Bank of the Commonwealth (New York, NY)

Episode Information

Episode UID
574533190885
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
57453319 hash
Start Date
September 20, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7e6d91130d10a66f

Response Measures

None

Description

The bank was a state-chartered institution (often referred to as the Bank of the Commonwealth) that failed during the Panic of 1873 due to illegal over-certification of checks for the firm Edward Haight & Co.

Events (4)
1. September 20, 1873 Run
Cause
Macro News
Cause Details
Systemic financial panic in New York (Panic of 1873) following the failure of Jay Cooke & Co.
Newspaper Excerpt
the continued run on the Fourth National Bank, the suspension of the National Trust Company, of the Bank of the Commonwealth
Source
newspapers
2. September 20, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Over-certification of checks for the firm of Edward Haight & Co. which could not be made good.
Newspaper Excerpt
The suspension of the Trust Company was followed by that of the Bank of the Commonwealth, which closed its doors at an early hour.
Source
newspapers
3. September 22, 1873 Receivership
Newspaper Excerpt
This bank is now in the hands of the temporary receiver, Mr. Meigs, the Bank Examiner.
Source
newspapers
4. October 13, 1873 Other
Newspaper Excerpt
The report sustains the action of the Comptroller of the Currency, endorses the statements of the Receiver, and concurs with the Loan Committee in the opinion that the bank should be wound up.
Source
newspapers

Newspaper Articles (22)
1. September 21, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 21, 1873

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MEASURES FOR RELIEF. NEW YORK. # UNPRECEDENTED PANIC AT THE OPENING OF THE STOCK EXCHANGE-GREAT TUMBLE IN VALUES-GENERAL DISASTER IMMINENT-THE EXCHANGE CLOSED -A STARTLING DEFALCATION-BETTER FEELING IN THE EVENING. [Special telegram to the Dispatch.] NEW YORK, September 20.-To-day has witnessed one of the greatest panics that ever occurred on the Stock Exchange. At the opening there was an improvement of two to six per cent. in values, and great hopes were entertained that the end had been reached. But these hopes were soon destroyed when it was announced that the Union Trust Company had decided to stop until Monday. The suspension of the Trust Company was followed by that of the Bank of the Commonwealth, which closed its doors at an early hour. The excitement and panic which followed the suspension of these institutions were beyond description. The Stock Exchange RESEMBLED A MAD-HOUSE, and the streets were blocked with people, all laboring under great excitement and frenzy. Prices tumbled from two to sixteen per cent., and stocks were slaughtered without any apparent regard to values. Amid the surging of an excited crowd in the Stock Exchange and continued destruction of values there were some few cool and level heads. These men conceived the idea of imitating the Vienna plan of CLOSING THE EXCHANGE, and immediately the Governing Committee was convened to take action thereon. In a few moments the Board was called to order, and from the rostrum the announcement was made that the Exchange would be closed until further orders from the President. This was received with great joy, and the Exchange resounded with cheers. The gong was sounded, and in less time than it takes to record the fact the wild excitement was over, the surging crowd of frantic brokers disappeared, and the Stock Exchange was nothing but a deserted hall. All this happened in so short a time that it seems almost impossible, and only those on the spot can realize the remarkable change. All dealings on the street are strictly prohibited under penalty of expulsion, and therefore no business can be transacted. MORE SUSPENSIONS. Soon after the suspension of the Union Trust Company was reported the suspension of the National Trust Company was announced, and this served, if possible, to intensify the excitement. The failures of brokers then began to be announced, and in a short time the following names were read out: C. G. White & Co.; Ketchumn & Belknap; W. G. Broadhead & Co.; Saxton & Rogers; Williams & Bostwick; Miller & Walsh; E. Haight & Co.; Laurens & Joseph; P. M. Myers & Co.; Taussig, Fisher & Co.; Feasing & Bellinger; S. B. White. It is impossible to say where the list would have ended had not the Governing Committee of the Exchange decided to close the institution until the panic was over. About this time UGLY RUMORS BEGUN TO GAIN CURRENC. on the street of irregularities in the Union Trust Company, and it is found that Carleton, the secretary, son of Rev. Dr. Carleton, of the Methodist Book House, was a defaulter, some fixing the amount at $250,000, others at $500,000. It was not known that Carleton was a defaulter until some time yesterday afternoon, when his absence begun to give rise to suspicions. He remained at his desk until 12 o'clock yesterday, conversing freely but exhibiting signs of excitement and trepidation. He left the Trust Company saying he was too unwell to remain, and desired some rest. When it was necessary to consult him in regard to certain matters, he was not to be found, and then it was that the trustees began to SUSPECT HE WAS A DEFAULTER. Under a hurried examination into his affairs it soon became quite certain that he had

