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THE MONEY PANIC.
Yesterday in Wall Street—Things Settling Down Somewhat—Effect of Secretary Richardson's Measures. Additional Failures—Statements of Large Stock-Jobbers—Comments of the Metropolitan Press, &c., &c.
Special to the Courier.
WASHINGTON, Sept. 22.—The president and Secretary Richardson arrived here this morning. The president at 11 o'clock called at the treasury and spent an hour in consultation with the secretary. So far as can be learned of what transpired there is no reason to believe any other action than that already ordered will be taken at present for the relief of financial circles. Secretary Richardson expresses satisfaction at the suspension of the New York banks. To pay currency, he says, will have a tendency to stop the panic.
By Associated Press.
DECISION OF THE ADMINISTRATION.
President Grant accompanied by General Babcock returned to Washington this morning. In the course of the morning the president called at the treasury department and had a conference with Secretary Richardson, the result of it may be inferred from the fact that subsequently stated to the agent of the New York Associated Press that the president will do anything within the law, but in no particular will he go beyond clear legal authority. He will maintain the safety of the treasury department and protect the credit of the United States from the influences of the present financial embarrassment. In answer to inquiries nothing was elicited to strengthen the report that action will be taken in regard to placing part of the legal reserve at the disposal of the New York city banks. The treasury has a sufficient amount of currency on hand to meet all demands. Much excitement exists throughout Washington consequent on news from the north. The banks here do not seem to be as yet seriously affected by it.
SECOND DISPATCH.
The president had another interview of more than an hour with Secretary Richardson at the White House this morning, at which Secretary Delano and Postmaster-General Creswell were present. It has been decided to send $20,000,000 from the national treasury here to Treasurer Hillhouse in New York, to-night, to enable him to buy all bonds that may be offered.
The president feels encouraged at the news to-day and will be guided by circumstances as to whether he will leave to-night. Secretary Richardson has been receiving telegrams from New York every few minutes during the day, posting him as to the condition of affairs there.
In reply to the interrogatories this morning he said that everything was more encouraging and the government would buy bonds just as fast as they were presented. He had plenty of money and would give it out to all who came with their bonds. When the question was asked whether or not this money to pay for the bonds would come from legal reserve, he answered, never mind about that, I will attend to getting the money; the government is all right and intends to keep so.
THE RESULT.
Secretary Richardson received the following dispatch from New York to-day:
Mercantile business progresses as usual. Wall street is clearing itself. The people join in congratulations to the president and Secretary Richardson for their stability.
The stock exchange will be opened on Wednesday.
NEW YORK.
THE CONFERENCE.
NEW YORK, Sept. 22—7:40.—The official statement is made this morning that the assistant treasurer will continue to purchase five-twenty bonds in accordance with his notice of Saturday, paying for them in currency at the average prices of sales on that day.
Secretary Richardson said last night he did not see that he had the power to do any more than buy bonds, and all the five-twenties offered will be bought without delays or red tape.
The Government, the secretary added, is not a trust company or loan institution and it is doubtful whether congress would sanction any such construction of my power. The language, "This is none of my funeral", which was attributed to Secretary Richardson last evening seems this morning to have been made by a leather merchant, who was present at the conference and who was asked to state briefly the views of the secretary of the treasury. In answer to this question the merchant replied: "The secretary as much as said this was none of his funeral and he did not feel inclined to act."
INDIVIDUAL EXPRESSIONS.
The following is the substance of an interview with Commodore Vanderbilt last night: He had during the day enjoyed a very agreeable interview with President Grant. He had not made formal proposition to the president, as had been reported, that he would furnish the sum of $10,000,000 under certain conditions, but had merely said, in conversation with the president and several other gentlemen, that something should be done to make money easier, and he would willingly lend his aid to that end. He had then announced informally that if the government or other parties could in any way furnish $40,000,000, or that amount of securities, to the banking association, he would be one to furnish $10,000,000. Whether his offer would be accepted or not, or whether the government would take any steps in the matter, he was ignorant, but hoped something would certainly be done to make money easier until the crisis was past.
Thurlow Weed visited Wall street during the height of excitement yesterday. He said in conversation yesterday that we are now simply paying one of the penalties of our great war; that the usury laws, instead of being repealed, should be made ten times stronger and more effective; that those who have combined to lock up money should be imprisoned wherever found; that he is not a director but a stockholder of the Union Trust Co.
John V. L. Pruyn, of the Union Trust Company's directors, is reported by the Tribune as saying that the securities offered by Commodore Vanderbilt on Saturday to the company for the loan made to the Lake Shore company were not by any means sufficient to cover the loan.
Senator Morton said yesterday, assuming that the forty-four million greenbacks were issued, the question was how to get them into circulation. The government could act as a purchaser of its own bonds, but could not come into the market as a lender.
CORPORATION NOTICES.
8.45 A. M.—It is believed that neither the Stock Exchange nor the banks will open this morning. On the other hand Mr. Camp, general manager of the clearing house, said in an interview at 10 o'clock last night that every check passed in the regular way through the clearing house will be paid. They were never stronger than they are to-day and the action of the bank officers yesterday made them doubly strong.
Fisk & Hatch hope to resume this week if the panic does not continue.
10 A. M.—The following notice is posted on the door of the Union Trust Company: This institution is in the hands of a receiver. A statement of its affairs is being prepared and will soon be made public. Depositors are cautioned against sacrificing their accounts.
The feeling on the street is better and hopes are expressed that the panic will spend itself to-day; still everything is involved in uncertainty.
10.10 A. M.—The following notice has just been issued: "The New York Stock Exchange will remain closed to-day. A meeting of the governing committee will be held to-morrow morning at half-past nine o'clock." It is signed by H. G. Chapman, the president.
