Evening star., 1923-09-23

Washington's first indication of the
beginning of the great panic OF 1873
was a notice posted
The Panic upon the window of the
of 1879 banking house of Jay
~o'o' Cooke & Co. of this
city, according to The Star of Sep
tember Is of that year, reading as
follows:
I'm consequence of the suspension
Of Jay Cooke & Co. of New York and
Philadelphia, we have concluded TO
close our doors until we hear further
from them"
In the news columns of that same
issue also appear dispatches from,
New York and Philadelphia. one of
which. dated New York at 2:15 pm,
read as follows:
| The excitement in Wall street is
growing more intense every moment
and operators in both stocks and
gold are nervous to the greatest de-
gree as the hour of closing the board
approaches. The announcement of
failures was expected. The first one
reported was that of Robinson &
sudan; next came that. of Richard
surprise will be felt at the failure of
any house on the street"
X \ ~
The failure of Jay Cooke & Co. was
caused by the overlooking of the
hrm with Northern Pacific bonds, 10
having furnished a very large amount
OF money in the construction Of the
road and being unable to dispose Of the
securities. But as a matter of fact, the
country was suffering from q serious in
disposition, financial indigestion. Spec
ulation had been rife for a long period
securities which could not be absorbed.
In The Star of September 19, 1873,
II is stated that the dispatches of the
Day recorded a continuation of the
nnanoial panic, with the suspension
OF number of business houses.
washington, however. with the ex-
ceptfon OF runs upon two of the saw
ings banks. showed little pertu-ba-
tton and 1t was believed that there
was no reason to apprehend auy
further disaster here. The two banks
involved had waived their rights to
demand thirty days notice of with
drawal from depositors. At the close
of the day the runs were visibiy sub :,
But failures continued in New
| York and In other cities and the
storm reached a pitch of Intensity
| that had not been known for q gen
panic of 1873" was the most sewers
this country has ever experienced. sfei
| lasted in its effects until the end OF
the decade. .3it
x ior
In The Star of September 20, 1879,
Is the following editorial note; ts,sr
Reports IN New York today state .
the financial panic there to be uns-
abated and 1t was deemed advisable
to close the stock market at noon tosr
day" (The stock market did not. them
close on Saturday at noon as It has
ditional houses have succumbed.. to
| the pressure. and among them theT
! Union Trust Company, the most disai
| astrous fall OF all. as 1t Is likely to
| pull down many other firms with IL I'm
consequence of its heavy operations!
| It is satisfactory to know. however,
| that while the financial skies in Neru
York are thus black and stormy ourC
| own are clearing up, and assuranceris
| felt on all sides that the worst Isl
| over SO far as this city is concerneua-
| There has been no pressure whatever
upon our banks. with the exception Df'
| two of the savings banks that have a
! large number Of small depositors of a
| class liable to be affected ny any
panic and who. as these banks paw
upon call, are quite certain to apply
\ for their deposits at a moments
| notice The run today upon these two
| banks, however,'is much Stacker than
| yesterday and will probably die out
| In a few hours. The savings banks
and other banks here are now fully
/ fortified for any emergency"
In Tho star of September 20. 1873. is
| a news item to the effect that at 1890
O'Clock tho night preceding the Secre-
tary OF no Treasurv. Mr. Richardson,
teiegrap!isG 20 the Eabtreasurer at New
4 York, inefrue:inE him tn bIy ten mil
| Hons ~ bonds on the next day. II was.
thn,iShf ifhef thtg nyyH6er solftryotirfrr og
money on tire Ne~- York market would
1 ease Re ara asuast II in aliayfnR the
parfc prSS.feed- ny the financial disap-
ters OF the past two days.