2. September 21, 1873 The New York Herald New York, NY
Article from The New York Herald, September 21, 1873

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day Cooke, - ee OR London, Collapsed. Failures Throughout the Country Consequent Upon the Great Crash. Yesterday was another day of intense commotion in Wall street. More important failures startled the street, and between the fast recurring announcements of suspensions came a rumor of a heavy defalcation in the Union Trust Company. Fraud and lailure went hand in hand. The news that the Clearing House threw out the certifications of the North American Bank, the Mechanics' Association and Bank of the Commonwealth, in other words declined to be responsible for the credit of these institutions, had a very alarming effect at first, but a much quieter feeling eventually succeeded. There were the same large crowds as on the day before, perhapseven larger, for the weather was every way desirable, and everybody who had time to spare made it a point to look in at Wall street for a moment or two. The phrase, "The bottom has fallen out of the street," suffered nothing from repetition yesterday. It seemed to be in every man's mouth who had any opinion to give. It would be an improvement on the idea conveyed by this expression to say, "The false bottom has fallen out of the street," and the solid one remains for all good and practical purposes. The best experienced men who can control their thoughts at this juncture and look a little before and behind, have no apprehensions of the future. Frothy speculation will disappear after this crisis is over. Honest and legitimate banking business will be more honored and regarded. Wildcat railroad bonds will be relegated to the sawdust operators. The street will be swept of the decoy ducks who have made our financial practices the reproach of the world. It will do no good for people to cherish unnecessary alarm over what has happened, and the truth is every way the eye glances something is to be met of assurance that the collapse of a few banking firms does not imperil the prospects of the community. The country was never so rich, and the present flurry will be soon ended if there is patience and moderation in an average degree. In the succeeding columns will be found the fullest particulars of the day's doings, the trouble with the Union Trust Company, the continued run on the Fourth National Bank, the suspension of the National Trust Company, of the Bank of the Commonwealth and the embarrassment of the Mechanics' Association. The principals of the suspended firms and the presidents of the most prominent Wall street banking firms and the management of the Stock Exchange, as will be seen, have been interviewed and their opinions and statements given. Mr. Vanderbilt, as may be observed, is not disposed to be too communicative. He is satisfied that the Union Trust Company. unless a defalcation has happened in its accounts, is able to meet its engagements. The following are the names of firms that have failed or suspended:NEW YORK FAILURES. Jay Cooke & Co., No. 5 Nassau street. Fisk & Hatch. White, Defreitas & Rathborne. Beers & Edwards. Eugene J. Jackson. Thomas Reed & Co. W. H. Warren. George Bolton, Alley & Co. Greenleaf, Norr 8.& Co. Theodore Berdell. Amos M. Kidder, S. H. Smith & Seaver. Day & Morse. Hay & Warner. Vernam & Hoy. Fitch & Co. W. E. Conner. Whittemore & Anderson. Jacob Little & Co. E. D. Randolph & Co. C. G. White & Co. Ketchum & Beiknap. W. Moorehead & Co. Saxton & Rogers. Williams & Bostwick. Miller & Walsh. E. Height & Co. Lawrence Joseph. P. M. Myers & Co. Tansig, Fisher & Co. Fearing & Dunning. C. G. White. Marvin & Brothers. Union Trust Company. National Trust Company. Bank of The Common&ealth Bank of North America. LONDON FAILURE. Jay Cooke, McCulloch & Co. PHILADELPHIA FAILURES, E. W. Clarke & Co. De Haven & Bro. Gelbough, Bond & Bro. George H. North. J. S. & H. E. Yerkes. Charles P. Bayard.

3. September 22, 1873 Evening Star Washington, DC
Article from Evening Star, September 22, 1873

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Lished action of the national banks ot New York to draw on their reserve if necessary and stand by each other in meeting any "run" that might be made on a particular bank, contributed to satisfy the public mind. # THE NORTHERN PACIFIC RAILROAD. General Nettleton, the agent of the Northern Pacific raiload, gives this information in regard to the condition of that company: "The rail- road company loses nothing by the suspension of the banking-house of Jay Cooke & Co., as it is largely indebted to the latter. The railroad company has no floating debt of any conse- quence aside from what it owes Jay Cooke & Co,, and has few liabilities falling due before January next, when a year's interest is to be met. As this is three months off it is expected that the stockholders of the company will by that time have completed other financial ar- rangements which will provide for future needs." # LIST OF SUSPENDED FIRMS. The following is a complete list of the names of firms that failed or suspended: New York Failures. Jay Cooke & Co., No. 5 Nassau street; Fisk & Hatch, White, Defreita & Rathborne. Beers & Edwards, Eugene J Jackson, Thomas Roed & Co., W. H. Warren. George Bolton, Alley & Co., Greenleaf, Norris & Co., Theodore Berdell, Amos M. Kidder, S. H. Smith & Seaver, Day Morse, Hay & War- ner, Vernam & Hoy, Fitch & Co., W. E. Con ner, Whittemore & Anderson, Jacob Little Co., E. D. Randolph & Co., C. G. White & Co., Ketchum & Belknap, W. G. Moorehead & Co., Saxton & Rogers, Williams & Bostwick, Miller & Walsh, E. Haight & Co., Lawrence Joseph, P. M. Myers & Co., Tansig, Fisher & Co., Fear- ing & Dunning, C. G. White, Marvin & Bros., Union Trust Company, National Trust Com pany, Bank of The Commonwealth, Bank of North America. Philadelphia Fatures.-E. W. Clarke & Co.. De Haven & Bro., Gelbongh, Bond & Bro.. George H. North, J. S. & H. E. Yerkes, Charles P. Bayard, John P. Loyd, Henry H. Douglase H. H. Bull, T. C. Knight, Henry L. Fell, Union Bank Company. Albany Failure. T. Squire & Co., bankers. Chicago Failure. Franklin Bank Company. Woburn, Mass., Failure.-Horace Conn, leather manufacturer. Toronto, Canada.-H. J. Morse & Co., bankers Williamsport, Pa.--Powell & Co., bankers. St. Louis. Taussig, Gemp & 00. # Causes and Effects of the Crisis, HOPEFUL VIEWS OF THE NEW YORK HERALD. In its money article of yesterday, the New York Herald says the panic started with the failure of one or two parties identified with incomplete railroads. "The stock market at the time was in a feverish condition, responsive to slight causes and tremulous in the extreme. Its strength consisted in two or three stocks, firmly upheld by great operators. They had come to be regarded as the key-note of the market. Even these, however, could not at last resist the pressure. They "broke," and in doing so naturally carried with them the entire list of speculative securities. Thus the weakness of a few railroads has extended through the entire network of our local finance. The pulling down of one or two great houses produced distrust Money, always timid, retreated into private re- cesses. Depositors commenced to run upon banks; the banks have been unable to afford their usual accommodations, have refused each other's checks, though certified, and at last, as a consequence of universal doubt, have been com- pelled in self defence to arrange with the clearing house for the issue by the latter of certain loan certificates based on acceptable assets, which are to be received in the settlement of all clear- ing house differences in the place of legal-ton- der notes. Practically this action means the expansion of the bank credits and the sens mixing of legal tenders. It aids the banks, but it is yet to be seen what facilities are thus ex- tended to depositors and business men. As re- gards the savings banks, there is no good rea- son why, if the officers of the same have rigidly done their duty, there should be any cause of alarm. Their investments are regulated by law, and they are not such as ordinarily fluctuate in value. Hence a run on them is both injudicious and unwarranted by events. The depositors should understand that thus far our financial troubles result only from local speculation. Crops are good; business is first-rate; our mer- chants have rarely done better than they are doing this season. They are not suffering from this temporary disturbance, and we can safely count on a large fall trade and handsome re- turns."

