1973. Fant, Washington & Co. (Washington, DC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 26, 1873
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
d703b021

Response Measures

None

Description

Multiple contemporaneous Washington papers report Fant, Washington & Co. posting notice and suspending payment on Sept 26, 1873 due to heavy drafts and inability to realize on securities amid the Panic of 1873. Subsequent dispatches (Oct 3–4, 1873) state an arrangement with creditors/depositors and that the house will resume business next week. No explicit depositor run on this firm is described; the suspension is attributed to the broader financial panic and heavy withdrawals.

Events (3)
1. September 26, 1873 Other
Newspaper Excerpt
Their deposits were reduced by the drain from $200,000 to $25,000, when, finding it impossible to realize on their securities without submitting to ruinous sacrifices, the firm most reluctantly concluded to close their doors until a relaxation of financial affairs shall enable them to realize reasonable rates.
Source
newspapers
2. September 26, 1873 Suspension
Cause
Macro News
Cause Details
Heavy drafts during the nationwide financial panic (Panic of 1873) reduced deposits sharply and made it impossible to realize on securities except at ruinous sacrifices; deposits fell from $200,000 to $25,000 per contemporaneous report(s). Banks suspended payment amid the crisis of September 1873. (Articles: Evening Star 1873-09-26/27, National Republican 1873-09-27, Daily State Journal 1873-09-26.) Reported motive: inability to realize assets without sacrifice due to money stringency caused by the wider panic and credit contraction. No specific rumor or discrete misinformation event is given for this firm's suspension; the cause is the broader panic and heavy withdrawals/credit contraction reflected in multiple reports.)
Newspaper Excerpt
Fant, Washington & Co., posted a notice on the closed doors of their banking house to-day saying they are compelled to suspend payment for the present.
Source
newspapers
3. October 3, 1873 Reopening
Newspaper Excerpt
Fant, Washington & Co., bankers here, have been given an extension by their creditors, and will open next week. (Associated Press dispatch; Chicago Daily Tribune, Oct. 4, 1873.)
Source
newspapers

Newspaper Articles (12)
1. September 26, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, September 26, 1873

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THE FINANCIAL CRISIS, NEW YORK. NEW YORK, September 26.-Twentyfour hours' notice is to be given before the stock exchange opens. The Sun says that Adams express company has carried daily to the interior $1,500,000, and the United States express company has been carrying out about $500,000 daily. NEW ORLEANS. NEW ORLEANS, September 25.-The banking houses have joined in an address giving the reasons for partial suspension of currency payment for thirty days, by which time they think the movement of cotton and sugar will place them in a position to fully resume. Sterling exchange, the usual source of currency, at this moment, is not available except at ruinous rates. Heavy drafts have been made upon them for the usual balances from the west and east, and there is no prospect of their drafts for currency being honored. The banks will pay drafts under one hundred dollars. CHARLESTON. CHARLESTON, September 26.-The Peoples bank of South Carolina, the Peoples savings bank, and the South Carolina loan and trust company have suspended currency payments. The national banks and other state banks pay as usual. NASHVILLE. NASHVILLE, September 26.-The banks have suspended currency payments upon checks of over $200. The board of trade approves the action. ATLANTA. ATLANTA, September 26.-A meeting of business men has resolved to assist the banks by free deposits and light drafts. SAVANNAH. SAVANAH, September 26.-In accordance with the resolutions of the chamber of commerce, the banks are certifying checks but withholding currency. CHICAGO. CHICAGO, September 26.-Five national banks have suspended. WASHINGTON. WASHINGTON, September 26.-The following suspensions are announced this morning : Wooten, Webb & Co., Indianapolis ; Krans & Smith, Toledo; Bank of Ansonia, New Hampshire Fant, Washington & Co., of Washington. ENGLAND. LONDON, September 26.-American securities are excited. Large business doing with wide fluctuations and much uneasiness. LATER.-American securities flat and declined heavily. The Daily Telegraph, in an article on the American crisis, savs it cannot be too strongly enforced that there is nothing radically unsound here or in the United States. The great mass of capitalists are not affected by the trouble. The Daily News remarks that in the absence of a system of long credits, the materials for a panic among American trading houses do not exist. It believes that the worst in over. It is said that bullion to the amount of £500,000 sterling will be withdrawn from the bank to be sent to America by next Saturday's steamer.

