16502. Richard Schell (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
September 19, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
2464e0e4

Response Measures

None

Description

Contemporary dispatches from Sept. 18-19, 1873 report Richard Schell suspended as part of the Panic of 1873. Several articles describe him as a failure and one calls him one of the heaviest failures owing about a million, and say he claimed he could meet liabilities if given time — indicating suspension leading to failure rather than a temporary run-and-resume. Cause tied to adverse bank-specific losses (heavy dealing in Vanderbilt stock) rather than a mere rumor. Date listed as Sept 19, 1873 (reports refer to Sept 18-19).

Events (1)
1. September 19, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reported suspension/failure associated with heavy dealing and losses in Vanderbilt (railroad) stock and large liabilities; described as a heavy failure owing about a million; tied to firm-specific losses rather than only rumor or correspondent failure.
Newspaper Excerpt
Fisk & Hatch have suspended, also Robinson & Suydam, Richard Schell; ... Richard Schell is one of the heaviest failures.
Source
newspapers

Newspaper Articles (10)
1. September 19, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, September 19, 1873

Click image to open full size in new tab

Article Text

BY TELEGRAPH THE GREAT MONEY PANIC SUSPENSION OF OLD AND RELIABLE FIRMS EXCITEMENT IN WALL STREET THE "END NOT YET NEW YORK, September 19.-Fisk & Hatch have suspended. Also Robinson & Suydam, Richard Schell, White, Defrees & Rathbone, Bonis & Edwards and Engene Jackson. Geo. Opdyke & Co. have not suspended. The wildest excitement followed the announcement of the failure of Fisk & Hatch. Wall street was in its shirt sleeves and bareheaded. Stocks fell ten per cent, and are still sinking. De Haven & Co., of Philadelphia, have failed. [SECOND DISPATCH.) NEW YORK, September 19.-The following additional failures are reported Thomas Reed & Co., W. H. Warren, Greenleaf & Norr s, George B. Alley, Thomas Biddle, A. M. Kidder. Western Union Telegraph stock opened at 78. It is now GSJ. Like fluctuations in the whole list. WASHINGTON, September 19.-Dispatches from all cities report long lines of depositors crowding the bank doors. In this city there is no exception. NEW YORK, September 19.-Jay Cooke & Co., have assurances from the.r London house, and correspondents in other cities, that their bills will be protected. WASHINGTON, September 19.-There is quite a rush on the Washington City savings bank, and a slight demonstration on the Freedmans' bank. Both give assurance of their ability to meet all demands. The Freedmans' saving bank report they had this morning $80,000, of which only $20,000 had been drawn. There are about seventy-five persons in the line at this bank. There is no excitement about other banks.

