New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-12
COMPELLED TO GO UNDER.
FAILURES IN WALL STREET.
THE CLEARING HOUSE COMES TO THE
RESCUE.

THE CLEARING HOUSE COMES TO THE
RESCUE.
VOTING cERrIF1oATEs TO BANKS IN NEED OF
HHLP-THE ASSIGNMENTS OF DECKER. HOW
ELL & CO., O. NJ. WHITNEY GO. AND
DAVID RICHMOND STOCKS IyFLU-
ESCED BY DISTURBANCES In
WILLARD SHARES - THE
TROUBLE IN THE
STREET BELIEVED D.
no BE ENDED.
The Clearing House Association, at q general
meeting yesterday voted to issue it's certificates
to any banks that might be in need Of help.
The occasion for this action was the virtual
suspension Of the Bank Of North America, which
confessed its inability to settle its balance Of
$l,410,000. 1t was quickly explained, when
the matter was brought to the attention of the
executive committee, that the reason for the
trouble was the over-certifcation Of about
$900,000 for the wcll-known firm of Decker.
Howell g. Co., which has been for years brokers
for Henry Willard. The firm had not been able
to make good its account on Monday. but it
surrendered to the bank the securities it held
The bank was unable to settle its balances because
of the large over certifcation. A few bankers
were called together, and when the situation
was exposed the deficiency by the over certfca-
ton was made up by ten contributions of $780, 900
each. Two other banks, the Mechanics and
Traders. and the North River, owed balances Of
$500, 900 and $4,000 respectively. which they
were unable to discharge. The three banks were
dor ho1o tho 1cOnl nv tho last
bank statement, but others were not in much
better position, and the difficulties were not
fully expected.
RESULT OF THE CONFERENCE
A conference Of prominent bankers, among
whom were J. Pierpont Morgan, John A. Stewart
and Frederick p Olcott, with the Clearing House
committee was held immediately at the Merchants
Rank. The statements of the three banks were
examined and the settlements completed The
meeting suggested that the committee should carry
the matter before the Clearing House, and, in ac-
cordance with that recommendation, the associa-
ton was called together, with the favorable re-
suit of voting an unlimited amount of its certli-
Gates The associated banks Of New-York, In
other words, have found it necessary to support
some of their weak brethren, but only in the be-
lief that the institutions are sound. Whether the
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extraordinary action is question that was settled
by the prominent bankers who were present at the
first meeting The last time that the Clearing
House was forced to adopt this method of relief
was on the failure of the Metropolitan National
Bank in May, 1884 At that time George l. Seney,
president Of the bank, surrendered a valuable col
lection of paintings to the certificates issued
for the protection of his bank 1t is not supposed
@I,o hap he xrhict, have boSouoht fhp
sistance Of the Clearing House will be driven to
that resort.
WHAT EMBARRASSED THE BANK.
The embarrassment of the Bank of North
America was caused simply by its extensive loan'
to Decker, Howell & Co. on what are known al
the Willard stocks The aggregation of one class
of securities became so great that it endangered
not only the firm to which the loans were made
but also the bank which yesterday could find no
market for the securities. To complicate the
situation, Henry Willard was still in Europe, and
the North American Company, of which he is the
head was unable 70 protect loans which had beer
made in its behalf To what extent the EN-
barrassment of the bank and the failure OF the
brokerage firm may be owing to the specuatons
of Mr. Willard the company was not settled
Yesterday The directors Of the North American
Company held long meeting in the afternoon
but it was said afterward, in behalf OF the com
pany, that naturally the complications with IL
brokers prevented any positive statement apou'
| its affairs 1t could not be learned officially
whether the company had been unable to meet III
| call loans The connection was so direct how
| ever. that the simile Of row Of bricks was
| natural one The firm failed because it coult
| obtain no further accommodation from the bank
| the bank asked the aid of its associates becaus'
the firm could not fortify its account. and behint
| both are Henry Willard and the North American
| Company. which he organized TO succeed the Ore
| eon and Transcontinental Company, the culmina
| tion of the famous blind pool" William Dowd
| the venerable president of the Bank OF Nortf
| America, said in answer to a plain question:
Il supposed that the firm was acting for Mr.
| Willard"
INFLUENCES AT WORK ON STOCKS.
| The stock market was controlled by the dis
| turbance in the Willard shares. The opening wa
strong at advancing prices because Of renewed con
| fdence in London and rumors that Jay Gould ha'
changed his position in the market after secre
conference with bankers largely interested In th'
| ST. Paul and other granger railroads. Inc t"'
| influences may have been connected In some way
for the early prices in London were materially
| higher, and Union Pacific rose from Al TO AZ Il
when the rumors became commonly known
Prices of stocks that would he favoraby affected
by complete harmony between Western railroad
| advanced with Union Pacific, but the movement
was not general, and to that extent 1t cast
doubt over the whole story.
The early announcement Of the failure OF Z
NJ Whitney a. Co. was without important eliec
on the course of prices, although transaction
Z" under the rule, were begun Immediately II
stocks and bonds not usually active The decline
on account of these forced sales were heavy, ant
Toledo, Ann Arbor and North Michigan stock fel
nearly 90 per cent The much larger sales
the Willard stocks, which were not under TN
rule" had a more depressing influence, and the!
neutralized the advance in Union Pacific and th
strength of associate stocks
Although the first sales were made by broker
usually identified with the bear faction, the
soon assumed proportions that pointed only I
extensive liquidation. Long before the deliver
hour declines of over IL per cent in Northern
Pacific preferred and 10 per cent in North Amerl
r.. tlso ntn nj