Greenleaf, Norris & Company (New York, NY)

Episode Information

Episode UID
3035734890885
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
303573489 hash
Start Date
September 18, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
94021c22387b69b8

Response Measures

None

Description

Contemporary reports describe the house as suspended/failed due to heavy stock positions; no clear reopening reported in these articles.

Events (1)

1. September 18, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy long positions in railroad and other stocks led to losses or inability to meet margins following the Jay Cooke failure and market collapse.
Newspaper Excerpt
Greenleaf, Norris & Co. were carrying great quantities of stocks at high prices and were unable to meet their engagements.
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, September 20, 1873

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Article Text

Mr. Hatch of the firm of Fisk & Hatch said that notwithstanding the panic of Thursday, they came to their banking-house yesterday morning expecting to weather the storm, and made every preparation for the day's work. Unexpectedly large calls came in, and at 10 1/2 o'clock they sent out for two of their banking friends, with whom they consulted as to the wisest course to be pursued. They could have continued longer, but came to the conclusion that they could not stand up against such a run very long, and it was best to suspend at once rather than to sacrifice their securities. Badly as they felt to be compelled to suspend, they tried to consider the interests of their creditors before their own. The Ohio and Chesapeake Railroad bonds had something to do with their suspension, but that alone would not have been sufficient. The trouble arose from a lack of confidence in railroad enterprises and the stringency in the money market, caused in part by the recent failures. The great demands upon their house caused by the suspension of so prominent a firm as that of Jay Cooke & Co., came so suddenly that they had no time to get in money due them, or to obtain funds from their assets. Their embarrassments had not been occasioned by loaning money on hazardous enterprises. They had not speculated; they had met with no losses. The trouble had been caused by the general fall in stocks and the feeling of distrust in regard to monetary institutions, which had precipitated a run upon the house, for which they had not time to prepare. They believe that their suspension is only temporary, and that as soon as the excitement is over they will be able to go on again. They are confident that none of their creditors will lose through them. The clerks were busily engaged yesterday in preparing a statement of their assets and liabilities, but they said it could not possibly be finished before to-day. Among the out-of-town firms for whom Fisk & Hatch were financial agents in this city, are W. B. Conant of Albany, N. Y., and James E. Lewars of Philadelphia. The firm corresponded with a large number of other firms in various cities, whose names are unknown. It is not believed that any of them will be seriously affected by the suspension. E. D. RANDOLPH & CO. E. D. Randolph & Co., a Philadelphia banking firm of considerable prominence, was the most conspicuous failure after that of Fisk & Hatch. The house did a large speculative business for Philadelphia, and indeed for Pennsylvania as well. They were popularly supposed to be the largest dealers in the stock of the Philadelphia and Reading Railroad in this market. They were also supposed to be doing business for Thomas A. Scott, J. Edgar Thomson, and the Pennsylvania Company. E. D. Randolph was a son-in-law of Thomas A. Scott. They held out till near the close of the day, and hoped to ride the storm. They afterward saw that it would have been better to have closed up in the morning, as the cost of carrying stocks for a day would have been saved. Mr. Randolph said that it was impossible to tell how they stood or what would be the result. If money got down to reasonable figures they would soon resume. The cause of their trouble was a general depreciation of stocks and a run on their house. They did the largest out-of-town business of the city houses, and were unable to call in their margins. WHITE, DEFREITAS & RATHBONE. White, Defreitas & Rathbone were long of stocks at high prices. The decline in the market forced them to succumb. They are stock-brokers, buying and selling on commission exclusively. They suspended a few minutes before 3 on Thursday, but the fact was not generally known until yesterday. Mr. White said that their suspension was owing to the absence from the city of many of their customers, who were thus unable to respond to their calls. He expected that when they had time to get together, "they would fix things up." He had no statement to make to the public, as their private affairs concerned no one but their creditors. BEERS & EDWARDS. Beers & Edwards were another ordinary stock house, and being long of stocks, found themselves unable to meet their engagements. They did a general stock business. On Thursday night they expected to go through all right, but yesterday morning they found the pressure too great, and had to succumb. The trouble arose solely from the general depreciation of stocks, but not of any particular kind. They expect to liquidate their liabilities in full, and think that they will resume when things are more quiet, though in the present state of affairs it is impossible to make plans for the future. GREENLEAF, NORRIS & CO. Greenleaf, Norris & Co. were regarded as a first-class house and were generally known as "bulls." They were carrying great quantities of stocks at high prices and were unable to meet their engagements. Mr. Norris seemed to feel very badly over the failure of his firm, and told the reporter that he would rather not say anything about it. THOMAS REED & CO. Thomas Reed & Co., like the others, were long of stocks, having large quantities of Harlem, New York Central, Lake Shore, and other stocks. They also expect to resume. They did a general stock business, but their suspension was caused from their liabilities as brokers. They went "long" on stocks—chiefly Harlem—and customers failed to respond and make good their margins. They telegraphed all over the country, but received very few replies. In the mean time Harlem was forced down from 130 to 90, and they were compelled to suspend. Mr. Reed said that he could not tell anything about the probabilities of resumption in the midst of so much excitement; no one could foresee what was coming. GEORGE BOLTON ALLEY & CO. George Bolton Alley attributed his suspension to the general depression in stocks, in which he dealt both on his own account and on commission. He held the Vanderbilt stocks chiefly, Lake Shore, etc., which felt the shock more than others. He expected to settle up and resume; he owed very little on the street, and didn't intend that any one should lose a dollar through him. He thought that most of the suspensions were only temporary, and that when the storm blew over a good many of the wounded would get on their feet again. DAY & MORSE. Day & Morse were bankers and brokers. They kept up until the afternoon, when they were compelled to yield to the pressure. Mr. Day told the


