15893. George William Ballou & Co. (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
private
Start Date
August 14, 1883
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
63b03ba4

Response Measures

None

Description

Multiple contemporary newspapers (dated Aug 14–15, 1883) report that George W. Ballou & Co. 'suspended' and made an assignment to Theo. M. Nevins. The suspension is repeatedly described as temporary, caused by customers' failure to meet margin calls; no article describes depositors running on the bank. Papers state the firm expected to liquidate and 'resume business in a short time,' so I classify as a suspension with expected reopening (suspension_reopening). OCR errors in some articles corrected (e.g., 'Ballon' -> Ballou; 'Nevins'/'Nevins' variants).

Events (2)

1. August 14, 1883 Other
Newspaper Excerpt
The firm made an assignment to Theo. M. Nevins, an employee of the firm; all stocks carried were sold under the Stock Exchange rule; firm expects to liquidate and resume business in a short time.
Source
newspapers
2. August 14, 1883 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Assignment and suspension due to failure of numerous customers to respond to margin calls while the firm carried large speculative positions; made assignment to Theodore M. Nevins; liabilities roughly estimated $400,000–$500,000 in reports.
Newspaper Excerpt
George William Ballou & Co. have just announced their suspension ... The firm states that the suspension will be only temporary.
Source
newspapers

Newspaper Articles (9)

Article from The Portland Daily Press, August 15, 1883

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NEW YORK. Great Banking House Suspended. NEW YORK, Aug. 14.-George William Ballou & Co. have just announced their suspension in the Stock Exchange. The firm states that the suspension will be only temporary. Wall street, 1.30.-It is not believed that the failure of Ballou & Co. will affect the market, as their stock business of late has not been very much extended. It is thaught that the Messrs. Ballou & Co. had considerable money tied up in Cincinnati, Toledo and St. Lous, which recently went into the hands of a receiver. Wall Street, 12.45 p. m.-The following stocks have been bought in under the rule: New York Central, Oregon Transcontinental It Denver, Rio Grande and Missouri Pacific. is believed that most of G. W. Ballou & Co.'s engagements are on the bear side of the market. They are believed to have failed on Oregon Tronscontinental. Ten thousand shares of different stocks have been bought and sold under the rule. They do not understand their exact position as yet. It is understood that a syndicate is being formed to assist them. It is understood the New England customers of G. W. Ballou were unable to respond to the call for margins, and it is reported that Gould has bought a considerable quantity of Northern Pacific preferred, at private sale, and that he is ex pected to acquire much more. Considerable Jersey Central, Wabash preferred, and Lake Shore were bought under the rule on account of Ballou & Co. Since the announcement of the failure of Ballon & Co., a quieter feeling has prevailed in stock circles, it being generally believed that the suspension would not necessarily lead to any other failure. It is stated that Ballou & Co. were recently long of the market and turned bears at about the lowest prices touched At the office of Messrs. Ballou & Co., it is said they have no statement to make. They expect to resume business in a short time. Up to the present hour the deliveries are prompt. Money is in good supply at 4 per cent. on acceptable collaterals. The share market is firm and less active. Intense excitement was caused in Wallstreet in the Stock Exchange to-day, the announcement of the failure of Geo. Wm. Ballou & Co., bankers. The firm is composed of Wm. H. Brigham, Board member, Daniel H. Darling, George William Ballou, and Allan S. Sivets. No definite particulars could be obtained. The house did a large and extensive business, and its customers were principally the bank presidents throughout the country, Boston capitalists and New England estatee. Mr. Ballou refused to make any statement concerning the suspension, other than that it was caused by the failure of customers to respond to calls for margins. Another member of the firm said the trouble was merely temporary, and everything will be straightened out in a few days. Raid on Western Union. NEW YORK, Aug. 14.-In the stock market another raid was made on the Western Union by Slayback and others, but heavy operators came to the rescue and stopped the dealings.


