Fisk & Hatch (New York, NY)

Article Text

NEW York, Sept 29. Fisk & Hatch have failed. The failure of George Opdyke is denied. Gold, 121/2. SECOND DESPATCH. The excitement in Wall Street far exceeds that of "Black Friday." Two other failures are announced. Fisk & Hatch state their suspension is only temporary. Gold 13. The entire list of stocks fell, but subsequently rose, and then fell again, as new failures were announced. FOURTH DISPATCH. NEW YORK, 1.30 o'clock. It is said that if the Secretary of the Treasury refuses the demand for the issue of $10,000,000, in currency, there will be a general suspension of the banks. A meeting of the bank presidents is now in progress at the clearing house. The excitement is intense in Wall Street. Vernon & Hay have suspended. Fisk & Hatch's establishment is guarded by a strong detachment of police.

Article Text

EASTERN DISPATCHES

[SPECIAL TO THE GOLD HILL DAILY NEWS.] DOMESTIC INTELLIGENCE More Bank Failures. NEW YORK, Sept. 19.-Fisk & Hatch have failed, while Defreias & Rablion are announced suspended. Northern Pacific Railroad Affairs. Samuel Wilkerson, Secretary of the Northern Pacitio Railroad Company, speaking of the suspension of Jay Cooke & Co.. its financial agents, said he had no doubt of the future of the road but that it would be constructed that there were those supporting it who would not allow the work to be abandoned. The Board of Directors alone. represented Williams. The company had not a dollar of unpaid paper up to the present time; not a note of theirs was ever seen in Wall Street; not a bond was hypothecated by the company; and consequently the company had no liabilities hanging over It that might descend without warning. The interest on the company's bonds was not due until the 1st of January next, and that then it would undoubtedly be met. That portion of the road already built was earning more than was anticipated. That portion running to the Red river country had already developed a fine carrying trade. He believed the road would be hindered more by hostile Sioux than by a financial revolution. Another force, however, could prevent the successful completion of the road. Two of the members of the firm were directors oj the Northern Pacific Railroad Company. The result will be that the work of construction will be somewhat retarded. It is more than probable that Congress will be asked to grant an extension of years to the company beyond that already granted. to enable it to complete the road. No such enterprise was ever before attempted by private capitalists as that of constructing a railroad, 2,200 miles in length, across a continent. Congress should have come to their aid by extending the credit of the Government to the undertaking. It would have done so, but for the charge generally, that corporations were grasping the entire domain and overriding the people.

Article Text

THE FINANCIAL CRASH

By telegrains in the St. Paul p:1pers of yesterday, we learn that the suspension of Jay Cooke & Co., on the 18th at Philadelphia, New York and Washington, was followed by that of E. W. Clark & Co, of Phil adelphia, Kenyon, Cox & Co., Fisk & Hatch, R. Schell and other prominent banking houses of New York. Fears are entertained of a general financial crash, and we await further news with anxiety.

Article Text

effects. That part of Wall street at the corner of Broad was the chief centre of attraction. Men stood all around the quadrangle formed by the junction of the streets, and talked nervously or quickly, as temperament or interest commanded, They LINED THE CURBSTONES up and down this vicinity, and, to a stranger, would give the impression of an assemblage anxiously awaiting the appearance of some public spectacle on the streets. So large and singular a multitude-for the most part shielded by umbrellas-must have possessed certain striking outlines to the eye; for, high up on the stone balustrades of the Sub-Treasury were numerous spectators, in the midst of the pelting rain, gazing down upon the scene below with as much rapt curiosity as if they were seated in the gallery of a theatre watching a series of transformation performances. The building containing the bank of Jay Cooke & Co. was scrutinized with as keep an interest as if it had been the theatre of some absorbing tragedy. Nobody passed without bestowing a look upon it. of course it was closed, and save that the face of a clerk occasionally appeared at one of the windows with a look of supreme self-satisfaction, as If the public euriosity were centred in him alone, all was quiescent and forlorn within. There are stout iron railings extending along the front of some of the basement brokers' offices in Wall street, and these railings were made yesterday to serve as perches for those habitués of the street who are always disposed to give gratuitous information on financial matters to the inexperienced. Essays on stocks, &c., were furnished to little GROUPS OF GAPING STRANGERS along by the iron railings, and this, as one of the features of the street, was not the least interesting. The broken down operators of long ago, with no money in their pockets, like to live their days over again in periods of such excitement, by spluning yarns about past speculations and uttering ponderous predictions to those who are willing to listen. The entrances of the Stock Exchange on Broad and on Wall streets were never so eagerly surrounded. Policemen were engaged to keep order and prevent an indiscriminate rush to the public gallery. THE EXCITEMENT AT NOON. At noon, when the news of the failure of Fisk & Hatch went abroad and spread all over like a prairie fire in August, the street was exceedingly full, locomotion was slow and made awkward by the multitude of umbrellas. A mob disposed to revolution might have been dispersed by the steadysoaking rain that fell in the afternoon; but this mob. affected where most vulnerable-in the pocket-cared not a row of beans for As rain, nor thunder and lightning. a rule, the financial upheavais in Wall street attract a crowd to the main front of the Gold or Stock Exchange; but the great nurry of yesterday magnetized people to very remote places. As far away as the Post Office were hundreds engaged in discussing the situation, and out on Broadway, along the line of the big insurance offices, moneyed men fingered their watch chains and talked incessantly of the impending panic. All the restaurants and drinking saloons were well patronized. Especially so was Delmonico's haven of refreshment, Champagne was not particularly conspicuous, but whiskey played. a prominent part in making the talk over the cause and effect of the day's disaster clear as mud. THE FISK & HATCH COLLAPSE. When Fisk & Hatch were known to have caved in men looked up at every well-known sign along the streets, and speculated whether such and such a one of even high and tried credit would weather the storm and come out right side up. There was great talk about Henry Clews & Co. Now you heard that he was "bu'sted," and again that he was as solid as the Rocky Mountains, dreading nothing, and with means to tide him over the collapse of the Treasury itself. Rumors came thick and fast upon the wind of this house and that tottering to a fall. "If not to-day, to-morrow or the day after," seemed to be the tenor of much cold-blooded speculation. To say there was one universal appearance of bewilderment in the ranks of all that great mass of moneyed men who went down to Wall street yesterday, and might be said to represent the financial brains of the country, would be exactly correct. It was not A FEELING OF PANIC, such as overcomes an army and passes beyond human control. This was more a sense of temporary stupefaction and amazement, banishing for a moment the faculty of calm reflection and distorting the reality out of proportions. Men were overcome with astonishment at a series of failures so large and unexpected, bearing in mind how great the country's wealth and how exhaustless its resources. But a little reasoning showed how plainly inevitable the crash that occurred, yet the natural 1mpulse to alarm and anxiety was too strong for the time being to be restrained, and the uninitiated many who came to see Wall street in its agony went away full of the dread phantom of panic and troubled with the fancy of a universal crash like that of '57.

