14801. Atlantic Bank (Brooklyn, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 14, 1884
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 68cd2fe1

Response Measures

None

Description

During the May 1884 Wall Street panic the Atlantic Bank of Brooklyn closed/suspended on May 14 and by May 17 is reported open (though doing no business). The closure appears driven by the general Wall Street panic and failures (macro news/market contagion) rather than a specific misinformation incident or documented depositor run. Some articles describe runs on savings banks in NYC/Brooklyn but the coverage for Atlantic describes closure/suspension and subsequent reopening.

Events (2)

1. May 14, 1884 Suspension

Cause: Macro News
Cause Details: Closed amid the Wall Street panic of May 1884 tied to failures and panic on the Stock Exchange (Metropolitan, Second National, Marine Bank, brokerage failures).
Newspaper Excerpt: The Atlantic Bank of Brooklyn closed its doors this afternoon.
Source: newspapers

2. May 17, 1884 Reopening

Newspaper Excerpt: The Atlantic Bank, Brooklyn, is open to-day, but no business was transacted.
Source: newspapers

Newspaper Articles (9)

1. May 15, 1884 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, May 15, 1884

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THE WALL STREET PANIC. Wall street was in a condition of panic from 9 o'clock yesterday morning until long after business 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 on the Stock Exchange were announced the failures of the following banking and brokerage houses : Hatch & Foote, Hotchkiss, Burnham & Co., Donnell, Lawson & Simpson, Nelson, Robinson & Co., O. M. Bogart & Co., J. C. Williams and Goff & Randall. The clearinghouse association in the afternoon decided that the bankers would work together for general support, as in 1873; and the Secretary of the Treasury ordered the prepayment without rebate of $10,000,000 3 percent. bonds called for June 20th. These ac tions tended greatly to allay the feeling of alarm, and there was an easier feeling at the close. Money loaned at as high a rate as 3 per cent. per diem bonus in addition to legal interest. The decline in the stock market was from 5 to 12 per cent. The committee appointed by the clearing house reported a decision to sustain the Metropolitan Bank. The bank will resume business to-day. The trouble with some of the banks is that they have not been doing a strictly conservative business for some months. In order to earn dividends which could not be gained by loaning money at the low rate of interest prevailing in strictly first-class securities, they have taken questionable securities as collaterals on which higher in terest could be charged. The fall in the stock market has forced the banks to carry firms to whom they have made loans in order to get the money which they first advanced back, and now in some instances they find themselves loaded up with unmarketable securities. The immediate cause of the panic among the stockbrokers and the alarm of the banks was caused by the Marine Bank failure. They commenced to call in their loans ; brokers took them as fast as possible, expecting to get loans elsewhere. They found this impossible, and there was nothing to do but to sell gradually. This broke down the market, making matters worse with each fractional appreciation in values until the banks practically threw out all but giltedged securities. The final blow came in three ways. The defalcation in the Second National Bank destroyed all confidence. The refusal of the banks to certify checks in advance of deposits, as is their usual custom for brokers' business. Heretofore it has been the practice of brokers who desired to draw beyond their deposits to deposit securities to protect the temporary loan represented by their own draft checks. Yesterday the banks shut down on this kind of business. They demand money, not secur ities. The consequence was that when business opened that morning the brokers had nothing to do but to sell for cash. Those who held plenty of securities but DO cash, and could not sell what they had, bad nothing to do but to suspend. This is the real cause which precipitated the panic which began with the opening of the Stock Exchange. As soon as the exchange opened several of the trust companies and twolarge life insurance companies sent out notices calling in their loans. Jay Gould, it is said, found difficulty in securing some renewals: He was seen coming out of the United States Trust Company with a carpet bag, which, it is said, was full of securities, and which he afwards succeeded in placing. He has been largely short of stocks, and to-day steadied the market by purchasing some fifty thousand shares of stock to cover his short contracts. Other bears followed his example, and thus steadied the market and prevented any such serious decline as that which followed the failure of Jay Cooke in 1873. The panic began soon after the business of the street opened. The brokers and speculators were at first unwilling to believe the report of the failure of the Metropolitan Bank. They rushed from the Stock Exchange to the bank, and then hurried back to the Stock Exchange. When they learned that the story was true, they were prepared for any news. Rumors were soon afloat that other banks had closed

