Article Text
TELEGRAMS
REPORTED SPECIALLY FOR THE HERALD BY WESTERN UNION TELEGRAPH COMPANY.
UNITED STATES.
The Conference at the Fifth Avenue Hotel.
NEW YORK, September 21.—The conference at the Fifth Avenue Hotel to-day with President Grant and Secretary Richardson, in relation to the best means of averting financial disasters in Wall street, has absorbed the public interest. At the conference, and conspicuous, were Commodore Vanderbilt, H. Clews, Isaac Bailey, Seligman Bros., George H. Opdyke, Wm. Orton, President of W. U. T. Co., Prospect H. Sharpe, Jas. H. Burke, Wm. L. Scott, of the Erie (Pa.) Bank, Robt. Lenox Kennedy, Horace B. Claflin, General E. S. Sanford, President of Adams Express Company, Mr. Vail, of the Bank of Commerce, Senator West, and John Hoey, Vice President of Adams Express Company. A committee was appointed to agree upon some proposition to be submitted to the President and Secretary Richardson. After the committee had retired, Vanderbilt entered the parlor in which the President and Secretary were. The rooms and corridors adjoining the audience chamber were quickly thronged with crowds awaiting impatiently the exit of the railroad king, and nervously anxious to glean even the faintest idea of the result of his visit to the President. Commodore Vanderbilt made the proposition, that the President authorize the Secretary of the Treasury to place $30,000,000 of the legal reserve in the banks of this city, and on that condition he (Vanderbilt) would add $10,000,000. President Grant replied that he was anxious to do all in his power to relieve the present financial embarrassment and to prevent disaster, but that he must, however, conform to the Constitution. Mr. Opdyke and others represented to President Grant and Secretary Richardson the necessity for immediate action, but they were informed that the Constitution could not be violated.
The bank Presidents and capitalists were endeavoring to agree upon a proposition to be submitted, but, although they had been conferring up to six o'clock they could not arrive at any conclusion, and no paper was presented to the President.
The President and Secretary were not diverse in sentiment, it appears, for it was agreed between them to instruct the Assistant Treasurer to buy all government bonds offered for sale to any amount. The savings banks hold many millions of government bonds, and it is probable that they will sell them and deposit the proceeds in the National banks, which will give them relief.
The Action of the Stock Exchange.
NEW YORK, September 20.—Shortly before noon, in the midst of the panic, the governing committee of the Stock Exchange determined to close the Exchange. Immediately afterward a committee of the associated banks met at the New York Clearing House and it was voted by all the Associated Banks that they would issue certificates pledging the Association as a whole. These certificates are to be issued by the manager of the Clearing House to any Associated bank against the deposit of the bank's securities or assets. The effect of this action is to enable all the solvent part of the financial community to convert their assets into money, apparently, and without any sacrifice to themselves. The Stock Exchange ordinarily is simply a medium for converting securities into cash in a prevailing panic. The scarcity of money prevented this from being accomplished, securities being constantly offered for sale at constantly decreasing prices without finding buyers unless at an enormous loss to the sellers. By the issue of the bank certificates any bank can realize money upon its assets, and be able to extend to its customers all the accommodation for which they can find security, without compelling the sale or sacrifice of the assets offered. The whole machinery, therefore, of conversion is once more set in operation and is likely to run smoothly, and all concerns which have assets will find no difficulty in converting them into money. This action of the banks at the Clearing House meeting gave rise to a feeling of confidence on the street that no additional failures were likely to occur, and the impression obtained was that the panic was over.
Exciting Scene on Closing the New York Stock Exchange.
NEW YORK, September 20.—The excitement and panic which followed the announcement in the Stock Exchange of the suspension of the Union Trust Company and the Bank of the Commonwealth 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 2 to 16 per cent., and stocks were slaughtered without any apparent regard to values. Amid the surging of the excited crowd in the Stock Exchange and the continued destruction of values, there were 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 the announcement was made that the Exchange would be closed until further orders from the President. This was received with great joy, the Exchange resounded with cheers, the gong 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 closed.
Additional Failures Announced.
NEW YORK, September 20.—The following failures have been announced:
The Union Trust Company; Bank of Commonwealth; Ketchum & Belknap; E. C. Brodhead; Saxe & Rogers; Edward Haight & Co.; Brown, Wadsworth & Co.; C. G. White.
CHICAGO, September 21.—The Franklin Savings Bank, a small concern, was unable to meet the demands at the clearing house to-day, and closed its doors. As the concern has no connection, so far as known, with any of the suspended New York banks or bankers, it is supposed that it will soon resume business.
ST. LOUIS, September 20.—Toussing, Gemp & Co., of this city, closed its doors this afternoon, after the announcement of the failure of their New York house, Toussing, Fischer & Co. They are confident of being able to resume in a few days, and state that no one will lose a dollar by them. The house dealt pretty extensively in railroad securities on their own account.
TORONTO, Canada, September 20.—H. J. Morse & Co., bankers and brokers in this city, have suspended, in consequence of the failure of Jay Cooke & Co., and other prominent houses in New York.
