07d8c7a1Accommodated withdrawals, Full suspension
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Mr. Thomas McElrath, one of the publishers of the New York Tribune, and President of the Nassau Bank, has suspended payment, in consequence of pecuniary trouble caused by lending his name and assistance to one of the Pittsburgh Railway enterprises. The suspension will not at all affect the concerns, business or otherwise, of the Tribune. ИОТЛИМАН antanat
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ATINANCIAL AND COMMERCIAL MONEY M A E MARKET. TUESDAY, Sept. 1-6 P. M. There mm a very severe panic in Wall street this morning. n is may years since we have seen anything like 18. The suspers tom of a New York city bank is rather an uncommon but coming at this part cular june. ture in an even calculated to alarm the most courageous. The public mind is not in . condition to bear such an an nonnoement with composure, and It is not, therefore, at all surprising that quite . panto was produced. We are not at all astonished at the on suspension of the Me shanios' Banking Association. We mentioned a few days since that " was in difficulties at the Clearing House, and had to call upon the other banks for assistance It is now reported that the immediate cause of the suspension was the defalcation of one of the clerks of that Institution. The cause will be found more in the action of the management generally than in the acts of the clork, ho wever criminal they may be. The Institution has from the first been raiher an unfortunate one. We believe that several defalcations have before this been developed among its officers. The suspension of the Mechanios' Bansing Association led to distrust of several other banks, and there was quite a run upon the Bank of Commerce, the Metropolitan and the Nacsau Banks, from depositors. The excitement in Wall street and its vicinity was most intense. Crowds filled the sidewalks, and public confidence appeared to have completely deserted the minds of the masses. The ma nagers of the banks seemed to realize for the first time the danger of their position. Several failures were announced this morning among the me reantile classes, and that added fuel to the flame. We are, beyond, all question in the midst of fearful revulsion; and where it will end the wisest among us cannot tell. We do not look for any miligation of our embarrassments and difficulties until soores upon scores of failures have taken place, and a long period of prostration. The recovery from this collapse must be very gradual, and it will leave marks of its exist ence and power for years. The end is by no means yet. We have just entered upon it, and as 11 extends it will gather force. It is to be hoped that our banking institutions may safely weather the storm; but an examination of their last returns shows that COME of them are entitled to no sort of consideration. A close investigation of our trust companies would not be amiss just now. The New York Life Life and and Trust Company, for ox ample, bad, according to its last report, upwards of two and three quarter militons of bills receivable; and we an derstand that 11 is a very "sweet" lot, In other words, there is considerable "sugar" among 11. Here is Life and Trust Company daily in the street buying notes of hand, because, we suppose, they can get them at high rates of interest. The Bank of Commerce is another weak concern. The last report showed that its loans and discounts were $12,101,368, and the deposits but $6,107,263 It It is our duty to hold up such management on the part of a leading banking institution to public condemnation, and we intend to take the responsibility of doing so. The Bank of New York used to be considered one of the strongest backs in the city. Look at It now. With loans amounting to $4,144,341, It has a deposit line of but $2,630,056 There are good many other weak ones on the list; but the two we have named are among the most prominent, and therefore the most culpable. The circulation of our city banks is without doubt pretty safe. It is secured principally by State stocks, deposited with the Comptroller. In the event of large amount of these securities being thrown upos the market at once their margin for depreciation would no doubt be partially used up; but such a contin gency is not likely to occur. The failure of Beebe & Co., brokers and bullion dealers, was reported this morning. This is one of the oldest houses in the street, and was sup. posed to be very rich. The immediate cause of failure was entanglements with the Ohio Life and Trust Company. The securities received on loans to the Trust Company, amounting to more than $800,000, were not available in the market. We understand the house has a large surplus. Mesers J. H. Prentice & Co hat and fur dealers; Adams & Buckingbam, flour dealers; and Breese, Kneeland & Co., car and locomotive manufacturers, Jersey City; were also reported to day. These comprise the principal events of the morning in financial circles. The effect upon the stock market was, of course, very bad. Lower prices were realized than have been touched at any time within the history of the securities named. There appears to be no bottom to railroad stocks. It is true, there is very little value in most of them, but at the present rate of decline most of them must soon run completely out of sight A1 the first board to day Indiana 5's fell off ½ per cent; Virginia 6's, %: Missouri 6 6's, 2; LaCrosse and Milwaukie Railroad, 5; Illinois Central bonds, 2; Harlem first mort gage bonds, 2; Delaware and Hudson, 3; Pennsylvania Coa Co., 1; Pacific Mail Steamship Company, 2; New York Central, 3; 3;Erie, 3%, advanced afterwards IX per cent Cleveland and Toledo fell off 8½ per cent; Milwaukie and Mississippi, 5; Reading, 4; Michigan Central Railroad, 2 Michigan Southern, 3; Galena and Chicago, 2½; Cleveland and Pitisburg, ½; Chicago and Rook Island, 2½. The Erte Railroad Company succeeded this morning in raising the