4. September 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 22, 1873

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the banks, by which they may be placed in an impregnable position, and the proposals of the Government to buy $10,000,000 of bonds thereby rendering available a large part of the greenbacks now in the Treasury. Consequently matters began to assume a pleasing aspect as business opened. The streets in the vicinity of the Stock Exchange were crowded with people, all on the qui vive for what the day might bring forth. The lovers of exeitement and sensation had not long to wait, for it soon became known that the Union Trust Company had suspended, at least until Monday morning, and this was shortly followed by the announcement that the Bank of the Commonwealth had closed its doors. This was supplemented by the throwing out of checks of certain banks at the Clearing-house, while at the same time a heavy run was made on the leading banking houses and prominent national banks. Following in the train of this came the announcement of several new failures. The general feeling of further distrust found expression in the reckless pressure of stocks on the market, and wild and indiscriminate sacrifices were the immediate result. At this time the street was filled with flying stories of the suspension of banks and banking-houses, until the excitament exceeded anything heretofore witnessed. It became painfully apparent at this juncture that in order to protect matters from going to utter ruin some decided step was necessary. Recognizing the exigencies of the case, the Governing Committee of the Stock Exchange called a meeting at which it was deemed advisable to close the Exchange at once. This was accordingly done about mid-day. the Board adjourning until further notice, while members were forbidden to trade in the outside market under penalty of expulsion. The Board was in session therefore only tbout two hours, but in this time we have scarcely ever seen such a rapid decay in values. The fluctuations were violent and 80 frequent as to make an analysis of the business impossible. We therefore present our usual table showing the opening, highest. lowest, and closing prices of active stocks, as follows:

5. September 23, 1873 The New York Herald New York, NY
Article from The New York Herald, September 23, 1873

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The Union Trust Company in the Hands of a Receiver. Six Millions of Currency Disbursed by Sub-Treasury. Meeting of the Jay Cooke Firm To-Day. "E"CRISIS" IN THE COURTS The change in the aspect of Wall street from the turmoil and painful agitation of last week was strikingly noticeable yesterday. The closing of the Stock Exchange, the government declaration to buy an unlimited offer of five-twenties, the action of the banks in resolving to issue loan certificates, and the intervention of the Sabbath all contributed to calm the troubled waters and induce a better and clearer view of the situation. Friday and Saturday will long be remembered for the fierce and unprecedented excitement of the street. It was uncommon and at times feariul enough to make men tremble for the prospect ahead. A deep pall of impenetrable clouds hung over the monetary skies, and no where seemed to appear a solitary ray of light to illuminate the course of the future. Sunday evening the darkness broke, and Monday morning Wall street, with a few exceptional features wore its OLD-TIME APPEARANCE. There were no hurrying crowds, no pale and anxious groups, no heavy fringe of vacant eyed spectators on the sidewalks. In fact, had not the Stock Exchange been closed there was little to indicate that the street had so recently passed through a terrific financial nurricane. A tolerable calm settled down in the morning, and there was every appearance when the day ended that the period of panic was passed, and that with ordinary prudence the old state of things will in a few days prevail. THE ACTION OF THE PRESIDENT on Sunday night was very generally canvassed, but the preponderance of opinion was in favor of the course he selected. Had he yielded to the clamor of the big guns of the monetary world and stepped outside the law by loaning the currency reserve to the banks, those who, in the rash thought of the moment, implored him to commit the illegality might have been the first to condemn him. The feature of yesterday, in connection with the panic, was the unusual withdrawal of money by depositors from the savings banks. This is to be deplored, for of all other institutions the savings banks should be triply guarded from the disastrous innuence of a panic originating among speculators in Wall street. HERALD reporters visited yesterday THE SAVINGS INSTITUTIONS on the east and west side of town, and furnish accounts of what they saw in another column. The policy of keeping THE STOCK EXCHANGE closed until further notice met with general approval, as there is yet some time needed to arrange matters and allow the excitement of the hour to die out. When this is accomplished, and when the Exchange opens again, reasonable prices for settlement can be made. THE GOLD EXCHANGE voted to keep the Gold Room open, but to allow no dealings in gold on the penalty of loss of member ship. It was resolved to place the quotation of gold at 112 as the price and as a basis of clearance. There IS still a good deal of talk over THE PLAN DISCUSSED at the Fifth Avenue Hotel, Sunday, to meet the crisis. It appears the first proposition was that the Treasury should put anywhere from $20,000,000 to $40,000,000 legal tender in the banks as a deposit for which the associated banks should be responsible, Commodore Vanderbiit offering to deposit with the sub-Treasurer $10,000,000 as an additional guarantee. The proposition was declined because of no legal authority for the act, and for the reason that a few banks would reap the whole benefit and profit, to which the banks, not government depositories, would not assent. The plan that was finally agreed upon was that the Treasury should buy five-twenty bonds at fixed rate, privately, as shey were offered, until, if necessary, the legal tender reserve and the currency balance were exhausted. To this plan, which, it cannot be denied, works so far only ID milk and water way, the objections are that it obliges people to sacrifice the best securities in the market and which are sale to keep any time that the people who hold these bonds are not those who need the money, and that the institutions having these bonds, where they are savings banks, will probto use their reserved right of thirty to notice than ninety ably prefer days' from their depositors, bonds, and rather that accept a low price for institutions like insurance companies will consider it the most prudent thing to hold on to their bonds. The Treasury received offers for $3,339,150 PIVE-TWENTY BONDS YESTERDAY, being the issues to which purchases were these confined. Along with the amount taken in on Satbe about $6,000,000 currency will thrown urday, on the market, from which it be expected much relief will be may With the exception of the Bank experienced. North America, the Bank oi the Commonwealth of and the Fourth National Bank, there comparatively no run on the rest of the banks. The com- exhouses abstained from increasing the citement, mercial and few large amounts were withdrawn dein cases where business imperatively except manded. To-day will, in all likellhood, be squiet as yesterday. It will be devoted chiefly to consult tation, and the opinion prevails that the Stock Exchange will remain closed, and as consequence, stock there will be no quotation the volume of of transactions will be reduced. The condition THE TWO TRUST COMPANIES' affairs will be found narrated in another place, and be the statement of Jay Cooke & Co. cannot tail to read with interest. The HERALD reporters supply a mass of information, gathered from bankers and others. on the effect of the panic on American securities abroad, and the views of leading merchants on the situation are also given. The way in which the Brooklyn banks weather the storm is also told, and the reader 18 referred to the financial column for further statistical and speculative information. THE JAY COOKE FIRM. Messrs. Pitt Cooke & McCulloch arrived yesterday by the Egypt. To-day they will meet the other Cooke & affairs of the to in partners consuitation gentlemen in decline the on firm the or Jay speak firm. reference Co. Both and to hold these the a crisis. They LAT that were at sea when the storm