Article from National Republican, August 15, 1883

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A TIGHT SQUEEZE. The Firm of George W. Ballou & Co. Forced to Make an Assignment. Statements by Members of the Firm in New York and Boston. BOSTON. Aug. The announcement about noon to-day coming from New York that the banking house of George William Ballou & Co. had suspended caused an excitement on the street and in business circles second only to that following the suspens of F. Shaw, Bros. & Co. a few days ago. Th intimation to the Boston house of any rouble was a dispatch from Mr. Ballou stating that an assignment had been made to Theodore M. Nevins, a clerk in the New York house. It was as much of a surprise to the Boston firm as to the public generally, and at first it was difficult to understand. Later informatio n, however, states that the assignment was due to the failure of their numerous customers to advance the margins needed to carry their stocks. The firm has for a long time been carrying a large amount of all classes of securities, and the "slump" of the past few days has been greater than they could withstand. It was at first intimated that the failure was the result of the recent troubles in the Toledo, Cincinnati and St. Louis railway affairs, in which the house is very largely interested, two of its members being directors of the road. This was, however, authoritatively denied by D. H. Darling, one of the members of the house, and is attributed by him solely to the cause given above. He was, he asserted, perfectly astounded upon the receipt of the dispatch from Mr. Ballou announcing the assignment, and said if he could have had an opportunity of conferring with Mr. Ballou he would certainly have advised against the suspension, as be believed that it was uncalled for. The Boston house, he claimed, was all right, but of course would now have to go down with th New York concern. Mr. Darling further stated that the firm last night had securities and cash aggregating fully $1,000,000 surplus over and above all liabilities, and he could not understand how there was any necessity for suspension. He was as anxious to get full particulars as anybody, which the New York house would undoubtedly furnish as soon as possible. He could not tell how much the liabilities were, nor what the amount of assets were at present. On the street fears were expressed that other failures, both here and in New York, would follow, though it is very probable that these are outgrowths of momentary excitement. A prominent broker of this city said that Ballou's suspension was occasioned by the re-


Article from The Daily Cairo Bulletin, August 15, 1883

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Telegraphic. THE BUSINESS OUTLOOK. Another Heavy Failure in New York. A General Uneasiness but Confidence Expressed that There is no Danger of a Panic-General News. NEW YORK, August 14.-The suspenGen. Wm. Ballou was announced at from the rostrum of the Ballou & Co. are large change. sion noon of Boston Stock bankers Ex- and brokers, with branches in One of the causes is that their were unable to elsewhere. the and suspension respond New given England to calls for of the will only their customers for margin suspension Members be firm tempo- say rary. the firm had money tied up Toledo St. It the is believed Cineinnati, and went Louis into Narrow in Guage that recently of a receiver. It is is being formed that the hands syndicate Co., and that they understood to will assist reBallou & attrisoon. The failure is to holding in 100,000 shares sume buted largely r rane-continental business Oregon sold of differ- under and ent stock were brought and them. After the announcement of the failure cir- a quieter feeling has pr. vailed in stock that the being generally believed failsuspension en it will not lead to any other were It is stated that Ballou & Co., at ares. recent long of market and turned bears At the about the lowest prices touched. & office of Geo. Wm. Ballou Co., respecting their that a It is stated, assignment be very little Boston learned. has been made however, to suspension Theodore firm. is to M. At who is connected with the statetheofice, Neven, it is said, they have no resume make. They expect to ment to a short time. Money is in good supply musiness In at per cent. on acceptable collater- less ac. The share market is firm and have 813 About 19,000 shares of stock tive. been closed out under the rule for the ac. count of George William Ballou. THE LIABILITIES. Intense excitement was caused in Wall and on the Stock Exchange to-day of street the announcement of the failure bankers; by eorge William Ballou & Co., th firm composed of Wm. H. Bingham, George member. David H. Darling, The Board Wm. Ballou and Allan S. Weeks. business did large and extensive bank house and the customers were principally Bos. presidents throughout the country estates. ton capitalists and New England conBallou refused to make any statement it was of failure cerning the suspension other his customers than to caused by to the calls for margins. Another trouble member respond of the firm said that the will merely temporary and everything The was be straightened out in a few days. firm were stocks carried by the principal and Western, Missouri Pacific and Ontario Western Union. The roughly-estimated and liabilities the amount to between $400,000 $500.00 PRESIDENT'S OPINION. Edwards, BANK President of the Bank of the of Mr State of New York, speaking the slightthe market. said that there was not to danger of a panic. He was disposed 'The of regard est the decline as good thing. the the people for whom hold ket, stocks are amply able to public, carrying and " he said, were out the brokers accept- marare Mr. Washington E. Conner too, them. ed the situation philosophically. healthy He, and the depression was Mr would thought bea good thing for the market. Stock Ex A. S. Haten, president of the change, was found in his office. as revery "Do you regard the situation " asked the is no more danger of rious There reporter. by panic lightning than is of your being struck the sunshine there. The Every year the prosperous. out there in soil her country adds products $2. 500,000.000 to our wealth by no cause of alarm. The condition of market grain, for is cotton the result and of ores. liquidation There the carried is stock has far. For two years the liquidation climax. too been in progress and this is but discover the that operators will will are too cheap and in the over each other's haste to clamber prices By and by purchase. shoulders then The they of gen- the eral public for two years have and will not be affectthe decline in ed market by prices. been The out compare present in excitement does not degree to that of the J. A member of the house 1873. the present slightest of emphasis. panic W. of Seligman also spoke with equal he said, "is the general feeling result which is the caused The decline buyers, by in business. natural of has distrust been on for two years and we go to among going of over-production. point where Speculation stocks must have should now reached level. Better that they soon the lowest than they have been. As that be lower have made up their minds the stocks the people are cheap. then they will There stop no decline and begin buying. is easy, panicky feeling prevailing. Money and banks are conservative no cause for alarm. If disaster be. there have come it would have the was to is arrived fore this. Clews, who had reason to member the panic of 1878, than at any Mr. Henry excitement was greater said that yes. the present since that period. He compared Waterloo. time 's contest to the battle of French, terday bulls, " be said, like the The slaughtered unmercifully thrown Abanwere by their marshal they have and doned their weapons and ammunition have down to their heels, such of them bullets. as taken riddled by the enemy '8 not been Ciews regards the decline as of healthy, general Mr. thought there was no fear he He The decline is healthy, but " repeated disaster. "and so is sea-sickness, it is very unpleasant. ALNL Lonts