Article Text

AMONG THE INSOLVENT FIRMS

Reporters were sent to the various offices of the brokers and bankers who yesterday suspended to give a correct estimate of the general feeling of those who were in this unfortunate position. The feeling among these gentlemen seems to be much more buoyant and hopeful than could have been expected under such disastrous circumstances. Men seemed to feel that there was a better time coming, and all the people seen by our reporters said that they thought the present trouble would pass over and leave in a few days few traces behind it. Brokers, when they converse cn the subject, tell their side of the story, and very possibly give it rose tint which subsequent developments may destroy; therefore their statements must be taken with the necessary grain of salt. That underneath all this there is the most widespread terror, that the panic may continue and make durable what in some cases is now only temporary ruin, can hardly be denied by the most sanguine. Almost all those who failed yesterday went down to their offices confident that no trouble would happen them. But the crash was too great for them, nevertheless, and the same story may be repeated to-day, and probably will be. Interview with Fisk & Hatch. A reporter who called upon this firm was very kindly received. Mr. Fisk very kindly offered to give the particulars of his firm's suspension. He substantially made the following statement:"When we opened our office this morning we did not suppose that we would be called upon for the immense heavy payments of loans which subsequently came in. Panic reigned supreme on the street. The financial standing of many houses was impugned. A sudden rush was made upon us. Call loans of one and a half millions were presented which could not be honored at the moment, owing to the scarcity of money, and we were compelled, in self-defence and for the benefit of our creditors, to suspend payment for the time. As soon as this announcement was made on the street the run commenced. It is impossible to obtain money on any kind of collaterals, and we could not afford to sacrifice our securities. Several bank officers well informed on the existing panic, who called on us, were consulted in regard to the probability of obtaining funds to meet payments, and it was impossible to obtain any encouragement from this source: hence our suspension. "The report on the street is that your house was heavily involved with the bonds and stock of the Chesapeake and Ohio Railroad Company, as also with those of the Central Pacific." "We transacted a very large business in the bonds of both corporations named. We have bought and sold extensively; in fact, of the latter we disposed of about $40,000,000." "The panic precipitated by yesterday's failures completely unsettled the market for all securities. All kinds of collaterals were thrown on the market: in fact, public confidence was shaken completely in financial matters, and the tempest that followed could no more be stayed than a heavy tide stemmed by a frail craft. We are too much hurried now with explanations to callers to make any detailed statement. In a day or two, or as soon as we can get at the bottom of our affairs, we will make a full and complete statement to the public. All we want is time, so as not to be compelled to sacrifice our securities, and we hope that we shall be enabled to pay 100 cents on the dollar. Thus far the kindliest feelings have been expressed to us by our friends and creditors, and customers who have dealt here and whom we did not personally know came in and offered us not only their sympathy, but also all the time necessary to straighten out our affairs." Mesars. Fisk & Hatch, on having determined to suspend payment, issued the following card, a copy of which was transmitted to all their creditors OFFICE OF FISK & HATCH, No. 5 NASSAU STREET, NEW YORK, Sept. 19, 1873. We regret to be compelled to announce the suspension of our firm, oceasioned by our inability to meet at once the heavy demands made upon us for loans and deposits, on account of the existing financial disturbances and the widespread distrust occasioned by the occurrences of the past few days. We shall prepare, as soon as possible, a full statement of our affairs, which will be submitted to our crunitors without unnecessary delay In the meantime we ask your kind forbearance. and express the hope that we may be able to make such an

Article Text

coincidence that the gold corner of September, 1869, when so many persons were ruined, and the culmination of the panic of 1873, when the finances of the entire country have been placed in the most dangerous condition, happened upon the same day of the week and in the same month. Many men who appeared prominently in the first of these disturbances have also figured extensively in the last. Houses identified with the interests of the Government have been forced to succumb to the tremendous pressure brought to bear from damaging rumors and an unparalleled tightness of money. Jay Gould, too, who bulled gold in 1869 until it touched 162, is engaged in the present trouble. There have been two Black Fridays in the history of the country, and the sixth day of the week will hereafter be looked upon with suspicion in Wall street.

Commercial men, bankers, brokers, and the financial public generally, gathered in Wall street long before 10 o'clock yesterday morning. There was reason for it too. The rumors which had gained currency were not at all reassuring to people who had money to invest, or who wished to borrow it. Many persons had long lines of stocks which they were carrying; a panic would swallow up their margins, and leave them—wealthy the day before—in a state of penury. Some had money deposited in banks; a panic might force these institutions to suspend. Others were in a state of indecision, and did not know what to do.

The consequence was that thousands of people who are seldom seen down-town thought it worth their while to arrive on the scene of action early in the morning, so as to be on hand for anything which might turn up. It was a universal case of looking out for "number one," and so everybody who had anything to lose, or aught to gain, was on hand.

