Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1884-05-15
Financial.

Hne rumble IN Wall Street.-The Feeling
In this Cfty-New Haven Bank Not AT
fected-The Cause OF the Tumble-Vievws
of Prominent New Haven Men.
The report of the failure of the Metro
politan bank OF New York and the tumble in
railroad stocks yesterday caused more of
stir in banking and financial circles in this
city than has happened before in number
of years, and it was small edition of Black
Friday. Bank directors were closeted to-
gether in their respective banking houses
and moneyed men, including not few OF
the solid men of the city, hearing of the
drop In stocks dropped in at the private
banking houses to see how their pct stocks
had tumbled. The aforesaid bank directors
at their meetings found nothing to worry
over and appeared with smiling, assuring
faces, saying that everything was all salts
factory and New Haven banks all right. By
and by came the report that the Metropoli-
tae bank had resumed business and the furry
was soon spent. Talks with financial men
were had by our reporter as follows:
Elk Governor English said: This is all the
result of over speculation, OVERRIDING and
over production. People, out west especially,
are wild to build railroads, and there are too
many railroads for the business. and some
of the railroads which cost pile of money
are built on paper. We had the food tide
and now comes the reaction. No, do not
think the presidential question is promi-
nent factor at all in this downfall of stocks
The reaction will come and a more healthy
state of business will follow.
John P. futile, treasurer of the old Saw
ings bank, said: OF course, all our savings
banks are o K; they do business on the safe
plan and are not mixed up with speculations.
I attribute all the trouble in New York to
speculation. That's at the root Of it.
Mr.. George Wykes, jr., manager of the W.
7. Hatch & Sons banking house, said: Ne,
sir, we have no connection with Hatch &
Foote, the New York concern that has gone
house entirely. We are not affected one
penny by the disasters and are as good as
wheat. My opinion is that after storm
comes calm, and prices may go lower, but
there will probably better feeling arise at
no distant day. Undoubtedly the effect of
these failures is to create a widespread want
of confidence in the public which will have
to wear off in time, but good stocks are low
priced for investments and will undoubtedly
rally within year or two.
Hoadley B. Ives, treasurer of the National
Savings bank, said: great trouble with
these embarrassed New York banks is the
Noncompliance with the law regarding certi-
flying checks. It's all wrong. The law says
bank officers shall not certify check when
the drawer has not got funds ia the bank to
meet 1t. By neglect of this solitary law hun
dreds of thousands, yes millions of dollars
have been lost in New York of late.
Mr.. F. s. Bradley, president of the Yale
National bank, said: Our bank has only an
ordinary deposit with the Metropolitan bank |
In can In no way affect the standing of our
bank. |
Mr.. @. s. Leete, president of the Mechan-
ics' bank, said: Our bank has no business
connection with the Metropolitan. Two
years ago or so We we're collecting agents for l
it, but that relation ceased some time ago.
Mr.. Scranton, of Bunnell & Scranton, said:
There is of course, an uneasy feeling among
the public consequent upon the failures and |
the trouble in railroad stocks, but we have
had to-day more Investment orders than for |
some time past. Stocks are now pretty well |
held by strong parties, as weak holders have
been crowded out some time ago. We have
also been carrying far less stock than |
at any time for the last five months.
AS to the future we think there will be an
uneasy feeling for some time to come, and it |
is not unlikely prices will go still lower but
for safe stocks, bought now and held year
or two there is every likelihood that a hand- |
some profit will be realized. No, we have no |
connection with Hatch d Foote. and are in |
no wise affected by the New York failures.
Selectman Feldman said it might not be a
bad idea for the government at this Time if
there Is going to be anything of panic or
scarcity of money, to throw 800, 900, 600
from the bonds into circulation. However,
rha1. l. u
er, as the troubles appears to be confined
chiefly to the Specializing concerns and spec
ulators. .r.
VIEW OF THE BUSINESS OUTLOOK.
Aside from the failure question and to the |
outlook for business in the near future, Mr..
E. s. Wheeler, the iron merchant, said as |
follows: For people who expect to be in /
business the coming ten years, the present |
outlook is very favorable; for those who |
want to wind up at once and retire from /
business the condition of things is not as
satisfactory. There never was better time /
than the present to start in business, because |
merchandise of all kinds is cheap, and any
change is liable to be in the direction of
higher prices. The process of finding the
bottom has been going on for nearly four
years and consumption appears to have near
ly caught up with production. In iron the |
liquidation OF the speculative period which
followed the resumption of specie payments
was far more rapid than in many ether |
promine Mt classes of merchandise and was
substantially completed two years ago, since
which the market has been reasonably
steady, though gradually falling. Our own
experience in giving credits the past few
years would indicate very general solvency |
and prosperity amongst the small manufac-
turers and traders. 1 fancy that if you in
quire Of the banks here they will tell you
that they hardly remember a period when
they have had SO few protested notes as in
the past two years. While this may come
from greater caution than formerly, it shows
a good condition of things. There is no
reason to doubt that people who attend to
their business will find success in it in the
future as in the past, and to such the business
outlook is good, if not brilliant.
A prominent banking man said our banks !
are all right, all of them. There is no |
trouble here.