2. September 19, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, September 19, 1873

Click image to open full size in new tab

Article Text

lay Cooke&Co Suspension of their Philadel phia, New York and Wash ington Houses. The London House Solvent. A Day of Exoitement in New York---Tumble in Stocks. Two or Three Other Failures, but no Great Alarm. FIRST REPORTS. NEW YORK, Sept. 18.-Jay Cooke & Co. have suspended. NEW YORK, Sept. 18.-Jay Cook & Co. have announced that their suspension is in consequence of large advances made to sustain their Philadelphia house and the heavy drain upon their own deposits. PHILADELPHIA Sept. 18. The firm of Jay Cooke & Co has suspended. A great crowd is now collected around their place. NEW YORK, Sept. 3.-There is great excitement on the street in consequence the announcement of the failure of Jay Cooke & Co. The question generally asked is "Who next." The stocks took a tumble generally, caused as much by apprehensions of the future as by the existing condition of affairs. Prominent Wall street men attribute the suspension of the firm not so much to the effort to sustain their Philadelphia house as to their operations in Northern Pacific, whichsit is said they sought to carry beyoud their strength It is expected that the Life Insurance Company with which Jay Cooke & Co. are connected may have togo under NEW YORK, Sept. 18.-It is also said that Jay Cooke has lost large sums in recent gold investments; and another rumor is that the :tightness in the money market and inability to dispose of his paper hurried the supension The say they are unable make any further statement, save that they expect to resume business in short time. PHILADELPHIA, Sept. 18. The following card has been posted on the office door of Jay Cooke & Co., in this city We regret to be obliged to announce that owing to an unexpected demand on us, our office has been obliged to suspend payment. In few days we will be able to present a statement of our affairs to our creditors. Until which time we must ask for their patient consideration. We believe our assets to be largely in excess of our liabilities. JAY COOKE [Signed NEW YORK, Sept The excitement is intense at the Stock Exchange. Van derbilt stands by his Central, and Lake Shore and Pacific Mail are cared for, but Western Union dropped from 89 to 781 Money was quiet at 7 to 7 per cent gold No failures other than Jay Cooke & Co are announced. It is said Jay Cooke, McCulloch & Co. of London, are solvent with large surplus above all liabilities There were eleven bids for government gold to day aggregating $2,317,300 at from 110 to 111.15. None of the bids were accepted. The specie shipments day were $105,000 in silver bars Abram S. Hewett, one of the trustees of the New York & Oswego Midland Rail road Company has been appointed assignee of the concern, giving security in the sum of $100,000 PHILADELPHIA, Sept. Cooke & Co. promise a statement this afternoon. They say the suspension was as great a surprise to themselves as to the public. WASHINGTON Sept 18.-The banking house of Jay Cooke & Co., in this city was closed shortly after noon -day, and a notice posted that, in consequence of the suspension of Jay Cooke & Co., in New York and Philadelphia, the doors will be closed for the present There is much excitement, and a large crowd is congregated in front of the banking house. The First National Bank which suspended occupies the same building. NEW YORK, Sept. 18.-Jay Cooke & Co. make the following statement of the It immediate cause of the suspension was the large drawings madejupon them by their Philadelphia house and their own depositors. In the last fortnight both houses have suffered a large drain upon them, in consequence of the uneasy feeling which recently prevailed, and which has effected more or less all houses closely identified with the new railroad enterprise. The Philadelphialhouse had previously been weakened by large cash advances to the Northern Pacific Railroad Company, and of which they are the financial agents. The business of Jay Cooke, McCullough & Co. of London is entirely distinct, and that house is perfect ly solvent, so that it will meet all its out standing drafts and letters of credit out inconvenience to travelers and have large cash surplus to apply to the American house. The firm of Jay Cooke & Co., and its members have large amount of real and personal property upon which however, they cannot immediately realize, They are confident depositors will be paid in full. y NEW YORK, Sept. -Richard Schell and Robinson and Snidell have supended A Philadelphia despatch says E. W Clark & Oo. have suspended PHILADELPHIA, Sept. 18-Mr Cooke says: believe this house will speedily be relieved from its embarrassment, and to this end, if needs be every dollar of means possessed by the members of this firmswill be applied. No one who has a dollar on deposit here will lose it, every liability will be faithfully discharged The temporary suspension of the American house does not affect in any way the London house of Cooke, McCullough &

3. September 19, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 19, 1873

Click image to open full size in new tab

Article Text

& Co., of London, is entirely distinct, and that house is perfectly solvent, so that it will meet all its outstanding drafts and letters of credit without inconvenience to travellers, and have a large cash surplus to apply to the American house. "The firm of Jay Cooke & Co. and its members have a large amount of real and personal property; upon which, however, they cannot immediately realize, but they are confident that depositors will be paid in full." THE LONDON HOUSE. LONDON, September 18.--The London firm of Mr. Cooke responded to his suspension by stating that all drafts and letters of credit on them issued by Jay Cooke & Co. will be duly honored. THE FREEDMEN'S BANK'S CONNECTION WITH THE SUSPENSION. WASHINGTON, September 18. There are assurances that the Freedmen's Bank had only $800 in the First National Bank, and no balance with Jay Cooke & Co. The bank holds only $400 in Northern Pacific bonds-collateral for a small loan. Reports of Other Suspensions. NEW YORK, September 18.-All reports about the suspension of firms excepting Jay Cooke & Co., Richard Schell, and the small firm of Robinson, Snydam & Co., upon investigation proved to be without foundation. When this fact was made known on the street confidence was again restored, and at the close of business a stronger feeling prevailed. It is not thought that any other firms of prominence will succumb.