2. September 26, 1873 Evening Star Washington, DC
Article from Evening Star, September 26, 1873

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To-day. The tidal wave spreading from New York has reached the extreme South and the far West. To-day we have news of further suspensions in both directions, including some of the national banks of Chicago. In Baltimore, the leading stock dealing firm of William Fisher & Sons has gone under. In this city the banking house of Fant, Washington & Co., has suspended. Thus far, it will be seen, none of the failures have been of mercantile men, and, unless the pressure should be greatly increased, it is probable that this class will be able to get through uncrippled, though naturally they must suffer from the interruption to business and business facilities from the panic. To New York, where the panic originated, we must look for the revulsion which shall bring about a more hopeful state of affairs, and that seems to be already commenced. The reports from there to-day are reassuring, as showing that through business 18 torpid, there are no new failures, and affairs are gradually getting in train for the better.

3. September 26, 1873 Evening Star Washington, DC
Article from Evening Star, September 26, 1873

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We regret to announce that Fant, Washington & Co., bankers, owing to their inability to realize on their assets, are compelled to suspend for the present. Their assets, when the storm passes, they state, are more than ample to meet their liabilities, and we trust they will soon resume. This house was originally established in 1852, and reorganized in 1870. They successfully passed through the panic in 1857 and the suspension of the banks in 1861.

4. September 27, 1873 Evening Star Washington, DC
Article from Evening Star, September 27, 1873

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Faut, Washington & Co. Mr. Fant, of the suspended house of Fant, Washington & Co., is quite ill at home, and was not at the bank to-day. Colonel Washington is more hopeful, and says he has no doubt that in a short time they will be able to resume. He says they desire to avoid sacrificing their securities, which are perfectly good, and must of course be allowed reasonable time.