When the hour of 10 arrived, the time for the opening of the Stock Exchange, one of the most turbulent crowds of humanity ever seen in Wall street surged about the doors eager to obtain entrance. As soon as admittance was accorded there was a general rush to reach the floor of the Long Room, and in a moment afterward quotations for stocks were in order. No one knew what to offer, and everybody was undecided as to selling prices. It was at least a minute before quotations could be made, owing to the general uncertainty regarding the situation. The adherents of the bear clique thought that Western Union ought to sell at 70, and graded their bids accordingly. The few believers in a bull movement thought it was cheap at 80, and accordingly stood at that figure. When an average was reached, it appeared that the bears were the strongest, and so prices began to decline. Western Union, as on the day before, was the bone of contention, and the bears subjected it to their fiercest attacks.

The failure of Jay Cooke & Co. on the previous day had inspired such a distrust in wealthy banking-firms and in financial institutions of every class, that it soon became evident that the street was completely demoralized, and that there was not the slightest chance for the bulls to resist the onset. The Vanderbilt stocks, which are held at high prices, and which in ordinary times are regarded as among the safest of all investments, gave way shortly, and a tumble of a remarkable nature ensued.

While prices were falling off rapidly, the news came of the suspension of Fisk & Hatch, supposed to be one of the strongest and most careful banking-houses in Wall street.

Up to this time, everything had been going in favor of the bears. As soon as the failure was announced on the Exchange, a tremendous panic ensued, and what appeared to be a sort of retreat on the part of the bulls and holders of stocks was turned into a frightful rout. There were no quotable prices for stocks for several minutes. Then a kind of "bottom" was found, when Western Union, New-York Central, Lake Shore, Harlem, and Rock Island, sold from five to twenty-five per cent. below the quotations of Thursday. Money, too, grew stringent, every one being afraid to loan upon any kind of stocks.

In addition to the failure of Fisk & Hatch, it was learned that the Fourth National Bank and the Union Trust Company were besieged by depositors, who were anxious to get their money. This was supplemented by a report that the Manhattan Company had refused to certify the checks of the Union Trust Company, in consequence of a dearth in deposits. This rumor proved to be correct, and had anything but a cheering influence upon the stock market and the rates for money.

Then the failures of different banking and brokerage houses were announced on the Exchange and news of these came so rapidly that each dealer was afraid to trust his neighbor, and so there was a difference in the cash and regular quotations of stocks of from one to five per cent. As fast as the failures were announced the news was carried out into the street by brokers, and in spite of a cold, drenching rain, hundreds of people gathered about the offices of fallen reputation and gazed curiously through the windows, trying to form some conception of the way in which the broken brokers were behaving.

Merchants up-town took a trip to Wall street and swelled the crowds who stood about inspired by their aimless curiosity to gaze upon the distress of neighbors, and nearly every house of deposit in the street was thronged by nervous customers who didn't care to draw out their money if they could have it, but who were terribly anxious to grasp the greenbacks if there were no funds on hand.

A long line of depositors extended outside of the Union Trust Company's building far into the street, waiting for money which had been put in, but which might remain longer than had been calculated upon. At the Fourth National Bank there was a like scene. Umbrellas were called into requisition, and the financial arena of the country resembled a stony pavement covered with black mushrooms.

The peculiar position of the steps of the Sub-Treasury, which affords a commanding view of both Wall and Broad streets, caused them to be used for convenient points of observation, and they were thronged with people for the entire day. The rain seemed to have no effect whatever upon the crowds, which, financially interested, cared nothing whatever for bodily discomfort.

Some time in the afternoon a rumor was prevalent that Secretary Richardson would deposit $10,000,000 in the various banks as a means of relief from the pressing monetary stringency, and in a few minutes the stock market began to show signs of strength.

Article Text

THE MERCHANTS ON THE PANIC

The firm of Arnold, Constable & Co. was visited yesterday by a representative of the HERALD. Mr. Johnson, of that house, expresses his strong belief that the present financial panic will be coninee almost to Wall street. There is no good reison why it should spread outside of the speculative element about the Exchange. The country never was in a more nourishing condition. Our imports are low and exports great. There is a balance of nany millions in favor of American trade, as compared with last year. Merchants, farmers, miners, nazufacturers-all are doing well, and the country is flourishing. People are generally able to meet their liabilities, unless they transact business through the doubtful medium of unsound speculation. The President has observed a judicious and legal course in the way he has directed the action of the Treasury Department, by placing government securities in the market at so critical a moment.. This will efficiently aid in allaying the panic, which must be stopped in order to prevent a run on the banks that are generally sound. The press can be of much use in throwing oil on the troubled waters by not COLLE canancing alarmist reports. The hurricane will soon exhaust itself, and things must speedily return to their wonted normal condition. Mr. Arnold thought sales would be dull after the crashes suffered in Wall street; but 11 was a mistake to imagine so. Yesterday's sales were, if anything, in advance of the corresponding day last week. Instead or empty benches, which were expected in the establishment. they appeared fully as thronged as ever with purchasers, who seemed unconscious of what had happened on 'Changes In proof of this, the agreeable Mr. Johnson showed the reporter all through the numerous departments of the vast mercantile emporium, Of which he is a member, where hundreds of shop people and operatives of both sexes were as busy as bees cutting, serving, fitting, selling, packing, &c. HALSTED, HAINES AND CO. Mr. Halsted, of this large importing general dry goods house, stated that their firm had already telt some of the effects resulting from the suspensions in Wall street. It was a natural consequence. The failure of such houses as Jay Cooke & Co., Fisk & Hatch and others, shook public confidence. The crash in Wall street, like the oscillations of an

