Brown, Wadsworth & Company (New York, NY)

Episode Information

Episode UID
2315826390885
Episode Type
Suspension → Reopening
Bank Type
private
Bank ID
231582639 hash
Start Date
September 20, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
da60b815b327cb3e

Response Measures

None

Description

The firm suspended as a precautionary measure during the Panic of 1873 due to market chaos and the failure of other major houses like Jay Cooke & Co., rather than a direct run on their own deposits.

Events (2)
1. September 20, 1873 Suspension
Cause
Macro News
Cause Details
Suspended as a precautionary measure due to the chaotic market conditions and the failure of Jay Cooke & Co. and Fisk & Hatch.
Newspaper Excerpt
The following suspensions are added to the list : ... Brown, Wardsworth & Co.-all of New York.
Source
newspapers
2. October 15, 1873 Reopening
Newspaper Excerpt
Brown, Wadsworth & Co. have resumed business. They have notified the Stock Exchange to that effect. This is the first private banking firm which suspended during the recent panic to resume.
Source
newspapers

Newspaper Articles (6)
1. September 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 22, 1873

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been closed on Friday, many who had gone down during the day might have been saved. BROWN. WADSWORTH & CO. firm of Brown. Wadsworth & Co. have been doing business at No. 22 Nassau-st. for about years. A member of the house stated that they The had two They suspended could because they were afraid to go on. held out a while longer, but in of affairs everywhere they condition have simply whatsoever the dared present not until chaotic receive they or do any business where the bottom was. They serious losses, and cusor avoid knew deliver more thought had that suspended their to tomers had abundantly secured them. They had never been carrying so small a line of stocks since beginning business. They were principally interested in NewYork Central, Harlem, Lake Shore, Rock Island, and Pacific Mail. As soon as confidence should be restored accounts cleared they hoped to resume. For several had considered the firm of Jay and had doubted if they could earry and insecure, months they attempting: Cooke & the Co. load of stocks they were of Fisk & Hatch, came could have thunderbolt. tremendous The suspension 'They however, trusted all like their money," said the speaker, " with that firm on Friday morning." The closing of the Stock Exchange the firm regarded as commendable, as it would afford time for relief, and by this morning confidence would be in a measure restored. Except for that, almost no house in the street would have been able to stand. As matters now stood, it was doubtful if any, or at least any considerable number, of firms in the street could pay their debts.though with the restoration of confidence all would yet go well with the larger portion. The outlook was, however, somewhat gloomy even for the whole country. The suspension of Jay Cooke & Co. affected an immense number of correspondents throughout the country. Though Wall-st. influenced the country so extensively and 80 generally, yet time only could determine what would be the effect of the crash on general business and remote sections. LAWRENCE JOSEPH. Lawrence Joseph, commission broker of No. 14 Newst., announced his suspension early Saturday morning. He said that his suspension came about in this way The Bank of the Commonwealth had all his money, and when the announcement came that it had suspenped he "lost his head," and announced his own susHe said he was even on stocks and pension. completely owed from not cent to anybody. If anybody wanted money him he he who were willing to furnish it, and to recover the most of his of hoped had soon friends beenadealing lin from the stocks Bank the Commonwealth He had of every variety, but need not have suspended had he taken time to consider where he stood. He should withdraw his announcement of suspension if possible to-day. For months the street had been looking for trouble in of the firm of Jay Cooke & Co., but no one had dreamed the fall of Fisk & Hatch. There had been too much railroad building and too much stock watering. The developments of the last few day might have a salutary effect upon this kind of business. FEARING & DILLINGER. The firm of Fearing & Dillinger of No. 22 Broad-st. were commission brokers, who, like so many others, had been dealing in stocks of every kind. They were principally "long" on the Vanderbilt stocks: more especially Western Union. Their customers had failed to increase their margins, and they were thus left helpless. They need not have suspended quite as early, but could only have held out a short time. They had been doing business with a considerable degree of security, and the crash had come without a hint of warning. MILLER & WALSH. The firm of Miller & Walsh have an office at No. 17 Broad-st. Their business, however, is small, and they were reluctant to enter into any conversation concerncondition. They attributed their suspension to the of accommodations and obtain money from their ing ity to failure their banking customers. their They precau- inabil- suspended on Saturday morning. and only as a tionary measure. They had not made an examination of their books and knew not where they stood. They had been dealing in stocks of every kind, but had considered themselves safe until 24 hours before their fall. KETCHUM & BELKNAP. Ketchum & Belknap of No. 24 Broad-st. suspended at about 11 a. m., but in the general uproar this caused very little additional excitement. The firm had miscellaneous stocks.but mainly Vanderbilts. One of the partners stated doing the firm was not largely speculative, but was that business in safe stocks-though nothing seemed " safe It was impossible to tell where the concern stood. Though now. much of the stock held was for customers on margins," the firm had considerable on their own ac- of count. The cause of the suspension was the want Vandermargins everywhere felt, and holding too much bilt stock. WILLIAMS & BOSTWICK. Williams & Bostwick, of No. 49 Wall-st., dealt a good be in gold exchange, and they were reported to that heavily deal loaded with Arkansas bonds. The firm said therethey were unable to borrow any money and were forced to suspend. They could not estimate their fore liabilities, but hoped as soon all matters quieted down to make a settlement and resume. c. G. WHITE. C.G. White,Lajbroker clearing through H. G. Godet, of No. 25 New-st., failed early in the day. He was formerly that of speculator. His name was confounded with S. a V. White, and some excitement was temporarily caused by the,mistake. TAUSSIG, FISHER & CO. The failure of Taussig, Fisher & Co. of No. 32 Broad-st. in a bad one. The firm were concerned railroad enterprises. and held some stocks. The partners refused to any pressed many was apparently would of mako the start destatement, and could not tell whether they or not. The branch house of this firm in St. Louis, the again Gemp & Co., closed their doors soon after house. Taussig, announcement of the failure of the New-York rail The branch house has also been engaged in many road enterprises, but the firm hope to resume in a few days. P. M. MYERS & CO. The news of the suspension of Peter M. Myers & Co. of became known 'at the Stock Exchange it closed. Mr. Myers said cent just unable to borrow money without paying 2 or No. 24 before Pine-st., that they per If were it, and they thought it best to a few moments they would not Mr. Myera told of one man who had a suspend. day waited for stop. of have was the had on firm, they his to to the Exchange to hand in the ticket imposway he heard the Exchange had closed. It was sible when to state what the amount of their liabilities was, but the firm hope to resume soon. W. G. MOORHEAD & CO. The unimportant firm of W. G. Moorhead & Co. of No. 20 Wall-st., also suspended. MEASURES OF RELIEF.