4. September 19, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 19, 1873

Click image to open full size in new tab

Article Text

JAY COOKE & CO. Overloaded with $85,000,000 of Northern Pacific Railway Bonds, the Firm Collapses. And Suspends Payment with Liabilities Anywhere from $8,000,000 to $25,000,000. The Smash-Up Expected in Well-Informed Financial Circles---'] The Firm Not Recognized by the Bank of England. Jay Cooke Admits that It Was the Northern Pacific that Finished Him, But Pledges Himself that Every Dollar of Obligation Will Be Paid, and Business Resumed. How the Announcement Was Received in Chicago---The Opinions of Our Leading Bankers. Only $300.000 Worth of Northern Pacific Bonds Sold in the Northwest, And Only $25,000 Worth Owned in Chicago. The West, with Overflowing Crops and Good Prices, Can Have No Panic. NEW YORK, Sept. 18 Another day of intense excitoment has passed over Wall street Early this morning predictions were made that this would be a hard day, and one that would 800 the downfall of more than one financial house. The Ohicago are It was thought, would occasion drain upon deposits and tend a panic. Stocks for the first two threo hours fluciu. ated wonderfully Western Union fall 10 per cont without upward struggle, but about noon recovered its opening figure. At noon the report was whispered that the house of Jay Cooke & Co. had suspended At first the rumor considered an idle one, or at most started by some scheming faction, However, had great effect. Mon and boys ran races from office to office. The tolegraph was incessant in operations. and the citement grow intenso. Shortly after 12 m., WAS officially announced that the suspension had occurred. the reasons therefore being advances made to their Philadelphia house. which reudered them unable to meet the domand madeupon them by their depositors here, As soon became generally known that Jay Cooke Co., had suspended, many rumors touching other prominent houses aprang into existence, but reports about the suspension of from excepting Jay Cooke Co., Richard Schell, and the small firm of Robinson Bnydam Co., upon investigation proved to without foundation. When fact was made known on the streets, confidence was again restored and the closo of business & stronger feeling prevailed It is not thought that any other firms of prominence will succumb. Mon regarded as among the safest and most judiclous on the street give their opinion that the great danger is past Robinson, Buydam & Co. expect resume in few days. Mr. Schell was not prepared make any statement in regard to his Liabilities, Hia suspension was occasioned especially by decline in Vanderbilt stocks, in which was largo dealer. The liabilities of Jay Cooks & Co. cannot be ascertained. It will take somo time to make statement of the affairs of the house. The creditors are mostly banks and bankers, there being but few individual depositors in the list. The suspension will greatly interfere with the operations of the Syndicate and probably suapond the negotiation of per cents, The bonds of the Northern Pacific have been of slow sale recently, and the failure Kenyon, Cox & Co., and of the Now York Oswego Midland Road operated disastrously against further negotiations of the bonds, The Express says The war upon railroads has produced part of this panic, creating has a want of confidence among largo capitalista and small investorn, and injured both the aredit and progress of railroad on erprises. When confidence goes, credit falls with it. and panic takes the place of both. The suspension of houses like Jay Cooke Co., and Kenyon, Cox & Co. are public calamities, and are events wholly unliko the failure of those mushrooms who do business on borrowed capital, oftener. on capital. The sympathy of the pablic is with the fortunate who try to do gilimato business. And who fall while in the prosecution it, as the building of railroads and other public works designed to enlarge the business of the country, The duty of all is, while omitting no care necessary to the exposure or proper regard for the present or future, to pour oil upon the troubled waters, and reatore health and confidence to the money : market and all honest corporations and raons in engaged transac money The says is und that tho houses which Aro in trouble are solely those that have been carrying burdens the railway of way that the losses from their failure will be widely disIt and will long folt seriously here. felt that events of the past few days the unfavorable of Inished railway enterprises, and RO misfortune to country whose require for their development liberal tension But credit, other branches have business usually or good fall the winte Our crops are bringing good and the do mand for Our them merchants general got down the hard pan,' and Are ready for on sound basis, genoral the situation outside maelatrom Wal street full of The terrible affliction the street the legislation up the reserves of the banks just time whou they fely, my, and profitably them. solves,tide the the country over 11a presmomentary difficult of the and make for the way easy marketing im. monso products. Even had the Socretary Treasury his deposited unsalable legal tenders in the National banks, and thus released part of their reserve, the letter could have met and present victorious stock closed with more confident no after excitement without since Black Friday When the time came for the delivery of stocks and the squaring-up day's there excitement the Board Access to the visitor's gal impossi) really an l'he Post says Prices of the first-class stocks are now low enough to tempt pitalieta and outsido income in. and while the effect the fallure of widely house known throughout BO country Cooke Co cannot that measured day, there is reason to believe prices will long be kept below the figures which represent the investment value of stock. The following shows the number of shares which hands changed named: of atocks Telegraph 148,000 shares Pnelflo Mail, 57,600 Lake hares Shore, 55,000 shares York Central 32,700 chares Ohios. 22.300 whores Rock Island 27,800 shares and Union Pacific, 25,800 shares The dealings in the other under were a 20,000. NEW YORK. Sopt. 8.-Largo numbers of financial men met at the Firth Avenue Hotel to-nigh and cussed event of the day While soine predicted trouble the general feeling seemed to that the worst was over. YORK, Bept. reporter of the Tribune called to-night Samuel Wilkinson, the Northern Pacific Railway Company who said there WAS no question that the failure of Jay Cooke and the suspicion thrown on All railbonds, no matter how good their might be, account of the failure failure the Canada and the New York Oswego Midland Rail road Companies. would prevent e sale North Pacific Railroad Company's bonds, and all other railroad bonds for the present, and probably for