Article Text

The Financial Crash in New York. The great commercial centre of the United States has experienced a terrible convulsion during the past week, owing to the failure of leading bankers and brokers, beginning with the famous house of Jay Cooke & Co., whose liabilities are estimated at twenty millions. The failure of this firm was in consequence of heavy speculations in the bonds of the Northern Pacific Railroad, and their suspension was followed by a general crash in Wall street, involving the failure of Fisk & Hatch, and many other leading bankers and brokers. The Stock Exchange and the Gold Exchange were compelled to suspend operations, because of the wild excitement created among the speculators in stocks and gold. The effect upon the gold market, however, has been inconsiderable, as the latest quotations are scarcely higher than before the crash. The cotton market has been more seriously affected, and prices have had a downward tendency, with the market dull and nominal. The depositors in banks, and especially the savings' institutions, were clamorous for a few days, but a better state of feeling existed at the latest accounts, and it was confidently expected that the worst effects of the storm had been experienced already. Of course, the monetary panic has spread throughout the the country, but it is hoped the financial troubles will speedily end, and business will again assume a placid appearance. The depression of the cotton market affects our people most seriously, but we hope that a re-action in financial circles will stimulate the price of cotton, SO that our farmers will be enabled to meet their obligations promptly, and without sacrificing the product of the year's labor.

Article Text

THE BEGINNING OF THE END

For some time we have believed that the Grange foolery, seized upon by such demagogues as 1. T: Monahan, would result in serious and terrible calamities to the country. The insane and wicked war upon the railroad interests of the country, can only result in evil. Every demagogue, whether he be Democrat, Prohibitionist or Republican, has had the word "monopoly" in his mouth for months. The beginning of the end has commenced. The great banking houses of Jay Cooke & Co. failed last week. Then went the bank of Fisk & Hatch, and a general panic ensued, and now universal financial ruin overspreads the entire country. Jay Cooke & Co. undertook to build the great Northern Pacific Railroad, and the war upon this, and other roads, did the businessThe Democratic party never could forgive Jay Cooke & Co. for furnishing the money to put down the rebellion, and this war upon them has been mostly a partisan spite. The New York Tribune says: "But nothing can wipe out the debt the country owes the patriotic and marvelously energetic bankers who in the darkest hours of our civil war popularized the great loans, and furnished the money to pay our soldiers --nothing can obscure the fact that the very enterprise which has finally dragged them down was of national concern. Whatever may be the result of the crisis in Wall Street, we shall regard the disaster to Jay Cooke & Co. as nothing less than a public calamity." The United States Government has been appealed to in order to see if aid could be extended to save the business of the country from ruin, but President Grant and Secretary Richardson have decided that they have no constitutional power to interfere, further than to purchase bonds.

Article Text

THE most important matter of the past week is the failure of about 20 prominent bankers and brokers in New York, among them Jay Cooke & Co., Fisk & Hatch, and other houses of the highest standing. A general panic in the financial affairs of the country was at first thought to be inevitable, but by the Government promptly coming to the rescue and buying several millions of bonds, such a calamity was happily averted, and the indications now are that there will be no serious disarrangement of the monetary end commercial affairs of the country.

Article Text

Money Panic in New York

New York city has been the scene of a great money panic, during the past week. It was precipitated by the failure or suspension of the great banking house of Jay Cooke & Co., caused by the too severe stretching of their credit in aid of the Northern Pacific Railroad. The failure of 80 prominent a house caused a panic which has forced a suspension of a number of smaller bankers and brokers, and also the two prominent firms of Fisk & Hatch and Henry Clews & Co. The panic has been confined to New York City, and mostly to those firms handling railroad bonds. Apparently the worst 18 over, and it is not anticipat ed that it will extend to the country, as the crops are large and manufacturers and merchants are doing a good busi. ness on a solid basis.

Article Text

The Folly of "Runs

" The human race has always greatly derided the custom prevailing among sheep, of following a leader blindly, even though he should leap over a precipice. Let one sheep of a flock in motion dart off in any direction, and the rest are likely to follow, however absurd the movement may be and into whatever danger they may go. This fact has been put in allegory, fable, moral essay and jest, in all sorts of forms, by persons proudly conscious of superiority to any such folly. And yet t ese same people, when opportunity offers, will often be guilty of this same absurdity which they so loftily deride in the sheep, who, from circumstances beyond their ovn control, are unable to say "You're another." We have had a most vivid illustration of this human idiosyncrasy during the financial panic of the past week, in which people, otherwise apparently reasonable, have joined in fierce and continuous runs upon banking es tablishments of high character, when it was absolutely certain that such a course would precipitate the very calamity which they dreaded. The theory of banking implies that of individuals, and loans or invests a considerable proportion of such deposits in order to produce the income which sustains the business. A small reserve only of cash is kept on hand to meet the ordinary call which generally does not exceed the deposits of any given day. The Bank of England, the synonym for safety and caution,hold only 11.2 per cent. of its liabilities in cash on hand. The London and Westminister Bank-"th first of the joint stock banks in public estimation" according to Mr. Bagehot, - reserves in cash only 13 per cent. of its liabilities. These institutions represent the extreme of conservatism in banking. In America the cash reserve probably averages somewhat less than this. It is evident, therefore, that if twenty-five per cent. of its liabilities be presented at once to any bank in Christendom, it mustsuspend, however strong and solvent it may really be, unless its securities can be turned instantly into cash, whica is impossible in time of panic. With these facts in view, runs have been made in New York upon several banking houses of the highest respectability and undoubted solveney. resulting, of course, in their temporary suspension-notably the houses of Fisk & Hatch and Henry Clews & Co. In the latter case, the firm stood up pluckily, meeting the assault for three or four days, paying out a million and a quarter of dollars and finally succumbing on account of the failure of the Fourth National Bank to honor their checks. Clews & Co. had deposited that morning $800,000 worth of securities, with the understanding that they could be drawn against up to their value; but suddenly at half past two in the afternoun the bank refused to pay checks, after less than $300,000 had been drawn. The doors of Clews & Co. were closed at once, and although many capitalists promptly offered assistance, it was tro late. as suspension had occurred. Of course it will be temporary and this house as well as many others in similar condition will lose bnt little in char acter and prestige; they only serve as illustrations of the capacity for collective folly in men who may be severally sensible. Had the depositors in any of the good houses but kept their head, and gone on in the ordinary course of their business much of the calamity might have been averted. If everybody who has a bank balance insists upon withdrawing and locking up his fragment of currency, business of all kinds must stop and we must return to first principles and barter one com modity for another. Eugland was reduced nearly to this condition in her great panic early in this century and the history of her experience is not sufficiently agreeable to make the prospect of a repetition alluring. Our own seasons of financial distress in 1837 and 1857, though not SO bad, were unpleasant enough for examples. the history of Contain Jack and

