15378. Bank of North America (New York, NY)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
September 20, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
d9824d51

Response Measures

Borrowed from banks or large institutions, Full suspension

Description

Contemporary newspapers (Sept 20–23, 1873) report heavy withdrawals/rumors about the Bank of North America, its clearing-house certificates being thrown out, and the bank suspended or having closed its doors. Sources do not describe a subsequent reopening or permanent receivership in the provided articles, so outcome is unclear. OCR errors in articles corrected (e.g., suspended / closed its doors references).

Events (2)
1. September 20, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Clearing-house threw out the Bank of North America's certifications, giving rise to rumors of suspension and heavy withdrawals.
Measures
None specified in articles (reports mention bank presidents resolving to issue loan certificates generally, but no bank-specific remedial measures for BoNA are described).
Newspaper Excerpt
The crowds and excitement in Wall and Broad streets... The Bank of North America has closed its doors... Certificates of the Bank of North America have been thrown out of the clearing house, which gave rise to the rumor of its suspension.
Source
newspapers
2. September 20, 1873 Suspension
Cause
Local Banks
Cause Details
Suspension follows panic triggered by failures/defalcations at other firms (Union Trust, National Trust, Commonwealth) and clearing-house actions that cast doubt on the bank's clearing status.
Newspaper Excerpt
The Bank of North America has suspended. The Bank of North America has closed its doors.
Source
newspapers

Newspaper Articles (10)
1. September 20, 1873 Evening Star Washington, DC
Article from Evening Star, September 20, 1873

Click image to open full size in new tab

Article Text

outside under to 107 sell stocks rule that it was many Exchange had so impossible many to do it and k pup with the current business RESPENDED. YORK, BANK OF NORTH Sept. AMERIC m.-The Bank SURGING of New North America has suspended. CROWDS. ml At this hour are vest multitudes NEW YORK, Sept.20,1:30 sarging to and frothrough and streets, the Wall, Nassau. New and and Broad lower Broadway, recalling A general Exchange Place scenes of the firing on feeling Fort Sumter or the July riots. of the stock exat the closing who are of relief is expressed by the brokers, from the change of escape. through any means Stock Exchange glad pressure. The firmer, and tremendous open on Monday. Gold advices relative to a will probly under Washington is now 112 % advancing, further issue of currency. The price the NOTICE FROM THE LEARING-HOUSE been issued by The following Notice notice has is hereby given that a clearing-house: clearance cannot be effected the dealers this day, find general owing to the fact that their many checks of certified in a it impossible manner. to get All statements, tickets appli- and checks proper will be returned to the dealers on cation $10,000,000 to the bank. IN LOAN CERTIFICATES. afternoon NEW YORK, Sept. The bank presidents resolution at their to issue meeting immediately this ten millions in loan THE GONE certificates. NATIONAL SAN OF THE COMMONWEALTH NEW commonwealth YORK, Sept. has just The suspended. National bank of the BANK. RUN ON THE FOURTH The run en the NEW YORK, Sept. bank continues, but up to this Fourth Natioral institution is paying all demands, STREET. The hour the THE EXCITEMENT IN excitement in the NEW YORK, Sept. which followed the suspen Bank on of Stock Exchange Urion Trast company and escription. the The of Commonwealth was the beyond mad a house, and the exchange re embled blocked a ith people, all laboring Prices tumstreets under great were excitement and trenzy. and stocks were bled from 2 to 16 per cent., apparent regard to slaughtered without upon cheer any followed from the ADDITIONAL brokers value. Cheer when the Stock Exchange closed. a. 11:45 snsm. New NEW YORK, Taussig Sept. Fisher, P. M Meyers, Del- Mil pensions: Lawrens Josephs, Fearing & head. linger, ler & Walsh, Williams & Bostwick, and E.C. BroadA DEPALCATION exists in the Union Trust Company; cannot say to what extent. BANK OF NORTH AMERICA. certifiNEW THE YORK, Sept. Bank of North p. America have cations drawn of the out of the clearing house, which been rise to the rumor of its suspension. DEPALCATION gave TRUST COMPANY in THE NEW UNION YORK, Sept. amounts defalcation to $500,000. the Union Trust Company Charles F Carleton, is said to be the defaulter. The secretary He has not been seen since yesterday afternoon. NATIONAL TRUST COMPANY till say that THE they could then have have kept been up payment short. They Monday, the but street would with an amount of currence at a discame on but could find no buyers ef used to sixes, of 30 to 40 per tent and they for better count sacrifice, and suspended Have sell at such of themselves and customers. protection no advances on railroad securities. THE BANK OF that the run on the 4th National customers Bank says ipitated on US, and one of our their account pr Edwerd Haight Co.) overdrew make it amount of $200,000. and did Under not these to the the extent of $170,000. STOCKS OPENED circumstances good to we thought it best to suspend." govenment's with an advance of 4 to 6 on the buy bonds, but announcement the that failures it would of the nion Trust DEFAULTING fell 2 to 25 on Company and of the Commonwealth. SECRETARY YORK, THE Sept. Carlton, the default had NEW of the Union Trust ng secretary friends and relatives, on securimade loans to regarded sdoubtful, luding ties which were father, Rev. Dr. Carla loan of @20,000 to his priety. of the Method Book Concern others ton, The secretary for one loan is good; the are of no value. IN ALBANY. ALBANY, FAILURE Sept. is rumored that the banking house of Squires & Son, of this city, hrs spspended. STOCK QUOTATIONS YORK, LATES Sept. The follow ing were the the NEW quotations before the closing of ock latest stock board, as well as could be ascertain Central, Island, 87, cash; Ohio's, New York Lake Western Union, 57: Pacific mail, 32; Erie, 87: 89: Union Pacitic, 18; Harlem, 103 44. 55 Shore, St. Paul, 32%; C. C. and C., 20; Wabash, $2,483,000 BONDS ACCEPTED. NEW YORK, 483,000 of bonds were accept 1.rom 109 to 111.25. STATE BONDS no was There price There have been no transactions for money in before state bonds. the closing of the stock exchange. there Since being then ruled at per cent. currency. no it demand for it, as no st ock transactions have taken place. HALF MILLION DEPALCATION. NEW YORK, Sept. 20, 1:25 p. It is now rethat the defalcations in the Union Trust Company ported ill amount fully half million of a that they have been extending over do lars; iderable time, and were committed by one or officers. While the story is generally is of the lit d. it is deni d by others. The culprit cr reported to have fled city this morning. UNION TRUST COMPANY REVIVING. YORK, Sept. Checks drawn upon NEW Union Trust Company are now (half-past the (wo o'clock) being cashed by the Manhaitan Barking Company. CLOBING PRICE OF GOLD. New YORK, Sept. -Gold close at 11136 The payments that are being made by the Mauhattan Banking Company on account of the diUrion Trust Comp .ny are on checks drawn on them prev OUS to this morning, and r against et money deposited by the Trust Company. The Situation in Philadelphia. FAILURE OF THE UNION BANKING COMPANY. PHILADELPHIA, Sept. 20. The Union Bankcompany have failed. This bank is a state chartered ing affair, and bore a heavy run yesterday. THE SUSPENSION TEMPORARY. PHILADELPHIA, Sept. 20 Third street is comparative quiet this morning. The run on the Fidelity Trust company has almost subsided. The Union banking company, at 4th door stated that and Chestnut streets, did not open today, owing but to a placard demands on the suspension of a few days had heavy been r olved on. It sustained a heavy run yesterday, paying out about $700,000. It is a state institution issuing no notes, and its suspension only affects depositors. AT JAY COOKE'S BANK matters are progressing quetly the which clerks W be- II be laid ing busy before in preparing the meeting a statement, of the members of the firm, which cannot take place until arter the arrival of the steamer Ru sia, on board of which two members of the firm are pas engers. The Russia is expect d to arrive on Mo: day. the

