Article Text
FROM PITTSBURG. SUSPENDED. PITTSBURG, September 22.-James T. Brady & Co.,. brokers of the security trust company of this city suspended today.
19406. James T. Brady & Co. (Pittsburgh, PA)
Bank Information
- Episode Type
- Run → Suspension → Closure
- Bank Type
- private
- Start Date
- September 22, 1873
- Location
- Pittsburgh, Pennsylvania (40.441, -79.996)
Metadata
- Model
- gpt-5-mini
- Short Digest
11cf9523
Response Measures
Full suspension
Description
Contemporary reports (Sept 22, 1873) state a run provoked by falsehoods and a sensational Associated Press telegram linking Brady to Jay Cooke & Co.; the firm suspended the same day. Later material indicates assets were turned over to receivers, consistent with a permanent failure.
Events (3)
1.
September 22, 1873
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- Publication of a sensational Associated Press telegram falsely implying involvement with Jay Cooke & Co., which prompted a run.
- Random Run
- Yes
- Random Run Snippet
- sensational Associated Press telegram falsely linked bank to Jay Cooke & Co.
- Measures
- Announced suspension of payments (placard on door); bank closed and police kept order as crowds gathered.
- Newspaper Excerpt
- As the result of falsehoods published in regard to this bank, causing a run on it, we have suspended.
- Source
- newspapers
2.
September 22, 1873
Suspension
- Cause
- Rumor Or Misinformation
- Cause Details
- Suspension announced as result of the run caused by falsehoods/AP telegram; contemporaries described it as a failure driven by the run though some reports also cite large drafts by country correspondents as contributing factor.
- Newspaper Excerpt
- James T. Brady & Co., bankers, and the Security Trust Company of this city, suspended today.
- Source
- newspapers
3.
*
Receivership
- Newspaper Excerpt
- He put all his property into the hands of the receivers appointed to wind up the affairs of the institutions with which he was connected and went off West.
- Source
- newspapers
Newspaper Articles (9)
Click image to open full size in new tab
Click image to open full size in new tab
Article Text
senior partner, has disappeared, causing great anxiety to his famile and friends. Search has been made in fall directions. CHICAGO. CHICAGO, September 20.-The Franklin Bank, a private banking institution, closed its doors to-day, being unable to settle at the clearing-house. The amount short was only $9,000. The vice-president of the concern says the embarros-ment is only temporary. CHICAGO, September - There is considerable of a run upon some of the banks here to-day, but they are adhering to the resolution adopted yesterday to fall back on the thirty and sixty-day rule, and are only paying sums of less than 8100. The latest reports, public and private, from New York appear to have had the effect to lessen the anxiety. BALTIMORE. BALTIMORE, September 21.-While the excitement in the New York market is watched with interest, and the brokers' offices have been visited by crowds to observe the sway and wreck of stock prices, everything has gone on calmly, and business is done at our banks in the usual way. Money continues at 10 to 12 per cent. for best paper on the street, though negotiations are limited, and are for strictly business en. gagements. IOWA. BURLINGTON, IOWA, September 20.-The Orchard City Savings Bank suspended at 12:20. PITTSBURGH. PITTSBURGH, PA., September James T. Brady & Co., bankers, and the Security Trust Company. of this city, suspended today. THE FEELING IN ENGLAND. The London Times says: " In view of the extraordinary prosperity of the United States and the high price of Government bonds the present must be regarded as a simple effort of the financial system to get rid of its dishonest element." The Daily Telegraph says stick local trouble as suspensions in New York seems to be merely the rank outgrowth of exuberant prosperity, ond accessories to progress which does not for a moment halt. LONDON, September 22.-5 P. M.-Much anxiety is manifested on all sides to hear further news from New York. Jay Cooke and McCultoch & Co. continue to pay cash in the usual manner over their counter. Among the rumors current in the Stock Exchange is one that the Bank of England holds $300,000 of Jay Cooke & Co.'s acceptances, and that the Roth-childs have $1,000,000 of. the same paper. LONDON, September 22.-4:30 P.M.10-40's are quoted at 904; new 58,911; Eries, 45. 5:30 P. M.-A dispatch announcing the closing of the New York Gold Exchange has just been bulletined. The news is accepted as an indiction of the gravity of the financial situation. and the market for American securities is again depressed.