Article Text

LETHARGY AFTER THE FEVER

WALL-ST. MORBIDLY INACTIVE-PAINFUL UNCERTAINTY IN REGARD TO THE TREASURY RESERVED FUND AND GEN. HILLHOUSE'S INSTRUCTIONS-EFFECTS OF THE PANIC UPON COMMERCE. Yesterday was one of uncertainty rather than of excitement. The crowd in Wall-et. was almost entirely composed of "bears" in stocks, who eagerly demanded that the Exchange be opened, and a still larger number of investors who were anxious to pur- The chase stocks outright, in order to lay them away. excited groups which have lined the sidewalks, ornamented the Sub-Treasury steps, and distracted the confused street, were missing yesterday. The great event of the morning, and the one which on excited most public attention was the announcement the doors of the Sub-Treasury building that the pur- On chases of bonds had been discontinued. Wednesday Gen. Hillhouse had been very busy in circulating the information that about $13,000,000 in greenbacks had been paid out from the Treasury. Yesterday the astounding fact became known to many that over $24,000,000 had been paid out. discovered that Gen. Hillhouse was not to bonds to an renight. He was when a certain contingency was ported authorized chasing It has also on Sunday been buy unlimited instructed extent, reached. to stop as It pur- is now known that this contingency was the expenditure of $25,000,000 greenbacks. Very nearly the whole of this amount had been absorbed by the street by 3 o'clock on Wednesday, and hence the announcement that the Treasury had stopped buying. Strenuous efforts were made yesterday to learn whether this amount was part of the $44,000,000 reserved fund in the Treasury. Gen. Hillhouse deelines to answer inquiries, and a natural inference was that it was a part of the Treasury reserve. The result of this uncertainty was much speculation and grave doubt. Few incidents served to indicate the gloom of the day. Further than the well settled fact that the Treasury had declined to take,further purchases of bonds there was nothing calculated to depress. The street was encouraged from time to time by unofficial announcements that purchases would be resumed. But these favorable stories did not serve to dispel the depression which has settled upon all. Happily, there was not even a whisper that the Stock Exchange would open. The wise Governing(Committee, backed by|the universal sentiment of the influential part of the press, kept its doors closed. The Clearing-house banks refused positively to do more than certify large checks. Small amounts could, be easily drawn, but if a man wanted a few thousands and could not give satisfactory assurance that he needed it for legitimate business purposes, be had to be contented with a certification of the bank's indebtedness. Remorseless, the banks needed no individual pleas; determined, they set their faces against the individual for the general good. This served to encourage. At the same time the announcement of Secretary Richardson, that the Government would not anticipate the payment of the interest on the bonds of 1874, created depression and discontent. On this announcement presidents of banks freely expressed the opinion that they must combine still further to protect themselves, and croakers asserted that such a decision must necessarily force the private bankers into temporary suspension. This decision of the Secretary has rendered the measure of relief adopted by the Clearing-house Committee, yesterday, by the collection and sale of bonds, practically inoperative. While they might have collected bonds from among themselves, there was no purchaser for them. The Treasury gold sale, too, was postponed, and this, with news from other cities, helped to render the street morbid but inactive. This inaction is a necessity. Every movement thus far for relief by the Clearing-house Association, Stock Board, or the Government decreases business, and the consequence has been that there 18 no fuel for the flame of panic to feed upon. After the day had worn itself out, and no further failures had been announced the feeling became appreciably improved. They was not rumor about a banking-house or broker, and the panicmakers retired disgusted. The final result of the day and panic is that the whole matter has been taken out of the hands of those superficial people who are readily excited. and the control of events 80 far as they are controllable, is remanded to the hands of the more able and serious class, who are the head and front of the most substantial banks. These have left private bankers to shift for themselves. Two or three like Jay Cooke & Co., Henry Clews & Co., and Fisk & Hatch, overloaded with doubtful railway securities, have succumbed. Howes & Macy strong still, and retaining the confidence of their depositors, have made a wise suspension which will enable them to resume a has now extended commercial The probably uneasiness within to week. circles, especially the shippers of grain and other prodnee, who are compelled to accept bills of exchange. These they cannot exchange into greenbacks, and hence there is danger that the immense volume of breadstuffs which 18 pouring into this city from the West, and the betton and sugar from the South, will be detained here for want of available funds to send them abroad where a ready market and good prices await them. This phase the financial revulsion 18 just beginning to be felt. Unless relief is 8000 obtained, orders for consignments It from the West and South will soon cease altogether. is hoped and believed that within a few days the needed relief will be obtained. either by the shipment here of

Article Text

menced in New York last Friday, creating a financial crash very similar to the "Black Friday" of last year, and damaging pret- ty much the san class of business men.- The first brick that went down was Jay Cook & Co., who had advanced too much money on Pacific Railroad bonds, and who could not sell the bonds fast enough to ob- tain means sufficient to meet their other en- gagements. A number of smaller houses followed them in the fall, and then came the great house of Fisk & Hatch, which had also spread itself too thin on railroads bonds, including the Chesapeake & Ohio Railread for which company it was the banker. When the run created by Jay Cook & Co. reached them they had to pay out $1,700,000 in currency and could ob- tain no more though their liabilities were ample for ten times the amount. A half dozen brokers suspended Monday in Phila- delphia, and on Tuesday the crash reached Petersburg, Va., where the correspondents say, five bank Presidents have been trying to carry 4,500 shares of Petersburg Rail- road stock, and all of their banks broke. The Dollar Savings Bank in Richmond and the banking firm of Isaacs, Taylor & Williams suspended. We give below a history of the flurry as gathered from our exchanges, adding that since the failure of Henry Clews on Wednesday the New York market has been comparatively quiet:

THE WILD SCENES ON CHANGE.