5. September 20, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 20, 1873

Click image to open full size in new tab

Article Text

[Associated Press telegrams. NEW YORK, September 19. - Fisk & Hatch have suspended, also Robinson & Suydam, Richard Schell; White, Defrees & Rathbone, Bouis & Edwards, and Eugene Jackson. George Opdyke & Co. have not suspended. The wildest excitement followed the announcement of the failure of Fisk & Hatch. Wall street was in its shirt-sleeves and bareheaded. Stocks fell ten per cent., and are still sinking. De Haven & Co., of Philadelphia, have failed. NEW YORK, September .-The followingadditional failures are reported: Thomas Reed & Co., W. H. Warren, Greenleaf & Norris, George B. Alley, Thomas Biddle, A. M. Kidder. Western Union Telegraph stock opened at 78; it is now 68}. Like fluctuations in the whole list. WASHINGTON, September 19. 1 Dispatches from all cities report long lines of depositors crowding the bank doors. In this city there is no exceptior. NEW YORK, September 19.-Jay Cooke & Co. have assurances from their London house and correspondents in other cities that their bills will be protected. WASHINGTON, September -There is quite a rush on the Washington City Savings Bank and a slight demonstration on the Freedmen's Bank. Both give assurance of their ability to meet all demands. The Freedmen's Savings Bank report they had this morning $80,000, of which only $20,000 had been drawn. There are about seventytive persons in the line at this bank. There is no excitement about other banks. NEW YORK, September 19.-Fi-k & Hatch say their suspension is but temporary. Their advances are upon the Chesapeake and Ohio railroad and the Central Pacific. They expect to resume as soon as the panic ceases. Their office is strongly guarded by the police. Fitch & Co. and Versou & Hoy have suspended. A prominent Street broker says if

6. September 20, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 20, 1873

Click image to open full size in new tab

Article Text

ALEXANDRIA, VA. SATURDAY, SEPTEMBER 20, 1873. # THE GREAT FINANCIAL CRASH. The financial panic caused by the suspension of the Banking firm of Jay Cooke & Co. culminated yesterday most distreusly, and a long list of failures of prominent firms in New York and Philadelphia is announced. The list of suspensions, commencing with that of Jay Cooke & Co. on Thursday, followed by those of the First National Bank at Washington, Richard Schell and Robinson & Suydam, of New York, and E. W. Clark & Co., of Philadelphia, was yesterday augmented by the following: New York-Fisk & Hatch; White, Defreets & Rathbone; Beers & Edwards; Eugene Jackson; Thomas Reed & Co.; W. H. Warren; Greenleaf & Norris; George B. Alley; Theodore Bedell; A. M, Kedder; Day & Morse; Hay & Warner; Fitch & Co.; E. D. Randolph & Co., (baukers of the Pennsylvania Railroad Company;) Wm. H. Conner, Vernon & Hay; Jacob Little; and in Philadelphia by the failures of De Haven & Co.; H. H. Douglass; Bayard; J. H. Yerkes; John Lloyd; Gilborough & Co. Bond, De Haven & Co. and Gilborough & Co. are the principal firms in the Philadelphia houses named; all, however, are stock houses. A prominent subject of discussion has been the extent of the liabilities ot Jay Cooke & Co. The firm has given no indication of the amount, but the most reliable reports place it at ten millions of dollars, It is not thought, however, that this will "swamp" the house, and it is confidently anticipated that they will settle up and resume business. It is said that capitalists with ready money have offered seventy-five cents on the dollar for their paper. Richard Schell is one of the heaviest failures. He owes a million of dollas, if not more. He says he can meet his liabilities if he is given time to work. High financial authority gives as the cause of the panic that during the last four years it has been undertaken to construct and equip twenty-five thousand miles of railroads, involving an outlay of nearly $6,000,000,000, of which a considerable part cannot for years bring in any return. So long as money owners were willing to buy bonds and stocks, these enterprises sailed on a smooth sea. The expenditures were met by receipts, but when the uprising of the farmers of the West, and other signs of dissatisfaction with the management of corporations begot a little distrust, the receipts of the more doubtful schemes failed to come in; their treasuries were depleted, and their bankers, who have gone outside of their legitimate business to endorse their securities, have gone by the board. Telegraphic correspondence has been kept up between President Grant and Secretary Richardson ever since the first news of the failure of Jay Cooke & Co. was known, and last night, at half past eleven o'clock, the Secretary sent a telegram to the Sub-Treasurer at New York, directing him to purchase ten million dollars' worth of bonds to-day, a course, says the Washington Republican, which will have the effect to instantly relieve all apprehensions of further disturbance in the money market. It is observable that, wild as the panic was, it has as yet had no appreciably influence on the general course of business. No reason for general distrust exists. A special dispatch to the Baltimore American gives an account of the scenes at the New York Stock and Gold Exchange: "There was a whirl like a mælstrom all day long at the Stock Exchange. Desperate earnestness, not unmixed with a slight element of joviality, pervaded the whole day's business. Yesterday it was like a fight among madmen. The members had all congregated before the hour of opening, and the time and hour of business had began regardless of the stated hours. The spectators galleries, and the area way for the gutter-snipes were filled from an early hour. A large number of women were seated in the spectators' gallery,, enjoying the spectacle as a bit of rude fun. Groups were planted about the room, with hands and voices raised, screaming into the ears of their neighbors, and shaking two, three or four fingers in the faces of their next friends without cessation, except during the seconds required to jot a sale or an item in their books. Above this uproar the President of the Exchange sat in immovable serenity, rising only occasionally to read the telegrams fluttering in upon him. "As he hammered on his desk the operators surged like a flock of sheep to his neighborhood and listened to the first few words of the dispatch, and then impatiently were away again to the ceaseless squabble. When the names of falling firms were read, there was some times a prolonged whistle and a lengthened mutter, and when the names of Greenleaf, Norris & Co. and Jacob Little & Co. were announced, there was something like a wail, for they were old and well beloved firms on Wall street. But this ebulition of feeling was exceedingly transient, and the mob were in the mæelstraum again before the wail ceased. "In fact," said an operator in one of his lucid moments, "there's a good deal of brotherly consideration displayed; we feel charitable about this thing because it is not like Black Friday; you know this is a square bust." Stocks continued to jump and tumble, and dealers fought desperately. "The publication of failures continued from the President's desk, telling of brothers failing in the strife, but the warfare went on the same, and even the gong at 3 o'clock failed to disperse the crowd. A loud hurrah hailed it, and hats were thrown in the air, and cheers were given as if the speculators were glad the day was over, but nevertheless they continued to make bids and offers until the officials of the Exchange had gone and a few watchmen hurled them out in the rain. The gold room represented to some extent the upper end of the see-saw, but the solid metal fluctuated with almost the mercurial frivolity of paper stocks. The gallaries contained a number of inter-