2. May 15, 1884 Daily Los Angeles Herald Los Angeles, CA

Article from Daily Los Angeles Herald, May 15, 1884

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sou & Simpson have announced their suspension. Hotchkiss & Burnham have just announced their suspension in the Stock Exchange. Money Closed at Three Per Cent. Per Diem. NEW York, May 14. - Money is stringent and loaned up to 7 per diem; closed at 3 per diem. The Atlantic Bank Closed. NEW YORK, May 14.-The Atlantic Bank of Brooklyn closed its doors this afternoon. This bank is the Brooklyn correspondent of the Metropolitan Bank. Capital, $6,200,000; surplus, $6,100,000; President, George Pfeiffer. The Banks to Ktand by Each Other. NEW YORK, May 14.-At the Clearing House the bank presidents held a meeting. It is stated on the best authority that the banks stand by each other as they did in 1873. The Metropolitan Bank will Pay Depositors in Full. NEW YORK, May 14.-A representative of the Associated Press has just in. a terviewed prominent Director of the Metropolitan Bank, who says emphatically that depositors will be paid in full. The Directors have gone through all the securities and, throwing out all classed as doubtful, have more than sufficient to pay all depositors. Hatch & Foote have made an assignment to Henry W: Reighley, without preferencesThe Treasury Ready to Redeem Bonds. WASHINGTON, May 14.--The Secretary of the Treasury announces that the department is prepared to redeem the bonds embraced in 127th call prior to the date of maturity, June 20th, 1884, with interest to the date of presentation. Bill to Relieve the Financial Pressure. WASHINGTON, D.C., May 14. HOUSE. Springer asked unanimous consent to put on passage the bill authorizing the Secretary of the Treasury to purchase about $42,000,000 bonds with the greenbacks held in the Treasury for the redemption of retired National Bank circulation, which would relieve the money market to the extent of adding $42,000,000 to the circulation. Weller objected. Would not Have Voted for the Bill. WASHINGTON, D. C., May 14.-SEN. TE-Cockrell said he was not in the Chamber when the bill to place General Grant on the retired list passed. Had t he been he would have voted against it. Stock Broker Suspended. PHILADELPHIA, May 14.-The suspen sion of Charles M. Bayard, stock broker, 9 is announced. His liabilities are not heavy. Sterling. Exchange and Bonds. NEW YORK, May 14.-Sterling bills on London, 60 days, $4.88; Sterling bills on London, sight drafts, $4.90; U. S. 419 of 1891, interest quarterly, $1.12g: U.S. 43, 1907, interest quarterly $1.22# 8 U.S. 3s, optional. quarterly, $1.00 I W. U. Tel., 552. Sound Doctrine. b TRENTAN N.I. May 14 The Dam