2. September 21, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, September 21, 1873

Click image to open full size in new tab

Article Text

- FROM NEW YORK. FAILED NEW YORK, September 20, 1:15 p.m Brown, Wadsworth, & Co. have failed THE BANK STATEMENT will, it is said, not be ready before night, if then. To give the usual quotations of stocks is not possible to-day. THE FAILURES OF BROKEES came in such quick succession that blocks of stocks were thrown upon the market to realize THE GOVERNMENT TO THE RESCUE A special from Washington says it may be stated on the highest authority that should the order to purchase $10,000,000 of bonds fail to check the financial excite ment, it has been decided by Secretary Richardson to issue any part of the FORTY-FOUR MILLIONS RESERVE necessary to restore confidence There were THIRTEEN PROPOSALS to sell bonds to the government at the sub-treasury, aggregating $2,672,659 at from 109 to 112. CLOSED ITS DOORS The National Trust Co. has closed its doors. OUT OF THE CLEARING HOUSE Certificates of the Mechanic's Banking Association and the Continental bank have been thrown out of the clearing house. THE CROWDS AND EXCITEMENT in Wall and Broad streets are unprecedented, and even in the neighbor lood of those financial centres, groups are gathered discussing the situation At this hour, nearly 1 o'clock, the millions promised from Washington cannot be made available owing to the RED TAPE REQUIREMENTS of opening and reading the offering to sell bonds, and telegraphing to know if the rates are acceptable. The tills of the best and strongest houses MUST BE GETTING LOW, having stood the run now of nealy three days Under the order issued by the president of the Stock Exchange forbidding members under penalty of expulsion to engage in operations outside, it 18 not possible to 1 realize on securities, and EACH MAN'S OWN VAULT is now his only stand by. GOLD at one o'clock, 111] The bank of North America HAS CLOSED ITS DOORS An effort is said to be making to get the public and private bankers to act SIMULTANEOUSLY and close at once, not waiting for the ust ual hour. NOT SUSPENDED The Bank of North America has not ( suspended. THE EXCITEMENT AND PANIC II which followed the announcement in the c stock exchange of the suspension of the 8 b Union Trust company, and the bank of e Commonwealth, were beyond description W The Stock Exchange 11 RESEMBLED A MAD HOUSE, b and the streets were blocked with people, II 11 laboring under the greatest excitement a and laney prices tumbled from 2 to 16 per C cent, and stocks were slaughtered without C8 my apparent regard to value. Amid the P SURGING OF THE EXCITED CROWD. o n the stock exchange and the continued t destruction of values, there were it SOME FEW COOL A ND LEVEL HEADS. a These men conceived the idea of initiat 11. ng it plan of closing the exchange and m immediately the governing committee el as convened to take action therein In in few minutes the board was di CALLED TO ORDER th nd the announcement made that W be exchange would be closed until urther orders from the president This S as received with great joy, and the ex. m hange N & RESOUNDED WITH CHEERS for 'he gong was sounded, and in less time er ian it takes to record the fact, the wild xoitement was over and the surging st rowd of frantic brokers disappeared and un he Stock Ex range was th A DESERTED HALL C The retunds of the treasury was m rowded with people listening to the prolie osals to sell bonds as they were read off, m while the Wall street steps of the build. the ng resembled a mass meeting the SENATOR MORTON 12 f Indiana was in the treasury when the lig proposals were read tr Certifications of the Bank of North ce America have been ele HROWN OUT OF THE CLEARING HOUSE lo hi gave rise to the rumor of its suspenC on pe THE BANK PRESIDENTS of ave passed a resolution to issue immedi ely ten million in loan certificates is MEETING ALL DEMANDS sa do NEW YORK September 20, 1:80 p.m CO he Fourth National bank is meeting all

