OCR Text |
Show LATEST DESPATCHES. EASTERN. The Fiuauclal 4'rnsh. New York, l. There was a hater! feeling on Wall street all the morn- I ing. At the opening of business I stocks were stronger, and " anderbiit '. stocks buoyant, Harlem notedly lak- j ing a turn upward. Later, however, i it whs aiuiuiir.ccd that the I'nion Trust Company had suspended payment pay-ment tempoiarilv. This had a de-pres-in' effect, and soon came the announcement that (he Bank of the Comn.fruwealth had ceased, and that all was excitement once more. The Slock Exchange thronged early in the day, crowds commencing to gatlier as early as nine a.m. As soon , as the do- rs were openeil the brokers rushed in, ar.d in an instant the room was lilhd with exalted men howling, yelling and bawling. While the excitement was terrific various groups eddied and staggered altout, and actual violence w:is sometimes used to efleet bargains. Suddenly the bang of the President's gavel was heard, and it was announced the Government would accept proposals for a $1 0(000,0i H) loan. This news washailed witli acclammation, and the brokers returned to their work with ! more energy. ' When the announcement of the suspension of S. G. White was read out it added to the excitement and the roar continued without cessation. After the announcement was made that Ketchum & Belknap had also failed other failures followed and prices pri-ces of stocks rapidly declined, especi- allvWKl,ri wbifU before 11 o'clock, fell L'-lj per cent. The excitement ex-citement was at its height when the President of the Exchange, who had been in earnest consultation with members of the Governing Committee suddenly appeared in the room, and as soon as comparative silence was secured announced that the call was declared closed until such time as he declared. This was at live minutes to 12. A hoarse shout boomed through the nxun and a rush for thj door followed. The effect of closing the Exchange is to stop all subsequent subse-quent collections, both on buildings, anil the street. The following is the official onler of closing the Exchange: Ex-change: The Stock Exchange is closed until further orders from the President. All operations in stocks are prohibited under "penalty of expulsion. (Signed) G. E. Chapman Chap-man President. The effect of closing clos-ing the exchange is variously regarded on the street. Most brokers and merchants mer-chants look on it as a decided relief. Members of the governing wing aonniiittce of tho Stock Kxch ango when questioned this p.m. in regard to the closing, said the banks began to refuse to pay others' checks, and it was useless to attempt the continuance continu-ance of business under such circumstances. circum-stances. Under the rules every member mem-ber of the Exchange was obliged to recognize re-cognize any certified check upon a bank in the clearing house, but affairs af-fairs were such a state that the man who deposited a certified check nnd drew against it, did not know how he was standing. The Exchange would not re-open, he said, to the banks. Alter the closing of the Stock Exchange Ex-change the street became quieter. Lots of brokers and bankers gathered on tho side-walk, awaiting the result of the meeting of bank presidents, which had been convened for the purpose pur-pose of advising means of relief, At this meeting it was resolved to issue $10,000,000 in loan certificates at once. It is also resolved that until the first of November next any bank or the clearing lioiwe association shall have the privilege of taking such of its good assets as may be necessary to the clearing house, who shall issue to that bank certificates to the amount of 75 per cent, of the cash value of such assets, and that such certificates differences in the place of legal tender notes. Thev fnrfhpr rrnk-M (n .- all of their legal tender notes and make it a common cause against any attempt to break any of them. The issue of these certificates will be carried to the extent of the full assets of the bank if -necessary. The hanks to which loan certificates may be Issued will be charged, in addition to seven per cent, interest, one quarter of one per cent, to defray the expenses consequent con-sequent upon carrying out this plan. Alter the close of the 'Stock: Exchange there were, of course, no transactions in stock. A crowd y,'as gafliereit around the banks and. matched the proceedings with interest. The proposition pro-position of the banks is to facilitate their own transactions with one another, anoth-er, by using their cirtificatesof indebtedness, indebt-edness, accompanied by abundant collateral col-lateral security. This wil enable them to retain the oui icnoy for the accomodation accomo-dation of customers, and maintain their