3. May 15, 1884 Evening Star Washington, DC

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THE STOCK GAMBLERS' PANIC. Review of Yesterday's Events. THE FAILURES; THEIR ORIGIN AND EXTENT. The wild excitement in Wall street, which commenced at 9 o'clock yesterday morning, continued until after business hours. Values at the stock exchange were 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; Hotchkiss, Burnham & Co.; Donnell, Lawson & Simpson; Nelson, Robinson & Co.; O. M. Bogart & Co.; J. C. Williams, and Goff & Randall. Other banks and banking houses were seriously threatened or involved by rumor. The Clearing-house association. in the afternoon, decided that the bankers would work together for general support, as in 1873; and the Secretary of the Treasury ordered the prepayment without rebate of $10,000,000 three per cent bonds called for June 20th. These actions tended greatly to allay the feeling of alarm, and there was an easter feeling at the close. THE IMMEDIATE CAUSE OF THE PANIC among the stock brokers and the alarm of the banks was caused by the Marine bank failure. They commenced to call in their loans; brokers took them as fast as possible, expecting to get loans elsewhere. They found this impossible, and there was nothing to do but to sell gradually. This broke down the market, making matters worse with each fractional appreciation in values until the banks practically threw out all but gilt-edged securities. The final blow came yesterday. The defalcation in the Second National bank destroyed all confidence. Then came the refusal of the banks to certify checks in advance of deposits, as is their usual custom for brokers' business. Yesterday the banks shut down on this kind of business. They demanded money, not securities. The consequence was that when business opened yesterday morning the brokers had nothing to do but to sell for cash. Those who held plenty of securities but no cash, and could not sell what they had. had nothIng to do but to suspend. This is the real cause which precipitated the panic which began with the day. opening of the Stock Exchange at 10 a. m. yesterJAY GOULD, It is said. found difficulty in securing some renewals. He was seen coming out of the United States Trust company with a carpet-bag, which, It is said. was full of securities, and which he afterwards succeeded in placing. He has been largely short of stocks, and yesterday steadied the market by purchasing some 50,000 shares or stock to cover his shorts contracts. Other bears followed his example and thus steadied the market and prevented any such serious decline as that which followed the failure of Jay Cooke in 1873. RE PORTED RUPTURE BETWEEN JAY GOULD AND RUSSELL SAGE. The N. Y. Commercial says: "It is reported, on excellent authority, that a serious rupture took place yesterday between Jay Gould and Russell Sage. In consequence of this, a large block of Western Union was thrown upon the market, and S0 broke the price from 60 to 54. The bad feeling between the two great financiers continues, and today's catastrophe is believed to have been largely induced by this circumstance." THE SECOND NATIONAL BANK DEFICIT $4,000,000. At 4 o'clock yesterday afternoon It was estimated at the Second National Bank that $500,000 had been paid out during the rush. A rumor prevailed that the deficit amounted to $4,000,000, and that Amos R. Eno, proprietor of the fifth Avenue hotel, and the father of the president, John C. Eno, paid $3,500,000, while the directors made good $500,000. THE ACTION OF THE CLEARING HOUSE of associated banks, in resolving to issue clearing house certificates for 75 per cent of the bills receivable, or securities held by the banks, the same to be received and paid in settlement of balances between banks at the clearing house, had a very reassuring effect late in the afternoon and led to a more hopeful feeling, particularly as this plan was tried with marked success in checking the panic of 1873. The committee appointed by the clearing house reported a decision to sustain the Metropolitan Bank. GRANT & WARD'S LIABILITIES NEARLY $15,000,000. In the hearing of the suit brought by John H. Morris against the firm of Grant & Ward, in New York yesterday, Julien T. Davies, the receiver of the firm, testified. He believed that Gen. Grant and his sons were ruined, and that they had no part of the firm's property in their possession. From his investigation thus far he believed that the firm owed about $12,449,537 borrowed on collaterals; $1,289,807, borrowed money due depositors according to the ledger account; $227,224, balances of stock transactions, and $594,962, due general crediters, including the Marine bank, making a total of $14,501,531. The insecure debts were between $2,000,000 and $3,000,000, he thought. He knew nothing in regard,to the assets.