Article from Omaha Daily Bee, August 15, 1883

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THE WALL STREET FLURRY. A Lively Day Among the Bulls and Bears. NEW YORK, August 14.-Intense excitement was caused on Wall street and the Stock Fxchange to-day by the announcement of the failure of George William Ballou & Co., bankers. The firm is composed of William H. Bingham, board member, David H. Darling, George William Ballou, and Allan S. Weeks. No definite particulars could be obtained. The house did a large and extensive business, and its customers were principally bank presidents throughout the country, Boston capitalists, and New England estates. Ballou refused to make a statement concerning the suspension other than that it was caused by the failure of his customers to respond to calls for margins. Another member of the firm said the trouble was merely temporary, and everything will be straightened out in a few days. The principal stocks carried by Ballou & Co. were Ontario and Western, Missouri Pacific and Western Union. It is roughly estimated the liabilities: amount to between $400,000 and $500,000. Under the stock exchange rules relating to failures, all of the stocks carried by the firm are sold at exchange. The prices were not materially affected, but there was no end to rumors and excitement. It is said the failure will seriously cripple several other large houses on the street. Shortly after 2 p. m. a savage attack was made on Western Union, the stock breaking four points to 72f. Other active shares declined in sympathy. Toward the close the Western Union rallied to 747, but in final sales fell off again to 74. LONDON, August 14.-There was almost a panic at the stock exchange here this morning in American railway securities, which are greatly depressed and are difficult tosell. American government bonds are not affected by the unfavorable feeling in railroad securities. Mexican railway stocks strong. BOSTON, August -The - announcement of the failure of George William Ballon & Co. caused great excitement on the streets and in busines circles.