When men went down to their business yesterday morning, confident and happy, they heard that Jay Cooke & Co. had sus- pended and that the Northern Pacific Rail- road had "burst." Immediately a rumor ran through the street, and men felt as if the bottom of Wall street had literally dropped out and they were all to go with it. For the moment no one could understand where he stood. The biggest men and the smallest cut round to the Stock Exchange, and when its ponderous doors opened and the first call was announced the brokers were quaking in their shoes, and the noise and mingling of tongues were entirely worthy of the ancient Tower of Babel.

EVERYBODY WAS SHOUTING,

nobody was listening, and the President had difficulty in rapping with his gavel to get the excited creatures below him to lis- ten to his voice. The suspension of Jay Cooke & Co. was then announced, and a monstrous yell went up and seemed to liter- ally shake the building in which all these mad brokers were for the moment confined. When the call took place stocks of all kinds and descriptions came tumbling down at a trightful rate, and in a moment many saw themselves ruined This only served to in- crease the hubbub to a demoniac revel. Many tore their hair and ran about as if crazy, pushing, battling, shouting, shriek- ing to others equaly crazy. The Stock Exchange had lost its head, and the usual pandemonium of daily occurrence was as mere music to the noises which were being made. Everybody was trying to sell, no- body was willing to buy, and, with the ges- ticulations of the principals the breathless running in and out of clerks, the "tick- tick" of the telegraphs, the overwhelming confusion of tongues and the shuffle and pat- ter of the feet on the floors. a stranger might have well believed himself in a madhouse. In the Gold Exchange the scene was only a repetition of that occurring in the Stock Ex- change, and the excitement was up to fever heat. But

THE SCENE OUTSIDE

did not differ to any great extent from that occurring in the board room. Knots of people were collected on the street corners

Article Text

eitement in financial failure of quite followed by the York and number of good many speedily a places. firms There in aroin New the cause of the suspension, other explanations and afloat many as to opinions as to the Co.-New consequence. CARD FROM 18.-Jay JAY COOKE Cooke & & "The Co. YORK, Sept. following statement make cause of the large & Co. immediate the was the suspension Philadelphia draw- of them ings Jay Cooke upon their own by their depositors houses during have house and Both depossuffered the last fortnight. a large drain of the upon uneasy their and feeling which its which in consequence has recently prevailed all houses closehas affected more or new less railroad interests. ly identified The Philadelphia with weakened by house large had Rail- cash preto advances which viously been the Northern Pacific are the they road Company. of The business of Jay is financial McCullock agents. & Co., house London, is distinct, it will meet all its entirely Cooke, solvent. SO and that that of credit perfeetly drafts and letters travelers and outstanding inconvenience to to the have without a large cash surplus to apply American house. The New York cause Sun of Jay says Cooke's Northern fail"The is the chief attempt to build enormous the and ure Pacific ill-considered Railroad. undertaking That resources. was sufficient Its to exhaust we the fear, strongest will involve confiding thousands people downfall, widows,orphans and and of of limited means in lasting poverty embarrassment." & HATCH. FAILURE OF FISK fiTHE York, September 2.-...The more failnancial panic Among & New reported continues, to-day. and of F isk the announcements ures are is the failure temporary, Hatch, Fish extensive and Hatch brokers. state that the and suspen- was sion can only loans be called in on government realized caused by could not be securities. upon at the which present which crisis. they have They made say the securities on two railroads, Chesadvances are Ohio ON and Central Pacific, They apeake of and which are completed. resume business to ceases. expect both soon be able as the to panic experienced again as street has never on Black Wall storm, and the panic exceeded by it. stock market such Friday a in 1869 is by as far the first failure was In the announced little the in entire the list interim dropped, failure but recovering falling lower a as each successive s'ates was announced. Hatch, of Fisk & Hatch, failure great that Mr. owing to yesterday's suddenly and could unexdemands came their so house that they time peetedly on met. There was no assets not b readily to obtain money on due the the firm, or to made heavy left of firm. in which The house Pacific collect which, money however, advances to the Central of their suspension. Ohio is not the to cause the Chesapeake and advances having brought them down. HENRY CLEWS & CO. re13.-In York, September Clews to the that during gard New firm suspension states of Henry out the & Co., days they have paid and a half efforts to day to impast four the utmost millions in money. it They raise one to made the securities, but finding compelled money on to They do so regard were their suspension no further as only temporary. save that to advisable. statement suspend. possible make and have National they deemed suspension Fourth The cashier of the Clews & Co.'s Bank, which amount of $200,000 their checks to so simply was the bank There did the threw good. out because says the no was not have been had account over draft but would The firm paid until no bank allowed it. remained on hand,and as of they greenbacks could negotiate large no amount,nothing securities, which they had a Clews Co. in remained but $800,000 suspension. in securities against say that Fourth had National amount Bank, of $300,000 the which checks to drawn. the The firm paid deonly had been in legal tenders few days, to and out positors was $1,250,000 the during general the impression past that they would it pull through made known Company,the also a defalThere was Union Trust the cation in the C. Carlton, son of defaulter being Carlton of the Methodist the Concern, Rev. Dr. and secretary of caused which Book Union Trust Company, He had been secretary great surprise. Trust Company since to of the had grown 1860, and Union the financial concern institution under be immeuse The additional an The pensions are as the Bank his management. Company, follows: Trust of the Compa- Union Com- susTrust the National Association, monwealth, Mechanics Banking E. C. Broadhead White & & Belknap & Co., ny,the C.G. Co., Ketchum Co., Taussig & Brown, Fisher, Walsh, Wadsworth & Co., Miller & P. M. Myers & Fearing & Dellinger, & Laurens, Joseph, & Bostwick, W. E. G. Haight MooreWilliams Sexton & Rogers, and Squires