3. September 21, 1873 The New York Herald New York, NY
Article from The New York Herald, September 21, 1873

Click image to open full size in new tab

Article Text

day Cooke, - ee OR London, Collapsed. Failures Throughout the Country Consequent Upon the Great Crash. Yesterday was another day of intense commotion in Wall street. More important failures startled the street, and between the fast recurring announcements of suspensions came a rumor of a heavy defalcation in the Union Trust Company. Fraud and lailure went hand in hand. The news that the Clearing House threw out the certifications of the North American Bank, the Mechanics' Association and Bank of the Commonwealth, in other words declined to be responsible for the credit of these institutions, had a very alarming effect at first, but a much quieter feeling eventually succeeded. There were the same large crowds as on the day before, perhapseven larger, for the weather was every way desirable, and everybody who had time to spare made it a point to look in at Wall street for a moment or two. The phrase, "The bottom has fallen out of the street," suffered nothing from repetition yesterday. It seemed to be in every man's mouth who had any opinion to give. It would be an improvement on the idea conveyed by this expression to say, "The false bottom has fallen out of the street," and the solid one remains for all good and practical purposes. The best experienced men who can control their thoughts at this juncture and look a little before and behind, have no apprehensions of the future. Frothy speculation will disappear after this crisis is over. Honest and legitimate banking business will be more honored and regarded. Wildcat railroad bonds will be relegated to the sawdust operators. The street will be swept of the decoy ducks who have made our financial practices the reproach of the world. It will do no good for people to cherish unnecessary alarm over what has happened, and the truth is every way the eye glances something is to be met of assurance that the collapse of a few banking firms does not imperil the prospects of the community. The country was never so rich, and the present flurry will be soon ended if there is patience and moderation in an average degree. In the succeeding columns will be found the fullest particulars of the day's doings, the trouble with the Union Trust Company, the continued run on the Fourth National Bank, the suspension of the National Trust Company, of the Bank of the Commonwealth and the embarrassment of the Mechanics' Association. The principals of the suspended firms and the presidents of the most prominent Wall street banking firms and the management of the Stock Exchange, as will be seen, have been interviewed and their opinions and statements given. Mr. Vanderbilt, as may be observed, is not disposed to be too communicative. He is satisfied that the Union Trust Company. unless a defalcation has happened in its accounts, is able to meet its engagements. The following are the names of firms that have failed or suspended:NEW YORK FAILURES. Jay Cooke & Co., No. 5 Nassau street. Fisk & Hatch. White, Defreitas & Rathborne. Beers & Edwards. Eugene J. Jackson. Thomas Reed & Co. W. H. Warren. George Bolton, Alley & Co. Greenleaf, Norr 8.& Co. Theodore Berdell. Amos M. Kidder, S. H. Smith & Seaver. Day & Morse. Hay & Warner. Vernam & Hoy. Fitch & Co. W. E. Conner. Whittemore & Anderson. Jacob Little & Co. E. D. Randolph & Co. C. G. White & Co. Ketchum & Beiknap. W. Moorehead & Co. Saxton & Rogers. Williams & Bostwick. Miller & Walsh. E. Height & Co. Lawrence Joseph. P. M. Myers & Co. Tansig, Fisher & Co. Fearing & Dunning. C. G. White. Marvin & Brothers. Union Trust Company. National Trust Company. Bank of The Common&ealth Bank of North America. LONDON FAILURE. Jay Cooke, McCulloch & Co. PHILADELPHIA FAILURES, E. W. Clarke & Co. De Haven & Bro. Gelbough, Bond & Bro. George H. North. J. S. & H. E. Yerkes. Charles P. Bayard.

