15380. Bank of North America (New York, NY)

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: November 11, 1890
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: dd91ac47

Response Measures

Accommodated withdrawals, Books examined

Other: Bank had a large debit balance at the Clearing House caused by Decker, Howell & Co.'s over-certification; received Clearing House certificates/advances to make settlements and was examined and found solvent.

Description

In November 1890 the Bank of North America had a large debit balance at the New York Clearing House (reported $1,300,000–$1,410,000/$900,000 certified) caused by the failure/over-certification of the brokerage firm Decker, Howell & Co. The bank was momentarily short of cash and there was depositor agitation/rumor (a crowded scene outside the bank is reported), but the Clearing House and other banks issued certificates and advanced funds after an examination; the bank was found solvent and did not suspend or go into receivership. Classified as run_only (a run/withdrawal pressure/ depositor agitation occurred but no suspension or closure followed).

Events (2)

1. November 11, 1890 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy over-certification/large debit created by the failure/overdrawn account of brokers Decker, Howell & Co. combined with a severe scarcity of cash in the market.
Measures: Clearing House issued/authorized unlimited clearing-house certificates; associated banks advanced funds and the Clearing House committee examined the bank and provided assistance.
Newspaper Excerpt: There was a balance against the Bank of North America of $1,400,000, which it was unable to settle.
Source: newspapers

2. November 12, 1890 Other

Newspaper Excerpt: The Clearing House ... decided to issue its certificates and for an indefinite period, is a virtual suspension of specie payments at the Clearing House ... to issue clearing-house loan certificates in order to enable the banks to settle the balances between themselves.
Source: newspapers

Newspaper Articles (17)

1. November 12, 1890 New-York Tribune New York, NY

Article from New-York Tribune, November 12, 1890

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CLOSING PRICES OF CALIFORNIA STOCKS. San Francisco, Nov. 11, 1890. Yesterday To-day. Yesterday To-day. .30 .30 Navajo 1.25 1.35 Alta 8.95 3.95 35 Ophir Bulwer 1.00 6.75 Potosi 2.85 2.85 Best & Belcher 2.50 2.70 1.30 Savage 1.60 Bodie Con. 2.65 2.65 3.55 Sjerra Nevada 3.30 Chollar 2.45 2.50 Union Con 4.00 8.90 Con Cal & Va .90 90 Utah 2.45 2.40 Crown Point 2.65 2.00 Yellow Jacket 3.60 Eureka Con 2.80 2.50 2.10 Common wealth 2.10 Gould & Curry .90 1.05 2.20 2.20 Nevada Queen Hale & None 1.25 2.65 2.55 North Belle Isle Mexican .95 .90 Belle Isle .70 .75 Mono THE STOCK MARKET. Tuesday, Nov. 11-p. m. The deluge arrived to-day, and probably with the forced suspension of Decker, Howell & Co., simply because their collaterals having been discredited they were unable to borrow money on them, also came the end of the forced liquidations at the Stock Exchange. The action of the Clearing House, late this afternoon, in deciding, after examinations of the conditions of the Bank of North America, the Mechanics' and Traders' and the North River, to issue an unlimited amount of Clearing House certificates and for an indefinite period, is a virtual suspension of specie payments at the Clearing House and makes the entire amount of the associated banks' loans— nearly $400,000,000-available for settlements of differences at the Clearing House. If the banks ever were to recognize a situation that has been forced by a manipulation, their action is a little tardy. It would have been better to forestall the manipulators by action two months ago, when the special locking up of money began. To-day's action frustrates all further efforts to manipulate the money market, as the Clearing House can issue certificates, on the pledge of bills receivable and securities faster and to a greater extent than any clique of stock gamblers have the power to withdraw money. But to-day's action, after the manipulators have carried nine out of ten of their points, is much like locking the barn door after the daily disappearance of a horse or cow for sixty days, when there is nothing left to steal but a small pig. Tardy as the act is, it is of first importance to the general interest of the country. It checks the operations of men who for personal gains or for other personal motives have shown their ability and will to jeopardize the whole business of the country to attain their own special ends. Under the circumstances and the foroed conditions there was wisdom in leaving the amount of the issues of certificates unlimited, and the period of redemption indefinite. We understand that this provision was carried only after a hard struggle in the Clearing House meeting. But it was a necessary provision, because the conditions against which it is aimed are fletitious fabrics, woven from illegitimacy and the fears of honest people. The stock market this morning opened in good form at higher figures than last evening's closing, influenced by materially higher quotations from London, and favorable reports of the progress of the half-monthly settlements in Americans. But it was quickly apparent that a screw was loose somewhere by the sharp declines that followed in Villards; North American down from 27 1-2 to 22, Northern Pacific from 23 1-2 to 21 7-8, and the preferred stock from 67 1-2 to 64. Following this first break there was a substantial recovery for all stocks, and at noon prices generally were ruling at about the best figures of the day. Then came a renewed selling of the Villards which was not explained till later. Decker, Howell & Co. had not been able to take up their over certification of about $900,000 yesterday at the Bank of North America, against which they last evening deposited securities, and the Bank of North Ameriça was unable to pay in cash its indebtedness to the Clearing House. The securities had to be sold. Under these forced sales North Americans declined to 17 1-2 against 27 1-2 at the opening, Northern Pacific to 163-4 against 28, and the preferred stock to 55 against B7 1-2. Edison General Electrical Light (8 per cent stock) sold early at 89, but 400 shares were sold under the rule at 80a65. The Northern Pacifics and North Americans furnished 196,400 shares out of the total sales in the general market of 653,447 shares. The failure of C. M. Whitney & Co. was announced early in the day, and for their account there were sales under the rule" of Toledo, Ann Arbor and North Michigan stock at from 26 down to 12, with a final closing at 16 3-4; the stock has been ruling at about 32. The general market. of course, responded to the forced sales referred to, but yet in tone it was strong. While closing lower than the opening figures, it generally was higher than last evening's final figures. If today's action of the Clearing House had been made yesterday, the Bank of North America could have made its clearances to-day in certificates, and the heavy liquidation in the Northern Pacifies would not have been forced. This illustrates the meaning of to-day's action. A want of immediate cash does not necessarily imply insolvency. The financial, commercial and mercantile situations are sound at the core, but they have been disturbéd by the creation of artificial methods and the double hoarding of money first, by a lockup to produce just such results as to-day has revealed, and second, by a greater leck-up of money lenders and capitalists who have been frightened by a situation which they could not comprehend. THE BOND MARKETS. The only sale of Government bonds was $5,000 for