6. September 23, 1873 The New York Herald New York, NY
Article from The New York Herald, September 23, 1873

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Bank of the Commonwealth. This bank is now in the hands of the temporary receiver, Mr. Meigs, the Bank Examiner. It is already known that the cause of the suspension of this institution was the fact of having over-certified for the firm of Edward Haight & Co. on Satur. day. Mr. Haight was one of the bank's best cus. tomers, and had at one time been its president. When called on the firm was unable to make the loan good. However it may be well to state that since the close of the bank on Saturday several payments have been made OR the o verdraft, and there can be little doubt that ultimately the whole of the amount now in the hands of Mr. Haight will be turned over to the bank. The securities now held by the bank are sufficient to pay one-half of the amount. It is stated on good authority that the other creditors at Edward Haight & Co. will be dealt with fairly, an equitable adjustment being made all round. With the exception of this overdraft by this customer the accounts. of the bank show well, very few over-certifications having come to light, and they only in small amounts, incidental to almost every bank. It is stated that the bank will pay every cent iPowes to depositors, and that a permanent receiver has been appointed in the person of Isaac H. Balley, formerly of the Custom House. A statement will. no doubt, be made very shortly showing the condition of affairs. When the moneys in the bank are paid to the depositors it will, no doubt, serve further to alleviate the monetary distress. It is one more of the indications, say people who are posted, that the panic is rapidly blowing over.

7. September 24, 1873 The New York Herald New York, NY
Article from The New York Herald, September 24, 1873

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BANKING INSTITUTIONS. Among the banks the feeling in the morning was very good. They cleared in the regular way, excepting that they paid into the Clearing House the new loan certificates instead of money. But all went on weil, and not the slightest misunderstanding existed between any of the banks and the Clearing House. Several of the bank presidents whom the reporter saw expressed themselves as being quite confident for themselves. In one case it was stated that one brokerage firm had refused to accept the certified checks of another upon the Mechanics' Banking Association. The reason for this was not given, and there seemed to be none for the action, because this bank is generally accredited with being one of the most solid in the street. Officers of banks as a rule state that if the Stock Exchange reopens they will be obliged to call in their loans from brokers, who, if they do not respond, will have their securities sold under the hammer. This will be enough of itself to keep the Stock Exchange closed, it IS said, as, if such action as this took place, universal suspension would be the only alternative. FOURTH NATIONAL BANK. It was at one time stated late in the afternoon that the Fourth National Bank had suspended. A reporter of the HERALD called at the establishment and saw the Cashier, Mr. Lane, who stated that there was not the slightest truth in the rumor, and at the time he pointed the reporter to a crowd of men and boys putting in their deposits. The look of them was very healthy. The reporter interviewed the Cashier about the statements that the Fourth National had thrown out the checks of Henry Clews & Co., and asked the reason. The Cashier said:"The statements of our having done this are quite true. We have been clearing for Henry Clews & Co. On Friday last Mr. Clews overdrew his account here $165,000, against which he, of course, had securities with us. This morning checks to the amount of $185,000 came through the Clearing House upon us from Henry Clews & Co., and, feeling we could not compromise ourselves any further, we threw them out. Mr. Clews then came here and begged us to let him have $200,000 cash on certain securities offered us, but we refused the transaction." REPORTER-Were these securities good? CASHIER-Well, I don't think they were. At all events they didn't please us and we were obliged to refuse the accommodation. or course when these checks were returned alshonored to his house he could not have continued any longer. The report as to our failure probably arose from some mention of this. We hold ample securities of the firm to make good whatever they owe us, and offered to lend him some upon which he might realize. But we suppose he couldn't. Money is hard to get just now. BANK OF THE COMMONWEALTH. At this suaneded bank Mr. Isaac H. Bailey the