4. May 16, 1884 Daily Republican Wilmington, DE

Article from Daily Republican, May 16, 1884

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The Great Crash. B r Matters were quieter in Wall street f yesterday and the general outlook was 0 improved, though there was a set back I late in the day. The Metropolitan Bank e was found to be solvent by the Examiner, and its doors were re-opened at noon. George I. Seney resigned the e Presidency of the Bank and Henry L. Jacques was chosen his successor. The failure of A. W. Dimock & Co. was announced in the morning, the firm making an assignment. A. W. Di8 mock is President of the Bankers and y Merchants' Telegraph Company, and a O large shareholder in the Company, but O it was said that his failure would not involve the Company in any way. The run upon the Second National Bank ceased, but runs were make upon several of the savings banks both in New York city and Brooklyn, and the Atlantic Bank, in the latter city, remained closed. A rude shock was given to the growing feeling of security in New York by the annonneement shortly before 3 o'clock in the afternoon of the failure of Fisk & Hatch, one of the largest and best known houses on the street. One of the partners, A. S. Hatch, is President of the Stock Ex. change. The Tuna Valley Bank, at Bradford, Penna., suspended yesterday. It was a correspondent of the Metropolitan Bank in New York. The officers of the Bank promise to pay the depositors in full, and it is believed that the embarrassment is only temporary. F. A. Hawley & Co., bankers and brokers, of Boston, failed yesterday. Their liabilities are stated by the firm at $150,000. They say their suspension is due to a failure to ascertain just where they stand." Later in the day Mr. Hawley told a reporter that their failure was a bad one, and they did not expect to resume. The "Dr. S. A. Richmond Medicine Company," in St. Joseph, Missouri, failed on Wednesday "for $150,000, with no assets."

5. May 17, 1884 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, May 17, 1884

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THE CLOUDS ROLL BY 11 or AND LEAVE A CLEAR FINANCIAL SKY. e of Matters in Wall Street Gradually Straightening t. out-Sensor Sherman Thinks the Country Safe. 10 The Flurry will Have no Effect on the Po n litical Parlies-Black Friday in on. ir 0 NEW YORK, May 10.-The suspended firms are all busy straightening out their affairs. Goff & Randle will not have a statement before next week. Dimock & Co. state it will require some time to adjust their accounts. Hatch & Foote, Bogart & Co., Hotchkies & Burnham and J. C. Williams cannot give anything definite as to the state of their atFairs. Nelson, Robinson & Co. expect to resume in a short time. Donnell, Lawson and Simpson are not disposed to say anything. Manager Camp, of the Clearing House, saye the banksai availing themselves more freely of the now certificates, and he will not be surprised if $10,000,000 are taken to-day. The Vanderbilt brokers BRY their chief will reach London on Monday and they expect to receive heavy orders from him to buy. On money there is no quotation to-day. At the sub-Treasury $3,500,000 of legal tenders were paid out this morning. This strengthens the bank reserves. Brokers report more willingness on the part of banks to make loans. Large amounts come from Canada and heavy transfers are made from other points. The first two hours business, which are usually the most dangerous in a season of flurry, have passed, and only one emall failure occurred, which had no depressing influence. Sub-Treasurer Acton says there was a brisk demand for legal tendera at his office yesterday, causing the withdrawal of $3,500,000. Up to this hour to-day a million of legal tenders were paid out, and nearly another million of silver certificates, the latter for payment to saving banks. A tour of the banks just completed, gives no new results. The Clearing House Committee has decided to loan to all membora of the association all the money they require at par on H pledge of Government securities. The runs on most of the avinga banks ended to-day. The Clearing House banks agree to advanced $20,000,000 on Government bonde if necessary to protect the market. So far $2,500,000 have been loaned. The Atlantic Bank, Brooklyn, is open to-day, but no business was transacted. The delivery hour, 2:40 P. V., has been looked forward to with apprehensions all day. It came and passed safely, and no further troubles can now be foreseen or feared. The market has grown steadily in strength since 2 o'clock, prices now showing a gain of 182 percent. Western Union is strong at 541 on buying. Money is pouring in for investment at present, and buying orders from London are numerous. Vanderbilt's brokers have been borrowing money in large amounts on Government bonds, and all this will go into stocks at the low prices now prevalent. The feeling generally is much better, and the nervousness and panicky sensitiveness disappearing. Unlees the market gets another cold bath like that of yesterday afternoon, it will be steady and stronger to the close. The epeculative day ended peacefully. All evidences go to show the period of the semi-panic is over and monetary affairs are gradually returning to their accustomed condition.