Article from The Indianapolis Journal, August 15, 1883

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Further Testimony Before the Senate Committee on Labor. Affairs in the Western Union Office at Washlugton-Many Wires Alleged to Have Been Cut at New York. BUSINESS TROUBLES. Failure of Geo. William Ballou & Co., of New York and Boston. NEW YORK, Aug. 14-Intense excitement was caused in Wall street and the Stock Exchange to-day by the announcement of the failure of George William Ballou & Co., bankers. The firm is composed of William H. Bingham, board member, David A. Darling, George W. Ballou and Allan S. Weeks. No definite particulars could be obtained. The house did a large and extensive business. and its customers were principally bank presidents throughout the country, Boston capitalists and New England States. Mr. Ballou refused to make any statement coneerning the suspension other than that it was caused by the failure of his customers to respond to calls for margins. Another member of the firm said the trouble was merely temporary, and that everything will be straightened out in a few days. The principal stocks carried by the firm were Ontario & Western, Missouri Pacific and Western Union. Roughly estimated, the liabilities amount to between $400,000 and $500,000. Under the Stock Exchange rule relating to failures, all the stocks carried by the firm were sold at the Exchange. Prices were not materially affected, but there was no end to the rumors and excitement. It is said the failure will seriously cripple several other large houses in the street.


Article from The Rock Island Argus, August 15, 1883

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BUSINESS MATTERS. A $500,000 Failure on Wall Street... Situation Among the Bulls and Bears. Opinions of Prominent Men on the Significance of the Late FlurryHopeful Views of the Outlook. NEW YORK, Aug. 14.-A decided improvement has manifested itself in the markets on Wall street; prices advanced ½ to 2½, and the whole market is strong. Fears of a panie over are dissipated LATER-There were signs of returning confidence in stocks at one time in the after noon, but shortly after p. m. a savage attack was made on Western Union, the stock receding four point, to 72% The decline was due to "stop orders." Missuri Pacific also broke to 93. Other active shares declined in sympa thy Toward the close, Western Union. rallied to 743/8, and a furmer tone characterized the whole market. In the final sales, however, Western Union ran off to 74, and the general list lost part of the improvement. Intense excitement was caused by the an nouncement of the failure of George William Ballou & Co., bankers. The firm is composed of Wm. H. Bingham, a board member; David H. Darling, George William Ballou and Allan S. Weeks. No definite particulars could be obtained. The house did a large and extensive business, and its customers were principally bank presidents throughout the country, Boston capitalists and New England estates. Mr. Ballou refused to make a statement concerning the suspension, other than it was caused by the failure of his customers to respond to calls for margins. Another member of the firm said the trouble was merely temporary, and everything would be straightened out in a few days. The principal stock carried by the firm were Ontario & Western, Missouri Pacific and Western Union It is roughly estimated that the liabilities amount to between $400,000 and Under Stock Exchange rules relating to failures, all of the stocks ca ried by the firm were sold at the exchange. THE NEWS IN BOSTON. A Boston dispatch says: The announcement that George William Ballou & Co. had suspended was the cause for excitement on the street and in business circles, second only to that following the suspension of F. Shaw, Bros. & Co., a few days ago. The first intimation to the Boston house of any trouble was a dispatch from Ballou stating that an assignment bad been made to Theodore M Novins, a clerk in the New York house. It was a complete/surprise to the Boston firm. VIEWS OF PROMINENT MEN. The following are the views of prominent Wall street men on the present state of the stock market and Monday's flurry: Mr. Jay Gould said: "In my opinion some stocks are selling far below their intrinsic value- think people who have ready cash to buy stocks and pay forthem can do so with profit. It is better, perhaps, for margin operators to keep out for awhile, as they fill the market with stop orders, W hich are often a bad feature. Mr. Russell Sage said: "This fall in prices seems to be unnecessary and not founded upon any sound commercial principleor upon the business outlook, present or future. All that is wanted now is confidence. With con fidence there would be a decided improvement. Until confidence is restored in two or three properties we shall have an unsettled, feverish market. The parties having control of the new enterprises, which have suffered mostly, have the experience and ability to protect their properties, as I believe, and if SO we must have a sharp rally within a short time. This raid was one of the series which have occurred in Wall street, and which will be repeated. Those who are familiar with their history and management will profit largely by the advance which will follow this decline. Mr. A. S. Patch, president of the stock exchange said: "The disturbance of Monday in the stock market was purely local and does not apply to general business throughout the country. It is limited to liquidation in stocks. Sellers of stocks temporarily overlook the enormous crops in this country and the poorer outlook for crops in Europe In the end this condition of affairs will tell in the stock market The condition of the country at large IS prosperous, and when the present unrea oning disposition to sell stocks has had its run people will suddenly wake up to tbe fact that it has gone too far and there will be plenty of buyers. The situation, in my opinion, is not dangerous to commercial interests." President Dowd, of the Bank of America, said: "I do not think the situation is at all bad. It will come around allright in a short time. We have been making too many securities, too much iron, too much dry goods. There will be a turn in the street very soon. The decline in the market was caused merely by the failure of prominent operators to support their specialties. The recent failures are local in their nature, and are not to be taken as signs of any general financial weakness, The failure of the Vermont bank is entirely attributed to a specialty, It was largely concerned in the South eastern railway scheme, and when that failed the bank suffered.' 44 Mr. of Scranton & Willard said: "There is considerable liquidation going on, but I do not think it is likely to result in anything very serious The market has got to go to the bottom, but we cannot tell where the bottom is. IN LONDON LONDON, Aug. 14 There was almost a panic at the stock exchange here this in American railway securities, which are generally depressed and are difficult to sell American government bonds are not af fected by the unfavorable feeling in railway securities. Mexican railway stocks are