4. September 22, 1873 Evening Star Washington, DC
Article from Evening Star, September 22, 1873

Click image to open full size in new tab

Article Text

Lished action of the national banks ot New York to draw on their reserve if necessary and stand by each other in meeting any "run" that might be made on a particular bank, contributed to satisfy the public mind. # THE NORTHERN PACIFIC RAILROAD. General Nettleton, the agent of the Northern Pacific raiload, gives this information in regard to the condition of that company: "The rail- road company loses nothing by the suspension of the banking-house of Jay Cooke & Co., as it is largely indebted to the latter. The railroad company has no floating debt of any conse- quence aside from what it owes Jay Cooke & Co,, and has few liabilities falling due before January next, when a year's interest is to be met. As this is three months off it is expected that the stockholders of the company will by that time have completed other financial ar- rangements which will provide for future needs." # LIST OF SUSPENDED FIRMS. The following is a complete list of the names of firms that failed or suspended: New York Failures. Jay Cooke & Co., No. 5 Nassau street; Fisk & Hatch, White, Defreita & Rathborne. Beers & Edwards, Eugene J Jackson, Thomas Roed & Co., W. H. Warren. George Bolton, Alley & Co., Greenleaf, Norris & Co., Theodore Berdell, Amos M. Kidder, S. H. Smith & Seaver, Day Morse, Hay & War- ner, Vernam & Hoy, Fitch & Co., W. E. Con ner, Whittemore & Anderson, Jacob Little Co., E. D. Randolph & Co., C. G. White & Co., Ketchum & Belknap, W. G. Moorehead & Co., Saxton & Rogers, Williams & Bostwick, Miller & Walsh, E. Haight & Co., Lawrence Joseph, P. M. Myers & Co., Tansig, Fisher & Co., Fear- ing & Dunning, C. G. White, Marvin & Bros., Union Trust Company, National Trust Com pany, Bank of The Commonwealth, Bank of North America. Philadelphia Fatures.-E. W. Clarke & Co.. De Haven & Bro., Gelbongh, Bond & Bro.. George H. North, J. S. & H. E. Yerkes, Charles P. Bayard, John P. Loyd, Henry H. Douglase H. H. Bull, T. C. Knight, Henry L. Fell, Union Bank Company. Albany Failure. T. Squire & Co., bankers. Chicago Failure. Franklin Bank Company. Woburn, Mass., Failure.-Horace Conn, leather manufacturer. Toronto, Canada.-H. J. Morse & Co., bankers Williamsport, Pa.--Powell & Co., bankers. St. Louis. Taussig, Gemp & 00. # Causes and Effects of the Crisis, HOPEFUL VIEWS OF THE NEW YORK HERALD. In its money article of yesterday, the New York Herald says the panic started with the failure of one or two parties identified with incomplete railroads. "The stock market at the time was in a feverish condition, responsive to slight causes and tremulous in the extreme. Its strength consisted in two or three stocks, firmly upheld by great operators. They had come to be regarded as the key-note of the market. Even these, however, could not at last resist the pressure. They "broke," and in doing so naturally carried with them the entire list of speculative securities. Thus the weakness of a few railroads has extended through the entire network of our local finance. The pulling down of one or two great houses produced distrust Money, always timid, retreated into private re- cesses. Depositors commenced to run upon banks; the banks have been unable to afford their usual accommodations, have refused each other's checks, though certified, and at last, as a consequence of universal doubt, have been com- pelled in self defence to arrange with the clearing house for the issue by the latter of certain loan certificates based on acceptable assets, which are to be received in the settlement of all clear- ing house differences in the place of legal-ton- der notes. Practically this action means the expansion of the bank credits and the sens mixing of legal tenders. It aids the banks, but it is yet to be seen what facilities are thus ex- tended to depositors and business men. As re- gards the savings banks, there is no good rea- son why, if the officers of the same have rigidly done their duty, there should be any cause of alarm. Their investments are regulated by law, and they are not such as ordinarily fluctuate in value. Hence a run on them is both injudicious and unwarranted by events. The depositors should understand that thus far our financial troubles result only from local speculation. Crops are good; business is first-rate; our mer- chants have rarely done better than they are doing this season. They are not suffering from this temporary disturbance, and we can safely count on a large fall trade and handsome re- turns."

5. September 23, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 23, 1873

Click image to open full size in new tab

Article Text

Topatinership Notices. NOTICE is hereby given that the PARTNER- Archibaid M. SHIP lately subsisting between David Allerton. name of John B. Dutcher, and Wm. C. Moore, nader firm Allerton, ALLERTONS, DUTCHER & MOORE, was dissolved on the first the said day 1873, by mutual consent. All debts owing to all deof September, are to be received by DAVID ALLERTON. and mands Partnership OD the said Partnership are to be presented him for payment. New-York, Sept. 2. 1873. THE MONEY MARKET. MONDAY, Sept. 22-P. M. A much more quiet, hopeful, and cheerful feeling prevails in Wall-street this afternoon, accompanied by a very general belief that the financial sky is clearing up. The Stock Exchange through its governing committee decided this morning to keep the room closed to-day and until further notice, while the Gold Exchange voted to keep open. but to allow no public dealings in gold, which amounts to about the same thing as closing the Gold Room. The price for the day (for settlements) was fixed at 112, with 7 per cent currency for carrying. The banks went through their clearings all easily and safely, with the exception of two, with which there was a little hitch in the morning, though all was made right with these a little later in the day. Of the $10,000,000 certificates which the Clearing-house proposes to issue, something over $5,000,000 were taken up by five or six banks, though only $2,500,000 were required in the settlement of their differences, which shows an unexpectedly healthy condition among the great majority of our National Banks. However, some of it the managers of these institutions seem to think is not quite the thing for half a dozen needy banks to come in and gobble up" the whole amount of these certificates; and one bank sent in to the Loan Committee of the Clearing-house the following communication on the subject: GENTLEMEN: Instead of putting in any application that for the new loan certificates, we beg to give notice should due proportion (pro rata) of such certificates at our the be held for this bank. that we may call for them Cashier. convenience. Very respectfully, Messrs. F. D. Tappen and others, Loan Committee. The National Banks during the day were paying on presentation of checks, save in instances in which it was apparent when checks were those out arun currency rare was designed, certified that to e collected in the usual way through the Clearinghouse. The readiness with which the banks made their settlements was looked upon as indicating a more cheerful prospect for to-morrow. The fact that the Bank of North America certified checks on Saturday to the amount of about half a million dollars in excess of the deposits of the firm drawing the checks was very properly the subject of much caustic criticism in the street. Of course there can be no officer of a National Bank unaware of the provision of law which forbids the of a cheek in excess of the deposits of the and which for such violation of drawer, certifying the to appoint statuta authorizes the Controller of the Currency a receiver for the institution so offending. Perhaps if the Controller should be a little more strict in this regard it might materially improve the modes of business on the part of some of our banking institutions. The wisdom of Committee in prominent the Governing closing generally the Stock comExchange to-day seems to be very mended, and it is thought that with one or two more days' suspension the excitement may materially die away and business be resumed under much more favorable auspices. The Governing Committee appointed a committee of five to-day to confer with the Clearing-house Association in order to be ready to meet any new emergency. As business was so generally suspended to-day we can hardly give any proper quotation for money, though learn that distressed borrowers paid as high as I diem. During the day the banks drew out, on per presentation of legal-tender certificates, $5,785,000 legal tenders, which is the result of the action of the banks Saturday, and not the Government. The operations at the Gold Exchange Bank, inbluding the clearings for Friday and Saturday, were as follows: Gold cleared, $92,000,000 ; gold balances, $1,198,965 ; currency balances, $1,395,021. The Assistant Treasurer paid out $22,000 coin interest, redeeming $43,000 called live-Twenties. Foreign Exchange has been nominal on the basis of 1081 @ 1081 for prime 60 days' bills, and 109@1091 for sight. The day's business at the U. Sub-Treasury COVered: $493,927 Gold receipts Currency Daym'us$10,197.935 30 33 210.504.43 Gold payments Carrency balance 14,618,947 00 369,000 Customs old balance 53,311,588 1 Currency receipts. 252,646 The Sub-Treasury received offerings of bonds un- the der the new instructions of the Government to amount of $3,339,150. These with the $2,457,000 taken in on Saturday, and the amount drawn out of the Treasury on legal-tender certificates will produce about $11,600,000 currency, and to that extent which will relieve the money pressure. The rate the bonds brought to-day was 110.72. Other than these there was no business in bonds. A few sales of stocks were reported by specular not members of the Stock Exchange. These tors direct for greenbacks. Sales were reported Rock as follows: were New-York Central, 90@96@91; Island, 88@99@90; Western Union Telegraph. 65@ TV@69: Wabash, 47@50@48@50; North-Western Common, 45@50: Union Pacific, 20@21(@21; C. C. C., Harlom, 105@110; Ohios, 28; and LakeShore, 80@85@81; and Pacific Mail, 86@38. The Philadelphia stock market is excited. Penn-