Carleton, the defaulter was largely interested in Western Union. Envelopes picked up in the office showed that he also speculated in Union Pacific and other fancy stocks. Most of his losses resulted from the crash in the market last week. Up to last night the detectives had not arrested Carleton. His defalcations are ascertained to be fully $500,000.
The Varvin Brothers are added to the list of suspended broker firms.
ON THE STREET.
10.20 A. M.—Gold opened at 112 amid some excitement.
10.30 A. M.—The Gold Exchange has just closed same as Stock Exchange. 112 has been established as the basis of settlement.
The rate of interest is fixed at seven per cent. for carrying.
10.40 A. M.—There is a run on the Seaman's Savings Bank in Wall street.
Edward Haight thinks his firm will be able to resume in a few days.
The following notice was posted in the United States sub-treasury:
"Purchases of United States bonds to-day will include all the different series of 5-20s. Payments will be made in currency at the rate of $110 72, and the accrued interest in coin." $50,000 worth so far has been purchased.
Small amounts from individuals will not be bought, that not being the intention of the government in authorizing the purchase.
A meeting of the directors of various savings banks is now being held to decide upon the advisability of compelling depositors to wait sixty or thirty days as their charters allow.
The banks are generally open. Crowds of spectators throng the lower streets of the city, but the excitement is less than on Saturday.
11 A. M.—The sub-treasurer has bought one million dollars in bonds. Large crowds are waiting to sell.
11.30 A. M.—At a meeting of the directors of the Seamen's Savings Bank it was decided to pay immediately sums of $100 or under. All amounts will not be paid before 30 days, as the charter allows.
11.45 A. M.—Mr. Camp, of the clearing house, states that all banks have pulled through except two, and those two are now settling through the loan committee.
11.50 A. M.—A run has begun on all the savings banks throughout the city. The crowds are much larger on the east side of the town than on the west and the utmost excitement prevails. One of the largest of the savings banks has already paid out $5,000 in excess of its daily payments. It is stated that a majority of the banks will take advantage of their charter, which allows them from 30 to 60 days time.
12 M.—Two million bonds have been purchased by the sub-treasury up to this hour.
The clearing house loan committee have issued two million and a half loan certificates this morning.
Pette Cooke and Hugh McColloch have arrived by the Egypt, and will be in Wall street by one o'clock.
12.30 P. M.—The national banks are promptly meeting all demands.
Savings banks are nominally in a state of suspension merely as a relief to the nationals.
1 P. M.—The clearing house statement has been made public and all the banks have been cleared satisfactorily.
The feeling among all classes of people down town is one of great relief. There are no runs on any of the banks. There are no more than the average crowds on Wall and Broad streets at this hour, and the general impression is one of momentarily growing confidence.
A tour of the national and savings banks of Brooklyn developes the fact that there is more than the ordinary quiet there, and there is no disturbance of the channels of financial or other business in that city.
Excited crowds still throng Wall, Broad, New, Nassau, and other streets in the vicinity of the stock and gold exchange.
The report published that a run on savings banks would be made to-day was rather premature. A tour around the east side at noon found everything quiet, and more deposits than drafts being made.
The banks are generally availing themselves of the provisions of their charter, which empowers them to compel 60 days notice from depositors desiring to withdraw their accounts.
THE LATEST.
NEW YORK, Sept. 22 — 1.15 P. M.—Only $200,000 worth of stock have been bought at the sub-treasury since twelve o'clock. There is considerable falling off in the number of sellers.
The following bids were made on the street: Central, 95; Wabash, 50; Rock Island, 88 to 90; Western Union Telegraph, 72.
There is considerable inquiry for stocks on the streets; investors with greenbacks in hand seeking to purchase, but the prohibition of the stock exchange precludes transactions.
The national banks are paying all demands made upon them that looks like legitimate business in greenbacks, but anything like a run is paid in certified checks which must pass through the clearing house.
No meeting of Jay Cook's creditors will be held until statements have been received from various branch offices throughout the country. These are now being prepared with the utmost dispatch. The firm cannot at present say anything regarding the duration of the suspension.
1.30 P. M.—The feeling continues to improve in financial circles and considerable dealings in stocks outside of the Board for cash, greenbacks, prices ruling strong. The crowd down town is diminishing.
2 P. M.—The Gold Exchange Bank's gross clearing was $92,000,000. $2,400,000 bonds have been purchased up to this hour. The brokers generally are busy paring off the transactions of Friday and Saturday.
2.10 P. M.—Three million dollars worth of bonds were bought by the sub-treasurer up to this hour and more coming in. All quiet at the Fourth National bank.
2.15 P. M.—D. Williams & Co. over-drew their account in the bank of North America to the amount of $450,000. To-day the firm deposited securities for $250,000, leaving $200,000 still due the bank. The authorities are now engaged in endeavoring to compel payment of that sum.
The statement on Saturday that the check of the Continental bank had been thrown out at the clearing house was an error, it having been confounded with the National Bank of Commonwealth. The Continental bank is and has been paying as usual.
A dispatch from Milwaukee says the chamber of commerce adjourned until Wednesday next on account of the state of affairs.
3 P. M.—Isaac H. Bailey is appointed receiver of the Bank of Commerce.
The following are the street quotations showing a falling off: New York Central 91, Harlem 106, Erie 51, Rock Island 87, and Panama 88.
NEWSPAPER COMMENTS.
The Tribune asserts editorially that the cause of to-day opening with such gloomy prospects is immediately due to the failure of Commodore Vanderbilt, president of the Lake Shore railroad, to pay when called upon a call loan for $1,750,000 negotiated with the Union Transit Company, whereof his son-in-law, the late Horace F. Clark, was president.
The Sun says yesterday afternoon Messrs.