2. September 24, 1873 The Morristown Gazette Morristown, TN
Article from The Morristown Gazette, September 24, 1873

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Financial Crach.---Other Bank Suspensions. WASHINGTON, September, 20.--The following failures are reported : Union Banking Co., of Philadelphia, and Union Trust Co., A. R. White & Co, E.C. Broadhead, Kedpune & Belknap, New York. NEW ORLEANS, September. 20There is much anxiety in commercial circles regarding the failures in New York, but business among the banks is as quiet as usual. NEW YORK, September, 20.-Wall street was crowded at an early hour. There is less solicitude, however, and the resolutions of the banks to sustain each other, and the sale of ten millions, of bonds by the Treasury, nerves mat ters. Two of the members of the firm of Jay Cooke & Co. are coming on the Russia, which is expected on Monday, when a reliable statement of the affairs of the house will probably be presented to the public. WASHINGTON, September, 20-A. G. Cattell, agent of the Syndicate at London, telegraphs to Secretary Richardson that their accounts are all in perfect order. WASHINGTON, September, 20.-The following suspensions are added to the list : Saxe & Rodgers. National Bank of the commonweal h Quassig & Fisher, P. M. Myers, Miller & Walsh, Laurens & Josephs, Fearing & Dill inger. Brown, Wardsworth & Co.-all of New York. NEW YORK, September, 20.-The Bank of North America has sus pended. Western Union stock 57. PHILADELPHIA, September, 20.It is rumored that the Union Banking house has suspended. ALBANY, September, 20.-It is rumored that Squires & Sens have suspended. NEW YORK, Sept. 20.-Alluding to the SUST ension of operations by mem bers of the Stock Exchange, the Evening Express says: Too much praise cannot be awarded to the men who conceived and carried out this master stroke of policy. Bedlam was running loose and the craze was rapidly com municating itself to the outside multitude. Nothing remained, but to shut the door and try and bring back bulls and bears alike to their senses." The defalcation of the Union Trust Company amounts to a half million. The Clearing House announces its inability to make a general clearing on account, of dealers, inability to obtain properly certified checks. NEW York, September, 20.-The Bank Presidents, at their meeting this afternoon, passed a resolution to issue immediately $10,000,000 in loan certificates. WASHINGTON, September, 20.Westeru markets show a general halt in transactions, without any change in rates.