Article Text

The Crash in New York

The last fourteen days have been the most eventful that have been known in the Empire City for many years past. A monetary crash. such as has only e occurred but once before in the history of our country, has shaken financial circles from centre to circumference; and scores of the leading banking houses in the eastern cities have utterly failed to inect their obligations. and have been declared insolvent. Among the many firms that are gazetted, we may name Jay Cooke & Co., Fisk & Hatch, and Henry Clews & Co.,-the liabilities of these three houses, in ex. cess of their assets, aggregating probably One Hundred Millions of Dollars. Thousands of depositors in these and other institutions were ruined; gold took a sudden rise to 113; business of all kinds was prostrated, and gloom still prevails. In the midst of the calamity President Grant and the Secretary of the Treasury hurried to New York. By their orders Ten Millions of the Government funds wereimmediately placed upon the market, and that afforded a temporary relief. It was then ordered that the Forty-Four Million Dollars of the Government Reserve Fund be placed "where it would do the most good," in case the panic continued. Our latest advices are to the effect that confidence is again partially restored: but that thousands who ten days ago were immensely rich. are now tasting the bitter dregs of the direst poverty - A singular episode of the crash is the fact that Ex-President Andrew Johnson, who bad deposited 800,000, (his entire wealth) in the First Na. tional Bank of Washington. lost every cent by the bankruptcy of that concern : while President Grant, who had $100,000 in the Fame institution, did not lose n dime. Mr. Graut was ina I. formed by the officers of the bank that 18 the institution was about to suspend payment, and immediately drew out bis money. while poor Andy Johnson was allowed to suffer the loss of all he had de in the world. Comment is unnecessaa ry.

Article Text

The Lesson of the Crash

THE BUSINESS INTERESTS OF THE COUNTRY UNAFFECTED. The New York Herald of Saturday has an able editorial article on the financial troubles, from which we extract the following: The crash in Wall street, though it involves 2 few of the best known banking houses in the city and has destroyed more than a dozen of the smaller operators, cannot have the effect of previous panics, notably that of 1857, upon the business interests of the Jay Cooke & Co. failed conbecause they were feesedly country. carrying the bonds of a railroad which was paying little or nothing upon the capital already invested, and which promised SO little in the future that these bonds could not be negotiated. Fisk & Hatch, who also failed yesterday, were dealing in the same kind of insecurities. The smaller houses were to some extent dependent on the large ones. and, course, were operating in the same class of stocks. It is because of this fact that we think the general business interests of the country will not suffer. Most of the railroads whose stock is now embarrassing the speculators are wild-cat affairs, built, as Commodore Vanderbilt phrases it, from nowwhere, and it was impossible that they should long continue to withstand the shocks of speculation, based as they were on mythical capital and being without business and without profits. A reputable house which conducted the negotiation of their bonds was doing a wrong to all the legitimate commercialiaterests of the country. When Jay Cooke & Co. undertook to carry the*bonds of the Northern Pacific Railroad they were laying the foundation of their destruction, and the destruction of all similiar dealers in similarly baseless enterprises. The downfall of this house. owing to their relations with this road, was impending for a long time but now that the erash has it is to be hoped that the will clear, specuatmosphere come aud that dilation will no longer be allowed to vert sound and legitimate commercial enterprises from the regular channels into the devious way of the gamblers of the street. It is to be hoped the lesson of the crash in Wall street will not be disregarded by our business men. Never has the failure of reputable brokers done SO little real harm or taught SO wholesome a lesson. The great business interests of the country are unaffected, and trade moves on as if nothing had happened. A healthier tone is sure to pervade business circles when these wrecks are swept away. The reckless spirit of speculation will be restrained. It will be more apparent than before that the legitimate businessof the country is sound landsafe, A week ago general prostration would have been predicted on the hypothesis that Jay Cooke & Co., Fisk & Hatch and a dozen other leading bankers should fail. They have failed, and yet no serious consequences have resuited, or are likely to result from the disasters which have overtaken them. They were found to be only a few men making haste to be rich by dealing in unsound securities and attempting to do a larger business than their capital allowed. While we regret their failure we rejoice that the crash has had no more evil consequences than to clear the atmosphere, and show the world that the true representatives of American business and credit are unaffected It has let us like a American been, hope, thunder storm in midsummer. The storm is over, the sky is clearer, and the air purer.

Article Text

The Financial Crash

NEW YORK, Oct. 1.-Wall street is as quiet as usual, and matters are beginning to assume their normal condition. The crisis is over, although the scarcity of currency is seriously felt, and will be for some time to come. The feasibility of resuming specie payment is exciting attention among our leading financiers and business men, and especially those bankers who issue bills of foreign exchange. An argument heretofore set forth, that to resume specie payment would depreciate values, can hardly be advanced, now that stocks and securities are flat. The suspended firms are rapidly reorganizing, and promise a resumption of business before the end of the week. Howes & Macy have practically resumed already. Clews & Co. and Fisk & Hatch will resume within a few days. The following table shows the prices current for leading stocks on Wednesday, Sept. 17, the day before Jay Cooke & Co. failed, and those current on the street to-day

Article Text

A Better Look, A bend. The news, now, is not of suspensione, but resumptions. Fisk & Hatch, in New York : E. W. Clark & Co., Philadelphia ; a National Bank, at Salt Lake City, are announced to-day. In the Philadelphia market, to-day's Ledger reports "a better and more confident feeling,' more money, and lower rates for its use. Our correspondent in that city reports the retail trade good. Throughout New England, though many indus trial establishments are discharging men, many others are in full operation, and pressed with orders.