6. May 17, 1884 Arizona Weekly Citizen Tucson, AZ

Article from Arizona Weekly Citizen, May 17, 1884

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Condensed Telegrams. 'incinnati grand jury hae found fif. ou. indictments growing out of the recent riots. Payson has introduced a bill in Conto restrict the ownership of real gress estate in the Territories to American citizens. An indictment has been found against T.C. Campbell, a C neinnati lawyer who defended William Bowen, the murderer of Kirk. The charge is bribery. He gave bail in the sum of $1,000. H. L. Wells, a witness for the defense in the Hill-Sharon case, who contessed to having sworn falsely, has been arrested for perjury. The California Legislature adjourns sine die at Tuesday noon. The Anti-Monopolist national convention was opened Wednesday at Boston. It is probable that Benjamin F. Butler will be nominated for President. The Grand Lodge O. F., of Cali fornia, began its thirty-second session in San Francisco on Tuesday, with Grand Master W. W. Morrow in the chair. Charles M. Bayard, stock broker of Philadelphia, has failed. Liabilities not stated. The Atlantic bank, of Brooklyn, N. Y., closed its doors on Wednesday. The New Jersey Democratic State Convention met on Wednesday and was presided over by Senator McPherson, who counseled harmony and laying aside all small issues. Don Fernando Pacheco, aged 60; weight 425 lbs., died at Martinez, Cal., Monday. The following New York banks have closed their doors: Manhattan National, Metropolitan National, Phenix National and Second National. Francisco bankers believe the will no New San York panic except have to stiffen effect upon the Pacific coast rates somewhat. They maintain that the country is in condit on to stand a much greater shock than this. For several days past the passenger rates from Denver to the Missouri have been in a very unsettled condition, but not until Tuesday has a cut been openly declared. The agents of the Burlington, Missouri, Union Pacific, Atchison, Topeka & Santa Fe announce a cut unprecedented in the history of Western roads, viz: $5 to Kansas City; $8.50 to St. Louis: $14.50 to Chicago, and $28 to are in New York. They easteru fact selling point tickets from any principal for Kansas City at the same rate as to as the eastern But the result as Roads are free to that pro named. passengers rate. point Kansas carrying roads issued is City. through refused above a cir- Pool commissioner Daniels has cular ordering the restoration of rates to take effect on the 15th instant. This order however will surely be ignored. Capt. Monroe of the steamer City of Rome, stated that on April 23, while passing six sailing vessels, almost becalmed, within two or three miles of each other, a full rigged ship was observed two or three miles away, displaying signals which as interpreted by me, meat "ship wrecked crew safe," but no signal was or if was not seen, nor was displayed urgency displayed, the name or nationality of the ship given. Had the signal of distress or urgency been seen it would have had immediate attention as the day was calm. Signal dropping is difficult to make out, but it would have been easy for the vessul to have put out a boat which could have been intercepted by the City of Rome, but not until after his arrival at Liverpool, and hearing that a State line steamer was overdue that the incident became connected in his mind with the indistinct signal, when he at once reported his conjecture. "I certainly," he be the last man said, "would to render neglect the duty of every seaman to as sistance to any one in distrees at sea, having on more than one occasion been indebted to others for the preservation of my OWD life." The first and fourth officers on watch, on duty at the time of eignaling, certify their adherence to Munroe's statement.