3. September 25, 1873 Yorkville Enquirer York, SC
Article from Yorkville Enquirer, September 25, 1873

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MONEY PANIC IN NEW YORK. The extensive banking house of Jay Cooke & Co., failed to meet its engagements on the 18th instant. The immediate cause of the suspension is stated to be the large drawings on them by their Philadelphia house and their own depositors. During the two weeks preceeding the suspension, both houses had suffered a large drain upon their deposits in consequence of the uneasy feeling which has recently prevailed, and which has affected more or less all houses closely identified with new railroad enterprises. The Philadelphia house had been previously weakened by a large cash advance to the Northern Pacific Railroad Company of which they are financial agents. The next day after the suspension of Jay Cooke & Co., the following suspensions of New York banking houses were announced : Robinson & Snydam, Richard Schell, Fisk & Hatch, White, Dufrees & Rathbone, Burt & Edwards, Eugene Jackson, Thos. Reed & Co., W. H. Warren, Greenleaf & Norris, Geo. B. Alley, Theodore Biddle, A. M. Kidder, Whittemore & Anderson, Smith, Seaver & Co., Saxe & Rogers, National Bank of the Commonwealth, Quasig & Fisher, P. M. Meyers, Miller & Walsh, Laurens Joseph, Fearing & Dillenger and Brown, Wadsworth the houses in the northern cities ing & Co. Besides above, several have other closed bankdoors or suspended, including banks in Philadelphia, Albany, Washington City and Toronto, Canada. The panic in the cities north of Baltimore is general, and a run has been made by the depositors upon nearly all of the banks. In New York, on Friday, there was a crowd around every paying teller's desk. The panic has not as yet reached the South, nor is there any reason why it should. The grain and provision markets of the North and West are all unsettled, though the price of the southern staple in the New York market has not been materially affected, the panic having come at the most favorable time for the cotton planters-just at the commencement of the season-and before much of the crop had been put in market. The calamities which are threatened by the of the general can prospect suspension purchasing be partially averted by the government five millions dollars worth of bonds, which will furnish the banks with a sufficient amount of legal tenders to enable them to resume business. The latest rumor is to the effect that this plan will be resorted to, and that the government will buy half a million of bonds. The Bank Presidents have determined to issue immediately $10,000,000 in loan certificates. The latest intelligence from New York indicates an easier feeling among all classes,

4. October 16, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 16, 1873

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FINANCIAL. A Day of Vicissitudes in New York Excitement on the London 'Change Failures. NEW YORK, Oct. The failure of W. G. small & Co. are Gilman, Perry, difficulties Son a operator, reported by is the contin- suspended. reported. The were caused ued demand of depositors and their inability to make collections. W. G. Perry at. tributed his suspension to the d cline in stocks. On 'Change. The situation at the stock exchange early in the day was marked by a heavy fall in values to further failures, and the for cash to was a sudden pressure But there owing of stocks change realize to advanced extreme money. under which prices of the had to was city upward buoyancy sharply. dividend movement, The payment nothing although it do New with largely York the the result of manipulation by some of the bears, who covered their short contracts yesterday at the the prices and went long for a turn. 100,000 Shares of Stock Unloosed. Judge Blatchford, in the United States District Court, decided to dissolve all the injan tions heretofore granted in the bank ruptcy case of Geo. B. Grinnel & Co. The application to have them adjudicated in voluntary bankruptcy will be argued Saturday. The announcement that all the injunctions had been removed did not have any unfavorable influence, AB no steps were taken to sell out the collaterals, although the dissolution of the injunction leaves the creditors free to dispose of them in the same manner as if no injunction existed. This releases nearly one hundred thousand shares of stock, and what would ordinarily cause a decline acts directly the other way. In regard to banks it may be stated that the situation is improving. They are contining thems Ives to a legitimate business; are not hampered by stock operations, and currency is comirg into the city from the A country in considerable quantities. member of the governing e immittee of the Stock Exchangesaid this afternoon that he thought all danger of further financial disturbance was now over, and that the banks had never been in so good a condition since the panic as at present. The few small suspensions yesterday and to day should not excite any apprehension. He believed that all houses had succumbed which were likely to, and that confidence among business men would rapidly increase. Brown, Wadsworth & Co. have resumed business. They have notified the Stock Exchange to that effect. This is the first private banking firm which suspended during the recent panic to resnme. The Post says the situation to-day is as follow: At the Clearing House returns of banks this morning show an important gain in legal tender notes. There is no change loan certificates, and there is likely to be no contraction of them at present. From up-town merchants advices to-day The large dry goodsfirms which uneasy not escaped in are the good. unfavorable general rumors, feeling are, have we are are if were the of fair, assured, support and strong; they banks their not collections whose they mercantile have duty it is to carry through firms which are sound and whose only embarrassments arise om temporary disuse into which ordinary methods of business are thrown by the panic. At the Produce Exchange business is good; that done yesterday in breadstuffs has been rather abov the average. On good authority we are told that at the regular session yesterday sales of breadstuff's amounted to about $825,000, of which $500,000 were of wheat $125,000 of flour, and $100,000 of corn. Over Four Million Reserves Out. is WASHINGTON, Oct. 15. l'he outstand f. Ing legal tenders are $360,092,888 New Orleaus. NEW ORLEANS, Oct. 15.-Gold is 111@ 112. Currency 41@51 premium sterling bank 1181@119 sight 103@104. Excitement on the London Exchange LONDON, Oct. 15. -Unfavorable rumora from America are afloat in the Stock Ex change. It is reported that the failure several brokers, caused by the decline is lErie, will be announced in the Stock Ex ly change to morrow. One hundred and fft ie thousand pounds in bullion were shipped d from Liverpool for New York to day. aSt. Lonis Anxious to Resame. to t ST. LOUIS, Oct. -The Directors of the St. Louis National Bank, to-day instructed of the President to take measures to call meeting of members of the Clearing House g. to discuss the feasibility of immediate re en sumption of currency payments. Quite number here are very anxious to resume he and are said to be willing to assist any bani th that can show itself solvent through an to run which may result from resumption. ed is understood ten banks will to-morro ts; make application for a meeting of the Clear ed ing House Association to consider this mat n ter, and they will press resumption strong r ly. If they fsil is by no means corta. itthat they will not withdraw from the asso is cistion and establish a Clearing House h their own and resume at once. pt Cincinnati All Right. e ns CINCINNATI, Oct. 15.-Banking matter leare working satisfactorily. A few bank o to-day report little heavier check ng tha w on preceding days since Monday when the ith resumed, but in the main no extraordinar ear demands have been made since the full r til sumption. The good results to the bank othus far have fully verified the prediction ge, of those most favorable to resumption.