2. November 12, 1890 New-York Tribune New York, NY

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COMPELLED TO GO UNDER. FAILURES IN WALL STREET. THE CLEARING HOUSE COMES TO THE RESCUE. OF VOTING CERTIFICATES TO BANKS IN NEED HOWHELP-THE ASSIGNMENTS OF DECKER. AND ELL & 00., O. M. WHITNEY & 00. DAVILD RICHMOND-STOCKS INFLUENCED BY DISTURBANCES LN VILLARD SHARES THE TROUBLE IN THE STREET BELIEVED TO BE ENDED. Clearing House Association, at certificates a general The voted to issue its of help. banks that might be in virtual to for this action was which meeting The any occasion yesterday, America, need the suspension of the Bank of North balance of its inability to settle its when confessed It was quickly explained, of the $1,410,000. matter was brought to the attention for the the committee, that the reason of about executive was the over-certification of Decker. trouble for the well-known firm brokers $900,000 & Co., which has been for years been able Howell for Henry Villard. The firm had Monday. not but it to make good its account bank the on securities it held. surrendered to unable the to settle its balances bankers because The bank was over certification. A few situation of the large together, and when the certificawere called the deficiency by the over of $90,000 was banks, the was exposed made up by ten contributions Mechanics and the North River, owed they of each. tion Two and other respectively. balances which Traders', $119,000 banks were $200,000 and to discharge. The three the last considerably were unable below the legal reserve, not by in much statement, but others were were not better bank position, and the difficulties fully expected. OF THE CONFERENCE. RESULT of prominent bankers, A. Stewart among whom A conference were J. Pierpont Olcott, Morgan, with the John Clearing House and Frederick P. immediately at the Merchants' were Bank. committee The was statements held of the three completed. banks The examined and the settlements the committee should carry suggested that House, and, in acmeeting before the Clearing the associathe matter with that recommendation, favorable recordance called together, with the of its certifition was an unlimited amount New-York, in sult of voting associated banks of to support cates. The have found it necessary in the beother of words, their weak brethren, sound. but only Whether the some lief that the institutions are grave to justify this was that was extraordinary emergency action sufficiently bankers is a question who were present the Clearing settled at the by the prominent The last time that relief first meeting. forced to adopt this method National of House was failure of the Metropolitan I. Seney, was on the 1884. At that time George valuable colBank in May, of the bank, surrendered certificates a issued president paintings to secure the not supposed lection of of his bank. It is the asfor the protection which have now besought to that resort. that sistance the of banks the Clearing House will be driven North WHAT EMBARRASSED THE BANK. of The embarrassment caused simply of the by Bank extensive known loans as America wais Howell & Co. on what are of one class to Decker, stocks. The aggregation endangered the Villard became so great that it were made, but of securities the firm to which the loans could find no not only bank which yesterday complicate the situation, Henry of which he is been market also for the American the Villard securities. Company, was still To which in Europe, had and the the North unable to protect loans extent the emhead, was in its behalf. To and what the failure of the made of the bank to the speculations barrassment firm may be owing not settled of Mr. Villard or of the North brokerage The directors the company was the afternoon, American yesterday. held a long meeting in of the comCompany said afterward, in behalf with its but it was naturally the complications statement about brokers pany, that prevented any not positive be learned officially its affairs. the company It could had been unable so direct, to meet how- its call whether loans. The connection row was of bricks was a ever, that the simile firm of failed a because it bank could no obtain of its natural one. further The accommodation associates from the because the bank asked the fortify aid its account, and American behind the firm could not Villard and the succeed North the OreCompany, both are Transcontinental Henry which he organized Company, to William the culmina- Dowd, gon and the famous blind pool." the Bank of North the tion venerable of president to of a plain question Mr. Villard." America, supposed said in that answer the firm was acting for disINFLUENCES AT WORK ON STOCKS. market was controlled The opening by the The stock in the Villard shares. of renewed constrong at rumors that turbance nevancing prices because Jay Gould had fidence in in the in the his London position and largely market interested after a secret two changed with bankers railroads. The conference and other granger in some way, St. Paul have been connected materially influences may prices in London were 44.to 48 1-2 for the early Union Pacific rose commonly from known. higher, and rumors became affected when the that would be favorably railroads Prices of stocks between Western complete harmony but the movement a advanced by not general, with Union and Pacific, to that extent it cast C. of the failure doubt was over the whole story. The early announcement without of important effect Whitney & Co. was although transactions in M. the course of prices, begun immediately on under the rule" were usually active. The declines and stocks and bonds not forced sales were heavy, stock fell account of these North Michigan of Toledo, on Ann Arbor cent. and The much not larger under sales the nearly 20 per which were and they the Villard stocks, depressing influence, and the neutralized rule," had a the more advance in Union Pacific strength of associate stocks. sales were made by brokers they Although the first with the bear faction, only to usually identified that pointed delivery assumed proportions Long before the of in soon extensive liquidation. over 12 per cent North in Northern Amerihour, declines 10 per cent Pacific preferred Wall and Street for the announcement,

3. November 12, 1890 Los Angeles Herald Los Angeles, CA

Article from Los Angeles Herald, November 12, 1890

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EXCITED MARKETS. Another Panicky Day in Wall Street. Several Failures on the Stock Exchange. The Collapse Due to the Scarcity of Money. The Bank of North America and Two Other Banks Unable to Make Settlements. Associated Press Dispatches. NEW YORK, Nov. 11.-There was a general and an important reaction in the stock market this morning, due to the improvement in the financial aspect in London. Early cables announced that £2,500,000 in gold was on the way from the continent to the Bank of England, and that confidence was consequently, to a large extent, restored. Stocks on the London exchange opened 3 1/2 higher, and at close were rampant. Everybody was scrambling to purchase, and prices were leaping up 2 per cent. at a bound. There was a panic among the holders of Villard stocks, and prices for North American and Northern Pacific collapsed. One broker sold 15,000 shares of North American, and 50,000 shares were sold by other brokers, causing a decline of 8 per cent. Northern Pacific, preferred, at 2 p. m. had declined 121/2 per cent since opening, most of it since noon. At times the crowds in Villard stock were enormous. Banks Unable to Settle. Rumors of trouble among banking institutions were current all day, but no one paid much heed, thinking they were the usual emanations of bear minds. After closing, however, it was learned that three banks, members of the New York clearing house association, had difficulty in settling the claims of other banks against them. There was a balance against the bank of North America of $1,400,000, which it was unable to settle. The other banks were the North River and Mechanics and Traders. How this heavy balance was created against the Bank of North America was a puzzle. During the day the Mechanics' and Traders' made its settlement with the clearing house all right, and the other two banks received assistance from other banks in the association. and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and except that account, the bank was in a stronger position than ever. The most important factor in the developments was the scarcity of money. Right up to close it was in urgent demand, and 1/2 per cent. and legal interest was charged on loans, equal to 189 per cent. per annum. This fact and the troubles of the banks caused a special meeting of the Clearing-house association, and after a long session it was decided to appoint a committee with authority to issue clearing-house loan certificates in order to enable the banks to settle the balances between themselves. This action is expected to restore complete confidence.

4. November 12, 1890 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, November 12, 1890

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HELPING THE BANKS Wall Street's Semi-Panic Over for the Present. ONLY THREE FIRMS SUSPEND The Clearing House Com 8 to the Resou in Time. Three Banks Pulled Through by Prompl Advances-Decker, Howell & Co.'s Lia. bilities Over $10,000,000-Wild Specula. tion Caused the Monetary Stringency. Millions Lost by the Panic Wave. NEW YORK, Nov. 12.-The stock market opened this morninh with an improved tone and it was believed that the flurry of the past two days is over-but millions have been lost by the panic wave. The last hour of business on the exchange yesterday will be long remembered. There had been whispers all the day-in fact, they had first been heard on Monday night at the Windsor-that a certain big house was in trouble and was sure to go, but there was wild excitement when the announcement was made that "Henry Villard has gone to smash again." That was the cry when his brokers, the big firm of Decker, Howell & Co., announced its failure, and the stocks with which Villard has been identified were knocked into flinders. A fall of a dozen points in Northern Pacific Railroad shares and in those a the North American Company, which has owned a controlling amount of the railroad's securities, was incidental to the failure and marked a decline of $30 and $40 per share respectively in those stocks from the prices at which they sold last spring. Failed for $10,000,000. The liabilities of Decker, Howell & Co. amount to about $10,000,000, but the firm claim that they will be offset by their assets. This sort of statement, however. is very common when failures occur. It transpired, however, that the firm had seriously involved the Bank of North America, which on Monday certified checks to the amount of some $900,000, which the firm failed to make good, and the bank in consequence had a heavy debit balance in the Clearing House in the morning. The North America was not the only one in trouble. The North River and the Mechanics and Traders'-smaller institutions, having no connection with Wall street-were unable to supply the lawful money to make their balances good at the Clearing House. All these banks had ample resources, but could not obtain the actual cash. Their balances were made good by other banks, and in the afternoon the association resolved to issue certificates to any Clearing House banks on deposit of good collateral. The amount to be issued is unlimited and they are to be used only in settling balances at the Clearing House. Thus no bank having resources can hereafter be put in difficulty by temporary inability to obtain lawful money. The failure of the firm of C.M. Whitney & Co., a Stock Exchange house, and of Mr. David Richmond, of the Stock Exchange, were minor catastrophes of the day, as was also the suspension of Messrs. Narr & Friend, of the Philadelphia Stock Exchange, whose liabilities are small. The failure of the silk importing house of John T. Walker, Son & Co. added tc the general disquiet of the day in business and financial circles, and was also attributed to the general tightness of money and inability to obtain accommodation. S What Caused the Trouble. , Two causes are at the bottom of the monetary stringency. The exigencies of London, brought about by wild speculaS lations in the Argentine Republic and I pretty nearly every other part of the t world; and also the great business activS ity of this country, which has drawn , away money from eastern centers. The failure of Decker, Howell & Co. is also e due to this situation, but it was directly brought about by the studied and relentless pursuit of a clique of bear operS ators who saw the weakness of their t position and persistently sought their ruin.

