The Democratic advocate., 1884-05-17
A FINANCIAL CRASH.
Tive Ranks and seven Brokers Fail and
Suspend.

1 suspend.
New York on Wednesday passed through
a financial panic almost as great as that OF
1878. On Tuesday there were rumors of a
defalcation by John C. Emo, president of the
Second National Bank, and the rumors were
confirmed at meeting of the directors held
that night. &
Wall street was in condition of panic from
9 clock in the morning until long after bus
mess hours. Values at the Stock Exchange
were entirely demoralized; the Metropolitan
Bank, of New York, and the Atlantic Bank,
of Brooklyn, were forced to close their doors,
and to the Stock Exchange were announced
the failures of the following banking and
brokerage houses; Hatch & FOote, Hotehkiss,
Burnham & Co., Donuell, Lawson & Simp-
son, Nelson, Robinson & Co., o. NJ. Bogart
& Co., J. C. Williams, and Gotf & Randall.
Other banks and banking houses were serious
ly threatened or involved by rum6F. The
Clearing. house Association in the afternoon
decided that the bankers would work together
for general support, as in 1873; and the Sec.
retary of the Treasury ordered the prepayment
without rebate of $4,000. 900 per cent.
bonds called for June '20th. These actions
tended greatly to allay the feeling of alarm.
and there was an easier feeling at the close.
Money loaned at as high rate as per cent
per diem bonus, in addition to legal interest.
The decline in the stock market was from 5
to II per cent.
The effects of the panic were notable all
over the country, but there was no serious
trouble in other cities than New York.
At midnight came important news, and of
a character to give hope of escape from gen
eral financial disaster. The committee ap-
pointed by the clearing house reported de-
cision to sustain the Metropolitan Bank.
This conclusion was reached slowly, and after
careful consideration-b having been made,
there seems little doubt of its potency. The
bank resumed business on Thursday, and thus
it is hoped the tide will be turned toward con-
fdence and calmness.
Long before the Stock Exchange opened
the streets-Wall, Broad, New, Exchange
| Place-were thronged with wild thousands
until locomotion became impossible. Among
the crowds on Wall street were to be seen
we'll dressed ladies, some of whom were pres
ent from motives other than curiosity. The
news of the disasters spread with wonderful
rapidity Private carriages, with liveried
servants, from the uptown districts, went
hying through the streets, and many stood
outside the doors of the various banks and
banking houses. The directors of nearly all
the banks were either in session or present in
their buildings, ready for any emergency
The doors of the Stock Exchange were guard
ed by nolicemen, and the visitors galleries
were cleared. No one was admitted to the
building except members, clerks and messen-
pers. This was done because the crowd en-
deayoring to gain admittance grew too large
for the eapaeity of the building.
Matters were greatly complicated in this
Emo affair by the fact that A. Dyett & Co.,
the brokers of the specializing president of the
Second National, had Tuesday evening been
forced to suspend, the Continental Bank re-
fusing to certify their checks.
When these things became known there was
a wild rush to the Stock Exchange from all
the OUTLYING Offices; and before even the for
NAL opening, In spite of the rules, the panic
stricken crowd began to throw stock over
board. 1t was but few moments before the
failure was announced of Nelson, Robinson
& CO., and but moment more when Goffe Il
Randall followed them Almost Immediately
they were succeeded by o. NJ. Bogart L Co.,
and then the old and highly respected house of
Hatch & Foote. The condition of affairs was
fearful. Upon the top of it all came like
thunderclap the announcement that the Me-
tropolitan National Bank had closed its doors.
At one time it seemed likely that the Exchange
would have to be closed and business sus-
pended, but very wisely it was determined
not to stop dealings. The alarm would have
been intesified had this been done. Black
Friday of 1869 and the panic of 1873 were al
ready sufficiently prominent in the memories
of the people.
The market opened to per cent. lower
than it closed on Tuesday, and from the open
ing prices there was a continuous but grad
ual decline until IL o'clock. In the fifteen
minutes after II call there was an upward re-
action of to 2 per cent, but after this de-
clined again. and on the announcement of
the failure of the Metropolitan National Bank
into q ropicEv condition for threa. nu q rtaru
of an hour to IL o'clock, at which time the
lowest prices of the day were made, showing
a decline of from to IL per cent, as COM
pared with Tuesday night. After u o'clock.
and up to 1890, there was q recovery of J
to 81 per cent.
Meanwhile there were as exciting scenes
outside. At twenty minutes after eleven a
long line of men and boys stood in front of
the paying teller window in the Metropolitan
Bank, at Broadway and Pine street, of which
Mr.. George l. Seney is president. Every
person in the line held one or more checks to
be certified, the alarming rumors as to failures
in every direction having made uncertifed
checks of no value, no matter by whom they
were signed. Just at that moment the paying
teller shut his window with bang, and an
nounced that the Metropolitan Bank will sus-
pend payment, as matter of necessity and
precaution. A howl of dismay went up from
the line of men, and break was made for the
door, where number of depositors we're met
hurrying to get denial of the rumored sus-
pension. In less than five minutes the iron
doors were shut, and a policeman arrived to !
stand guard on the steps. The first story told
to large depositors, who arrived breathless
and indignant, was that the suspension had
been ordered by Mr.. Seney in order to pre-
vent run for which the banks might not be
prepared. 1t was said by Mr.. Seney that if
matters quieted down after noon the bank
might open in time for some business to be
done to-day. The promise was accepted by a
group of depositors as Of small comfort, and
after II O clock crowd of nearly one hun
dred persons gathered in front Of the bank
and bewailed the prospective loss of deposits.
Two women who had drafts upon the bank
were in tears upon the bottom STEP
By 10 o'clock depositors of the Second Ma
tional Bank had instituted a heavy run upon
that concern, whose offices are under the Fifth
Avenue Hotel. At IL o'clock the flight of
Mr.. Seney's son-in-law was authenticated.
Many exciting scenes were witnessed, but in
all cases payments were made as fast as the
teller could hand the money out. At one time
over three hundred depositors were in line,
while Mr.. Amos B. Emo, the millionaire real
estate investor, stood by smilingly assuring
all that they would receive every cent of their
dues.
At this hour Wall street was one mass of
people, from Trinity Church to the Custom
house, both sidewalks and carriage-way being
impossible. At the doors of the suspended
houses the masses of humanity were denser,
and many disconsolate faces gazed on the
closed doors.
Occasionally, at the exchange, there was
feeble rally Of cofdence. Secretary Folger,
who was in New York all the morning, and in
constant communication with Washington and
with the bank officers in New York. ordered
the prepayment, without rebate, of the 127th
call for ten million dollars of bonds, and ex-
pressed his willingness to do everything in his