money to pay the interest due to day. The company ha not, therefore, failed upon its interest just yet. The banks made a bold push this morning, and came up to the scratch just LE time. It was a narrow escape for the foreign bondhelders. The company now have until the 1st of November to gather strength for the interest pay. ment then due. The position of the New York Central Railroad Company is one of great danger to stockholders The road does not much more than pay its operating ex penres and provide for the interest on the funded debt Every cent of dividend is borrowed and added to construc tion account, or indebtedness, just as much as with the Cleveland and Toledo, or any other rotten concern. The Central Railroad Company is not to-day a bit better off than the Erie Company, so far as the stock is concerned The Central Company manages at present to pay the in terest on its indebtedness without borrowing money, which is more than the Erie Company does. It is well khown among railroad men that two cents a mile for express trains, to which the New York Central Company is held as a condition of consolidation, dees not pay running expenses We have in the finances of the Erie Railroad Company an index of those of the Central. No man in his senses can compare the gross earnings of the two roads and come to a conclusion more favorable to one than the other. In a few years the funded debt of the Central will be full as large M the E- le company. Every addition to the Central's debt endangers the dividend. The company's credit is still good, and probably will continue so for a while longer; but the time is not far distant when a large loan will have to be negotiated directly for construction account, and then we shall see where the stock stands. The roadway of the Central is running down in the face of reduced earnings All repairs which can for the moment be die pensed with are left for some future time. In this way the expenses may be for the moment reduced, but the company will ultimately have to crowd into a short period heavy outlays, M If did a year or Nwo since, when It sus. pended dividends for that purpose. stocks State Ohio of following the
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Their loans were reduced $17,000 yesterday, and the specie $45,000. Bills receivable during the balance of this month, $500,000. LEATHER MANUFACTURERS' BANK. The Leather Manufacturers' Bank has closed its doers. MERCHANTS' EXCHANGE BANK. This Bank, located at No. 185 Greenwich street, suspended specie payments at 20 mnutes before 11 o'clock yesterday. During the time it was open, a large amount of specie was demanded and paid-our reporter could not learn the exact amount. The run upon this institution was mainly by depositors, and aton ded with much the same features as those already relat ed of the other banks. MANHATTAN BANK. The h 'ank of the Manhattan Company lost $140,000 in specie. MARINE BANK. The Marine Bank alosed its doors in the forenoon, in consequence of in in junction laid upon it by some of its stockholders. The hank needed only $40,000 to carry it through. Although it had ample security none of the Banks would land a dollar. It had NewYork stocks, but could not 2. aise $10,000 on $19,000 worth of them. MARKET BAN. 8. A very large crowd gathered 4 bout this back (located at the corner of Beekmen an d Pearl streets) as early as 11½ o'clock, and their effort to effect an entrance were 80 pressing that five polie emen found plen ty of employment in keeping the door ways passable. Depositors were present in strong force, and deposits were passed out to a great extent. But still 1 they came, and the stream of gold that passed from b ehind the deeks of the paying-tellers was dried up about 1 o'clock p. m. A notice was then stuck a, on the door, that the bank had suspended specie pey ment, but would remain open for the payment of notes. This gave great dissatisfaction to many among the crow outside, and some of them behaved 30 badly that the Police deemed it necessary to interfere to prevent a disturbance. MECHANICS' BANK. The Mechanics' Bank experienced a considerable run, commencing soon after 10. To checkholders they paid out notes as long as they lasted. Then they were compelled to pay everything in specie-in which about $130,000 was paid. MECHANICS AND TRADERS' BANK. The Mechanics' and Traders' Bank, in Grand street, paid every dollar up to 3 o'clock, the closing hour. MERCANTILE BANK. The Mercartile has nearly $60,000 less of specie in its (offers. MERCHANTS' BANK. The Merchants' Bank, out of nearly & million of speeie, paid $160,000. They paid out more bills than ever in any one day before. METROPOLITAN BANK, The Metropolitan Bank paid out something lover $200,000. NORTH RIVER BANK. This bank, one of the oldest in the city, whichris located at the corner of Greenwich and Dey streets, expèrienced a heavy run, in common with the other banks in that part of the town on Monday. During that day they paid out $50,000 in gold and silver. Yesterday morning the doors were opened, but a bulletin was immediately placed outside announcing to & large and anxjous crowd that they had suspended specie payment. This was received with ill humor by the congregated expectants of gold in exchange for their checks, but the announcement soon had the effect of diminishing the crowd. It may with truth be said that this institution has been run upon for more than a week, as they have for the past ten days been paying an average of $5,000 a day in specie to depositors. NASSAU BANK. The Nassau Bank paid out $80,000 in specie, paying straight through. NATIONAL BANK. The National Bank paid out some $43,000 in coin, which leaves it $458,000. BANK OF NEW-YORK continued to pay demands until ? o'clock, when the run became 50 great that they ran out of gold and were compelled to occupy the remainder of the time in certifying checks. The doors were kept open until 31 o'clock. Over $300,000 in cash and bills of other banks was paid out.