5. September 27, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 27, 1873

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THE FINANCIAL CRISIS. THE SITUATION IN THE PRINCIPAL CITIES YESTERDAY. SCENES ON WALL STREET. GOLD SPECULATIONS. Etc., Etc. NEW YORK. NEW YORK, September 26.-Twenty-four hours' notice is to be given before the Stock Exchange opens. The Sun says that Adams's Express Company to 000, has out scenes on street The been and has the carrying carried United daily Wall States about the Express interior were $500,000 much Company $1,500,- daily. less excited to-day. The crowd of brokers who have hitherto blocked up Broad street in front of the Stock Exchange was much less this morning, owing to the action of the police captain, who directed his men to disperse all groups which threatened to interfere with side-walk traffic. The brokers by this means were driven into the roadway, but they fared no better there, as the police ordered the trucks to be driven through the crowd, and so compelled the brokers to scatter in all directions. The general feeling among them is more hopeful, though there are many who persist in regarding the situation in its blackest aspect. There was wild excitement in the goldroom to-day. The gold speculation, which begun just before noon, was the feature of the day, and at a quarter to 1 o'clock the price was 1123, and at 1 o'clock heavy sales were made at 1133. The great necessity for much of on was a drew the the hoarded, borrowing the speculative gold created gold, the feeling and market large the from demand fact the that really street and in being way of stock, for which there were two sets of prices. The excitement in the Gold-Room was intense, and in a few minutes everybody seemed vild-prices spreading to 1131. Gold closed at 114. WASHINGTON. W ASHINGTON, September 26.-The following suspensions are announced this morning: Wooten, Webb & Co., Indianapolis; Kraus & Smith, Toledo Bank of Ansonia, New Hampshire; Fant, Washington & Co., Washington ; the Union National, Manufacturers National, and SecondNational banks of Chicago. and William Fisher & Sons, Baltimore. The latter complain of delinquencies, and request a short indulgence. The Star says that at the instance of President Grant, Secretary Richardson has appointed Jay Cooke, McCulloch & Co., of London, the fiscal agents for the Post-Office and State Departments, vice Clews, Habetsch & Co., suspended. The Cabinet session to-day was informal. Only Richardson and Williams were present. Finances were discussed, and it was determined to stand by the results of last night's consultation at the White House, and take no further action regarding extra currency disbursements. PETERSBURG. IMPROVED SITUATION-CONDITION OF BANKS-THE FACTORIES-OTHER MATTERS. [Correspondence of the Richmond Dispatch.] PETERSBURG, Septeinber 26, 1873. To any, the least observant eye, the improved situation of finances here, and the heightened tone of public feeling, cannot fail to be readily manifest. For the first time since the Black Tuesday, which will ever be memorable in our local annals, business has to-day worn a really brisk appearance, are while money of course is source, it is gradually creeping back into circulation, while the rigid cash rule which prevailed yesterday has been happily relaxed in many cases, The meeting of yesterday did something to accomplish this result, and the discovery of the favorable condition of the affairs of the People's Bank did perhaps even more, as it had been teared that every cent of the funds of the city had gone to the woodbine. The plan by which it is hoped to rectify matters and to accomplish some abatement of the present pressurema be briefly stated, though the details will of course depend on future developments and A gentleman well in all conditions. leading this mended city capitalists and by Congressman in Richmond and merchants has Platt been and known here recom- by for appointment as receiver. An effort will then be made-and it is only just to say that Mr. Platt is exerting himself in this direction with commendable energy and spirit-to maket the surviving national bank in this city a United States depository, by which the funds of the banks in course of liquidation can be retained here until from time to time they are divided among the depositors, instead of their being removed to the capital. Thus, also, the money collected by the United States revenue officers for this district would be retained here instead of being conveyed elsewhere and deposited in the banks of other cities. The banks here that have not suspended manifest every disposition to accommodate, and their staunchness has done much to allay the excitement. A meeting of the stockholders of the Citizens Bank was held this afternoon, at which the cashier, General D. A. Weisiger, made the following statement of the assets and liabilities of the institution: ASSETS.

6. September 27, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, September 27, 1873

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A SUSPENSION AT WASHINGTON. WASHINGTON, Sept. 20-Fant, Washington & Co., posted a notice on the clos. ed doors of their banking house to-day saying they are compelled to suspend pay: ment for the present. THE N. Y., STOCK EXCHANGE TO BE KEPT CLOSED. NEW YORK, Sept. 26-The: Governing Committee of the Stock Exchange have decided to keep it closed. Gold opened at 111}. amount

7. September 27, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 27, 1873

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ALEXANDRIA, VA. SATURDAY, SEPTEMBER 27, 1873. Financial Affairs. Fant, Washington & Co. posted a notice on the closed door of their banking house in Washington, yesterday saying: "We are compelled to suspend payment for the present." The Washington City Savings Bank, of which J. A. Ruff is President, was closed yesterday by order of Judge Humphreys, on the petition of G. C. Crandell, and Wm. F. Mattingly, was appointed Receiver. There has been a run on this bank for several days past. Mr. Fant of Fant, Washington & Co., expresses the belief that they will be able to resume business when the panice is over. Much sympathy is expressed for the firm by bankers and business men. In Baltimore yesterday, the intelligence was spread about that the well-known firm of William Fisher & Sons had suspended. A large crowd quickly gathered about the office of the firm, on whose door was placed the following notice: "We have been forced by the delinquencies of our customers to suspend payments for the present until we can collect from our customers what is due us. We expect to pay every obligation in full, and only request indulgence for a short time." The firm state that their assets are ample to cover their liabilities, and their suspension is due solely to the stringency of the money market, rendering it impossible for them to make collections or to realize upon their securities without making a sacrifice, which they do not deem just to their customers or themselves. In New York a new excitement broke out yesterday, when Gold at the Gold Exchange, when gold mounted to 114. There was much excitement in Chicago attending the suspension of four national banks. Other suspensions were chiefly at the South three State banks and three national banks in Charleston, South Carolina, and one banker in Atlanta, Georgia. Philadelpbia reports that the banks there like those of Baltimore, will pay out only greenbacks sufficient to accommodate current needs and pay wages. At Milwaukee, Wisconsin, over a million bushels of wheat have accumulated within the week, and no money to move it.