Click image to open full size in new tab
Article Text
BANK SUSPENSION IN PITTSBURG. The Result of a Sensational DespatchThe Security Trust Company and the House of James T. Brady & Co., Suspend-No Panic and No Uneasiness Felt. PITTSBURG, Pa., Sept. 22. 1873. The effects of the financial furry in New York reached here this morning and resulted in the suspension of the banking house of James T. Brady & Co. and the Security Trust Company. The first named are private bankers and have been dealing extensively in railroad and other stocks. About ten o'clock the following placard was strung on the door of their banking house on Fourth avenue:As the result of falsehoods published in regard to this bank. causing a run on it, we have suspended. Mr. Brady assigns as a reason for the run which caused his suspension the publication of a sensa" tional telegram by the Associated Press to the eflect that he was involved with Jay Cooke & Co. Creditors of Ready & Co. will meet in a day or two,
Click image to open full size in new tab
Article Text
PITTSBURGH. Special Dispatch to The Chicago Tribune. TWO BIGNIFICANT FAILURES YESTERDAY. PITTSBURGH, Pa., Sept. 22.-There have been two failures here to-day, those of James T. Brady & Co., cornor of Wood street and Fourth avenue. and the Security Trust Company. James T. Brady & Co. woro badly spoken of on the streets on Saturday. Their failure is owing to largo drafts upon them by country correspondonts, which is a business they largely courted. As soon as their suspension was announced, an immense crowd gathered in the vicinity. They had a great many small depositors, who made a great clamor to get in. Howover, the police wont on the ground and preserved order. Immediately after the Brady-suspension, THE SECURITY TRUST COMPANY CLOSED its doors. It is a now institution, and is officered by somo of the wealthiest mon in the city, David Grogg being its President, and B. L. Falinestock ono of its Directors. It is said that they were largely interested in Brady & Co.'s. Immediatoly after these suspensions, the Bank Presidents met, and resolved to stand by one another and to 800 every bank out that had collateral scourities, provided a run should be made upon it. The day has been quiet. THE UTMOST CONFIDENCE IS EXPRESSED in our banks. Brady & Co. state it was the evil rumors that caused them to suspend, as it made a run upon them which they at present could not meet. The Security Trust Company has yet made no statement. Its liabilities are not very great. The amount of Brady & Co.'s liabilities are said to be large, but it is believed that there are amplo assots to meet them, if they can only be made available.
Click image to open full size in new tab
Article Text
Subsidence of the Panic in New York. NEW YORK, Sept. 22.-Wall street to-day presented a most extraordinary spectacle. It would be difficult, in the necessarily brief limits of a newspaper report, to give a correct idea of the excitement which prevailed. But the excitement to-day was. apparently, of an entirely different kind to the intense anxiety observable on Friday and on Saturday, which had its origin in a condition's universal panic. The streets, that is to say, Wall street and Broad street, were crowded. It was difficult for a pedestrian to thread his way through the different groups which OCcupied the streets and sidewalks alike. Confidence increased as the day advanced, and about 2 o'clock, there was a sudden shrinkage of the lines at paying tellers' windows at the banks and banking houses. The heavy business done all day had been dispatched with all possible speed, and as soon as it was known among the merchants that the purchase of bonds was uninterrupted, and that the rule adopted by the savings banks, of requiring thirty days' notice for the withdrawal of all large sums, was accepted without any disturbanceat the savinkags banks, the certification of money checks was not pressed, and it was evident at the banks that the depositors were beginning to believe that the storm had passed. No embarrassments are expected in any of the private banking firms who have sustained themselves through the late crisis. The suspension of the Union Trust Company is gener, ally attributed to the defaulting Secretary's neglect to call in the $3,000,000 loans ordered on Thursday. According to general report he completely lost his mental balance. and showed no disposition to submit the affairs of the company to inspection. His whereabouts are still unknown. It is currently reported that the company will be ready to resume business in a few days. It is a little remarkable that only one of the Trustees of the Union Company had any money on deposit in the institution, and