5. November 12, 1890 Sacramento Daily Record-Union Sacramento, CA

Article from Sacramento Daily Record-Union, November 12, 1890

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bling to purchase and prices leaping up 2 per cent. at bound. At noon money was tight, with no offers and 20 per cent. bid. The stock market after 11 o'clock showed a moderate volume of business in comparison with the enormous sales of the first hour, and while a firm tone prevailed the bighest prices were not generally maintained. Reading and Burlington were conspicuous for weakness and Louisville and Nashville and North American displayed most strength. Union Pacific held at from 48 to 463, and afterward held steady at about 47 Some sales were made under the rule for the account of Whitney & Co. Rumors of trouble among the banking institutions were current all day, but no one paid much heed, thinking they were the usual emanations of bear minds. After the close, however, it was learned that three banks, members of the Clearing House Association, had a difficulty in set tling the claims of other banks against them. There was a balance against toe Bank of North America of $1 400.000, which it was unable to settle. The other banks were the North River and Mechan ics' and Traders'. How the heavy balance was created against the Bank of North America was a puzzle. During the day the Mechanics' and Traders made its settlements with the Clearing house all right, and the other two banks received assistance from other banks in the association and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and now that account with that bank was in a stronger position than ever. The most important factor in the developments was the searcity of money. Right up to the close it was in urgent demand and 1 per cent. and legal interest was charged, equal to 189 per cent. per annum. This fact and the troubles of the banks caused a special meeting of the Clearing House Association, and after a long session it was decided to appoint a committee consisting of the President, with authority to issue clearing house loan certificates in order to enable banks to settle the balances between themselves. This action is ex pected to restore complete confidence. The failures reported are numerous. The first announcement to-day was that of Charles M. Whitney & Co., prominent members of the Exchange. Charles M Whitney & Co. represent here the Whitney National Bank of New Orleans and some other Southern financial institutions. The firm was composed of Charles M. Whitney, Edwin S. Larcher and Frank M. Larcher. Their assignment is to George W. Quintard, with no preferences. Whitney & Co. have been heavy losers in several stocks, of which they carried a large line. and some of which for a month past have been almost unsaleable. It is not known yet whether the aggregate lia bilities will be sufficient to cripple any other traders. The assignment is reported of John T. Walker, Son & Co. importers, etc. They are rated by R. G. Dun & Co. at over $300, 000. The tirm was composed of John T Walker, John W Coombs and Joseph Walker. William T. Ryle was made as signee. The cause of the failure of Walker & Son was the inability of Nightingale Bros. & Knight of Paterson, N J., silk manufacturers, to liquidate their liability to the firm. According to Assignee Rytes, the Paterson firm owes the estate of John T. Walker & Son, $140,000, of which $100 000 is overdue. The active capital of Walker & Son for the past two years has been $300,000, so they were unable to withstand the loss. The firm has been carrying a heavy load for the past four years, and whenever the Paterson firm was unable to meet its obligations it was taken care of. Owing to the tight money market and a suspicion as to the silk firm's paper, caused by several recent failures, the firm was unable to get the usual commodations and suspended pay. ment. The liabilities are $1,100,000. The nominal assets are $1,300,000, composed of $500,000 in merchandise, and $800,000 worth of accounts and bills receivable, of which over $400,000 are due from Nightingale Bros. & Knight. An attachment was issued this afternoon against Nightingale Bros. & Knight, silk manufacturers of Paterson, N. Y. for $63,069 favor of Walker, Son & Co., assignees of the Walker firm. It is said the attached firm owes them $410,000. The failure of Decker, Howell & Co. is also announced on the Stock Exchange Decker, Howell & Co. made an assignment to William Nelson Crowell. The firm is one of the largest on the exchange, and is considered very wealthy. It has been identified for years with the movement of Villard stocks, and was generally considered Villard's special brokers. The failure dispersed the cloud that had been hanging over the market. and after it was announced a rally of to per cent. occurred. Assignee Cromwell said this afternoon The liabilities are about $10,000,000 and the assets at present market prices largely exceed that sum. The liabilities are due almost entirely to banks and bankers on loans made in the course of business and are well secured. The cause of the suspension was the inability to borrow the necessary amount of cash required in the day's business. The firms transactions were very large, it being necessary to borrow several millions daily The firm had an abundant of collateral to-day and it was not for the lack of security, but the inability to make it available that caused the crash It was simply a matter of absolute inability to get money on the best securities, owing to extraordinary money stringency now prevailing As securities are their special line there may be a disposition on the part of the creditors to sacrifice them on the market but such a course would be suicidal It the creditors have good judgment to hold securities they will be amply protected The firm of Decker Howell & Co. was one of the most prominent on the Stock Exchange. It was identified not only with the Villard stocks but with the Standard Oil interests as well, and also carried ac counts of some of the largest stock operators in Chicago. After their failure was announced. large sales for their account were made, under the rule, in the Edison General Electric stock, forcing it down 241 points. A large amount of Great Northern preferred, Northern Pacific common and preferred, North American, Manitoba. Wisconsin Central and Missouri Pacific was also sold, causing depression in those stocks. PHILADELPHIA, November 11th. - The stock brockerage firm of Narr & Friend has suspended. They say their embarrassment was caused by the continued drains produced by the active market of the past ten days. The firm hopes the suspension will only be temporary. They are are unable yet to make a statement of the assets and liabilities, but it is thought they are heavy. The firm has been long of the market lately. especially on Northern Pacific stocks. When these stocks broke badly to-day on account of the failure of Decker. Howell & Co. in New York, Narr & Friend called upon a number of customers for margins, but they failed to respond, and the firm could not carry out their contracts. This evening it is said that $25,000 will cover their differences. ASHINGTON, November 11th -Secretary Windom said this evening that his latest information from Wall street was that the situation was improving, with indications

6. November 12, 1890 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, November 12, 1890

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In Wall street. NEW YORK, Nov. 11.-Wall street, 11 a.m Stocks opened 1@2 higher, following the lead of London, became weak on large sales, declining steadily for a short time, then rallied, making material gains all along the line. There was a larger attendance of brokers on the floor of the exchange this morning than for weeks. Every stock on the list had a crowd of brokers trying to trade in it. When the market opened the scene was one of confusion and excitement. Cables reporting an advance of 2 to 3 per cent. in London received before opening, caused brokers to take the bull side and a disposition to buy was shown all around. The largest crowd was in St. Paul, which first was offered at 48, then sold at 47½, 2% per cent. above yesterday's close. Heavy unexpected selling by London, however, drove the price down to 45½. The general list followed and for a few moments the weakness of yesterday was evinced, but heavy buyers soon began to come in and on active business, the upward movement was resumed. Sugar opened up 2½ on the appointment of H. O. Havemeyer, S. V. White and General Slocum as receivers and moved up to 57, then reacted to 55, but was soon once more selling at 57. North American was the weak point in the market, opening at 27½, in six minutes declining to 21½, then slowly advancing to 24. Villard stocks seemed to bear the brunt of the early attack. Northern Pacific, preferred, showed a loss of 3, Western Unirn 2. The low prices brought in more buying, however, and the force that opened the market up began again to show its influence and a smart rally took place. The strongest on the list was Union Pacific, which failed to go below the opening figure and with a rally advanced to 48 against 44 at the opening. The rest of the list generally recovered early losses and in almost everything but Villards fractional advances were scored. The market at 11 is still very active and unsettled at an improvement. After the announcement of the failure of C. M. Whitney and the Bank of North America, the market raliied on receipt of private cables announcing £3,000,000 in gold were on the way to London from the continent and that money is easier in that centre. Vanderbilt brokers were heavy buyers of Union Pacific. Money tight, with no offers and 20 per cent bid. The stock market after 11 o'clock showed a moderate volume of business in comparison with the enormous sales of the first hour, and while a firm tone prevailed, the highest prices were not generally maintained. Reading and Burlington were conspicuous for their weakness and Louisville & Nashville and North American displayed most strength. Union Pacific declined from 45 to 46%, and afterward held steady at abont 47. Some sales under rule for account of Whitney & Co. 2 p. m.-There is a panic among among holders of Villard stocks and prices for North American and Northern Pacific collapsed. One broker sold 15,000 shares of North American and 50,000 shares more were sold by other brokers. causing a decline of 8 per cent. Northern Pacific, preferred, had already declined 12½ per cent. since the opening, most of it since noon and the price has fallen 1 per cent. at a time. The crowds in Villard stocks are enormous. Trading in stocks after 12 was marked by an apparent withdrawal of all support, and a specially vicious attack by the bears upon Villards, which brought about the most rapid and disastrous drop of the present decline. The forces of the bears were concentrated against Northern Pacific, preferred, and that stock, before 2 p. m., had been forced off over 10 per cent, reaching 55 against 66% at noon. The rest of the market sympathized to some extent with it, St. Paul showing most weakness outside of Villards. It retired to 46% from 48, and all active stocks losing probably as much. There was a fractional reaction, but a steady drop in Northern Pacific. preferred. accompanied by rumors of a noted Villard house being in financial difficulties caused the entire list soon to become demoralized. and losses from noon figures reached on an average 1 to 3, and there was a perfect panic in Villards and Northern Pacific, common, lost 35/3 to 17%, while North Amereican dropped to 19½. The market showed some strength toward the delivery hour, and Northern Pacific, preferred, rose to 91½, but at 2:15