6. September 23, 1873 The New York Herald New York, NY
Article from The New York Herald, September 23, 1873

Click image to open full size in new tab

Article Text

The Union Trust Company in the Hands of a Receiver. Six Millions of Currency Disbursed by Sub-Treasury. Meeting of the Jay Cooke Firm To-Day. "E"CRISIS" IN THE COURTS The change in the aspect of Wall street from the turmoil and painful agitation of last week was strikingly noticeable yesterday. The closing of the Stock Exchange, the government declaration to buy an unlimited offer of five-twenties, the action of the banks in resolving to issue loan certificates, and the intervention of the Sabbath all contributed to calm the troubled waters and induce a better and clearer view of the situation. Friday and Saturday will long be remembered for the fierce and unprecedented excitement of the street. It was uncommon and at times feariul enough to make men tremble for the prospect ahead. A deep pall of impenetrable clouds hung over the monetary skies, and no where seemed to appear a solitary ray of light to illuminate the course of the future. Sunday evening the darkness broke, and Monday morning Wall street, with a few exceptional features wore its OLD-TIME APPEARANCE. There were no hurrying crowds, no pale and anxious groups, no heavy fringe of vacant eyed spectators on the sidewalks. In fact, had not the Stock Exchange been closed there was little to indicate that the street had so recently passed through a terrific financial nurricane. A tolerable calm settled down in the morning, and there was every appearance when the day ended that the period of panic was passed, and that with ordinary prudence the old state of things will in a few days prevail. THE ACTION OF THE PRESIDENT on Sunday night was very generally canvassed, but the preponderance of opinion was in favor of the course he selected. Had he yielded to the clamor of the big guns of the monetary world and stepped outside the law by loaning the currency reserve to the banks, those who, in the rash thought of the moment, implored him to commit the illegality might have been the first to condemn him. The feature of yesterday, in connection with the panic, was the unusual withdrawal of money by depositors from the savings banks. This is to be deplored, for of all other institutions the savings banks should be triply guarded from the disastrous innuence of a panic originating among speculators in Wall street. HERALD reporters visited yesterday THE SAVINGS INSTITUTIONS on the east and west side of town, and furnish accounts of what they saw in another column. The policy of keeping THE STOCK EXCHANGE closed until further notice met with general approval, as there is yet some time needed to arrange matters and allow the excitement of the hour to die out. When this is accomplished, and when the Exchange opens again, reasonable prices for settlement can be made. THE GOLD EXCHANGE voted to keep the Gold Room open, but to allow no dealings in gold on the penalty of loss of member ship. It was resolved to place the quotation of gold at 112 as the price and as a basis of clearance. There IS still a good deal of talk over THE PLAN DISCUSSED at the Fifth Avenue Hotel, Sunday, to meet the crisis. It appears the first proposition was that the Treasury should put anywhere from $20,000,000 to $40,000,000 legal tender in the banks as a deposit for which the associated banks should be responsible, Commodore Vanderbiit offering to deposit with the sub-Treasurer $10,000,000 as an additional guarantee. The proposition was declined because of no legal authority for the act, and for the reason that a few banks would reap the whole benefit and profit, to which the banks, not government depositories, would not assent. The plan that was finally agreed upon was that the Treasury should buy five-twenty bonds at fixed rate, privately, as shey were offered, until, if necessary, the legal tender reserve and the currency balance were exhausted. To this plan, which, it cannot be denied, works so far only ID milk and water way, the objections are that it obliges people to sacrifice the best securities in the market and which are sale to keep any time that the people who hold these bonds are not those who need the money, and that the institutions having these bonds, where they are savings banks, will probto use their reserved right of thirty to notice than ninety ably prefer days' from their depositors, bonds, and rather that accept a low price for institutions like insurance companies will consider it the most prudent thing to hold on to their bonds. The Treasury received offers for $3,339,150 PIVE-TWENTY BONDS YESTERDAY, being the issues to which purchases were these confined. Along with the amount taken in on Satbe about $6,000,000 currency will thrown urday, on the market, from which it be expected much relief will be may With the exception of the Bank experienced. North America, the Bank oi the Commonwealth of and the Fourth National Bank, there comparatively no run on the rest of the banks. The com- exhouses abstained from increasing the citement, mercial and few large amounts were withdrawn dein cases where business imperatively except manded. To-day will, in all likellhood, be squiet as yesterday. It will be devoted chiefly to consult tation, and the opinion prevails that the Stock Exchange will remain closed, and as consequence, stock there will be no quotation the volume of of transactions will be reduced. The condition THE TWO TRUST COMPANIES' affairs will be found narrated in another place, and be the statement of Jay Cooke & Co. cannot tail to read with interest. The HERALD reporters supply a mass of information, gathered from bankers and others. on the effect of the panic on American securities abroad, and the views of leading merchants on the situation are also given. The way in which the Brooklyn banks weather the storm is also told, and the reader 18 referred to the financial column for further statistical and speculative information. THE JAY COOKE FIRM. Messrs. Pitt Cooke & McCulloch arrived yesterday by the Egypt. To-day they will meet the other Cooke & affairs of the to in partners consuitation gentlemen in decline the on firm the or Jay speak firm. reference Co. Both and to hold these the a crisis. They LAT that were at sea when the storm