8. September 27, 1873 National Republican Washington, DC
Article from National Republican, September 27, 1873

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FANT, WASHINGTON & CO. This well-known banking-house was obliged to succumb to the heavy drafts of its depositors yesterday. Their deposits were reduced by the drain from $200,000 to $25,000, when, finding it im possible to realize on their securities without submitting to ruinous sacrifices, the firm most reluctantly concluded to close their doors until a relaxation of financial affairs shall enable them to realize reasonable rates. They then expect to resume business, and hope and believe that their suspension will be of short duration. Their many friends most heartily join them in this desire.

9. September 27, 1873 The New York Herald New York, NY
Article from The New York Herald, September 27, 1873

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Suspension of a Washington Firm. WASHINGTON, Sept. 26, 1873. Fant, Washington & Co. posted a notice on the closed door of their banking house to-day, saying:"We are compelled to suspend payment for the present."

10. October 1, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, October 1, 1873

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The Stringency Abating. OPENING OF NEW YORK STOCK EXCHANGE. Feeling of Reassurance and Confidence. Failure of the Union National Bank of Chicago. ituation but Little Changed at St. Louis and Cincinnati. YESTERDAYAFTERNOON'SD PATCHES. o Opening of the New York Stock Exchange--Good Feeling and Returning Confidence. OPENING QUOTATIONS NEW YORK, Sept. Wall, Broad and New streets, in front of the several entrances to the Stock Exchange, were crowded this morning as the hour of opening approached. When the doors were thrown open shortly before 10 o'clock the members and spectators rushed in, filling the floor of the Exchange and the visitors the gallery. The members closed round the President's desk, cheering vociferously and waving their hats. Promptly at 10 o'clock President Chapman rapped the brokers to order. and at once all became silent. He then spoke to them as follows "We have met again after very momentous suspension for the purpose of resuming business. Your action in the interim has met with universal approbation, and has been most satisfactory to yourselves. Business would be carried on under the rules adopted yesterday by the Governing a Committee, which he read, appointing committee to settle the contracts of de faulting parties. All ask now is that you help each other to bear the burden that has fallen upon us. To so conduct business as to enable the Exchange to carry on its work successfully Loud cheering followed the address and business was begun. A good feeling appears to exist, and the opening prices of stocks shows returned confidence. The following are the opening quotations for sales: Central 92. Erie51 Lake Shore 77, North Western 431, Rock Island Pacific Mail 35, St. Paul 351. perferred 57+, Ohio 291, Western Union 681, Wabash 46 Union Pacific Cleveland Col umbus & Indiana Central 22, Hannibal & St. Joe 24. 11:30 A. Under considerable pressure to sell, and realize on stocks prices have declined from those current at the opening from 1 to 3 per cent Bankers generally are unwilling to operate for customers on margins until offers become more settled. The Union National of Chicago Concludes to Go Into Liquidation. CHICAGO Sept. 30.-The Directors the Union National Bankatier paying o about $400,000 yesterday, decided at meeting last night to go into liquidation. The officers state that the assets of the bank are abundantly sufficient to pay all its liabilities in full. The Memphis Banks Resolve Not to Suspend, But Will Open a Cotton Exchange. MEMPHIS, Sept meeting of the Chamber of Commerce this morning to consider the financial situation, resolution from the city banks was received to the effect that they would not suspend, but would open in addition to the usual business an exchange, the account to be paid in kind, for the purpose moving cotton. which was unanimously adopted by the Chamber There much difference of opinion among business men here as to the pediency of this issue, some holding that will work harm by pushing that much currency out of circulation, and that greatly depreciate and will be ignored by the banks, while others believe it will relieve the present pressure for currency offered NEW YORK, Sept. 30.- An impression prevails on the street and on Change that all the leading houses will pull through, which event a better feeling will be infused throughout financial circles Swett & Seaver, reported to have sus pended on the 19th, announce that they will pay all demands in full and resume. The price of money will depend upon the stock exchange settlements now going on. these should be carried through successfully there are many ho look for the comparative easy working of thems ket There. a decided improvement in foreign exchange, which was looked favorable symptom of returning confidence. Leading bankers advanced their rates to 1061 for day's sterling, and 1074 for sight, but the actual business was at reduction from these rates. LONDON, Sept. 80. The fifty thousand pounds drawn from the Bank of England on balance to day is for shipment to New York special from Berlin hinta at financial troubles in Germany Fancy stocks and bank shares are not saleable. and some have fallen twenty per cent. There is some talk of government interference. WASHINGTON, Sept. 30.-) is stated the Treasury Department-that the De partment's statement to-morrow will hibit fair reduction of the public debt notwithstanding the revenues of the month have been comparatively light. The Treasury disbursements for the usual expenses of the government for the month ending to-day, have been below the average expenses for the last three four months Continued Improvement at Washington. ASHINGTON, Sept. 30 There is an improved feeling in financial circles. banks and banking houses. Outside combinations are doing an increased business while those in the combinations are certi lying and declining to cash the smallest checks Fant, Washington & Co. on paid three quarters of their depositors week, when owing to their inability to lly realize on ample securities they were obliged to suspend payment. An arrangement has nearly been perlected with the remaining depositors, by which they expect soon to resume business. in Payment of Interest on the New 5 Per Cents. WASHINGTON, Sept. 30 Treasure