reserves. They w'di also by this expedient expe-dient bo able to accommodate their customers and business can be transacted. trans-acted. After 2 ;S0 p. m., the feeling on the street Wits decidedly- better. The panic is nearly over, partly Ijot cause the banks will be able, next week, to protect-, one another, and partly because it has almost spent its force. ' Upon the announcement of the suspension of the Union Trust Co., this a. m., the following note was posted ou the. -door: "In consequence of tho large amount due the Co. on call loans not having been paid, this niomine the Co. has been obliged to suspend payment until Monday, 10 a. m.," Humors of defalcations in tho Co. were current upon the street early in the day, but the particulars did not come to light till this p. m. It seems that Mr. Carleton, Sec. and manager of the concern left the place at noon yesterday very much excited. lie said tie telt too unwell to remain and wanted to rest. When he was wanted for consultation he could not be found. The trustees began to suspect sus-pect ho was a defaulter, and on examination ex-amination of his a flairs discovered the fact that he had been using funds to the amount of between $ix),000 and $000,000 for his own speculations in loans to brokers whom he favored, and to personal friends. One loan of 20,0uo to his Cither, J)r. Carleton, of the b-ok concern, is good. The other securities are of little value. The company is reported to be large holders hold-ers of Lake Shore stock. Checks on the Union Trust Com pan v, at lii.'tO p. m., were being cashed ly the Manhattan Man-hattan Company. -The latter pay all d nifts upon tiie Jbrmer at z discount. Tiie Union Trust Company would nut . have suspended tu-day, had Amr. Schell. the Vice-President, been able ' to procure yesteiday. from the Sub-Treasury, iS'ioAH)), ; . fir which he u tiered us registered ' ixmds. lu.i it win resume on .Monday .Mon-day is claimed beyond qmtion. The National Trust is among the victims. Before (ho opening of business a large crowd of depositors w as on hand, and upon, opening the hank they commenced com-menced to draw money up to 12 noon and the throng did not diminish atdut hour, and they were obliged to suspend. They will be reaily tu resume re-sume in a week. They hope for fhn'ls 10 meet the demand on them on Mondav. Tiie o dicers of the company state tliev could continue till Monday if they came to (lie street with soma sixes, hut could find no buyers unless at a discount of to 4 per cent. They refused m sell. and resolved to suspend for the better protection of (heir cus-' cus-' tomers and tbemseives-. They state lh-v ni.uio ill) advances in railroad j'rfiriti,. and ihctr .iUsj 'dion was neeoarv. Tho sujoensiou of the Bank ol 'Conmiunw-a:ih this a.m. was caused bv the ovenirawioi of the ac-iV'unt ac-iV'unt of Edward Haigiit it Co.. to the atii-nm .-,:"$;iJ.j,tr.. during the will see-no vesterd.iy the uayji.g tollur of ''a haiik certified and atshed " - -i... ftxutj aiid the house Vrthemw " ' "Hea- was unable io make up tnc 'y. It i, directly opp--ite the Fourth National, and tiie run on lids bank, ye-ierdav. spread aeru-s the street to the Commonwealth. Over $10,000 was ald out over counters yesterday. In fear of a continuous run. President Presi-dent Eiiis deemed it best, in justice to, all creditors, for the bank to close its doors, llo is yet unable to make any stateint-m ns to the general condition of the bank, its liabilities or probable loss. It is rumored this morning that a portion of the city Umds were deposited depos-ited in one ot the banks w hich suspended. sus-pended. It was also rumored t lint the Union Tnui Co. had $i,000 of court funds on deposit. The extent of the shrinkage of stock values during the panic may be seen when it is stated the fall in Harlem w.is o' per cent.; Western Union, ! per cent.; Panama. per cent.; Wabash, per cent.; N. W. Con. A 11. 1., P'l(rd;i; U. S. Express atxl Canton, : 17'. per cent.; H. fc Si. Joe., nnd , W. F. A Co.. 1-IH"'1- percent.; Pake1 Erio.N. Y. C.,0. & M., St. Paul, Pfd., C. C. A 1. C. and Consolidated IhmhIs, V2 to 10 per cent, Tho tola shrinkage in values euals ?10,iKK,-OXX1. ?10,iKK,-OXX1. The Cotton Exchange i in a port of a financial .stillness. At the Importer's Hoard of Trade there is the same complaint. In the Producu Exchange only a few sales, comparatively, compara-tively, were made. The following is a list of the failures ; reported to-dav : C. (!. White A Co.." E. S. Broadhead, Win. Wvcker fc Walsh, Klwd. Ilaiuht Co., L. doseph & Co., P. M. Myers & Co., Taussig, Fisher A Co., Brown, Wads-worth Wads-worth &, Co., OsWnc A Chapin, Kitchum & B-, Union Trust Company, Com-pany, National Trust Company and Bank of the Commonwealth. |