Article Text
within a few moments a mob surrounded the office of Cooke and Co., on the corner of Wall and Nassau streets, and a squad of police was called to clear the thoroughfare. After the members of the stock exchange, driven from the rooms by the tidings of the failure, had gleaned what news they could upon the street, they rushed back to the exchange, where brokers vainly strove, with terrible energy, to save their fortunes or ruin their neighbors. At 2 o'clock, the crier rose, the babel ceased, and the announcement of Robinson, Suydam & Co.'s suspension was read. Two hours later the crier announced that Richard Schell could not meet his liabilities. Excitement increased among the maddened operators, and though the gong sounded and the close of business was announced, the brokers would not leave the crowded exchange until they were driven from its doors by employes of the place. The news of the trouble soon reached the national capital, and the secretary of the treasury, Mr. Richardson, decided not to accept any bids for gold during the day, in order to prevent the further accumulation of currency in the vaults. Early on the morning of the 19th, the bears circulated various rumors, involving the credit of notable New York houses, and soon after the opening of the stock exchange, the announcement was made that Fisk, Hatch & Co. had suspended, owing to heavy advances made by them to the Central Pacific and the Chesapeake and Ohio railroads. During the day sixteen other firms suspended, and the scene in Wall street was one that had not been equaled since the dark hours of "Black Friday." Leading bankers met at the clearing house to discuss plans for the relief of the street, and a run was made on the Union Trust company. Toward night it was believed that the worst had passed. News had come, meantime, of the suspension of six heavy Philadelphia houses, but it was announced from Washington that a feeling of greater security prevailed, notwithstanding the failure of two banks on the previous day. At midnight Secretary Richardson announced that he would afford relief on the morrow by buying $10,000,000 of bonds. The following Sunday was anything but a day of rest. President Grant, with Secretary Richardson and other high officials of the government, were in conference at the Fifth Avenue hotel in the morning, and at noon were ready to hear suggestions from prominent financiers who called. Various propositions were offered by these gentlemen, among them one that the government should, if necessary, place the whole legal reserve of $44,000,000 in the New York city banks. Secretary Richardson laconically replied: "This, gentlemen, is not my funeral." After a time Commodore Vanderbilt proposed that the government place $30,000,000 of the reserve in the New York banks, to which he agreed to add $10,000,000. But neither the President nor the secretary was disposed to have the commodore enter into business with the government, and all the propositions were declined. As the day passed, ugly rumors were set afloat, but nothing of new and great importance could be positively learned. Savings banks prepared for a run, and decided to require the thirty days notice previous to payment. Jay Gou'd advised the general suspension of the banks as the only safety for the mercantile community and the public. News came of a few suspensions in the West and South, but they were not of special significance. Monday was a day of comparative calmness, and the governing committee of the stock exchange decided not to open on the following day, in order to keep down prices and reduce all stock transactions, thus permitting further time to the banks. The bonds bought up by the secretary of the treasury footed up $3,500,000 for the day, and confidence seemed to be greatly improved. The next day, Tuesday, the 22d, brought a set-back. Soon after noon the announcement was made that Henry Clews & Co. had suspended payment, having paid out within the few days preceding more than $1,200,000. This suspension, creating almost as much excitement as that of Jay Cooke and Co., was followed by the collapse of several other houses, while news from the other cities of the country was far from reassuring. Up to date, the bonds purchased by the secretary amounted to $12,000,000. During the next two days rumors of many stupendous frauds in Wall street were circulated. Howes and Macy, Brown and Watson Brothers, and several smaller houses went under, an extra session of Congress was urged, steamship companies and railroads suffered for freight, and news came that Western and Southern merchants were seriously affected. It was thought, however, that the fury of the storm was passed, and that the New York banks would be able to breast it. Matters were at a complete standstill, and the government decided to buy no more