Article Text

NEW YORK

Fisk & Hatch to Resume. NEW YORK, December 24.-Fisk & Hatch. bankers, who were carried down by the panic on the 14th of September last, resumed to-day. The street was thus treated to a Christmas surprise, as it was not expected that the resumption would take place before New Years. A circular to the public has been issued by the firm announcing the fact of their resumption and stating that they have effected euch an arrangement of affairs as to ensure the payment of all their liabilities in full and the continuation of business on a firm basis.

Article Text

THE RESUMPTION OF FISK & HATCH

-The resumption of payment by Fish & Hatch, the New York bankers, the day before Christmas has been received with very kindly and hearty congratulations all through the county. The N. Y. "Bulletin" says : We have much satisfaction in being able to announce the resumption of business by the banking house of Messrs. Fisk & Hatch, at 2 o'clock yesterday. As no suspension during the panic was received with more sincere regret than that of Messrs. Fisk & Hatch, SO no case of resumption will be hailed with more general satisfaction.Few banking houses have, within an equal period, won in snch a high degree the esteem and confidence of the financial community ; and, SO far as respects honor, uprightness, fairness and prudent sagacity, none have better merited this respect. The "World" adds: We understand that all the small accounts of $5,000 or under will be paid in full ; SO that the larger creditors are entitled to the thanks of a good number of depositors. Further than this the terms are unknown to us ; but we can add our testimony to those already in print, that the resumption of this firm is received with great satisfaction by all classes of business men about Wall street, while in many a place remote from it the news will be the best this Christmas brings.

Article Text

ONE of the notable and gratifying events of Christmas week in New York was the full resumption of business by Messrs Fisk & Hatch, the eminent bankers who, as will be remembered, were obliged to suspend during the height of the panic in the latter part of October. Messrs. Fisk & Hatch stand personally very high among the business men of New York, and their resumption was warmly welcomed by all their business associates. It is by such events as these that we are taught that the panic is really past and its effects rapidly passing away.

Article Text

HISTORY OF THE FIRM

STARTING ON A SMALL CAPITAL-ITS FAILURE IN 1873-MR. HATCH'S HOSPITALITY. The firm of Fisk and Hatch first became prominent in the early days of the war. Before they started in basiness for themselves in March, 1862, they had both occupied positions of trust. Mr. Fisk was a teller in the Bank of the Commonwealth, while Mr. Hatch was cashier in a similar institution. On the date mentioned they entered into partnership, with the firm name of Fisk & Hatch, which has ever since remained unaltered. Their capital, at first, was limited, being only, it is said, about $15.000, of which each contributed one-half. They began their operations naturally on a small scale, but they exhibited such caution and sagacity that before long they were doing an exceedingly lucrative business. When the Government made application for loans the young firm received large orders, which they executed to the satisfaction of their customers. From that time till the present day the major portion of their business has consisted in transactions in Governm ent bonds. They handled railway bonds, however, in the ordinary course of their business. and their success in the introduction of the Union Pacific bonds led to their acceptance of the position of financial agents of the Chesapeake and Ohio Railroad bonds. They were also early interested in the Central Pacific Railroad, with the construction and development of which they became identified. Their large dealings in Chesapeake and Ohio contributed chiefly to their suspension in 1873. The stringency of the money market which prevailed during the fall of that year rendered it :difficult for them to negotiate the bonds and repay themselves for their advances to the company. The failure of Jay Cooke on Thursday, September 18, of that year precipitated the crisis, and Messrs. Fisk & Hatch were forced to suspend next day. Their failure was attributed simply to the sudden calls made upon them by their depositors. Taey had upward of 1,000 depositors, whose deposits amounted to over $1,000,000, while their total indebtedness was about $5,000,000. So high was their reputation that they found no dificulty 111 resuming operations in December of the same year. All creditors whose claims were less than $5,000 were paid 111 full, while the others gave extensions of time varying from one to four years according to circumstances. During the last ten years the firm has regained its former position in the popular estimation. Their transaction ns have been still chiefly confined to dealings in Governments," They have dealt largely, however, in railroad bonds. and their connection with Central Pacific and Chesapeake and Oho has continued, it is thought, to their own disadvantage. Taey have also done a large business with country banks from which they have received deposits without giving any security. Besides their transactions on the Stock Exchange they did an extensive counter business, as it IS termed, buying and selling Government bonds over the counter for a commission of 1-16 either way. Personally few men are more popular in business and other circles. Mr. Fisk is a stout man, of about medium height, with a round, good-humored face. His partner is rather taller and of slighter build, with dark, piercing eyes and closely cropped whiskers. Mr. Hatch is, perhaps, the more widely known of the two. The unswerving rectitude of his private life is well known, while his simple, unaffected manner and the absence of any parade of his deepseated religious and moral convictions has endeared him to all his friends and acquaintances. For many years he has been an entausiastic yachtsman, and nothing pleased him better than to form a yachting party and carry off some of his friends on a short cruise. Rarely were his invitations refused, although lie was always careful to tell his guests that, in accordance with his wellknown principles, nothing stronger than water would be found on board. Mr. Hatch was the originator of a well-known down-town mission house, a branch of which was subsequently opened uptown. Here he often speaks, and in plain. simple language commends an honest life to his hearers. When Brayton Ives retired from the presidency of the Stock Exchange last year, Mr. Hatch was elected in his place, and he was re-elected at the last meeting of the Board. No man, it was at that time said, could more fitly fill that high position. WHAT THE FIRM'S COUNSEL SAY. Lucius E. Chittenden and his son, Horace H. Chittenden, are the counsel for Fisk & Hatch. The Continued on Second Page. ,