7. November 13, 1890 Daily Tobacco Leaf-Chronicle Clarksville, TN

Article from Daily Tobacco Leaf-Chronicle, November 13, 1890

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A MAELSTROM Into Which Several Wealthy Firms Are Drawn. Disastrous Days In the New York Stock Exchange. As Usual Jay Gould is Held Responsible for It. Among Them is C. A. Whitney & Company, Brokers: John T. Walker, Sons & Company, silk Importers, and Decker, Howell & Company, Brokers -Liabilities of the Latter Estimated at $10,000,000. Three Banks Unable to Settle. NEW YORK, Nov. 18.-Monday and Tuesday was two of the most disastrous days in the history of the Stock Exchange. Alarming cablegrains from abroad started the breakup, and as the prices plunged downward numerous firms were forced to assign on account of tight money The banks- the Bank of North America, the North River and the Mechanics' and Traders' at the close of business Tuesday night had difficulty in settling the claims of other banks against them. The first named had a balance of $1,400,000 against it. C.M. Whitney & Company Go Under. One of the most prominent houses on the Exchange went under early in the day, C. M. Whitney & Company, brokers, of 96 Broadway, making an assignment as soon as the county clerk's office opened. The firm was one of the richest in the street. They were known as the Louisiana Whitneys, and represented many southern institutions. including the Whitney National bank. of New Orleans. They were identified heavily and interested in the Toledo and North Michigan railway, and the Hocking Coal and Iron company, and Texas Pacific. The liabilities were given in round numbers at $850,000.* John T. Walker, Sons & Company. A second failure. one for $1,000,000, was announced. Great surprise was expressed when it became known that John T. Walker. Sons & Company, importers of silk at No. 81 Pine street, had made a general assignment to William T. Ryle, of the firm of William Ryle & Company, in the same line of business at No. 54 Howard street. The assignment was drawn up Monday night and filed the first thing Tuesday morning in the county clerk's office. The cause of the failure was the inability of Nightingale Brothers & Knight, of Paterson, N.J., silk manufacturers, to liquidate their liabilities to the firm. The firm is rated by Dun & Company at over $300,000. Deeker, Howell & Company. Just after 2:15 p. m. the failure of Decker, Howell & Company, of No. 44 Broadway, was announced in the Stock Exchange. The firm is one of the largest on the exchange, and was considered very wealthy. It had been identified for years with the movements of the Villard stocks, and were generally considered Villard's special brokers. The failure was considered the cloud that had been hanging over the market. and after it was announced a rally of 1 1 to 2 per cent. occurred. W. Nelson Cromwell, the assignee of the firm, made the following statement concerning its affairs late in the afternoon: The liabilities are about $10,000,000. and the assets, at the present market price, largely exceed that sum.' David Richmond Goes Down. David Richmond, stock broker at 38 New street. made an assignment to Frank L. Requa. Mr. Richmond has been a member of the Stock Exchange since 1870. A number of smaller firms also went down in the crash. Money was exceedingly hard to get at enormously high rates, and confidence was not exhibited in any quarter. Tuesday night it was thought that the worst was over and that things would settle themselves into the usual channel. Rumors were current that the Vanderbilts would come forward and sell $10. 000.000 in bonds to the government and thus ease the market. Jay Could Blamed. The trobule was laid to Jay Gould Wall street has for years looked upon Mr. Gould as its evil genius. Any decline in stocks. any stringency of money. is at once ascribed to his wicked machinations. The method of explaining away disagreeable events is popular in Wall street, because it saves thought. Tuesday his name was on many lips, and was not joined with blessings, but with maledictions. Mr. Gould was quoted as having said that he had 'got what he wanted in Union Pacific. These things seem to give authenticity to reports which have been in circulation of late, that Mr. Gould was trying to depress the market with a view to acquiring stocks.

8. November 13, 1890 Telegram-Herald Grand Rapids, MI

Article from Telegram-Herald, November 13, 1890

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A CRISIS. Panic in the Stock Market on Wall Street , Several Big Firms Fail Decker, How el & Co. 6 Liabilities Eatimated at $10,000,000. BUIN IN WALL STREET New York Nov. 18-The darkest market eloud which overbung the stock and the atmosphere will burst Tuesday ep. Mr. Heary now doubtless clear respected Villard's brokers, the old and Decker, Howell & Co., were firm of involvsuspend. after seriously forced to of the Wall street banks An enermous ing one liquidation in the Villard North -Northern Pacific and stocks- -preceded and followed the American announcement of suspension. formal and was in progress when the marker closed Transactions is Northern Pacific closed preaggregated 84,000 and it farred net fall of 11% of North Amerion a can over 95,000 shares were dealt in. It closed 134 above the lowest but Pacific shows net decline of 83/6 Northern common was less active, but is down % per cent. This and the two failures that pre- the ceded it, the embarrassment of Bank of North America, and the potent measures adopted by the clearing-house banks Tuesday afternoon to relieve the banks and the community of the strain caused by the scarcity of money made dramatic chain of incidents. While real failures were taking place on the Stock Exchange a lot of fictitious ones were being proclaimed th roughout who Wall street by rumor-mongers quoted the names of suspicious banksas being unable to maintain their credit. as The current sensationalism. so far the banks were concerned. had much Yet more invention than fact in it. there was undeniable apprehension in banking circles. Bankers would not mitthis freely, but early in the day there conferences among representa- the ware tives of clearing-house banks, and banks of the New York Clearing House Association determined to provide and against ever possible misfortune exigency by pledging their associated I credit in behalf of every bank in the association. The associated banks of New York have available assets of $95,000,000. Against this it was voted to issue clearing-house certificates in such volumes as the situation might suggest or the require. As a measure of `relief bankers who resolved upon it are confident that it will at once be effectual. There is almost universal agreement among leading New York bankers that the money market's receat range and intightness came through artificial fluences. Funds have been locked up, taken out of ordinary business channels, to kept out of reach--all in order carry forward the bear campaign of depression, apprehension and quotation smashing The provisions of clearing house certificates -unlimited, if need be, up to $93,000,000 will, of course, put to rout all these manipulative schemes. HEAVY FAILURES. It was just after 2:13 o'clock p. m. that the failure of Decker, Howell & Co., of 44 Broadway. was announced on the Stock Exchange W. Nelson Cromwell, the assignee for the firm, made the following statement concerning its affairs late in the afternoon: The liabilities are about $:0,000 000 and the assets at the present market price largely almost exceed that sum. The liabilities are due entirely to banks and bankers on loans secured made of business and are well of cause in course the suspension was the inThe of the firm to borrow the necessary ability cash required in the day's busi amoun of were very large ness. The firm's transactions necessary to borrow several millions it being The firm had abundant collateral daily. for lac% of security but the inability day to make available that caused the in matter of absolute crash. It was simply get money on the best securiti owing ability to to the extraordinary money stringency now prevailing. Joseph H Decker, the senior member of the firm, said: 'Our failure due to the simple fact that we could not get the money to carry on our business We had ample assets, but could not realizo on them. The distress which not has been caused by our failure is local. it is world wide. The firm of Decker, Howell & Co. was one of the most prominenton the Stock Exchange It was identified not only the with the Villard stock but with Standard Oil interests as well. and also carried the accounts of the bigges stocl operating firm in Chicago At the begin firm ning of the present year the claimed to be worth $400,000 in cash. The suspension of C. M. Whitney & Co. was announced at 11 o'clock in the forenoon. The suspension of Whitney & Co. by sales under the rule for their account was of 1,200 shares of Columbus & Hocking Valley and Iron Company shares stock 18% to 151/1 1,400 at Toledo, Ann Arbor & North Michigan at from 26 to 1536 500 shares Texas & Pacific 100 shares Michigan Central. 100 shares Missouri Pacific and 200 shares St Paul common In many cases Hocking Coal and Iron was dealt in to some extent at 2414 to 3136 and Toiedo, Ann Arbor & North Michigan at from 8714 to 403 80 that the less on the 2,600 shares of these two stocks is from 16 to 18 points since May, or say an aggre of gate of possibly $40,000,000. This itself does not indicate a failure of any considerable importance. though it not known yet what other securities they are interested in or whether the whole liabilities will be sufficient to cripple any other tradera HELPING BANKS OUT OF TROUBLE Art the close of the market it earned that three banks which were members of the New York Clear House Association had difficulty in set tling the claims of the other banks against them. There was a bal ance against the Bank of North America of $1 400,000. which it was unable to settle The other banks were the North River and the Mechanics and Traders' During the day the Me chanics and Traders' Rank made