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From the Special Dispatch to Baltimore Sun. An Exciting Day In New York-Heavy Run on the Banks-Suspension of Specie Payments by Eighteen Banks-Others Holding Out, &c. NEW YORK, October 13.-Wall street has been blockaded to-day. The excitement was intense and all business paralyzed. The Post of this afternoon says : There has been some drawing by depositors from the city banks generally for a number of days past, though it was carried on quietly. Yesterday there was the first decided manifestation of a systematic run. It was directed particularly against the North River, Ocean and Merchants' Exchange Banks. The first named was reduced $10,000 in coin at three o'clock. A conference was then had with some of the officers of the leading banks as to the proper course to be pursued. If the run recommenced this morning the advice was to close the doors at once. As soon as the hour for drawing checks arrived this morning the depositors showed an unmistakeable determination to withdraw their balances in gold. They were paid long enough to assure the officers that the process would go on, and that an exhaustion of their means was only a question of a few hours. The North River, the Merchants, Exchange and the Ocean banks resolved to close immediately. The intelligence spread over the city as rapidly as an alarm of fire. In an hour more the Marine Bank was added to the list. Knots of bank directors and ot her officers were seen in consultation in every banking room. The alarm was now an established epidemic. Residents who yesterday would not admit the possibility of a suspension, began to share in the common consternation. Soon after the St. Nicholas, the People's, Butchers' and Drovers', Bull's Head, Bank of New York, Irving, Market, Chatham, Tradesmen's and New York Exchange banks all announced their inability to continue specie payments. Heavy runs also upon the Continental, Metropolitan, American Exchange, Nassau and Phoenix banks followed, but all of them met the demands. David Leavitt, Esq., of the American Exchange Bank, made a speech to the crowd, declaring his determination to-pay to the last dollar. He also announced that an agreement had been made with several of the strongest banks to go through without suspending. The officers of one of the principal Wall street banks advised its dealers yesterday that it would not take certified cheeks on deposit without reserving the right to return them if not made good at the clearing-house.The consequence was that the gold was drawn from all the banks that were not flikely to go through another day. This aggravated the excitement among dealers,
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many 168 firms staggied, cannot be known for anibady after such min matters Lien But If David, when his bai had died, rise up and was comforted, 50 di people, when they NEW bottom, shork hands 27 locked cibertul out ad their missary. The mus being out any, the slip was eased. Peag generally are their breakfasts in tranquility F' terday morting, and registed to their places business, as men de in the cholera Retist thankful that if the plagne is DIE stred, is DIE much aggrarated. And so things west till about 10) o'clock-inlf an hour befo landa time, -when the first peal of thand muttured in the distance. The Ocean Bar chened its doors, and placarded the following notice: This bank las citaed and suspended A great many people, who had = funds in th bank, and possibly no funds in any bank are ted a Ettle excitement by blocking up the sid walk in front of the building, and monderia what was to cume text. The buy with his in bet of applies stopped; the girl with ber back of peasures stopped; the sosp-fet man stopped in short, there THE ROOD a large crowd collects and people who lad deposits in the had bills on the tank, or bad in some expectancy 00 the bank, came au went away. And that made tounder. the Half an hour later, Grander closed its doors. The er. All the people and Greenwich bill themselves of the stey checks, stem front and met your institution liters The porter, wit had The bill-holder positors said, with empha is Fourth Commandment, it 10°1 not go way, And 50 the crow shame, the thunder kept coming near and growing louder and londer. Just at this time the Merchants' Exchang Bank followed suit. Then went the Irving Bani then the Marine Bank, then the New York E: change Bank, then the Citizens Bank, then th Bull's Head, and then the Merchants Exchang Everybody could hear the thunder now. was full upon the City, presaging tornados, earth quakes, volcanox, universal destruction, Th pante was immense. A rush was made on a the Banks by holders. In quick successio went the Butchers' and Drovers' Bank, th Chatham Bank, the St. Nicholas Bank, th Tradesmen's Bank, the People's Bank, the Bai of New York, the Market Bank, the Broadwa Bank, and the Leather Manufacturers' Bank These succumbed to the storm, but other though Bereely tried by the whirlwind, resisted The American Exchange, the Nassan, the Part the St. Nicholas, the Mercantile, the Metropol tan, the Phenix, the Bank of Commerce an the Continental, were severely run upon, be had specie left in their coffers at the hour ( closing. They were shaken by the storm, be did not fall. But long before the closing