that, with the exception of two or three, owned but very little stock. This may account for the bad management of the concern. Messrs. Jay Cooke & Co. are out with a card giving names of banks and banking houses who will pay drafts of their correspondents. All drafts against deposits made since the suspension will be paid on presentation. The National Trust Company, which suspended payment on Saturday, state that their liabilities do not exceed $4,000,000, and that the capital and assets of the company exceed their liabilities. The day closes with confidence greatly improved. with a general opinion that the crisis is entirely over. There seems to be no reason why all the banks should not now go along in a quiet and regular manner. A dispatch from Philadelphia announces a subsidence of the excitement in that city. The State Bank resumed payment. WASHINGTON, Sept. 22.-Judge Richardson said this evening that he believed the storm was over, and that quiet and good order would soon be restored in financial and business circles. The President decided to-day to send $20.000,000 from the National Treasury here to Assistant Treasurer Hillhouse in New York to-night, to enable that officer to buy all bonds that may be offered. A dispatch from Pittsburgh announces the failure of James T. Brady & Co., and the Se. curity Trust Company. It is stated that the Canada Southern Railway Company is seriously crippled by the panic.
Click image to open full size in new tab
Article Text
James T. Brady & Co., a second, rate Pittsburgh banking concern, has followed Jay Cooke & Co. into prosperity, by suspending,
Click image to open full size in new tab
Article Text
the capital and assets of the company exceed their liabilities. The day closes with confidence greatly improved, with a general opinion that the crisis is entirely over. There seems to be no reason why all the banks should not now go along in a quiet and regular manner. A dispatch from Philadelphia announces a subsidence of the excitement in that city. The State Bank has resumed payment. WASHINGTON, Sept. Judge Richardson said this evening that he believed the storm was over, and that quiet and good order would soon be restored in financial and business circles. The President decided to-day to send $20,000,000 from the National Treasury here to Assistant Treasurer Hillhouse in New York to-night, to enable that officer to buy all bonds that may be offered. A dispatch from Pittsburgh announces the failure of James T. Brady & Co. and the Security Trust Company. It is stated that the Canada Southern Railway Company is seriously crippled by the panic.
Click image to open full size in new tab
Article Text
A BULL IN THE PANIC. YORK, Sept. 22 Wall street to-day It NEW most extraordinary spectacle. brief limsented be a difficult, in the necessarily correct would newspaper report. to give a But its of of a the excitement which prevailed. of idea excitement to-day was, apparently, anxiety an the different kind to the intense which entirely observable on Friday and on Saturday, panic. its origin in a condition of Wall universal street and had The streets, that is to say, Broad street, difficult were for crowded. a pedestrian to which thread ocen- his It through was the different sidewalks groups alike. pied way the streets increased and as the day advanced, shrinkand Confidence about of the lines clock at paying there houses. was tellers a sudden The windows heavy at the age banks and all banking day lind been dispatched it was business possible done speed. and as BOOH the purchase as with all the merchants that that the rule uninterrupted, and of bonds was the savings banks, of of all known among by withdrawal requiring sums. large the thirty adopted day's was notice accepted for the without certification any disturb- of ance at the savings not banks. pressed. and it was evi- bemoney dent at checks the banks was that the the depositors storm had were passed. ginning to believe that are expected in sustained any of the No private embarrasement banking the firms late who crisis. have The gen- easthemselves the Union Trust Company Secretary's pension to the loans erally attributed of through the $3,000,000 defaulting is report. orderneglect ed on Thursday. to call in According his mental to general balance. and he completely disposition lost to submit the whereabouts alfairs of showed the company no to inspection. It is currently His reported busiare that still the company unknown. will It be is ready a little to resume remarkable ness in a few days. of the trustees of the in the Union inthat only had one any money on deposit of two Company and that, with the little exception stock. This may stitution. or