Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-01-16
new NEWS OF YESTERDAY
When Hartman Stood on the
Brink of Despair.
During the Great Panic OF 1898 He
Would Have Been Utterly Ruined
If Clearing House Certificates
Had Not Been issued.
BY E. J. EDWARDS.


One Sunday afternoon in the mid
die of the summer OF 1893. the late
Frederick D. Tappan. then president
Of the Galla;in National bank of New
York city. and chairman OF the New
York Clearing House association. re-
ceired a: his country place in the
Berkshire Hills. where he was spend
Ing the weekend a telegram from
some of the prominent New York
bankers associated with the clearing
house urging him TO come to New
York with all possible haste.
The great panic which marked the
first year OF President Cleveland's
second administration was then al It's
height. The treasury OF the United
States was being drained Of gold by
the operation Of the so-called endless
chain. Money had sought cover. and
borrowers were unable TO get accom-
mediation even when they had gilt
edged collateral to put up as security.
Everywhere there was q mad passion
to convert property into gold and
hoard It. Men with obligations 10
meet In cash were in eXtremities. and
Il had finally come to be believed that
only the issuance OF clearing house
certificates could relieve the strain
and prevent an appalling financial
crash. The situation had become
-,r,;,,o1 - ,Lo l,rao I-ipo ,oipt uhan
that message was sent to Mr.. Tappan.
and he took the late afternoon train
for New York
II arrived in New York early Sun
day evening and went directly to my
house" Mr.. Tappan said. when relat-
Ing this Incident TO me sometime aft
crwards. 81 had been there only 4
few minutes when the door bell rang.
As there was no one else in the house
but the housekeeper. 7 went to the
door myself. I opened 1t and found
Ed Hartman standing there.
81 was shocked at his appearance.
He looked more dead than alive. lie
was ehastly pale haggard and sunkcn.
eyed. and seemed physically exhaust
ed 7 saw In a moment that he was
In n terribly nervous state and that 1t
was. simply nervous excitement that
was keeping him up.
"'Are you going 10 do something
arc rou going TO issue certificates to-
morrow he exclaimed In a breath.
without any preliminaries OF greeting.
IT YOU don't. ! am a ruined man. ]
have heavy obligations TO meet to-
morrow. and ! haven't been able 10
borrow on any sort of security. II
the clearing house doesn't act. every.
thing hare will be wiped ont
Ed I said. YOU look as though
YOU hadn': had any sleep
"T haven't. he said. I haven't had
a wink Of sleep for three nights on
account Of this. can't borrow dol
lar. and my securities are gilt edged.
The thing for you to do. said.
is to go home and go to bed
We'll. but what is the clearing
house going 10 do?' he exclaimed DIES.
ncratelv. You must do something to-
morrow Unless YOU do-unless yon
Issue cnriificates-everything haEe
will be gone within twenty-four hours.
and nv prospects will be blasted.
sinai! he absolutely ruined. You will
also have frightful panic
II can't say what we shall do. Ia.
said. 7 have just got here. and
haven't seen any enc bur YOU yet. But
what is the use Of your wearing your
self out in his way' No matter wha'
comes tomorrow. YOU will be better
oil FOR a good nights sleep. If worse
comes TO worst. nevertheless. You can
START over again
"'Perhaps you are right. he said
7 do need some sleep. | think he
suspected from my manner that the
clearing house would issue certificates
IN the morning. and he was comfort
eli. ~ any rate he went away i'll
somewhat calmer state OF MIND.
"At = o'clock the neXr morning II
was announced that The clearing
house would issue certificates. by
means NJ which financial operations
could b. carried or and loans secured
nj The banks Ed Hartman was down
~ his Office early. and he got through
the day all right. meeting all hiS oD-
legations. which We're heavy. til" next
time | saw aim. which vas week or
Two later. he was rs clipper as ever,
and from that time his greater career
began"
u.npv-i:nt. ir'i by r.. !. Edwards. AL
Rights Ecscrvcd1
IL Was Necessary.