5. October 16, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 16, 1873

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forms THE TRIBUNE reporter that the suspension of the house of Gilman, Son & Co. was due to a continued drain on their monoy supply by depositors, the non-payment of heavy sums due the firm, and the rapid depreciation in socurities, etc., in their hands. He belloved the firm entirely solvent, and anid they would pay all drafts against remittances. W.S. PERRY was only a small dealer. He was carrying more stocks than he could care for, and was theroforo obliged to suspond. [To the Associated Press.] A MORE PROMISING LOOK. NEW YORK, Oct. 15.-In regard to the banks, it may be stated that the situation is improving. They are confining themselves to a legitimate business, are not liampered by stock operations, and currency is coming into the city from the country in considerable quantities. A membor of the Governing Committee of the Stock Exchange said this afternoon that he thought all danger of further financial disturbance was now over, and that the banks had nover been in so good a condition sinco the panic as at present. The few small susponsions yestorday and to-day should not excito any apprehoneion. He believed that all the houses had succumbed which were likely to, and that confidence among businoss men would rapidly increase. RESUMED. Meanrs. Brown, Wadaworth & Co. have rosumed business. They have notified the Stook Exchange to that effect. This is the first private banking firm which suspended during tho recent panic to resume. THE GENERAL SITUATION. The Post says the situation to-day is as follows : At the Clearing-House returns of the banks this morning show an important gain in legal-tender notes. There in no change in loan certificates, and there is likely to be no contraction of them at present. From up-town merchants the advices to day are good. THE LARGE DRY GOODS FIRMS, which, in the general uneasy feeling, have not eecaped unfavorable rumor, are. WO are assured, strong. Their collections are fair, and if they wore not they have the support of the banks, whose duty it is to carry through morcantilo firms which are sound, and whose only embarrassments arise from the temporary disuse into which the ordinary methods of basiness are thrown by the panic. AT THE PRODUCE EXCHANGE business is good, that dono yesterday in breadstuffs having been rathor above the average. On good authority WG are told that, at the regular session yesterday, sales of breadstuffs amounted to about e825,000, of which $500,000 were of wheat, $125,000 of flour, and $100,000 of corn. INVOLUNTARY BANKRUPTOY. George Bird Griunoll & Co. to-day filed & petition to be adjudicated bankrupts. This proceeding supersedes, and virtually terminates, the proceeding instituted in involuntary bankruptoy by Honry Myers.