8. September 24, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 24, 1873

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deliver from a hundred thousand to half a million dollars' worth of stocks or gold per diem; larger houses, proportionately larger values. Purchases are frequently made in costly lots, requiring checks for sums running from $50,000 upward, and even as high as ten times that amount. Almost every banker or broker in good credit has an arrangement, definite or implied, with his bank, by which he is allowed to largely overdraw his balance -in payment for blocks of stock-with the understanding that before 3 p. m. of the same day he shall deposit the certified checks of other people, in amount sufficient for the redemption of his own checks and the maintenance of a respectable "balance." On the latter the bank makes its profit. Large houses often open accounts of this sort with several banks at once. Not only the suspended Bank of the Commonwealth and the Bank of North America have been in this practice for years, but, unless we are misinformed, almost every institution in their vicinity desirous of brokers' accounts. Among those who "certify"-to use the Street phrase-are the Fourth National, the Mechanics' Banking Association, the Bank of NewYork, the Bank of America, the Bank of the State of New-York, the Bank of the Republic, the Corn Exchange Bank, the Continental, and various others. All are more or less in one category. Each relies upon the honor of its customers to make the morning's overdrafts good; and, truth to say, in many years this reliance has not been without foundation. Instances are few and far between where dishonorable advantage has been taken of bank favors, and each case has been visited with severer penalty and disgrace than any form of commercial default. With respect to the Bank of the Commonwealth it is doubtful, to say the least, whether an overdraft was the main cause of its suspension. Mr. Haight's deficit was less than $200,000, about half of which has been made good, and it is perfectly well understood that nothing but the suddenness and severity of the panic prevented him from making his account good at the] usual hour. The action of two brokers, on Monday, with respect to the Bank of North America, was deliberate, and intended to secure themselves from loss by any disaster to that institution. The result proved it to have been needless, and it has received the censure of the Street. The whole system is perilous and illegal. There should at least be some provision by which the united banks should make themselves responsible for each other's certifications; but even this shadow of security is wanting for all parties concerned. Suppose that 400 houses overdraw, each, an average of $25,000 daily (and these figures do not half reach the truth), and it is seen that a dozen Banks "certify" to the extent of ten millions beyond their customers' deposits. When, as now, they suspend this usage, all business has to stop. Some method should be adopted, like that upon the London Bourse, by which "settlements" can be effected at stated periods. Three-fourths of the clearances would then be arranged by payment of differences, and there would be no need for "overdrafts" of any kind.

9. September 26, 1873 The Cambria Freeman Ebensburg, PA
Article from The Cambria Freeman, September 26, 1873

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THE FINANCIAL CRISIS.-The failure of Jay Cooke & Co., which occurred on Thursday of last week, has been followed by some twenty odd others in New York, aud ten or fifteen in Philadelphia, and quite a number in various other parts of the country. The Cookes failed because they were carrying the bonds of the Northever Pacific railroad, which was paying them nothing on the capital invested, and which bonds could not be negotiated. The general business interests of the country will not suffer as in the panic of 1857, when the State banks were in an unsound condition. It is even thought that these failures will result in good to the country, as it will sweep out of existence the leaky and doubtful houses and enterprises, and leave the healthy ones in operation. It is also believed that the crisis has passed, and that the worst has been realized. The following is a full list of reported suspensions as far as can be ascertained: INDIVIDUAL BANKERS AND BROKERS IN NEW YORK. George B. Alley & Co., Beers & Edwards, Brown, Wadsworth & Co., Theodore Berdell, W. E. Connor, Jay Cooke & Co. Day & Morse, Fisk & Hatch, Fitch & Co., Fearing & Dellinger, Greenleaf, Norris & Co., Hay & Warner, Edward Haight & Co., Eugene J. Jackson, Lawrence Joseph, Amos M. Kidder. Kenyon, Cox & Co., Ketchum & Belknap, Jacob Little & Co., W. G. Moorehead & Co., Miller & Walsh, Peter M. Myers & Co., Marvin & Brothers, Thomas Reed & Co., E. D. Randolph & Co., S. H. Smith & Seaver, Saxton & Rogers, Tausig, Fisher & Co., Vernam & Hoyt, W. H. Warren, White, Defreitas & Rathborne, Whittemore & Anderson, Chase G. White & Co., Williams & Bostwick. CORPORATIONS IN NEW YORK. Bank of the Commonwealth, National Trust Company, Union Trust Company. FAILURES IN PHILADELPHIA. Charles P. Bayard, H. H. Bull. E. W. Clark & Co., DeHaven & Bro., Henry M. Douglass, Henry L. Fell, Gelbough, Boud & Co., T. C. Knight, John P. Lloyd, Geo. H. North, J. S. & H. E. Yerkes, Union Banking Co. MISCELLANEOUS. Thomas Squires & Son, Albany, N. Y.; Horace Conn, Woburn, Mass.; Franklin Banking Co., Chicago, Ill.; Taussig, Fisher & Co., St. Louis, Mo.; Powell & Co., Williamsport, Pai; H. J. Morse & Co., Toronto, Canada; City Savings Bank, Burlington, Iowa. -There was a heavy gale in South Carolina and Georgia on the night of the 19th. The storm along the Gulf railroad was fearful. At Thomasville much damage

10. September 26, 1873 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, September 26, 1873

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The N. Y. Herald thus sums up the financial situation in New York City : So far the banks are not affected, except one or two, which were closely connected with the operations of the speculative brokers. The trust companies which have failed owe their downfall to similar causes, and in one case, partially at least, to defalcation. Outside of these there have been no failures. The mercantile interest is as safe as in the best of times. The railroads, except the wild-cat affairs which were made the basis of reckless speculation. are uninjured. Credit generally is unimpaired. Nothing more serious has happened than the overthrow of a few houses which were doing a notoriously unsafe business. It was a mere financial thunderstorm, passing through Wall street and toppling over some unsafe buildings, but leaving the substantial houses in as good condition as before. Already the storm is almost past, and the sky will soon be serene and fair and the atmosphere purer and better, if wise counsels prevail. There is no occasion whatever for a general panic. The real business interests of the country cannot suffer while the embarrassment is confined to the speculators in worthless railroad bonds and the gamblers in valueless stocks. It will be a wholesome lesson to all classes of business men if the storm is confined to those who courted it, and when it is over no one will regret that they who sowed the wind were compelled to reap the whirlwind. Few of the New York brokers know where they stand. On Saturday the best securities went begging at the lowest rates. There was no fixing values on any stocks, and the stock exchange was wisely closed to give men time to recover from their distrust and gather their scattered senses. A. few more of the weakest houses will go down when settlements are made. Some of these whose failures have been announced from the board will recover and go on. Not a single mercantile house, savings bank or other institution doing legitimate trade, has fallen. Excitement and distrust, caused by wild speculators, extended the panic beyond the stock exchange and three banks suffered from severe runs upon them. The Union Trust Company was weakened by the discovery of a large defalcation aggregating $800,000 and the impossibility of realizing on heavy call loans to the Lake Shore Railroad Company, and it suspended. The Bank of the Commonwealth was weakened by the payment of an overdraft of $220,000 of a house which has suspendad. The National Trust Company, with $800,000 in governments on hand, could not realize a dollar on them, and wisely closed its doors until it could dispose of them. Runs on the Fourth National and Manhattan banks laughed to scorn by those institutions. the the went on During were morning banks the principle of Fisk "Each man to drag out his own corpse. and refused each other's checks, but later a meeting was held, and concerted action agreed on. and subsequentt ly there was no further trouble. The purchase of bonds by the government also aided to break the force of the storm.-N. Y. Special.