7. September 25, 1873 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, September 25, 1873

Click image to open full size in new tab

Article Text

MONEY PANIC IN NEW YORK. The extensive banking house of Jay Cooke & Co., failed to meet its engagements on the 18th instant. The immediate cause of the suspension is stated to be the large drawings on them by their Philadelphia house and their own depositors. During the two weeks preceeding the suspension, both houses had suffered a large drain upon their deposits in consequence of the uneasy feeling which has recently prevailed, and which has affected more or less all houses closely identified with new railroad enterprises. The Philadelphia house had been previously weakened by a large cash advance to the Northern Pacific Railroad Company of which they are financial agents. The next day after the suspension of Jay Cooke & Co., the following suspensions of New York banking houses were announced : Robinson & Snydam, Richard Schell, Fisk & Hatch, White, Dufrees & Rathbone, Burt & Edwards, Eugene Jackson, Thos. Reed & Co., W. H. Warren, Greenleaf & Norris, Geo. B. Alley, Theodore Biddle, A. M. Kidder, Whittemore & Anderson, Smith, Seaver & Co., Saxe & Rogers, National Bank of the Commonwealth, Quasig & Fisher, P. M. Meyers, Miller & Walsh, Laurens Joseph, Fearing & Dillenger and Brown, Wadsworth the houses in the northern cities ing & Co. Besides above, several have other closed bankdoors or suspended, including banks in Philadelphia, Albany, Washington City and Toronto, Canada. The panic in the cities north of Baltimore is general, and a run has been made by the depositors upon nearly all of the banks. In New York, on Friday, there was a crowd around every paying teller's desk. The panic has not as yet reached the South, nor is there any reason why it should. The grain and provision markets of the North and West are all unsettled, though the price of the southern staple in the New York market has not been materially affected, the panic having come at the most favorable time for the cotton planters-just at the commencement of the season-and before much of the crop had been put in market. The calamities which are threatened by the of the general can prospect suspension purchasing be partially averted by the government five millions dollars worth of bonds, which will furnish the banks with a sufficient amount of legal tenders to enable them to resume business. The latest rumor is to the effect that this plan will be resorted to, and that the government will buy half a million of bonds. The Bank Presidents have determined to issue immediately $10,000,000 in loan certificates. The latest intelligence from New York indicates an easier feeling among all classes,