three, account owned for the but bad very management of the stateconcern. MOHARM. giving Jay the Cooke names & Co. drafts of are banks out of and with their banking a correhouses ment who will drafts Day against deposits made sincè spondents. the effepension All will be paid on presentation. The National Trust Saturday, Company, state which that their suspended payment on exceed 84,000,000, and that the liabilities capital do and not assets of the company exceed imtheir liabilities. closes with confidence greatly the crisis The day with a general opinion to that be no reason proved. There seems along in is entirely all the over. banks should not now go why and regular manner. a quiet A dispatch of from the excitement Philadelphia in that announces city. The State subsidence Bank has resumed Sept. 22. payment. Judge Richardson the storm WASHINGTON, that he believed good order would ness said was this over, soon evening and be restored that quiet in financial and and busicircles. President decided to-day Treasury to send here 820,- to 000,000 The from the National Hillhouse in New bonds York I f to-night. Assistant to Treasurer enable that officer to buy all the that may be offered. Pittsburgh announces and the SeA dispatch of James from T. Brady & Co. curity failure Trust Company. the Canada Southern Rail- the way , It is Company stated that is seriously crippled by WALL a 0 panic. A STREET RENEWAL FAILURE THE PANIC OF IN HENBY CLEWS & CO. Sept. 23. Wall street that was invaria- quiet NEW YORK, but it was thecalm crowde t this morning, storm. There were no confusion k ble precedes a noise, none of the days n the street, has served, no in the two or the three panic: but, v which accelerate and increase there was past, underneath to this appareut security, yet precipii lurking a great danger, which Men went may to bed last e tate universal confident disaster. that the worst was their over; security. they night confident in increase rose this norning foreign advices helped to failures, 8 The confidence, latest for they spoke an of easy no market. this though some distrust. and the London market t All rejoiced to American know that securities the undamaged, Paris and I and was Frankfort that, firmer. while bourses dealing were limited, on rates wereen- in better ₽ couraging. Stock quotations in they the had street been were on the cloee than the Exchange. t every of Saturday's instance operations officials were on in good spirits, Savings banks reported. t 1 and few runs Gold were Room the price lower for than gold was was exbe placed In the at 112, established, a rate much and settlements were in 8 pected easy. to brokers were much relieved his brokers. by Jay of t Gould's Stock settlement. of stock at through reasonable relieved everybody. rates, which 3 a while there which had 5.000 bankrupted sharen nobody, was and all this cheerful seemed outside to f the that appearance he impending. But, panic of was the and erisis over, encouraged there were people events to hope cc-
Click image to open full size in new tab
Article Text
# A Man Who was a Milonaire. From the New York World. About the Gilsey House I meet occasionally a tall, finely built man, with a smooth-shaven, ruddy face, and large brown moustache. He is the picture of health and does not look as if he ever had a care in the world. He might be thirty-five or forty, but it would be difficult to guess his age correctly. It is James T. Brady, once the head of one of the largest Catholic banking institutions in the country, the private banking firm of James T. Brady & Co., of Pittsburg. Brady was a millionaire twice over before he was thirty years of age, He embarked in the banking business at Pittsburg and organized also the Security Trust Company there. His investments were widely scattered. The Jay Cooke failure caught him short. He put all his roperty into the hands of the receivers appointed to wind up the affairs of the institutions with which he was connected and went off West, noone knew where. He hid himself from sight, and was found a year later on the streets of Toledo by Orville Grant, who persuaded him to return to his friends. He had been almost crazed by his losses. It is one of the curiosities of that period of loss and depression that a piece of property turned over to the receiver by Brady and sold to other persons, has since been the basis of a loan of over $2,000,000, its value having increased so enormously as to justify the placing of such a loan on it. It is an illustration of the fact that the men who were swept under in the Cooke maelstrom were not all mistaken in their judgment as to investments. Mr. Brady is now, I believe, practicing law in this city.