7. September 23, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 23, 1873

Click image to open full size in new tab

Article Text

ating in lavor or 6-206 when have become acarce, as the Government has bought them during the last four years, and redoemed them through the machinery of the Syndicate. Sav. inge banks in particular, have parted with their 5-20a, and reinvested in other classes of Governmont bouds. Had the Secretary taken any class of Government bonds @20.000,00 at loast would have been offored him to-day, and this would have afforded all the necessary relief. The law for buying bonds makes no discrimination betwoon 5-20a and any other class. THE TROUBLE 18 DYING OUT because creditori generally and particularly do positora in savings banks have made up thoir minds to forego draft upon dobtor institutions l'he balauces in the City Treasury being reduced very low. many persons have entertained the Idea that the Compiroller might be seriously inconvenienced for want of funds to pay the numerous demands made upon him. The accounts of the City Chamborlain show that the funds in the City Treasury have decreased in the last two wooks from $470,858 to $84,187.46, and the moneys in the sinking funds interest and County Treasury have diminished in like propoition, The Controller. on being asked to day for the fnota in the case, said if the Board of Supervisors had done their duty and confirmed the tax lovy ton days before they did the Treasury would be in a much bottor condi lion He could not toll what domanda might be made on him, but thought there would be no serious trouble until taxes began to be paid The or penses of the city were met by the issuance of revenue bonds boaring 7 por cent interest He hoped the tax books would be ready the latter part of this week, or the first of next. The taxes would then probably come in rapidly and the revenue bonds would be paid, and certain other kinds of indebtodner would then be liquidated as soon as possible. Unpaid State tar amounts to $450,000. He thought If he norded money he could raise it without difficulty on revenue bonds The report to the effect that a part of tho city funds were locked up in the vaults of the Union Trust Company gained considerable oredonce throughout the city to-day In answer to this Comptroller Green stated that none of the city funds or money over which the city had any control in any shape or manner was in the keeping of the Union Trust Company. long time since, during the administration Sweeney as City Chamberlain, there had been some. but it had been withdraw some time ago. The Deputy City Chamborlain said that whon depositaries for city funds were last selected no trust company was chosen He also corruborated the remarks of the Comptrollor on the subject. CONSIDERABLE EXCITEMENT WAS CAUSED of in the street by a rumor that A. D. Williams, the firm of A. D. Williams & Co. stock-brokers of Wall street. had defrauded the Bank of North America out of about $459.000 and absconded On inquiry, it was ascortained that A D. Williama had overdrawn their account with the Bank of North America on Saturday to the amount of 8495,000, and had failed to make it good. This morning the officers of the banks became very much alarmod, and. obtaining an at tachment upon the property of Williams & Co. succeeded in securing the restoration of $250,000, together with the assurance that the rematuder would be forthcoming before p. m The part ners of Mr. Williams dony that he has absconded, and assort that he is at home ill ANOTHER ACCOUNT OVERDRAWI John Bonner, another ck-broker. had overdrawn his account with same bank to the amount of $400,000. Bonnor said, in explana. tion, that, fearing the bank would not go through safely, be overdrow his account and placed the money in the Banh of Now York with the understandit that it was to be Bul ject to the orders of the Bank of North America if the lattor went through He then deposited his uncertified personal check with the Bank of North America to equare the account. When the clearances were effected Bouner's account was made up, and nothing was overdrawn, although there was little alarm for the time being CARLTON. THE DEFAULTER Dr. Thomas Cariton, father of Charles Carlton, the absconding Secretary of the Union Trust Company stated to-day that he was in the office of the Trust Company when his son took his final departure. Charley seemed, he said, to be very nervous and excited When he was not busy signing checks he conversed with me, and several times saw tears rolling down his checks. Since his wife died, three weeks ago, ho line not been himee)f. and have frequently found him weeping while he has constantly been despondent and depressed. I supposo on the morning in question that he was think ing of his loss being also flurried about the affairs of the Company I talked to him earnestly, telling him he should keep cool and not get excited. Finally, just before noon, Charley went and got his bat, saying to mo, You must excuse mo, father but it is necessary for me to go out B. fow minutes will be back very soon. Supposing that he was going out on business, I did not attempt to stop him. After waiting some time for nim to return, I went away My son did not, AS has been stated, go to the safe and take out $1,000. Ho could not have done 80, à3 the Cashier pays out the money. He did not even take his overcoat, and nothing was missing from his wardrobe at home except the olothes he wore. I cannot understand why Charley should run away He Las friends who would have made good any deficiency. It is my opinion that he has boon crazy since the death of his wife. My business at the Trust Company's office that morning was about loans made to me. Some time ago the Company lent me $300,000 for which I gave the very best securities, and when I heard the run on the bank I went to it and offored to pay the loans if the Company wished I should saw Mr Scholl, and he told mo it was not neces. sary, however. On Saturday, after banking hours, read notice calling in the loans, and this very morning paid $15,000, and would have paid the remainder but one of held checks the was dishonored by city bank, because the institution using it had not received the amount on deposit in bank. This loan was not made to me by my son personally as has been stated but by the Company. I have been told since his doparture that Charley speculated heavily Ho bought 1.500 Bharee of Pacific Mail and 1.000 shares of Western Union, but cannot speak definitely of any other investments. In reply to & question whether he thought his son took any of the missing securities or bonds with him, Dr. Carlton said: No: I do not think 80 but I told Was by who gentleman was with myself at the time, that he went to one of the down-town savings banks where he has deposits and withdrew 82.000. Dr. Carlton had neither seen nor heard from his son from the time he partod with him at the Union Trust Company's office, and had not the slightest idea of his whereabouts. From the time he was 15 years of age, unti five years ago, Carlton, Jr WAH connected with the United States Trust Company, which place he left for the Assistant Secretaryship of the Union Trust Company. By faithful service ho BOOD became Secretary, which position he held up to last Friday with spotless reputation Mr. Carlton was 30 years of ago, and his salary A8 Secretary of the Trust Company was $10,000 per year. ARRIVALS Hugh McCulloch and Pitt Cooke, of the London house of Jay Cooko & Co. lauded here today, and were overwhelmed