7. May 22, 1884 Belmont Chronicle Saint Clairsville, OH

Article from Belmont Chronicle, May 22, 1884

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n. is EXCITING SCENES. ill Disastrous Failures of Banks he and Bankers in New York, 1k Tremendous Tumbles in Various re Stocks. as as GOVERNMENT TO THE RESCUE al d The Banks Agree to Stand by Each y other. be ta There was intense excitement, the e and a to of failures in New York on greatest confusion, rrible Wednesday series of last week. Wall street was in a condition of panic from 9 o'clock in the morning until long after business hours ic 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, Hotchkiss, Burnham Co., Donnell, Lawson & Simpson, Nelson, Robinson & Co., O. M. Bogart & Co., C. Williams and Goff & Wilson. Other banks and banking houses were seriously threatened or involved by rumor. The Clearing House Association in the afternoon decided that the bankers wo'd work together for general support, as 1873; and the Secretary of the Treasury ordered the prepayment without rebate of $10,000,000 3 per cent. bonds called for Juue 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 a rate as 3 per cent per diem bonus, in addition to legal interest. The decline in the stock market was from 5 to 12 per cent. The effects of the panic were notable all over the country, but there was serious trouble in other cities than New York. At midnight came important news and of a character to give hope of es cape from general financial disaster The committee appointed by the elear ing house reported a decision to sustain the Metropolitan Bank. This conclusion was reached slowly, and after careful consideration but having been made, there seems little doubt of its potency. ON WALL STREET. NEW YORK, May 14.-The panic dreaded, so many times averted, this long took possession of Wall street early morning, and for hours that have seemed days confusion, the wildest disaster excite. ment and dreadful financial Exchange reigned supreme. The Stock banks a pandemonium; many of the b was besieged all day by anxious depos- New, itors, were and the streets- Wall, Broad, with Exchange Place- were thronged became thousands until locomotion Wall ti impossible. wild Among the crowds on ladies, street were to be eseen well dressed mo of whom were present from news some other than curiosity. The tives disasters spread with wonderful q rapidity. of the Private carriages, with districts, liverservants. from the up-town and ied fiving through the streets, the va went stood outside the doors of The many banks and banking houses. were directors rious of nearly all the banks in their in session or present The either ready for any emergency. guardbuildings, of the Stock Exchange were galdoors and the visitors cleared. No one leries ed by were policemen, was members, admitted to the building except This was done clerks and messengers. to gain the crowd endeavoring the caisi because admittance grew too large for of the building the pacity trouble really began before rumors of The opened. The last yesterday Stock Exchange Eno, in regaid president to the of defalcation the Second John C. were confirmed National Bank, mornnight, a meeting ing. Last National and were night spread about of Bank this the direc- took one the place, deficit. tors of and the each Second contributed Mr. a certain Trow- the to cover the and of bank de amount was elected president, settied. qu affairs bridge of the order virtually to accommodate was that This morning. in expected, the bank Immediately or opened the rush at several 9:30 o'clock. hundred people began stream of of them Jadies. to pour in, half greatly complicate Dyett in Matters were the fact that A Euo affair by of the speculating this the brokers National, had be & Co., president of the forced Second to suspend, the been certify Continental last evening Bank refusing to cli in their checks things became known Ex ly from formal there When was these wild all the rush out-lying to the Stock opening, offices overboard and crowd change spite before began of the even few to rules, throw moments the the stocks before panic-stricken seve The It was but were announced failures fearful. Upon other affairs was condition of it all came like Metropolitan thunder-cla the top of that the At announcem neement had closed its doors. Ex one National time Bank it seemed have likely to be that closed wisely the and it change would suspended. but very stop dealings business determined not to been intensified was would have Black Friday sufficiently had The alarm this been done. of 1873 were memories already 1869 and the prominent panic in the of the people. opened to six and per cent from The market closed yesterday, continue lower than it there was a In 15 the theopening prices decline until 10'clock ot reaction ous but minutes kradual after 11 call 1/2 there to 2 per and again, an upward after this declined failure of cent., but of the inon the announcement National Bank of an ran hour eg the Metropolitan condition for 3/4 the lowest of prices the to to panicky 12 o'clock, at which were time made showing a day