11. October 1, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 1, 1873

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WASHINGTON PROSPECTS. THE $44,000,000 RESERVE NEEDED FOR GOVERNMENT EXPENSES-THE GOVERNMENT HARD UP. WASHINGTON, Sept. 30.-It has at last been developed that the President did not speak lightly when the allowed it to be understood from his letter to Messrs. Claflin & Anthony that be would use the $44,000,000 reserve if it should become necessary. Secretary Richardson bad said, several days before, that the reserve would only be used for legitimate expenses of the Government, and not for the purpose of influencing the panic. Your correspondent applied to the Treasury today to ascertain the amount of currency in the vaults, and found that at the close of business yesterday there was $2,400,000. It is impossible that there should be more to-day. The first quarter of the present fiscal year ends to-day, and the expenses for Indian supplies, for foreign service, and nearly all the Civil Service for the quarter is now due, as well as advances necessary for the next quarter. By competent authority it is estimated that $10,000,000 will be required for the quarterly payments, which must be made during the next week or 10 days; and the question is asked, Where is the money to come From 1 there being less than $2,500,000 in the Treasury. None need be surprised, therefore, to learn, before the week is 2 over, that the Secretary of the Treasury has put his hands on that money and drawn it from its vaults, to be followed, perhaps. in another fortnight, with the information that currency is still scarce. This is in face of the fact (ascergained from the Treasury) that the present importation of sovereigns from England will reach in value $40,000,1000, and the additional fact that they will be at once cast Mato United States coin, and that all the mints will be driven to their full capacity during the next three months, principally in the coinage of silver. AN IMPROVED FINANCIAL FEELING-HOPEFUL REPORTS FROM ALL QUARTERS-ANTICIPATED REDUCTION IN THE PUBLIC DEBT. WASHINGTON, Sept. 30.-There is an im"proved,feeling in financial circles to-day. The banks and banking-houses outside the combination are doing an increased business, while those in the combination are doing nothing more than certifying, declining as yet to cash even the smallest checks. Fant, Washington & Co. had paid three-fourths of the depositors last week, when, owing to their inability to realize on ample secuarities, they were obliged to suspend payment. An arrangement has been perfected with the remaining depositors by which they expect soon to resume business. Dispatches received by the Controller of the Currency this morning from New-Orleans. Chicago, Salt Lake, and other cities, are of the most hopeful character, and conVer the impression that the panic is at an end. It is said at the Treasury Department to-day that the Department statement to-morrow will exhibit a fair reduction in the public debt, notwithstanding the revvenues of the month have been comparatively very light. The Treasury disbursements for the usual expenses of the Government for the month ending to-day have been less than the average expenses for the last three or four months. Treasurer Spinner will respond to the request of the National Banks for the payment of the interest on their new five per cent registered stock in the Treasury, as security for circulation and public deposits. by sending them checks for the amount of interest due on the 1st of November OB such bonds. less rebate, at six per cent per annum. The Contract Bureau of the Post-Office Department will, to-morrow, deliver to contractors or their agents drafts on the United States Treasury amounting to nearly $3,000,000. in payment for postal services during the quarter ended to-day. Many large contractors are now here in person to receive their money. The procoods of these drafts will doubtless go at once into circulation throughout the country, and materially help to relieve the monetary stringency.