6. October 16, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 16, 1873

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t arthough enoy knowed IF signs improvement the alone. t Now York banks reported their condition 1 improved, with currency t in from the country, and E so strong Bluco the panio Brown, Wadsworth & Co., n to materially not The como been private that commenced. beginning they banking had the firm, which suspended early in the panic, la o first of the private firms to resumo. The morchants report collections onsier and business on improving. Sales of flour, whent, and corn the Produce Exchange amounted to e825,000. JUDGE BLATCHFORD AND THE VANDERBILT SECURITIES. The excitoment occasioned in Wall street by Judge Blatchford's decision, enjoining A certain number of brokers from selling about $12,000,- by 000 of Vandorbilt stock, pledged with them VanG. B. Grinnell & Co. (who were known as dorbill's brokera), indicatos that thore was a gen- coloral conviction in Now York that plodges, holder or Intorals on call-loans, can be sold by the socure default of payment of the note to is in which they have been hypothecated. There imdoubt that there has been a very general prossion no throughout the country that bankrupt of soproceedings could not effect this class decision cy curition in any way. Judge Blatchford's 1 that this impression is, to A certain and dogreo, the shows orronoous. If the pledge be bona fide, the le property has been hypothocated before as sodebtor has become insolvent, its character but, , for the debt cannot be changed; hold, it r nevertheless, curity as Judgo Blatchford has of the , be called in among the other assets of the may and hold subject to the order Blatch lo bankrupt, at the latter's discretion. Judge of the Court, ford's decision is not a now construction in B The same ground has been taken it many has r F, law. previous bankruptcy CASOH. The reason BO uno attracted particular attention is because has large an amount of these pledges lookusually tiod up in this case, and because important the 0 been those ebourities has exerted an maraup of on the whole of the stock Court it influence The modification made by the who in ket. of Blake Bros. & Co., v. d the case largo portion of the Grinnell collatorale, and it d hold entirely a discretionary with the Court, supervisory r, was noticed that, oven then, the if one as will be of the Court, or of the Assignee, Blake ko power be appointed, is in no wise reloased. statement in nshall required to make a sworn of the Bros. are to the disposition and application vo in in proceeds respect of all the enlos they make. of rights of lien-creditors are defined holdno The of the Bankruptcy act. A creditor on Sec. 42 mortgage on real estate, or a pledgo the other ing a property, may como in with after reducas personal for the balance of his dobt Assignee on creditors value of the property, and the redemption. at ing the release the dobtor's right of that inmay other hand, the law provides subject to n. On the " may sell the property. It has.been Ir. the Assiguee of the creditor thereon." this clauso, nthe claim various decisions, under pledge inheld creditor in holding such mortgage or security, to that a his debt as ono holding to have olmust prove pormission of the Court without and the property obtain sold, and that a galo made by the Court. . permission may be set asido law, it folsuch such power vested in it by Bankrupt ecfor Having matter of course, that a sale of any list lows Court as has a under also the mortgage power to or restrain pledge. the 83, In fact, that ree, and property provides oxpressly, in Sec. restrain the Court law " may also, by its injunctions. in the meanN. the dobtor and any othor person, or disposition aha the making any transfer not WAtime, from of the debtor's proporty operation leof any part this act from the therebut excepted by from any interference mortgages ops thereof, and we have seen. pledges and of the has In with." As from the administration decision, as riff are not excepted fnot, Judge Blatchford's declares but, Court. as others that have gone Bankrupt before, law to dowell the design of the Court oro that it is property into the Bankrupt purpose of Anbring all the The manifest frauduaph for administration. to protect creditors from could b DOBmore this design proference is against them. which mortgages and the lont easily worked out through ther oscpledges than in necessarily any other way. follow that collateral every omIt does in not bankruptcy must tieup he became the a bank of nonceeding pledged by the debtor before case of Grinneil & Co This rupt, as it has donoin were the 912,000,000 of pledges UDBE haha In that caso of there $1,500,000 more entirely admitted b viz: cm00 and cured. dobts It was creditors charged, holding and plodges, the raph some had of demanded the and received had become additional insolven la of they after the debtors insolvency, would Interals received After for th Such pledges, and Bold by the Assignee it would be got aside creditors generally, and bon truck Tuesbenefit of the for the Court to separate onos unless the th fide be impossible pledges unlawful into indifrom the Court. To do th rried whole list were brought to enjoin the sale of an atter. is a it became of the necessary collaterals. The modification mean that th ecovgone, favor of portion Court will Blake release Bros. the seems restraint as rapidly to on ns the they sale a will fide securities will not hold been the separated bona from those which power of a Bankru typed law. While, thon, this tho salo of collatera wit Court to enjoin them into Court, along be we year and bring assets, appears to plects the other the security of the genuine and a 00 at Ohio lawful established, pledges is in no wise affected,