ALBANY, N. Y., September 20.—T. C. Squire & Co., bankers, announce their suspension until further advices from New York.
PHILADELPHIA, September 20.—The Union Banking Company has failed. This bank has a State charter.
BURLINGTON, Iowa, September 20.—The Orchard City Savings Bank closed its doors to-day.
BUFFALO, September 22.—H. W. Bart & Co., private bankers and brokers, closed this afternoon.
ST. CATHARINES, Ontario, September 22.—Owing to the financial crisis in New York the Canada Southern Railroad Company have been obliged to cancel all their contracts for the present, and have ordered the discharge of all their workmen not employed. No regular train is running over the road. The cause of this is reported to be owing to complications in Daniel Drew's affairs, he being a large stockholder in the company.
New York News.
NEW YORK, September 20.—Two million eight hundred and sixty-three thousand dollars in bonds were accepted to-day at from 9 to 11 1/4. All offers of bonds under 11 1/4 are accepted by the government.
There were thirteen proposals to sell bonds to the government at the Sub-Treasury to-day aggregating $3,672,650, at from 10-9 to 11-2.
Five hundred Mormons, who arrived in this city yesterday, left to-day for Utah. Two hundred of them are Scandinavians and the remainder English, Irish and Welch.
NEW YORK, September 21.—Jay Cooke & Co. say there is no truth whatever in the story published here to-day that the London house of Jay Cooke, McCulloch & Co. failed. They say their London business continues uninterrupted.
The Effect in Chicago.
CHICAGO, September 21.—While the panic in New York has had the effect to temporarily unsettle values and grain and caused dullness on 'Change, it has caused comparatively little excitement. It appears to be the general opinion of the merchants and grain dealers that thus far the trouble has been outside of the commercial interests, and that unless it should spread it is not likely to involve those interests. The banks, however, are taking the usual precautions at a time of monetary excitement, in order to be prepared should the storm reach them.
Financial Condition in Philadelphia.
PHILADELPHIA, September 22.—The financial flurry has subsided. The run on the savings banks has ceased, and the National banks experience no unusual demand for capital.
The Situation.
NEW YORK, September 22.—The day has closed quiet, and it is believed the panic is now over. The Clearing House statement shows that all the banks here made their clearings satisfactorily, and the general feeling is decidedly better.
There is considerable inquiry in a quiet way for stocks. The following cash bids for stocks were made on the street: Central, 95; Wabash, 50; Rock Island, 88; Toledo, 90; Western Union Telegraph, 72.
All the foreign markets are strong, with a better feeling.
The announcement of the Commercial Advertiser that the certificates of the Continental Bank were thrown out of the Clearing House on Saturday was a mistake. The Continental is paying all liabilities on demand.
The Fourth National Bank had certified to $6,000,000 on Saturday, about six times as much as they ordinarily do.
Isaac H. Bailey has been appointed Receiver of the Bank of the Commonwealth.
Hugh McCulloch and Pitt Cooke, of Jay Cooke & Co., arrived from Europe to-day, and learned for the first time of the suspension of their United States firm.
The Clearing House Transactions.
NEW YORK, September 22.—The banks of discount were all open, some certifying to checks good through the Clearing House, and others paying in greenbacks. The Clearing House to-day issued about $5,000,000 of loan certificates in settlement of balances. This was a great assistance to the banks.
The Gold Exchange.
NEW YORK, September 22.—There was, of course, no regular business in either stocks or gold, and brokers were doing nothing beyond trying to effect a settlement of old transactions. The bankers who had not suspended were transacting no business beyond paying such depositors as called for their money. Those engaged in foreign exchange were entirely idle, as the closing of the Gold Room stopped business in exchange on London and the continent. The gold brokers to-day cleared all the business of Friday and Saturday through the Gold Exchange Bank by united action, which, under the circumstances, was certainly a great result. Every man settled promptly by certified checks, and the Gold Room is now perfectly clear of all unfinished business. This is important in view of the situation, and will greatly facilitate matters when the room is again opened for business. The gold clearings were $92,000,000. There is no price for money and very little is said about it. This afternoon $100,000 of 1881 bonds were sold 115 cash, and the brokers had orders for 5-20's at prices above the government standard.
The Union Trust Company.
NEW YORK, September 22.—The suspension of the Union Trust Company is generally attributed to the defalcating Secretary and the neglect to call in the $3,000,000 in loans, as ordered on Thursday. According to general reports he completely lost his mental balance, and showed no disposition to submit the affairs of the company to inspection. His whereabouts are still unknown. It is currently reported that the company will be ready to resume business in a few days. It is a little remarkable that only one trustee of the Union Co. has any money on deposit in the institution, and with the exception of two or three own but little stock. This may account for the bad management of the concern.
The Savings Banks.
NEW YORK, 22.—There was a moderate run on the Seamens' Savings Bank, corner of Wall and Pearl streets. The Trustees held a meeting and resolved to pay all sums under $100, but on larger sums to demand the thirty days' notice granted in the charter. This action is in accordance with an agreement made among the savings bank managers last evening. Some few of the banks can delay payment for ninety days, and all for thirty and on to sixty. Thus it will be seen that no