8. September 25, 1873 Belmont Chronicle Saint Clairsville, OH
Article from Belmont Chronicle, September 25, 1873

Click image to open full size in new tab

Article Text

vive in anticipation of the Barnesville fair, for of course everybody goes. S. A FINANCIAL PANIC. Suspension of Jay Cooke & Co. Excitement in Wall StreetOther Firms Also Suspended-Jay Cooke & Co. have confidence. NEW YORK, Sept. 18. There is great excitement on the street in consequence of the annouicement of the failure of Jay Cooke & Co. The question generally asked is, who next? Stocks took a tumble generally caused as much by apprehensions of the future as by the existing condition affairs. Prominent Wall street men attribute the suspension of the firm not so much to the effort to sustain the Philadelphia house as to operations in the Northern Pacific, which, it is said, they sought to carry beyond their strength. It is expected that the Life Insurance Company with which Jay Cooke & Co. are connected, may have to go under. It is also said that Jay Cooke had lost large sums in the recent gold movement, and another rumor is that it was the lightness in the money market and the inability to dispose of his paper that hurried the suspension. The firm say they are unable to make any further statement save that they expect to resume business in a short time. & Another dispatch says: Jay Cooke Co. make the followingstatement: The immediate cause of the suspension of Jay Cooke & Co. was the large drawings upon them by their Philadelphia house and their own depositors during the last fortnight. Both houses have suffered a large drain upon their deposits fin consequence of the uneasy feeling which has recently prevailed and which has affected more or less houses closely identified with new railroad enterprises. The Philadelphia house had previously been weakened by large cash advances to the Northern Pacific Railroad Company, and which they are the financial agents. PHILADELPHIA. Sept. 18. -The following card has been posted on the of cedoor of Jay Cooke & Co., in this city: 'We regret to be obliged to announce that, owing to an unexpected demand ou us. our office has been obliged to suspend payment. In a few days we will be able to present a statement of our credit, until which time we must ask for their patient consideration. We believe our assets to be largely in excess of our liabilities. JAY COOKE [Signed] Alater dispatch contains the following: Mr. Cooke says: "T believe this house will speedily be relieved from embarrassment and to thisend,if needs be, every dollar of the means possessed by the members of the firm will be applied. No one who has a dollar on deposit here will lose it. Every liability will be faithfully discharged. The temporary suspension of the American house does not affect in any way the London house of Jay Cooke, McCulloch & Co., from whom the following cable was received thisafternoon, creating the liveliest satisfaction when made known to the public. LONDON. Sept. 18. The London firm of Mr. Cooke responds to his suspension by stating that drafts and letters credit on them issued by Jay Cooke Co. will be duly honored. Richard Sehell and Robinson & Suydam, of New York, and E. W. Clark. of Philadelphia, have als suspended. NEW YORK, Sept. 18. Another day of intense excitement has passed over Wall street. Early this morning predictions were made that this would be a hard day and one that would see the downfall of more than one financial house. At noon a report was whispered that the house of Jay Cooke & Co. had suspended. At first the rumor was considered an idle one, or at most, started by some scheming faction However, it had great effect; men and boys ran races from office to office, the telegraph was in its operations, and ex. eitement grew intens Shortly after twelve it was officially announced that the suspension had occurred, the reasons therefor being the advances made to their Philadelphia house, which rendered them unable to meet the demand made upon them by their depositors here. The Express says. The varupon railroads has produced part of this panic, creating as it has a want of confidence among large capitalists and small investors, and injured both the credit progress of railroad enterprises. When confidence goes credit falls with it, and a panic takes the place of both. The suspension of houses like Jay Cooke Co., and Kenyon, Cox & Co. are public calamities, and are events wholly unlike the failure of those mushrooms who do business on borrowed capital, or oftener on no capital. The sympathy of the public is with the unfortunate who try to doalegitimate business, and who fail while in the prosecution of it, as in the building of railroads and other public works designed to enlarge the business of the country. The Mail says: It is understood that the houses which are in trouble aresolitary, those that have been carrying heavy burdens in the way of railway construction, and that the losses from their failure will be widely distributed and will not be long felt seriously Here it is felt that the events of the past few days are most unfavorable for the prosecution of unfinished railway enterprises, and so a misfortune to the country, whose resources require for their development a liberal extension of credit, but all other branches of business have an unusually good promise for the fall and winter. The Post says: Prices of first class stocks are now low enongh to tempt capitalists and outside investors to come in, and while the effect of the failure a house so widely known as Jay Cooke & Co, cannot be measured in a day, there is reason to believe that prices will not long be kept below figures which represent the investment value of dividend paying stock. The followshows the number of shares which