9. November 15, 1890 New-York Tribune New York, NY

Article from New-York Tribune, November 15, 1890

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MANY UNCONFIRMED RUMORS. A PROMINENT BANKING HOUSE ESOAPES FAILURE-THE BANK OF NORTH AMERICA ALL RIGHT. The many distressing rumors that were circulated in Wall Street yesterday were not confirmed. The fall of 1-2 per cent in British consols proved that there was a serious disturbance there, but the settlement had been completed and the failure of a prominent banking firm was avoided. At the same time, the pressure seemed to be from Europe, and the principal selling was for foreign account. The London firm that was talked about was Martin & Co., one of the oldest and most conservative houses in the city. It was founded in the reign of Elizabeth, and its failure would be a national calamity. The report that it had been carried over by the assistance of the Union Bank brought out a lot of denials. One of the New-York correspondents of the firm received a dispatch saying that the rumors were without foundation. Before the close of business all the foreign houses had dispatches to this effect. It was inferred that the messages were accompanied by selling orders, although the crisis had presumably been passed. In New-York the absence of failures was considered an argument in favor of higher prices for stocks, but the selling of all kinds of securities tended to counteract the opinion. There were no new bank failures, but the Mechanics and Traders' took out a few more Clearing House certificates, and a formal examination by the committee was made at the Bank of North America. Fortunately the bank was found to be solvent, although there is some reason for believing that the bank may be forced to seek the further aid of the Clearing House. The committee found the capital of the bank intact, and after the examination issued this notice: The undersigned members of the committee of the New. York Clearing House Association beg leave to state that we have this day made a careful examination of the Bank of North America and hereby certify that its capital is intact. it has a large surplus and its means are ample to meet all R. HAMILTON, its obligations. E. H. PERKINS, Jr., J. EDWARD SIMMONS, H. W. CANNON, F. D. TARPEN. The committee will probably be called upon to look into the affairs of the Mechanics and Traders' to-day on account of its latest application for help, and it is expected that the result will be about the same. The chief difference will be the fact that one is a brokers' bank and the other a purely commercial institution. The Mechanics and Traders'. which is a State bank like the North America and the North River, is under stood to have dealt rather too freely in business paper. Its ambition in this direction has carried it to lengths that might not be accepted even by the State. The examination will show whether its assets are sufficient to warrant a fresh issue of Clearing House certificates. The certificates outstanding are: North River, $95,000: North America. $900,000; and Mechanics and Traders', $980,000. In the bank panic of 1884 the issue was over $25,000,000, and the committee does not expect that this sum will be approached in the present emergency. The dulness of the stock market was its principal feature. The Villard stocks were still unnaturally active and Northern Pacific preferred suffered a substantial loss. St, Paul was inclined to be heavy and Lonisville and Nashville was pressed for sale. Union Pacific declined steadily, although the question of control has not yet been settled, and all the Western stocks were lower, in spite of the alleged progress toward the unification of railroad management. Special weakness was developed in Lackawanna and Pacific Mail, although there was no news about either company. The money market was quiet, and 8 per cent was about the average rate for call loans. There was practically no time money to be had. A broker with important European connections remarked after the close of business: After an experience of thirty-three years I can truthfull say that 1 have never seen a stock market like this one. The rates for money are high every where at once, while usually stringency in one place is accompanied by ease in another. If money is scarce in London It is usually plentiful in Paris, Berlin or New-York, and from one of These centres the deficiency is supplied. There seems to be no money anywhere, although the Bank of France has temporarily relieved the stringency in London."

10. November 15, 1890 Baxter Springs News Baxter Springs, KS

Article from Baxter Springs News, November 15, 1890

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UNEASY WALL STREET. Three Large New York Banks Narrowly Ese cape Suspension. NEW YORK, Nov. 12.-Rumors of trouble among banking institutions were current all day in Wall street, but no one paid much heed to them, thinking that they were the usual emanation of bear minds. After the close, however, it was learned that three banks, members of the New York Clearing House Association, had difficulty in settling the claims of the other banks against them. There was a balance against the Bank of North America of $1,400,000, which it was unable to settle. The other banks were the North River and the Mechanics' & Traders'. How the heavy balance was created against the Bank of North America was a puzzle. It was thought that the firm of Decker, Howell & Co. had overdrawn their account to that extent, but this could not be definitely ascertained. During the day the Mechanics' & Traders' Bank made its settlement with the clearing house and the other two banks received assistance from the other banks in the association and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and that now the account of that firm was closed, the bank was in a stronger position than ever. The most important factor in the developments was the scarcity of money. Right up to the close it was in great demand and one-half per cent. and legal interest was charged on loans, equal to 189 per cent. per annum. Oliver Peabody, of the banking house of Kidder, Peabody & Co., expresses views of the situation which are worth remembering, because they are tersely and clearly stated and are comprehensive. He says: "While imprudent business men are at present spreading adverse reports I can not see otherwise than that the commercial trade of the United States is on a sound basis. There is no great expansion and no large over speculation here in the country, and the community as a whole is not over invested. Europe has sent us an enormous amount of money for our breweries and industrial undertakings, but we have the money and Europe has the properties. I do not see why it should be any concern of people here whether the English people or the English underwriters hold their shares. Whatever may be their intrinsic value they can not sell them now and they can not send them here and get their money back. It may be squally in the financial world for the next two months, but except for the low rates that some Western railroads are getting, I can not see any thing radically wrong in the situation here."