Article from Morning Journal and Courier, August 15, 1883

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4 seconds. NEW YORK. A Failure on the Street-George William Ballou's House Goes Down-Heavy Liabilities Which it is Said the Assets Will Cover. NEW YORK, Aug. 14. - Wall street was surprised to-day by the announcement of the suspension of George William Ballou & Co., bankers and brokers of 14 Wall street with a branch in Boston. Later in the day the firm made an assignment to Theo. M. Nevins, an employe of the firm. The firm were intreested on both sides of the market and a large amount of stock was sold under the rule, some being bought in and others sold for their account. Mr. Chapman on behalf of the firm said that the firm had made a general assignment to Mr. Nevins. They had decided to stop to liquidate affairs. One of the causes of their assignment was the failure of customers in the country to re spond with margins although the latter were good, but could not be reached. He could not tell the amount of the assets and liabilities for a few days, but said their liabilities were not nearly as large as reported, viz., $5,000,000. The liabilities would not exceed the assets. The stock department was able to take care of itself. Almost every house in the street owes them money and the firm owe them, but the amount owing the firm on stocks exceeds the firm's stock indebtedness. The firm expects to pay up in full. All they want is time to liquidate. The firm have more assets than liabilities, but some of the assets cannot at once be realized upon, consisting of muni. cipal bends, stocks, &0., for which there is no immediate market. Mr. Ballou had a large private fortune, of which he has lost considerable, but no corporation with which he is connected will be affected in the slightest degree. Mr. Ballou was formerly cashier in a bank at Greenfield, Mass., and started in the stock business in 1875 at Boston with a branch in New York under the charge of G. H. Holt. Mr. Ballou had but little capital it ia said when he came to Boston, but was successful in western municipal bonds and was supposed to have made a great deal of money. Mr. Holt retired May 3d, 1882, and Messrs. Bingham, Darling and Weeks became partners in the firm. PROVIDENCE, Aug. 14.-It is the epinion of the leading bankers in Providence that the failure of Ballou & Co., of New York, will not particularly affect this city as the embarrassed firm had no direct connection with any banking house here.