9. September 25, 1873 The Kenosha Telegraph Kenosha, WI
Article from The Kenosha Telegraph, September 25, 1873

Click image to open full size in new tab

Article Text

FAILURE OF JAY COOKE & CO. PANIC AND FAILURES IN NEW YORK,PHILA DELPHIA AND WASHINGTON. Jay Cooke & Co., one of the most prominent banking firms in the country, have failed. Oo Thursday, the 18th inst. their house in New York suspended. Following swiftly upon the closing of their house in New York, was the suspen. sion of the houses of the same firm doing business in Phi'adelphia and Washington and of the First National Bank in Wash soon ington-Jay Cooke's Bank. the And foilowing these came suspension of Richard Schell and Robinson and Suydam, New York, and W. E. Clarke & Co, Philadelphia. As soon as the foregoing failures became known in New York panic, became the order of the day. This Thursday probably fully equaled Black Friday. In the Stock Exchange the rush was tremendous and the excitement fearful. Stocks fell with a crash. The rush and scenes at the Gold Exchange equaled in fury on a less scale those at the Stock Exchange A large crowd, having no business but curiosity, collected filling the basement and yards as well as the streets and sidewalks in front of the suspended bank. In Philadelphia the scenes, on a less scale at the Stock Board, in the streets and at the suspended bank were much like those in the crash in about the same, at New York, and Washingten stocks being the scenes were relatively nearly equally great and excititing. Nineteen houses in New York and eleven in Philadelphia failed. On Friday the excitement continued and the day was 2 small or Great Black Friday. The excitement at the Stock Exchange New York continued and was compared to a caper among lunatics that of Thursday being more like a fight among madmen. Stocks continued to jump and tumble but generally tumbled conrapidly downward. The excitement tinued at the Gold Room but was not equal to that at the Stock Room. A run upon several Trust Banks was great and large amounts were paid out. The Secretary of the Treasurer directed the As sistant Treasurer at New York to purchase $10,000,000 bonds. A committee was appointed at a meeting of the principal Bank officers to devise measures of relief. Saturday opened comparitively quiet the promised action of the Government having in a measure restored confidence. But the suspension of the Union and N2tional Trust Companies renewed and in creased the excitement. The Stock Exchange opened amid excitement and SOOD confusion reignned supreme, which was finally ended by adjourning to meet again on the call of the President. This stopped speculation and business till the President called a meeting which he has not yet done. The Bank of the Commonwealth more suspended and York eleven brokers houses making in New thirty-three which have failed and three banks which have suspended. The Precident and Secretary Richardson were besought by Varderbilt and Reverdy others and advised by Johnson to lown the banks $30,000,000 of the $44,000,000 greenback reserve. This they wisely declined, having no authority not do it. They will however buy Govern ment bonds now due to the extens of their power thus placing greenbacks in circulation. The Clearing House received United States bonds Certified checks in settlement of balances, and the banks received the clearing checks from each other. Many rumors flowing as to the safety of the Savings Banks the officers held a meeting and re-