8. September 24, 1873 The Morristown Gazette Morristown, TN
Article from The Morristown Gazette, September 24, 1873

Click image to open full size in new tab

Article Text

Financial Crach.---Other Bank Suspensions. WASHINGTON, September, 20.--The following failures are reported : Union Banking Co., of Philadelphia, and Union Trust Co., A. R. White & Co, E.C. Broadhead, Kedpune & Belknap, New York. NEW ORLEANS, September. 20There is much anxiety in commercial circles regarding the failures in New York, but business among the banks is as quiet as usual. NEW YORK, September, 20.-Wall street was crowded at an early hour. There is less solicitude, however, and the resolutions of the banks to sustain each other, and the sale of ten millions, of bonds by the Treasury, nerves mat ters. Two of the members of the firm of Jay Cooke & Co. are coming on the Russia, which is expected on Monday, when a reliable statement of the affairs of the house will probably be presented to the public. WASHINGTON, September, 20-A. G. Cattell, agent of the Syndicate at London, telegraphs to Secretary Richardson that their accounts are all in perfect order. WASHINGTON, September, 20.-The following suspensions are added to the list : Saxe & Rodgers. National Bank of the commonweal h Quassig & Fisher, P. M. Myers, Miller & Walsh, Laurens & Josephs, Fearing & Dill inger. Brown, Wardsworth & Co.-all of New York. NEW YORK, September, 20.-The Bank of North America has sus pended. Western Union stock 57. PHILADELPHIA, September, 20.It is rumored that the Union Banking house has suspended. ALBANY, September, 20.-It is rumored that Squires & Sens have suspended. NEW YORK, Sept. 20.-Alluding to the SUST ension of operations by mem bers of the Stock Exchange, the Evening Express says: Too much praise cannot be awarded to the men who conceived and carried out this master stroke of policy. Bedlam was running loose and the craze was rapidly com municating itself to the outside multitude. Nothing remained, but to shut the door and try and bring back bulls and bears alike to their senses." The defalcation of the Union Trust Company amounts to a half million. The Clearing House announces its inability to make a general clearing on account, of dealers, inability to obtain properly certified checks. NEW York, September, 20.-The Bank Presidents, at their meeting this afternoon, passed a resolution to issue immediately $10,000,000 in loan certificates. WASHINGTON, September, 20.Westeru markets show a general halt in transactions, without any change in rates.