11. September 27, 1873 Delaware State Journal Wilmington, DE
Article from Delaware State Journal, September 27, 1873

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NEW YORK BANKING. The System of Certification-Over-drafts the Rule and Not the Exception. : [From the New York Tribune.] From the comments made upon the cases which the panic has brought to light of brokers' over drafts, it is evident that the public knows verv little of the system under which Wall street houses transact business, and effect daily "clearances" of an enormous volume of stocks. The Press is united in just reprehension of such banks as have einbarrassed themselves by certifying checks for customers, which the latter have failed to make good by adequate deposits : but these banks are not exceptional. They are no more blameworthy than their more fortunate neighbors, whose customers have been strong enough and honorable enough to prove that the contidence extended to them was not misplaced. It is the whole system of Wall street "certifications " that is at fault. So remarkable is the working of this system that business men are astonished when Informed with respect to it for the first time. A brief explanation of its nature would seem to be in order during the present crisis. Temporary "overdrafts" are the rule, and not the exception, with most of the banks in the vicinity of the Stock Exchange. No other way has yet been devised through which -8 broker,s " clearances" can be effected. Most houses with an average deposit of from $10,000 to $20,000 in bank have to receive and deliver from a hundred thousand to half a million dollars' worth of stocks or gold per diem; larger houses, proportionately larger values. Purchases are frequently made in costly lots, requiring checks for sums running from $50 000 upward, and even as high as teu times that amount. Almost every banker or broker in good credit has an arrangement, definite implied, with his bank, by allowed to which he or is largely for blocks overdraw his balance-In payment of. stock-with the understanding that before 3 p m. of the same day he shall deposit the certified checks of other people, in amount sufficient for the redemiplion of his own checks and the mainte nance of a respectable "balance." On the latter the bank makes its profit. Large houses often open accounts of this sort with several banks at once. Not only the suspended Bank of the Commonwealth and the Bank of North America have been in this practice for years, but, unless we are misinformed, almost every institution in their vicinity desirous of brokers' accounts. Among those who ' certify"- use the street phrase-are the Fourth National, the Mechanics' Banking Association, the Bank of New York, the Bank of America, the Bank of the State of New York, the Bank of the Republic, the Corn Exchange Bank, the Continental, and various I others. All are more or less in one category. Each relies upon the honor of its customers to make the morning's overdrafts good and, truth to say, in many years this reliance has not been without foundation. Instances are few and far : between where disbonorable advantage has been taken of bank favors, and each e case has been visited with severer penalty h and disgrace than any form of comtner : cial default.

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

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AROUND THE BANKS. Great quietude was observable at the bank of Henry Clews & Co., but considerable importance was attached by the firm to the following circular. which was issued in the early part of the day:BANKING HOUSE OF HENRY CLEWS & Co., 32 WALL STREET, NEW YORK, Sept. 26, 1873. To THE CORRESPONDENTS AND DEPOSITORS OF HENRY CLEWS & Co.:As already announced, the presentextraordinary financial crisis has rendered it necessary for us to make a temporary suspension of payments. We DOW beg to announce that we propose to continue our business as heretofore, by receiving special deposits ID trust for new accounts, pledged only to payments dra wn against such new accounts, and that we shall collect and realize upon our loans, securities and other assets, as fast as possible, and make payments pro rata as the same shall be realized on, until the entire amount shall be liquidated-interest being paid as heretofore. Should this arrangement meet your approval and you enter heartily into our proposal. our business can be resumed at once and continue without further delay. Our numerous depositors and friends in this city approve entirely of this plan and have already signified their readiness to continue their deposits and business with us as proposed. We trust you will favor us with an answer at the earliest practicable moment Very respectfully yours, HENRY CLEWS & CO. HOWES & MACY. At this bank there were some indications of activity, and Mr. Macy said that the effect of the circular issued yesterday by the firm had been to inspire confidence among their customers, and, though the circular had only been sent out the previous evening, there had been a very much larger response by depositors than could have been reasonably anticipated. There was a general expression of confidence in the ability of the house to resume business wholly, as it has, in effect, partially already done. FISK & HATCH. At this banking house clerks were busily engaged preparing a statement for the public, which will be ready, probably, to-day. This firm express the fullest confidence in their ability to resume business very shortly, and state that their assets are very much beyond their liabilities. BANK OF THE COMMONWRALTH. The Bank of the Commonwealth had its doors partially opened, and throughout the day there was a large number of inquirers; but, from the fact that the affairs of the bank are still in the hands of a receiver, Mr. Bailey, little that was satisfactory could be obtained in the shape of information. Mr. Bailey said he was unable to state when his report would be ready. The President and directors of the bank are making an effort to obtain control of its affairs, and it is believed that they will be successful.