10. September 26, 1873 The True Northerner Paw Paw, MI
Article from The True Northerner, September 26, 1873

Click image to open full size in new tab

Article Text

# THE FINANCIAL PANIC. The Failure of Jay Cooke & Co. Other Suspensions Follow in Rapid Succession-The Excitement at New York, Philadelphia, and Other Points. NEW YORK, Sept. 18. Another day of intense excitement has passed over Wall street. Early this morning predictions were made that this would be a hard day, and one that would see the downfall of more than one financial house. The Chicago fire, it was thought, would occasion a drain upon deposits and tend to a panic. Stocks for the first two or three hours fluctuatad wonderfully. Western Union fell 10 per cent. without an upward struggle, but about noon recovered its opening figure. At noon the report was whispered that the house of Jay Cooke & Co. had suspended. At first the rumor was considered an idle one, or at most started by some scheming faction. However, it had great effect. Men and boys ran races from office to office. The telegraph was incessant in its operations, and the excitement grew intense. Shortly after 12 m., it was officially announced that the suspension had occurred, the reasons therefor being advances made to their Philadelphia house, which rendered them unable to meet the demand made upon them by their depositors here. As soon as it became generally known that Jay Cooke & Co. had suspended, many rumors touching other promiont houses sprang into existence, but all reports about the suspension of firms cxcepting Jay Cooke & Co., Richard Schell, and the small firm of Robinson, Suydam & Co., upon investigation proved to be without foundation. When this fact was made known on the streets, confidence was again restored, and at the close of business a stronger feeling prevailed. The liabilities of Jay Cooke & Co. cannot be ascertained. It will take some time to make a statement of the affairs of the house. The creditors are mostly banks and bankers, there being but few individual depositors in the list. The suspension will greatly interfere with the operations of the Syndicate, and probably suspend the negotiation of 5 per cents. The Tribune says: "Late this evening the following reasons were given by Mr. Fahnestock, one of the firm of Jay Cooke & Co., for the failure of the house. For several weeks the uneasy feeling which prevailed in connection with the new railroad schemes caused heavy drains upon the deposits both of their Philadelphia and New York houses. The deposits in both cities suffored continual diminution, until at the beginning of the present month, their deposits were lower than at any time during the last fall and this spring. The drain upon deposits, already so heavy, was still further increased by the recent suspensions and demand for money was incessant, and is felt still more severely in Philadelphia. The Philadelphia house was compelled to call upon the New York house for aid, and a large amount of assistance was rendered. The Philadelphia house was under large advances to the Northern Pacific Railroad Company, involving large sums of money, preventing them from maintaining the reserve ordinarily kept, and they were therefore unable to respond to the demands of their creditors. For this reason they were unable to return to the New York house advances made by the latter, or to supply them with any collaterals available in New York at the present time. Owing to this, the cash balances became exhausted, and suspension became inevitable. Fahnestock said that of course the different members of the firm were possessed of a large amount of private and personal property, but none of this was available in an emergency such as the present. He was not at the present time, nor was any member of the firm, prepared to tell the exact amount of liabilities or assets of the firm. He believed that all the creditors would be paid in full, and hoped that the suspension would only be temporary. On this point nothing could positively be said at present, and some time must necessarily elapse before the exact amount of private property of the firm can be decided." PHILADELPHIA, Pa., Sept. 18. Third street was thrown into an uproar at 11 o'clock this morning by the report that the old banking-house of Jay Cooke & Co. had suspended. The rumor caused the most intense excitement amid all circles, and the intelligence flew frem mouth to mouth with lightning rapidity. Persons interested, as well as those not interested, turned their steps toward the office on Third street to see for themselves the condition of affairs. Very soon a constant stream of people was seen debouching from all the adjoining streets into Third, until that street was filled with people, all intently and excitedly looking at the building. The doors were closed and guarded by officers, and all except those having business with the firm were prevented from entering. Mr. Cooke, Sr., authorized the posting of a notice on the doors. The crowd then rushed toward the spot, all being desirous of seeing and reading for themselves what was upon it. This was impossible, and a voice from the crowd cried out, "Read it alond." The demand for this increased, fifty voices seconding the request; whereupon Mr. D. M. Longstreth read aloud, to be heard in the middle of the street, the following: "TO THE PUBLIC: We regret to be obliged to announce that, owing to the unexpected demands upon us, our office has been obliged to suspend payment. In a few days we will be able to present a statement of our affairs to our creditors. Until that time, we must ask for their patient consideration. We believe our assets to be largely in excess of our liabilities. JAY COOKE & CO." This statement settled the existing doubt which still lingered in the minds of many of the crowd, who, notwithstanding the evidence which the closed doors of a banking-house exhibits, still hoped against hope till almost the very signature of the firm was read. The expressions upon every side were those of commiseration and of sympathy for a firm that has always so highly maintained its credit, and which will raise up from this temporary prostration stronger than ever. Many reporters tried to gain admittance, and but few were fortunate. The reporter of the Evening Telegraph was the first to enter, and I followed shortly afterward. The banking room was darkened the clerks were scattered through the building, some in groups, chatting about the disaster, and others as busily engaged at their books as upon ordinary occasions. We found Mr. Cooke in his private office calmly dispatching his orders, and unexcitedly conversing about the sudden and unexpected blow that had befallen him. He pleasantly welcomed whoever called upon him to express sympathy and confidence. He said: "You can announce that the firm has temporarily suspended. Please state also that I believe this house will speedily be relieved from embarrassment, and that to this end, if needs be, every dollar of the means possessed by the members of the firm will be applied. No one who has a dollar on deposit here will lose it. Every liability will be faithfully discharged. I can say no more now. Mr. Cooke then directed notices of the temporary suspension, as couched above, to be sent abroad and stated that this event closed the doors of three offices the three leading houses of the firm in Washington, New York, and this city. Then, with his brother members, he commenced an investigation to ascertain the exact financial standing of the firm. The temporary suspension of the American house does not in any way effect the