11. November 17, 1890 New-York Tribune New York, NY

Article from New-York Tribune, November 17, 1890

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cate that any money was returned to the banks during last week from the lock-ups. The loans of the banks of New-York now, notwithstanding the immense expansion in the general business of the country, are $2,600,000 less than a year ago, and only $300,000 greater than they were two years ago. And, notwithstanding that by the re- duction in the Treasury balance and by the cre- ation of new silver money, less gold exports, the amount of legal money in circulation now is $140,000,000 greater than it was two years ago, the New-York banks hold $19,400,000 less of legal money than they did two years ago. If these figures possess any value at all they go to estab- lish a satisfactory condition of soundness in the commercial and financial situation of the United States, whatever may be the conditions in all other countries. In preparation for the crisis which paralyzed London on Friday afternoon-the fact of the necessity of the old firm of Baring Brothers & Co. appealing to the Bank of England for ex- traordinary accommodation-the bank applied to the Bank of France for a loan, variously stated, of £2,000,000 or £3,000,000, instead of attempting by any methods to draw gold from the gold-pro- ducing country of the United States. It seems to us that there is much significance in the fact that France was invited to lend money on in- terest instead of attempting to draw the necessary supplies from this country. The preliminary reports of the Bureau of Statis- tics for the month of October show that the ex- ports of the United States of breadstuffs, pro- visions, live stock, cotton and petroleum aggre- gated $74,898,110 for the month, against $74,- 324,225 for October, 1889, and $55,810,612 for October, 1888. For the ten months ended Octo- ber 31. the exports of the articles named aggre- gated for 1890 $462,627,374; for 1889, $438,- 636,384, and for 1888, $360,123,187: showing a gain for this year on 1889 of $24,000,000 and on 1885 of $102,500,000. These figures explain why it would have been useless for the Bank of England to attempt to draw its supply of gold from this country, and further estab- lish the soundness of legitimate business and the financial situation of the country. The foreign exchanges were much unsettled and very irregular during the whole week. The threatened financial troubles abroad made com- mercial bills almost unsalable at reasonable rates, but they stiffened the quotations for bankers' ca- bles and short sight, simply because there were few houses that were willing to draw bills of that kind. The quotable rate for bankers' bills at the close was on a basis of 34 79 and $4 85 re- spectively for long and short sterling. # RAILROAD EARNINGS. "The Chronicle's" compilation of gross railroad earnings for the month of October includes the returns of 156 companies. They show an aggre- gate of $51,305,105, against October, 1889, $49,- 392,902, an increase of $1,912,200, or 3.8 per cent. Of the total number 112 companies have reported gains averaging 13.2 per cent. The other forty-four companies returned losses averaging 8.5 per cent. To comprehend the significance of this seeming small gain on the year of 1889 it is necessary to know that October, 1889, gave a gain on October, 1888, of nearly 11 per cent. The subjoined table divides the aggregates and differences of the companies showing gains and losses: Month of Oct. 1889. 1890 Differences. p. c. 112 companies.$28,158 922 $31,888 887 Inc. 88.729.95 18.2 44 companies. 21.233,980 19,416,218 Dec. 1,817,762 8.5 Total,156 co.'s$49,392.902 851,305,105 Inc. 1,912,203 3.8 The returns of seventy-six companies or systems reporting for the fourth week of October give an aggregate gain on October, 1889, of $556,108, or 5.3 per cent. Of the total number fifty-nine re- turn gains averaging 10.6 per cent, and seventeen return losses averaging 8 per cent. cent. The Tribune has printed the returns of fifty- seven companies or systems for the first week in November, showing an aggregate gain on the week of 1889 of $429,477, or 6.8 per cent, which is on top of 1889's gain on 1888 of over 14 per cent. Only eight out of the fifty-seven companies reported have returned losses averaging 3.2 per cent. The subjoined table divides the aggregates and differences of companies showing gains and losses: First week in Nov. 1889. 1890. Differences. р.с. 49 companies...84,531,330 $5,016,206 Inc. $481.876 10.7 8 companies.. 1,701,529 1,646,130 Dec. 55,399 3.2 Total, 57 co's....$6,232,859 $6,662,336 Inc. $429,47 6.8 # THE WEEK AT THE STOCK EXCHANGE. At the Stock Exchange last week there was a series of small panics, interspersed with small re- coveries, beginning with the opening operations of Monday morning and culminating yesterday morning with an announcement that should have allayed all fears, instead of adding to the distress which had been a heavy weight during the whole week. The firal declines in prices for the week, although relieved by a partial reaction in yester- day's last, half-hour of businese, were large and important; but the declines for the week are in- significant when compared with those from the corresponding date of 1889, which are printed in our Weekly Range. And right here it seems op- portune to say that the gross earnings of 146 railroads for the ten months of this year were $35,173,025 greater than for the ten months of 1889. The market opened the week depressed by re- newed fears of money manipulation engendered by the bank statement of Saturday, November 8. The sellers for both long and short account far outnumbered the buyers, and prices declined sharply. Money was almost unobtainable except upon the best class of securities. Decker, Vowell & Co., who have been large borrowers and had failed to supply their requirements for making time loans, and were dependent upon the call loan market, were on that day unable to secure renewals or new loans, and, therefore, at the close of business were overdrawn with the Bank of North America over $900,000. The firm took its securities to the bank to secure the over- certification, but those securities could not be turned into cash in time for the bank to meet its debit balance at the Clearing House. The securities, however, were sold on Tuesday morning as best they could for cash, or in the regu- lar way. The sale of these securities precipitated the panie wnich occurred on Tuesday. The question of the solvency of the Bank of North America was not at all involved. It was simply caught momentarily by certifications in the mis- fortunes of a firm and was short of cash, but not of securities. The Clearing House promptly met the situation by assuming the guarantee of all solvent members. It voted to issue to any bank asking for them Clearing House certificates at 75 per cent upon the market value of acceptable collateral. The effect of this on Wednesday was shown in an easier money market and sharo re- coveries in prices for all stocks. But on Thurs- day the reports of dangerous London complica- tions became more emphatic than they had been, This first checked the improvement in values, next created doubts sufficient to check buying and renewed liquidations and selling for the short account. An enormous amount of guessing was indulged in as to what the trouble in London was, and, although it generally was ascribed to the heavy losses which had been suffered in South American securities, no one ventured to mention the old and respected firm of Baring Brothers & Co. Without any more definite in- formation the uneasiness on Friday became more depressing and the tape showed a steady and con- tinuous, but moderate, further decline in values. With Saturday morning came the official an- nounce-ment that it was Paring Brothers & Co. to whom all these former rumors had pointed. But with that information, also came the knowl- edge that the anticipated trouble had been averted: that the Bank of England, the Roths- childs and other banks and bankers had made Sup a guarantee fund to the extent of £11,000,000, and that the firm's surplus at the present market value of its assets exceeded £4,- 000.000. This is something analogous to the time in 1857 when the firm of George Pea- body & Co. practically carried its ledgers -to the Bank of England, and borrowed upon them a sum sufficient to carry them through the crisis. George Peabody & Co. were the predecessors of the present firm of J. S. Morgan & Co., London. It has also been announced that the British Gov- ernment has authorized the Bank of England tto issue £2,000,000 legal-tender bank notes in excess of its reserve in case of necessity. It would

12. November 19, 1890 The Globe-Republican Dodge City, KS

Article from The Globe-Republican, November 19, 1890

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# THE FINANCIAL WORL From Sunday's New York Times. After a liquidation of extreme severity, which has brought prices so low that the instinct of the average man prompted him to buy, we are met by the announcement that the greatest mercantile and banking house in the world has been on the edge of insolvency. The house of Barings and the house of Rothschilds are known wherever civilized men trade. While the latter are bankers only, the former are merchants as well as bankers, and their operations extend as far as goods are carried in ships, and into every country which has a part of England's world-wide commerce. Theirs was the ideal of British credit, and if the solvency of the Bank of England had been questioned it could not carry a more severe shock the world over than does this revelation of the disastrous state of the house of Baring, for their trading operations involved directly and indirectly credits extending to hundreds of millions of dollars. The cable dispatches of yesterday said that the guarantee fund subscribed by the other great London houses, headed by the Bank of England, was $50,000,000; the liabilities were estimated at $75,000,000. But it is not so much the question whether the house was indebted sixty or seventy or ninety millions; whether, with assistance it has received, it will eventually come out all right, or have finally to go into liquidation; the real significance of the event is the revelation it makes of the condition of the financial world. This house is not alone in the vast speculations which has brought it down. The last great smash they had in England was precipitated by the failure of Overend, Gurney & Co., and their liabilities amounted to only $14,000,000-a small thing compared with this stupendous failure, for failure it practically is. This country is certainly in the soundest condition of any of the leading nations. Next to it comes France, where there has been no speculation, but a solidifying process going on since the collapse of the Panama company and the smash of the copper syndicate. The worst situated countries are Germany and England; and the most extended of all, the one in which speculation has run riot, in which credits have reached the wildest possible expansion, is England. The Bank of France in this emergency has been able to come to the assistance of the Bank of England, and the help received from that source last week made the situation easier. Our own banks were confronted with the imminent danger of a panic when, on Tuesday last, the firm of Decker, Howell & Co. failed through Mr. Villard's operations and involved the Bank of North America. The clearing house at once took action to avert it by the issuance of clearing house certificates. This is not a device to bolster of an insolvent concern, but to allow a bank which has good collaterals to borrow upon them from all the other banks. It can only borrow to the extent of those collaterals. The Bank of North America got into the position it did by grossly bad business methods, such as ought, and undoubtedly will, cause a complete change in its management. It was remembered and commented upon in the street that President Dowd and his bank were connected with the Hannibal and St. Joe "corner" a few years ago-one of the worst stock gambles ever run in Wall street. The query was made whether Mr. Dowd has had a share in the speculation of this wretched charlatan Villard. Twice this man has caused enormous losses in Wall street, and in exactly the same way. He seems to have no faculty but that of borrwing, and in that he has such a genius that he could borrow the United States Treasury bare in six month, and bankrupt it in six more. Had it not been for his operations Wall street would not have been brought into the state it has been for the past week. We understand now why prices have been going down in our market so persistently for weeks past; why the foreign houses were sellers of stocks and bonds on every rally; and why, in the past two weeks, certain of our most prominent firms have been throwing over large amounts of securities which they bad acquired for permanent investment, and now sold at prices which it was cer-