hour the way th Banks were going got abroad, and set everybod agog through the City, Business was suspend ed, almost to the cases, civil and criminal, be fore the law Courts-the Judges on the Benef and the lawyers engaged in argument havin got wind of the thing, and sending out specia messengers to bring in extra news every te minutes. The American Exchange Bank, a tracted, perhaps, more direct notice than an other. The crowd on Wallstreet was very grea The President of the American Exchange Ban appeared on the steps and made a speech, assui everybody interested, or otherwise that ti Bank would pay everybody in specie. Th crowd, especially that portion who had nothin to expect from the Bink's solvency, vociferous) cheered, but every moinent the throng kept in creasing. The Bank, however, came well or of the difficulty, up to the hour of closing. Before the doors of every Bank, and with every Bank in the City, yesterday, the crow was immense. As a rule, nothing but good hi mor prevailed. Men even smiled when their to were trodden on. There is a feeling of cont dence and security when all suffer alike. such cases there is a mirth in misery which shared in common. And didn't those who got and force their way out, chuckle at their eager frien who were forcing their way in, especially with a few minutes of the closing hour? "Eve Bank shuts off specie to-morrow." they wou say, "No get in as soon as you can." Never d n double eagle look more gølden,-never was more the representative of the wealth "of o muz and of Ind" than yesterday afternoon. f Even the thieves had n respect for the man W had his pocket full of them, and only dared follow him for the space of a block and a half. But we noticed a sad background to yeste day's rush upon the banks. The men who ma the rush were moneyed men, least in all ses, comparatively so, Bnt standing, not wit out interest, but without object, in crowds 1 yond these who werestriving to pass in and of were hundreds of discharged workmen,-m who had no hope in the future of the terril Winter that is before us. It seemed to us ti they looked on with n melancholy pleasure; perhaps we did them injustice; let us say th regarded the scene with blank despair. WI the coming Winter will bring to many the sand of our fellow-creatnres in this city, i contingency too disagreeable to contemplate. d There is a great rush of the unemploye the Intelligence Offices. Quantities of servi girls out of work, and unable to obtain it, go these places in the hope of getting something do, but even here, as a general thing. they unsuccessful. At one of these establishme in the Bowery we were told yesterday that re many as 250 girls presented themselver dai offering their fifty cents a piece for a situati Most of these were turned away, for the app cations for servants are by no means proporti
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ing the day-irrespective of the vague rumors with reference to others flying around through an already over excited community -it is no wonder that the equanimity of the city should have been seriously disturbed. In another article the Herald of the same date.-the 4th-says: Considering the tremendous pressure brought to bear upon these banks, the course is, perhaps. the best which they could have adopted. But for the overwhelming demands by mercantile depositors of the speculative and overtrading class, resolved upon forcing the banks to an expansion or a suspension. this alternative of a substantial suspension of specie payments might have been avoided. The result, as it is, will probably be equivalent to the direct loss of a hundred millions to the business community of this metropolis, from the inevitable reaction of this movement upon the banks and the financial and commercial interests of the State and the Union. Thus, in the interval to the meeting of Congress and the several State Legislatures, our city, our State, and all the States will be reduced to an irredeemable paper curreney ; for the example of this metropolis will doubtless be seized upon immediately by the interior banks of the State, and by the remaining open banks of all the other States, resting upon the faith and solidity of our city banks. Thus we approach the climax of the revulsion. On the evening of the 14th. ameeting was held by representatives of the various banks at the Clearing House, at which the following resolution was adopted : Whereas. in view of the excitement prevail ing in this community, and the fact of the ac tual suspension of a number of the banks of this city, Resolved. That it expedient that the banks of this city suspend specie payments to morrow. A Committee was also appointed by the meeting. to wait upon the Governor of the State, and request him to convene an extra ession of the Legislature. In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended : Merchants, America. Mercantile, Am. Exchange, Metropolitan. Atlantic. Nassau, City, National. Commerce. Commonwealth, New York County, North America. Continental, Oriental, Corn Exchange. Park. Dry Dock. Pacific, Fulton, Phonix, Greenwich. Hanover. Republic, State, Imp. & Traders. Seventh Ward. Manhattan. Shoe and Leather. Mechanics, Union. Mech's and Traders, In reference to the excitement on the streets, the Herald says: "The crowd in the street was no greater