9. September 25, 1873 Rutland Weekly Herald Rutland, VT
Article from Rutland Weekly Herald, September 25, 1873

Click image to open full size in new tab

Article Text

heavy run yesterday, paying out about $700,000. It is a State and the ing fects no notes, suspension institution, only issudepositors. At Jay Cooke's matThe clerks a be laid are ters busy are before progressing preparing quietly. statement, to the meeting of the members which cannot take unthe arrival of the Rusof til sia, after the firm, steamer place as two of the partners are passengers on of that steamer. in New York on MonRussia is expected board The day. UNION BANKING CO. The failure of the Union Banking Co. was caused by the heavy run yesterday. EFFECT IN EUROPE. LONDON, Sept. 20. The continental houses are disturbed by the news from New York. FOURTH NATIONAL BANK. NEW YORK, Sept. 20, 1 p.m. The run on the Fourth up to this hour instiall demands. tution continues, is paying but National the There Bank seems to be an opinion that the bank will hold out. STOCK QUOTATIONS were the latest stock the the quotations The following before closing of board, as near as could be ascertained Rock Island 87, cash; Ohio 27 New 87 Western 32; Lake Shore 80 Union Harlem 100; Erie Pacific York Pacific Central Mail 18; Union 55+ 57 St. Paul 32 C. C. and I.C.20; Wabash 44. All offers of bonds under 111.25 are accepted by Government. THE UNION TEUST COMPANY DEFALCATION. It is now reported that the detalcation in Trust amounts to to a million the full Union half Company dollars, and that they have been extending over A consid. were committed the son of a of erable Methodist the time, officers, and prominent by one divine. While the is it is denied others to have fled the generally The culprit credited, reported by story city this morning. Though there are somegrumblers,there is general acquies cence in the wisdom and propriery of closing the Stock exchange until reason can assert herself on the street. Considerable disappointment has resulted to outsiders who came down in consdera ble numbers, desiring to purchase stocks and take them away for investment Gold is firemr and advancing under the Washington advices relative to the fur. ther issue of currency price now 112} CLOSING STOCK EXCHANGE 1:45 .--Cheer upon cheer followed when change from the Too closed. brokers much The Evening the Stock Express Ex say praise cannot be awarded to the men who conceived and carried out this master stroke of policy Bedlam was running loose and the craze was itself to outside but to rapidly shut multitude. the communicating Nothing remained the door and try and bring back the bulls and bears alike to their senses." BANK OF NORTH AMERICA of 2 p. n.-Certifientese of the Bank North America have been thrown out of the clearing house, which gave rise to the rumor of its suspension. UNION TRUST CO. AND NATIONAL TRUST CO. 2:07 p. in--The defalcation in the Union Trust Company is $500.00 000 The Secretary is said to be the defaulter. He has not been seen since yesterday after noon. The National Company sav that until have been short They they Monday, could but have would ther the kept up payment came on street with an amount currency could find no at a of forof ers except sixes, and discount but thirty to buy. ty per cent., refused to sell at such a sacrifice, and suspended for the better protection of themselves and customers. MEETING OF BANK PRESIDENTS 2:15 p. m.-The bank presidents at their meeting this afternoon passed a resolution to issue immedately ten millions in loan certificates COMMONWEALTH BANK. 2:25 p. m.-The stoppage of the bauk of does nor it having a and eral been the markets almost Commonwealth entirely other brokers banks, no effect bank genwith firms. of the & was its brokerage its brokerage dealings firm nearly of Edward Haight exclusively Haight, Co., principal banker, Tnd it is believed the suspension- of the bank was mainly due to his overdrawing large amounts to keep his firm over the pressure of the last few days. Its capital was only $750,000 ANOTHER ONE: PHILADELPHIA, Sept. 20. It rumored the Union banking house of this city has been compelled to suspend for few days. ALBANY BANKERS ALBANY, Sept. 20. It is rumored the banking house of Squires & Son of this city has suspended. Later.-Squires & Co., bankers announce their temporary suspension until further advices from New York. CONFERENCE OF THE PRESIDENT, SECRETARY RICHARDSON AND PROMINENT BANKERS AND MERCHANTS. NEW YORK, Sept. 21. 9 p. m. The conference at the Fifth Avenue hotel to-day, in relation to the best means of over-coming the difficulties resulting from the recent fiancial disasters in Wall street absorbed the public inter-

10. September 26, 1873 Sunbury American Sunbury, PA
Article from Sunbury American, September 26, 1873

Click image to open full size in new tab

Article Text

New Jersey. PATTERSON, Sept. 25.-In consequence of the financial crisis in New York and the general depreciation in new railroad securities, orders for locomotives for three months ahead, at the Rogers locomotive works, in this city have been cancelled, and 585 of the workmen were discharged today. It is feared that 500 more may be discharged at the same works, several hundred a Danforth and at the Grant works. SUSPENSION IN WILKESCARNE.- - Wilkesbarre, Sept. 24.-Brown & Gray, bankers. suspended this morning. A card posted on their doors gives the failure of Henry Clews & Co., of New York, as the cause, but states that the firm will be all right in a few days. The mining classes are large depositors with them, but they have not yet learned of the suspension. It is the great topic of conversation among bankers and business men, and much excitement exists. They were considered good, reliable men. The bank doors are locked, and no further information can be obtained. The following is the afficial list of failures in New York since Thursday last. It is a long one, and represents much of what was a little ago esteemed the financial strength of New Yord:Jay Cooke & Co., No. 5 Nassau street. New York; Fisk & Hatch; White, Defreitas & Rathbone; Beers & Edwards Eugene J. Jackson; Thomas Reed & Co W. H. Warren; George Bolton Alley & Co; Greenleaf, Norris & Co; Theodore Berdell ; Amos M. Kidder; S. II. Smith & Seaver; Day & Morse; Hay & Warner; Vernam & Hoy; Fitch & Co : W. E. Conner; Whittemore & Anderson; Jacob Little & Co E. D. Randolph & Co ; George B. Alley; Robinson & Suydam ; Richard Schell; William Bend ; C. G. White & Co; Ketcham & Belknap; Saxton & Rogers ; Williams & Bostwick; Miller & Walsh : ; E. Haight & Co; Lawrence Joseph P. M. Myers & Co ; Tausig. Fisher & Co; Fearing & Dunning; C. G. White; Marvin & Brothers ; Union Trust Company; National Trust Company; Bank of the Commonwealth Bank of North America.