13. November 21, 1890 The Great West Saint Paul, MN

Article from The Great West, November 21, 1890

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That Panic in Finance ! Now, men of toil in the West, what will you say as to the judgment of the GREAT WEST? More than ten months ago, before the first ripple had moved out on the calm commercial sea, we stated in great double-column editorial articles that ere many months rolled by the world would be shaken by an awful commercial crash-such as the world rarely witnessed. Within a few weeks the first ripple started from Wall Street Center. Knowing well the awful expansion of the bogus securities drawing blood from the producer, the gamblers were frightened and appealed to the government. Quick as lightning, call exchange-short loans-went up to 190. The Government sneaked in at the back door of a bank and told them to placard loans at 6 per cent-and the U. S. G. would back them ! This promptly brought down the market and there was no crash ! Such a thing had never been done before-and if Wall Street were not the real seat of government such a step would have been TREASON! But it worked. Again the suggestion went forth from this office-that the irrepressible fever would return-and that every laboring man should get a $50 bill by him, and look out for his funds. It did return-and this time the government not only poured millions into Wall Street, but it actually gave several millions without any consideration whatever. Again the storm was arrested. But the devouring maw of plutocracy, fed upon paper which drew blood and then increased its remorseless stomach-must reach its bursting point. And thus, within a few weeks the Stock gambling hell-or in other words, the CENTRAL GOVERNMENT became convulsed again. This time two of the greatest corporations in this country went over, and the grey-aged, rock-buttressed, centurybound house of Baring Bros., of Europe, succumbed. Others followed. But some of these were restored!-and the very process of restoration saved the entire country from a smash-up for a brief period. This PROCESS OF RESTORING BANKS is one to which we have often referred. It is a combination amongst themselves to stand by each other in danger, realize for each other on their securities, and thus maintain both the paper and the banks. The associations are known as Clearing Houses, in the cities. The officials of the Clearing House examine the securities of the breaking bank, and take money over to that bank from the other banks. Thus the "run" is met-the depositors feel secure, and the bank soon pays back, from re-deposits or by sale of the securities, the cash brought over. But there is another method of forcing quiet throughout the country. THE ASSOCIATED PRESS is wholly owned by the plutocrats. The daily papers can only get such information as this monopoly chooses to give. And it gives an understanding to the journals of the west not to put it as badly as it is even on the limited despatches sent. As Beerbohm's European grain despatches are frauds so are the panic despatches. There was a more terrific panic on Wall Street last week than ever before occurred on the face of the globe-but the great western dailies made light of it. Had the news of the explosion of the vast bubble of Villard's, (the "North American Company" being capitalized at nearly seventy-five millions), to say nothing of the ten-million failure of his bankers, and the four or five other failures-been known as was the Jay Cooke failure of 1873, there would not be an open bank to-day in the United States Here are the headlines for one issue of the N. Y. Daily Herald-compare it with what we got out west. We put these in small type, but the Herald blazed them forth in large display type, with a picture of the throng crowding on even the curbstone far outside the stock exchange: MILLIONS LOST IN WALL STREET'S WAVE OF PANIC. Three firms carried down in the wild swirl and three banks shaken almost to their fall by the shock of the financial elements. Decker, Howell, & Co. under-liabilities, $10,000,000. C. M. Whitney & Co., with liabilities near $1,000,000, also submerged, and and David Richmond so far out of sight that he can make no statement. Bank of North America $900,000 short for awhile. But, like the North River and Mechanics and Traders', it was pulled through by prompt advances from other banking institutions of the city. Clearing house to the rescue. For the third time in Wall Street history the associated banks at a hastily called special meeting issue certificates to relieve New York from one of her darkest financial days. Has Villard been caught? Decker, Howell & Co., were swamped by his securities-the stringency of money at nearly one hundred per cent responsible for the general panic in the market. The awful period, again averted, may be regretted and postponed, but it has got to come. Fully one hundred millions of bogus leech-sucker bonds and stock were wiped out by this blow-but they will suck blood and

14. November 26, 1890 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, November 26, 1890

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WALL STREET PANIC. A Flurry in Stocks and the Suspension of Three Firms. The growing scarcity of money at the financial center, New York City, culminated in the inability of three banks to make good their debit balances at the Clearing House in the morning. It was a day of wild excitement in Stock Exchange and financial circles. Decker, Howell & Co., C. C. Whitney & Co., and David Richmond suspended, the first named with liabilities of $10,000,000. The Bank of North America, the North River Bank and the Mechanics and Traders' Bank were unable to make good their balances at the Clearing House and the associated banks had to come to their relief and advance $1,300,000. Clearing House certificates will be issued and a bank panic prevented. It was also announced that the firm of Narr & Friend, at Philadelphia, one of the members of which belongs to the New York Stock Exchange, had failed, and the failure of John T. Walker, Son & Co., merchants and importers, at No. S1 Pine street, New York City, was also made public, but their suspension was only indirectly connected with the tight money market in Wall street. This monetary stringency is due to two causes-first, the exigencies of London, brought about by over-speculation in almost every part of the world in general, but in the Argentine Republic in particular; and secondly, to the almost unprecedented activity of trade in this country, which has drawn funds away from the Eastern centres. The present disturbance is a repetition of the two preceding ones. In the great depression of 1873 the first to go were the Northern Pacific stocks, which were then controled by Jay Gould, who went down in the wreck. The Northern Pacific stocks led on the decline of 1884, and buried in their ruins Henry Villard, who was the master spiritin them. The action of the Clearing House in voting to issue loan certificates to the Bank of North America and all other banks connected with it that might require assistance, went far toward relieving the panicky feeling in the market. Some idea of the great loss sustained in Wall street is afforded when it is said that twenty-three stocks showed, up to the time of the panic, a total shrinkage in value since November 1 of about $100,000,000. The associated banks of New York City have available assets of $95,000,000. Against this it was voted to issue Clearing House cortificates in such volume as the situation might suggest or require.

15. November 28, 1890 Fisherman & Farmer Elizabeth City, Edenton, NC

Article from Fisherman & Farmer, November 28, 1890

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WALL STREET PANIC. A Flurry in Stocks and the Suspen sion of Three Firms. The growing scarcity of money at the financial center, New York City, culminated in the inability of three banks to make good their debit balances at the Clearing House in the morning. It was a day of wild excitement in Stock Exchange and financial circles. Decker, Howell & Co., C. C. Whitney & Co., and David Richmond suspended, the first named with liabilities of $10,000,000. The Bank of North America, the North River Bank and the Mechanics and Traders' Bank were unable to make good their balances at the Clearing House and the associated banks had to come to their relief and advance $1,300,000. Clearing House certificates will be issued and a bank panic prevented. It was also announced that the firm of Narr & Friend, at Philadelphia, one of the members of which belongs to the New York Stock Exchange, had failed, and the failure of John T. Walker, Son & Co., merchants and importers, at No. 81 Pine street, New York City, was also made public, but their suspension was only indirectly connected with the tight money market in Wall street. This monetary stringency is due to two causes-first, the exigencies of London, brought about by over-speculation in almost every part of the world in general, but in the Argentine Republic in particular; and secondly, to the almost unprecedented activity of trade in this country, which has drawn funds away from the Eastern centres. The present disturbance is a repetition of the two preceding ones. In the great depression of 1873 the first to go were the Northern Pacific stocks, which were then controled by Jay Gould, who went down in the wreck. The Northern Pacific stocks led on the decline of 1884, and buried in their ruins Henry Villard, who was the master spirit in them. The action of the Clearing House in voting to issue loan certificates to the Bank of North America and all other banks connected with it that might require assistance, went far toward relieving the panicky feeling in the market. Some idea of the great loss sustained in Wall street is afforded when it is said that twenty-three stocks showed, up to the time of the panic, a total shrinkage in value since November 1 of about $100,000,000. The associated banks of New York City have available assets of $95,000,000. Against this it was voted to issue Clearing House certificates in such volume as the situation might suggest or require.