12. October 4, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 4, 1873

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WASHINGTON. Special Dispatch to The Chicago Tribune. WILL RESUME BUSINESS. WARNINGTON, Oct. 3.-Fant, Washington & Co., bankers here, have been given an extousion by their creditors, and will oven noxt week. [To the Associated Press.) GOLD COINAGE WARNINGTON, Oct. a.-Tho mint at Philadelphin, under ordora from Washington, is coining double-eagles At the rate of $10,000,000 por month. Tho California mint is running at its full capacity on gold coluage and trado-dollars. Bullion to the amount of $3,000,000 has boon addod to the fund of the Assay Office at Now York to pay promptly all deposits of sovereigns. JAY COOKE A CO.'S PROPOSITION TO THEIR CREDITORS. Gov. Cooke, in'conversation yesterday, announced that the firm of Jay Cooke & Co. will BOOL mako a proposition. their creditors for the purpose of enabling it to rosume business. The members of the firm have pooled their private and personal assets, and will place it at the command of their creditors in flquidation of their indebtodness. They propose to pay every cent they owe, both principal and interest. The details of the proposition will be made public in due timo. THE FORTY-FOUR MILLION RESERVE. Senator Logan arrived here yesterday, and hold a longthy consultation with the President, and another to-day. The President assured him that he would do all in his power to relieve the financial ombarrassment of the whole country, especially in the West. In reference to MOVING CROPS, ho will put out the 844,000,000 reserve as rapidly as possible without embarrassing the Treasury. NO EXTRA SESSION TO BE CALLED. The President stated that he would not call an extra session of Congress, but at the regular session will make important recommendations in reforence to our financial system. PROPOSITION DECLINED. Secretary Richardson has written a lotter to the President of the Chamber of Commerco, Charloston, S. C., refusing the request that $5,000,000 be deposited with the Assistant Tronsurer at Charleston for the purpose of buying Now York exchange trom the banks. The Secrotary states that he has declined all similar propositions from other places. THE STORM OVER. No financial exbitement whatover now exists. Currency is again becoming comparatively plontiful CINCINNATI. CINCINNATI, O., Oct. 8.-This has been a day of comparativo financial quiet. There was some anxiety early concerning the results of the day at the Now York Stock Exchange, but this soon dissappeared in the face of favorable news both from the movement in stocks and in the financial field generally in Now York. The bankers at the close of banking hours to-day were very much encouraged. In the walke there are of business, general still many who look with solicitudo to the future. but much the larger number to-day have expressed confidence in the ability of tho country to soon lift itself from the stagnation into which it has fallen. Nearly all classos, however, are growing olamorous for currency resumption in New York, in the belief that it would quickly be followed by resumption throughout the country, and the early rostoration of confidence. CINCINNATI, O., Oct. 9.-The financial trouble is beginning to show itsolf in a desire on the part of a number of our manufacturers to curtail their working force or reduce the time employed by operatives. This is no more due to the trouble of procuring currency here than to the effect they approhend the stringency will have on the trade of the interior. A few manufacturers have alrendy reduced the working force, and others will follow unless a change comos next week.