The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-02-17

meet its obligations. During the day 10
other firms suspended. and under the
erect OF this paralyzing news prices
Kept on dropping with the same CELEBRITY
tnat had marked their fall on the pre-
ceding day. The country helped on the
panic by wiring in to the brokers to
sell their securities at any price obtain
able. In all the large cities confidence
IN the banks was destroyed and those
institutions had lines of excited deposi-
tors besieging them from the time of
opening to the close, drawing out what
money they had on deposit
That night the presidents of the Ma
tional banks of New York held meet
ing which lasted into the morning
hours. Concerted action, it was re-
solved was the only way in which they
1t was then for the first time resolved
to issue clearinghouse certificates. a
device which has since stood the banks
in good stead in other financial crises.
1t was decided to issue 10000, 900
in the certificates, and at the same
time an urgent appeal was made to
the government to come to the banks
relief. either by the purchase of bonds
or by the deposit of some of the ma
tons surplus funds in New York.
That night the board of govern ors
of the stock exchange also met, and
in view of the panicky situation de-
opened the following day. President
Grant, in response to the telegra phic
appeal of the bankers, started the same
night for New York, accompanied by
Secretary of the Treasury Richardson
and Secretary of the Navy Robson.
The next day he met in conference the
leading bankers and capitalists of the
city and asked them to submit a prop
osition by which he could help them
to allay the panic. At this conference
were present such men as Commodore
Vanderbilt, Henry CIews, Seligman
Bros, Robert Lenox Kennedy, Horace
T-xI-- ~
the Adams Express company.
President Grant to Rescue.
The conference asked the president
to authorize the secretary of the treas
ury to deposit the entire legal tender
reserve, then amounting to $44,000,O00,
this the president replied that he could
not do so without violating the con-
stitution. Commodore Vanderbilt then
proposed that if the president would
authorize the deposit of $3O.0OO,OOO
of the reserve in banks he (the Com
modore) would deposit $40, 600, 900 in
cash in the banks to help them out.
This proposal President Grant also
had to decline, but he instructed the
secretary of the treasury to at once
advertise for the purchase of SO, 000,-
600 of government bonds, and if nee
essary to invest the entire reserve in
the same securities.
But while this conference was being
held, and before it's conclusions could
become known, the work of deStruc-
ton was going on apace. The Union
Trust company. of New York, one of
the leading fiscal institutions of the
city, and one about which rumors had
been rife, failed to open its doors that
morning. The immediate cause of it's
failure was a loan of $1,75O, 600 which
it had made to the Lake Shore Rail-
road, and which the road was unable
to Immediately take up when it was
asked to repay. The National Bank of
the Commonwealth was another in
stitution which could not open for
business that day, and because of the
failure of these two banks twelve brok-
erage houses had to announce their
failure The same day in Philadelphia
the Union Banking company, an old
and reputable opulent concern, also
failed to open its doors, and from a
dozen other places came news of sus-
pensions.
The action of the government in adj
vertiSing for bonds had a good effect
in. relieving the monetary tension, and
much benefit WIS expected from it in
allaying the paniclzy feeling that was
so general. Prices on the exchanges
began to rally, but at once went
down with a slump when it was an
nounced on September % that the old
houses of Henry Clews & Co. and
Howes & Macy had given up the
ghost. These failures marked the be-
ginning of the end, however. After
they had been announced it was plain
that the worst had happened. The
panic had lasted one week, and in