8. May 24, 1884 St. Croix Avis Christiansted, Charlotte Amalie, VI

Article from St. Croix Avis, May 24, 1884

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TELEGRAMS. ST. THOMAS STATION. New York May 13th.-It is stated with regard to Peru that France has refused to acknowledge the government of General Yglesias. The Pall Mall Gazette in an editorial commenting on the Chinese treaty expresses the opinion that China concedes more than France demanded. It is officially announced that China has agreed to recognize all treaties entered into between France and Annam, and because of Li Hungchangs broad views France on her part has abandoned her claims for compensation, China consent to the freedom of trade. In the British House of Commons Sir Michael Hicks Beach member for Gloucestershire east moved a vote of censure on the government for their desertion of Major General Gordon, insisting that while effecting peace in one corner, the district around Suakim, they were making war in other parts of the Soudan. Mr. Gladstone in reply denied the charge of desertion and declared that Sir Michael Hicks Beach demanded that the Government should undertake a war of conquest against a people who are struggling for liberty. The Government has omitted no act to secure Major General Gordon's safety. Sir Michael's attack he said indicated that he was ignorant of the facts, and the real object of the motion was to displace the Government. Her Majesty's Government, he added, would perform its double duty towards the country and to Major General Gordon. The Conference negotiations in progress between M. Waddington, the French Minister Plenipotentiary in London, and Earl Granville, the British Foreign Minister, are reaching a friendly conclusion, It is reported that Baker Pasha has reached London. New York, May 15th - The expected financial panic in the United States has burst. Seven pr ominent brokers, the Metropolitan Bank of New York and the Atlantic Bank of Brooklyn have suspended payment. The panic has been allayed in New York by the associated Banks having resolved to sustain each other. The Secretary of the Treasury department has ordered the purchase of their bonds, which relieves the supposed tightness, but money is plen tiful, it is confidence that is wanting. The Metropolitan Bank has announced that it will resume business to-day. The great exci tement which has been caused is said to have exceeded even that of black Friday. There is hardly any institution secure against the wild rumours which are afloat, but the worst is now considered over.

9. June 5, 1884 Savannah Morning News Savannah, GA

Article from Savannah Morning News, June 5, 1884

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The Penn Bank Case. Mr. Riddle, the President of the broken Penn Bank, of Pittsburg, pleads in extenuation of his wrong-doing that the directors were equally guilty with him in wrecking the bank. The tenor of his story is that his speculations in oil, with the bank's funds, were for the purpose of making up losses which the bank had sustained, and were undertaken with the knowledge and approval of the directors. If what he says about the conduct of the directors in carrying off the funds and securities of the bank after the suspension is true, there is certainly work for the grand jury to do in Pittsburg. It is remarkable that so little has been done towards enforeing the laws against those who were shown by the late panic to be guilty of misconduct in connection with the trusts reposed in them. There would have been no panic, perhaps, if there had not been so much rascality among those holding high places in the financial world. The troubles of all the banks which suspended temporarily or permanently were brought about by wrongful acts of the Presidents or other officials. Those who have taken the trouble to read the statements of the troubles of the Marine, Metropolitan, Second National and West Side Banks, of New York, the Atlantic Bank, of Brooklyn, Newark of Newark, Bank, Savings Penn Bank, of Pittsburg, Middleton's Bank in Washington, and others, will recognize the truth of this statement. The banker who uses the funds of depositors in hazardous speculations is deserving of no more consideration than the one who puts the bank's cash in his pocket or valise and runs away with it. There are a few officials who seek to cover their wrong doing by depositing unmarketable securities as collateral for cash. When the institutions which they have robbed are wrecked they claim that the disaster was caused by the depreciation of securities. It is not probable that any one of those whose rascality aided in bringing about the recent panic will be punished. The indignation of the sufferers appears to have expended itself, and the authorities show no disposition to see that the laws are vindicated. They are too busy looking after the petty thieves and those who steal to keep from starving to look after those who unceremoniously pocket thousands and millions of dollars of other people's property.