13. September 29, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 29, 1873

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NEW YORK. Special Disvatch to The Chicago Tribune, NEW YORK, Sept 28.-The bright prospects with which the wook closed for Wall street continuo to-day, and there is visible nothing of the intense excitement which characterized last Sunday. The street yesterday, and the hotels today, have been dull in fact, business on tho street le 80 far suspended that the excitement thore, on Saturday, was less than on ordinary days at this time of the year. The prospects for tho week are that BUSINESS WILL RESUME WITHOUT DELAY or much excitement, unless in the Stock Exchango. Tho difficulty in selling foreign exchange Becms to have been overcomo in a large measure, and heavy shipments of allsorts of grain were made yesterday. The demand for freight room WAS unusually heavy at generally advanced rates. The suspended firms are rapidly reorganizing, and promise a resumption of business before the end of the week. Howes & Macy have practically resumed already. Clows & Co. say they will bo ready to begin anow before the statement of their affairs is ready for publication. Fisko & Hatch, more conservativo, declino to begin again until all their past indebtedness is cleared off. Jay Cooke & Co. promise n favorable showing soon, but it is believed they will be kept down by the Northorn Paciflo Railroad. The Union Trust Company will get on italegengain. It is naturally a strong concern, each sharoholder being hold liablo for the amount of his stock; but the Bank of the Commonwoulth is probably a hopeless wreck. The opening of the Stock Exchange on Tuesday, BB resolved on, creates great unoasinoss, both in stock and commercial circles, particularly in the latter, whose members anticipate renowal of excitement, which may again extend to the commoreial exchanges and produce great distross to morcantilo houses. The Produce and Gold Exchanges RESUMED WITHOUT DISARTROUS RESULTA, and this fact encourages the hope that 110 bad effects will follow the roopening of stock gambling. The announcement that business will be resumed at the Stock Exchange implies that the conflicting and confused nocounts of the brokers have boon straightened out and settled. Otherwise, the opening would be only a signal for & renewal of the pauio, and of a fierce light between bulls and boars. Now, it is hold, there is little cause for controversy on the Bourne, and EVERYTHING PROMISES PEACE and quietness, at loast until the futuro shall divido the members into distinct parties again. It in claimod by dealers that business, for some time, at least, will be conducted with more modoration than formerly. Dr. Thomas Carlton. on being asked if he

14. October 1, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 1, 1873

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New York Items. NEW YORK, September 30.-Wild steers killed two children in the streets this morning. The September statement will show an increase of the debt. Custom receipts have diminished one-half since the panic. Henry J. Brooks, leather-dealer, has failed. Admiral Winslow, who commanded the Kearsage in the fight with the Alabama, is dead. Application was made to-day in the United States Circuit Court for an order enjoining the Controller of Currency and the receiver of the Bank of the Commonwealth from proceeding further in the matters of the bank; also for a citation to show cause why the receivership should not be vacated and the uppointment declared null and void on the ground that the bank never refused to redeem any of its circulating notes. The citaand Ripo tion was granted.

15. October 1, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, October 1, 1873

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NEW YORK. Citation Granted. NEW YORK, Sept. 30.-Application was made in the U. S. Circuit Court, before Judge Woodruff to-day, for an order enjoining the Comptroller of the Currency and Isage H. Bailey, Receiver of the Bank of the Commonwealth, from proceeding further in the matter of examination of the bank; also of a citation to show cause why the receivership should not be vacated and the appointment be declared null and void, on the ground that the bank never refused to redeem any of its circulation notes. The citation was granted and made returnable on the 7th of Oetober.

16. October 14, 1873 The New York Herald New York, NY
Article from The New York Herald, October 14, 1873

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MEMORANDA. The President of the Missouri, Kansas and Texas Railway has notified the Stock Exchange that the company has increased their stock $4,460,000 for a newly acquired road. The company now controls 785 miles of road. The total amount of stock is increased to $21,400,000, the total amount of bonds being $17,900,000. At the meeting of the Loan Committee of the Clearing House the rule restricting the calling in of the loan certificates to November 1 was rescinded. The New York Clearing House has adopted the report of the special committee appointed to reexamine the affairs of the Bank of the Commonwealth, which report sustains the action of the Comptroller of the Currency, endorses the statement of the receiver and approves the winding up of the bank. SALES AT THE NEW YORK STOCK EXCHANGE M. Monday, Oct. 13-10:15 A.

17. October 14, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, October 14, 1873

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NEW YORK. [Special to Press. To Be Wound Up. NEW YORK, Oct. 13.-The Clearing House today unanimously adopted the report of the special committee of five, appointed by the request of the late President of the Bank of the Commonwealth, to examine the affairs of that institution. The report sustains the action of the Comptroller of the Currency, endorses the statements of the Receiver, and concurs with the Loan Committee in the opinion that the bank should be wound up. [To the Associated Press.] A Dissatisfied Bishop. NEW YORK, Oct. 13.-A tardy publication is this morning given to letters of Dr. Tozer, late missionary Bishop of Zanzibar, addressed to Bishop Potter of this diocese and the Dean of Canterbury, finding fault with the latter for participating in the communion service of the Presbyterian church in this city on Sunday last. Dr. Tozer says this conduct of the Dean will be accepted in this country and England as sufficient reason and justification for the Episcopa+ lians attending the attractivr service of the Catholic church, and may be cited to pronounce the representation that the Episcopal church is a haven of rest for those tossed by the multiplicity of doctrine a delusion and a snare. Fall of a Building. The side walls of the four story storage building, No. 43 Tiffany Place, Brooklyn, occupied by Buchanan & Style, tobacconists, and Moses Taylor, soda importers, fell with a tremendous crash yesterday atternoon, carrying everything before them. The walls were twelve inches thick, and he structure was erected only four years since. Had the accident occurred on a week day meny lives would have been lost. Cheap Transportation. The federal council of the International Workingmen's Association had a meeting yesterday, when the committee on cheap transportation recommended as the best means of facilitating transportation, the opening of large water ways under control of the government at rates covering the running charges and repairs. Republicans Endorsed. Delegates to the Workingmen's Central Union met in this city to-day and unanimously endorsed the nominees of the Republican Convention at Utica, with the exception of State Treasurer. -A motion to substitute the name of Thomas F. Raines, Democratic nominee for State Treasurer, in place of Daniel G. Fort. Republican nominee, was carried by a vote of 150 to 37. Coroner's Vordict. The jury in the case of Ida W. Vail. who died from the effects of an abortion in Jersey City, rendered a verdict that deceased came to her death by an instrument in the hands of Mr. Cummins, assisted by Mrs. Crozier, alias Metzler, and that Alonzo E. Kimhal} was an accessory to the act. The case is now before the grand jury. On Strike. Over 200 men of the Cumming's Car Works in Jersey City are, on a strike, because the Company owes them two months wages. Work has ceased. Various Matters. The Tribune thinks that there will be a union of all the Democratic organizations in the city, in the coming election. The work of trying to secure five additional jurors for the trial of Stokes commenced this morning. Up to twelve o'clock no additional jurors were secured, Base ball-Mutuals 18, Atlantics 7. It is reported that ex-Gov. Hoffman will be nominated by the Democrats as successor to James Brooks for Congress, not S. S. Cox as heretofore stated. Nine jurors were obtained in the Stokes case when the court adjourned.