Article from The Indianapolis Journal, August 16, 1883

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BUSINESS DIFFICULTIES. Failure of the Banking Firm of E. C. Stedman & Co., of New York. NEW YORK, Aug. 15.-The failure, yesterday, of George William Ballou & Co. wasfollowed today by the suspension of the firm ot E. C. Sted. man & Co., bankers and brokers, No. 30 Broad street, At 1 P. M. Edmund C. Stedman announced from the rostrum of the Stock Exchange that pending an examination into the affairs of Cecil, Ward & Co. he had made an assignment. The firm is composed of E. C. Stedman and his SOD, Frederick, who has been a member for three years past. The following statement was made to a reporter by Stedman, a brother-in-law: "Mr. Stedman returned to the office on Monday from a three days' vacation, and upon looking into the accounts of the firm, found 8 large deficiency. He at once caused a thorough investigation, and was almost prostrated by discovering that during his absence Frederick Stedman had been speculating heavily on his own account with moneys belonging to the firm. Althop positively known, it not is re made through the supposed pistu DIS transactions we The liabilities and firm of Cecil, Ward & Co. will not exceed $200,000, and the depension will be merely temporary. It is expected the assets will nearly reach this amount." Edmund C. Stedman, well-known as a poet and prose writer, has been a member of the Stock Exchange since 1863, and has always been looked on with respect by Wall street then generally for his integrity and business transactions. His son Frederick is but twenty-three years of age. Assignment of Captain Vint. Shinkle. CINCINNATI, Aug. 15.-Captain Vincent Sliinkle, of Covington, Ky., made an assignment this afternoon to George Wm. M. Fluley and R. T. Miller. Cause, tightness of money market. He has paper in the banks, and they declined to renew. His liabilities are estimated at $80,000. Captain Shinkle says his assets will equal the liabilities. His chief creditors are the banks. He has embarrassed himself in helping his son, who would have been forced into bankruptcy by the loss of the steamer Charles Bodmann, if he had not advanced him $60,000. He had also sunk $30,000 with his brother, who failed some time ago. His chief business was steamboating. He resides in the costliest house in Covington. Suspension of a Richmond, Ind., Bank. Special to the Indianapolis Journal RICHMOND, Ind., Aug. 15.-The Farmers' Bank has closed its doors for the present, on account of bad investments in manufacturing enterprises. The immediate cause of the suspension was a rush of depositors, who were uneasy on account of a rumor that things were not in a safe condition, A meeting of the directors will be held in the morning, and it is generally believed that all claims will be satisfactorily adjusted, and the bank open as usual in a short time.


Article from The Kimball Graphic, August 24, 1883

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# GENERAL NEWS IN BRIEF. Immense excitement was caused in Wall street and the stock exchange on the 13th, by the announcement of the failure o George William Ballou & Co., bankers The firm is composed of William H. Brigham, a board member, David H. Darling, George William Ballou, and Allen S. Weeks, and no definite particulars could be obtained. The house did a large and extensive business, and its customers are principally bank presidents throughout the country, Boston capitalists, and New England estates. The valuation of the city of Boston, as assessed May 1, 1883, is announced at $682,369,500, a gain of $9,871,100; this gain being wholly on real estate. The gain on real estate is $10,698,700, and the loss on personal property is $827,100, making the net gain stand as above. The rate of taxation declared is $14.50 on 1,000, a reduction of 60 cents from the rate last year. The First National bank at Indianapolis opened at the usual hour Monday, and the ordinary business was transacted. On the application of Mrs. Mary Morrison and Miss Jane Ketcham, two of the largest stockholders in the Indiana Banking company, John Saunders was appointed receiver, and will assume his duties at once. Thomas G. Hunt, the New York merchant who disappeared mysteriously in June last, turned up in Elizabethtown, Essex county, N. Y. He has not been to Europe. He says he does not know where he has been. The American frigate Bandala is now coursing in the Gulf of St. Lawrence and will pay the Montreal harbor a visit after the 16th inst. Citizens propose getting up a grand entertainment for the officers. Kansas City social circles are excited over the mysterious disappearance of Miss Gladys Frank, who left a note saying that she was married, and then vanished, leaving neither track nor trace. A Hartford, Conn., sunflower is twelve feet high, with fifty blossoms. Its stalks are three inches in diameter and its leaves are eighteen inches long and look like elephants' ears. A. B. Sheaton, carpet and house furnisher, of St. Johns, N. F., has suspended. Liabilities between $80,000 and $100,000. The national banks number 2,415, with a total capital of over $500,000,000 and deposits aggregating $1,042,937,763. John Teals of Williamson, N. Y., has picked nearly 30,000 quarts of blackberries this season.