16. January 20, 1891 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC

Article from The Progressive Farmer, January 20, 1891

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[Reported for THE PROGRESSIVE FARMER.] A gentleman familiar with the life of Wall Street relates this incident: Shortly before three o'cloch on the afternoon of November the 13th, a woman came running up Wall Street from the direction of the East River The news of the closing of the North River Bank had not by that time reached the Street, but the recent failures and the known difficulties of some other banks had made the Street very "skittish." The woman ran along until she came to the Drexel Building, at the corner of Broad Street. Here she paused, stopped a messenger boy, and held a whispered conversation with him. The boy pointed up Nassau Street, and the woman started up the street with the boy after her. Her youth, beauty, and unaccountable actions, had already excited interest, and & large crowd followed her. She dashed up the staires of the Bank of North America Building. A cry arose from the crowd that the bank had failed, and in less time than it takes to tell it several hundred persons were jostling each other around the door. In the meantime the woman calmly went to the cashier and asked it her husband had come yet. Sne had an appoint ment to meet him there, and finding that she was late, had run up all Street. That is to say, the financial nerves of New York were unstrung. Men shied at their shadows. The rustle of & leaf they took for the tread of an army. They had the financial jim. jams," sometimes a very ludicrous disease, bu; always more horrible than humorous. W all Street has not even yet shaken from its throat the skeleton clows of this nightmare of the commercial world-a panic. A panic in Wall Street means a panic in every home in America. It is & moral and religious question. What is its moral import ? What lesson must the Christian manhood of the nation learn from such events ? 1. We learn that this panic came upon us without any legiti nate cause The country was never in a more prosperous condition since its begin nings. The granaries of the West groaned beneath their mighty loads of bread. The cotton fields of the South were white with wealth as they have not been for a generation. Trade was brisk-the outlook bright. In the midst of a beautiful day, with a clear sky, a storm bursts with terrible fury. It is a panic without reason. It had no legitimate cause. Therefore its cause was illegitimate. People used to think that such things just "come," like the measles or the whoping cough, without rhyme or reason. We are beginning to understand now that epidemics come because law has been violated, that cholera and yellow feve are not fiends let loose from the infernal regions by some angry devil or deity, but that they are the offspring of man, begotton in filta and grown in criminal negligence So the panic that has no legitimate cause has an illegitimate one. They do not just come." Let us fix this thing clearly in our minds. The sooner we fix it the better. The only presible conclu sion we can draw from this 18, that there is something rotten at the very heartof the modern commercial world. What this is, I do not try here to say. To recognize the fact of disease is the first step toward is cure. 2. The second lesson we should learn is that the day of National Inter dependence has come. The im mediate occasion of the crisis was the embarrassment of a firm of English bankers, thousands of miles across the sea, in & foreign city, in & forign nation. No man liveth to himself and no man dieth to himself And the time is now come when no nation can live to itself or die to itself. The era of the Chinese Wall is passing sway. The era of international law, international dependence, and the brotherhood of the human race, 18 tinging the horizon of the East with the new sun of a new day. The lives of all the nations of earth are being woven and interwoven one with the other. They must share each other's burdens and sorro VS, as they have borrowed each other's games and fashions and joys. It is the movement of the centuries. It is the law of God 3. We must learn, too, a fact that we ought to have learned before, namely, that the practical government of the world 18 being rapidly concen trated into the hands of a few private individuals. it 18 Be this for weal or woe. fact

17. July 21, 1897 The Saint Paul Globe Saint Paul, MN

Article from The Saint Paul Globe, July 21, 1897

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quantity of gold sufficient to pay tl dollar of the depositors in any one banl it will be said the Bank of England not thus pay out all of its gold. Certain Neither would it be necessary in or pay the entire deposits of a dozen each having deposits equal to the whole of gold. Because as fast as drawn the suspected banks it would be depos some other bank, which in 'turn WGL posit it' with the Bank of England, stock would thus be forever replenish ENGLISH BANKING SYSTEM. That you may not regard what I ha about the strength of the English syst compared with the American want of as a simple untried theory. will city one of many historical events which my position. In 1890 the important house of Baring & Co., of London, was compelled to m assignment, having liabilities amount the enormous sum of $600,000,000, nearly to the present interest bearing debt United States government. A few day the unimportant house of Decker, Ho Co., of New York, was compelled to m assignment, with liabilities of only $ 000. Each firm, as it afterwards dev had assets sufficient to discharge all liabilities and more. The banks of London did not hesi take over the assets of Baring Bros as collateral. and assume all of the mense liabilities. and there was no about the solvency of the banks. What happened to the banks of Nev upon the failure of Decker, Howell An extract from the Financial Chron the 15th of November, 1890. tells bette I can tell it. The Chronicle says: "The failure of Decker, Howell & volved the North American company, embarrassed the Bank of North America the bank could not meet its balances clearing house. The Mechanics' and T bank and the North River bank found selves in a similar predicament. "The situation was now alarming prompt action was necessary to avert a trophe of extensive proportions. Con in stock values was completely gone an fidence in the stability of the banks danger of becoming impaired. Doubt latter regard, if not speedily dispelled, general disaster. It could only be dispe that stage of the trouble by commo united action. and, recognizing this fa banks decided to stand together, the st institutions supporting the weaker, former occasions. The effect has bee beneficial Confidence has been restor Bank of North America and the Mec and Traders' bank have been helped their embarrassment, and the clearing has found it necessary to issue but.a e atively small amount of the certificate a few million dollars altogether.' The rate of interest in London advar 6 per cent upon the announcement of the ure of Baring Bros. & Co., and in New to 186 per cent upon the announcement failure of Decker, Howell & Co. From the foregoing extract it appeal the disconnected banks of New York while possessing in the aggregate an supply of money, only preserved their tion, if not their existence, by creating time being through their clearing hot ganization a central organ-a heart-t which the resources of all flow, as requi the emergencies which came to either tically, for the time being, a bank banks. Several emergencies during the last have been met by organizing a temporar of England in the city of New York, same clumsy and imperfect manner. SAVINGS DEPOSITS. The solvency of the banks should be assured by eliminating the savings de Such deposits are a source of danger. is no relation between this class of dep and the banks as to entitle their depo be called deposits. They are simply The relation between this class and t tional bank is simply that of borrow lender. The banks, in accepting this of money, become purely borrowers. In times of panic, when the minds classes of men become more or less anced, the savings depositor is frenzie like the commercial classes, who keep accounts, and whose solvency depend large extent, upon the solvency of the the savings depositor has nothing at except the money which he has loaned. It is my contention that a proper or tion of the vast capital of this C through the instrumentality of a sys banks, would make loanable credits S tiful, and therefore the rates of inter cheap that commercial banks would no find profit in savings deposits. This leave such deposits for the savings which, when organized on the New E plan. have mutual relations with each itor. It might be advisable for the g ment to organize government savings ba COMMERCIAL CRISES. The recent experiences of the comn classes justifies a consideration of the exercise of the banking functions durin mercial crises. Upon this problem the I have quoted says: "Ever since the great monetary pa 1793 two conflicting theories have preva to how the bank should act in a grea mercial crisis. One theory. which W call the restrictive theory. holds th bank, in a great commercial crisis, rigorously restrict its issues and give I port to commerce; the other, which n called the expansion theory. holds t such a crisis the bank should liberally its issues to suport all such houses prove themselves to be solvent. Now 1793 we have had ten commercial crise restrictive theory has uniformly faile the expansive theory has uniformily St ed and saved both the mercantile at banking worlds from ruin. Probably the most conspicuous exan the success of the expansive theory wa nessed on the occasion of the Baring in 1890. Here was a failure of the first nitude. which involved not alone En In fact. perhaps the commercial clas England were less directly interested the commercial classes of other cou because a large part of the liabilities Barings consisted of acceptances of co cial paper drawn in foreign lands again signments of all kinds of foreign pro not only to England, but to other cou Probably the public will never know much the commercial communities a debted to the London banks, under the the Bank of England and it