18. October 14, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, October 14, 1873

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COMMERCIAL AND FINANCIAL MARKETS BY TELEGRAPH. New York Money and Stock Market. NEW YORK, Oct. 13. MONEY-The oO money market worked closer to-day. At one time loans were as high as 3-16 per diem, but the bulk of business was at 1-10 and t. Greenbacks are still qupted at 1 and 1 premium, notwithstanding the express companies report more liberal receipts of currency to-day than for a long time past. A discount quoted at 12 to 24 per cent. At a meeting of the Clearings House Association a resolution was passed to the effect that the time for the redemption of the loan certificates originally fixed at November 1st, shall remain open: A report was also received and adopted in the matter of the Bank of the Commonwealth, which report confirmed the exhibit of the affairs of the bank, as made by the Receiver of the, Loan Committee. Bank officers report no material change in the condition of banks to day. STERLING EXCHANGE-Firm at 106ta 106+for 60 days and 107a107+ for sight. Commercial bills range from 4 to 5g. Custom receipts $409,000. Gold.-Stronger, advancing from 1081 to 108g, closing at 108g. Loans were from 3 to 7 per cent for carrying and flat for borrowing, the final rate was 3 per cent for carrying. Clearing $32,000,000. The Assistant Treasurer disbursed $155,000. One hundred and seventy thousand pounds sterling was received at the assay office to-day making the total to date 897,000 pounds. GOVERNMENT BONDS-Less active than usual early in the day, but prices advanc. ed in State dealings under an improved demand and an advance in gold.

19. November 8, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, November 8, 1873

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The Controller of the Currency states that the appointment of a receiver of the Bank of the Commonwealth of New York, about which there has been some comment, was on the ground of the over-certification of checks when the corresponding amount of currency was not on deposit. For the same reason a receiver has just been appointed for the National Banking Association of New Orleans.

20. November 26, 1873 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 26, 1873

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How Not to Do Anything. NEW YORK, Nov. 25.-At a meeting of the associated banks this afternoon, a full representation being present, action on the late report of the committee of nine was postponed for sixty days, and the committee discharged. The whole subject is again to be referred to a new committee to be appointed. The suspended Bank of the Commonwealth will pay a dividend to its depositors of 30 per cent, in De. cember.

21. March 9, 1874 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, March 9, 1874

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YORK NEW News Items. NEW YORK, March 7.-Gen. Schenck United States Minister to England and Ex-Senator Cattell, representing the Treasury Department in Europe, arrived to-day, and Caleb Cushing sailed for Spain. A dispatch from Meriden, Connecticut, says that this morning John Ann derson. recently discharged from the spoke shops in Wallingford, entered the shop and after speeking a few words angrily, fired twelve shots at the men, two of whom, Horatio Hall and Frederick Newton, were fatally wounded. Anderson then rushed from the building and cut his own throat. Captain Deaken, of the steamship City of New York, when about twelve miles from Havana back to that to to on city stowaways, out give just up discovered the authorities put board three The men are represented to have declared they were sympathizers with Cuba, and did not want to be drafted in Havana to go and tight against Cuban liberty, and that they would pay their passage money upon the arrival of the vessel at New York. On Monday next a dividend of fiftv per cent. will be paid depositors by the Receiver of the Bank of the Commonwealth. On the night of January 9th Adolph Hank called at the twentieth precinct strtion house, and informed the officers that his jewelry store had just been robbed, after he had been knocked down and gagged. The officers doubt ed the story, but being given the number of a back seen in the neighborhood on the night of the robbery, secured the driver and be in turn gave the names of five thieves, three of whom have been arrested. One of them wa formerly 8 keeper in the city prison. None of the property was recovered. The steamer Wisconsin is now several days overdue, owing entirely, the managers of the line believe, to the terrible weather. Bank Statement Loans, increase $230,500; specie, increase $2,585,800; legal tenders, decrease $259.900; deposits, increase $4.335,000; circulation, increase $132,700; increase of reserve $208,975.

22. March 9, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, March 9, 1874

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# LATEST. NEW YORK, March 7.-Money closed at 3 per cent on call. Exchange dull at $4.81½ for sixty days, and $4.88 for demand. Gold firmer in the late dealings, and closed at 111¾, the highest price made; lowest quotation, 111¼. Rates paid for carrying, 3, 2½, 2, 4, and 3½ per cent. Clearings, $66,000,000. Treasury operations for the week at the New York office included the disbursement of $3,500,000 gold for interest and in redemption of 5-20 bonds, and receipt of $2,438,400 for customs. General merchandise imports same time, including dry goods, $8,643.543. Produce exports, $3,934,686. Specie exports, $48,111. Governments closed dull and steady. State bonds quiet and nominal. Washington rumors that the currency is to be contracted, rather than inflated, and the strikes existing and threatened, had their effect to-day in the stock market. Soon after the opening, a violent raid was made against the Northwestern and St. Paul Roads in particular, and Western roads in general, carrying down for the time most of these stocks; but after noon, and especially towards the closing hour, an advance took place, showing a recovery of ¼ to 2⅝ per cent from the lowest quotations. The advance was most decided in shares that led the downward movement early in the day. From 10 to 2 o'clock, 192,000 shares were sold. On Monday next a dividend of 50 per cent will be paid to depositors by the Receiver of the Bank of the Commonwealth.