Article from The Democratic Press, September 25, 1873

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Article Text

The Financial Crash ! Failture of Jay Cooke & Co., ANOTHER BLACK FRIDAY. The suspension of Jay Cooke& Co., which occurred on Thursday last has been the all absorbing topic in financial circles during the past week. There are three American houses belonging to this firm, one in New York one in Philadelphia, and one in Washington, all of which suspended. Mr. Cooke also connected with London House, which, is claimed will not be affected by the disaster. As may well supposed, the failure of this firm, which was supposed to possess abundant resources for all emergencies, produces a panic in financial circles throughout the country. In reference to the great excitement eccasioned by this great financial crash, we copy the following from the New York Sun, of Saturday Yesterday was the most disastrous day known in Wall street since 1857. Firms considered'among the soundest on the street suspended early in the day, and the panic consequent thereupon compelled the suspension of many smaller houses. The failure of the heavy concerns have nearly all, If not all, resulted from endorsements of new railway enterprises. The expansion of enterprise in this direction has been enormous within the past few years, more miles of railroad hav ing been constructed in the past six years than were built altogether before the war. Nearly all of this construction has been done on credit, houses in every other respect conservative having shouldered the enterprises, relying wholly upon the sale of railroad bonds to meet accruing obligations. Dull times must come occasionally, and such have been experionced by these houses in the past few months. The deposits of Western firms in New York banks and banking houses have of late been less than usual, and this, added to the fact that some currency has been locked up by speculators, has made money tight, and rendered the negotiations of all kinds of securities difficult, even when backed by the best houses. Prominent firms carrying railroad en terprises have consequently been forced to shoulder their load alone, and the drains upon them for interest and cost of construction have been enormous. Shrewd operators like Daniel Drew and Jay Gould foresaw the necessary result, and went short of stocksto a large amoun throwing all their influence to hasten the gener at catastrophe. The result is that they are said to have reaped a golden harvest amid extensive disaster Most of the smaller firms which have failed are mere stock brokersand speculators, who happened to be long of stocks and were unable to cover in time to save themselves from ruin.4 Many larger operators are believed to be seriously injured, and important suspentions to-day are expected. Nineteen concern suspended yesterday, of which the most important Fisk & Hatch, Greenleaf, Norris & Co. A M. Kidder & Uo., White, Defreitas & Rathborne, Hay & Warner, Jacob Little, and E. D. Randolph & Co. A run was made upon the Union Trust Company which continued up to 4 o'clock, the hour of closing. It how. ever, met all its obligations, paying out about a million of dollars, and claims to be able to do as well to-day and hereafter, until alibits creditors are entirely satisfied. One of the di rectors says that about noon some United States bonds were sent to the Manhattan Bank, where the Union Trust Company deposits, as collateral for a greenback loan, but the bank nefused to advance any money upon them. Possibly the Manhattan was not in a condition to lend on the best security, as the soundest institutions are just now earefully guarding against large withdrawals of funds by their depositors, bute such extreme caution justifiable only on the ground of absolute necessity. The failure of Fisk & Hatch surprised the best informed men of the street, as they were considered among the safestiof/tirms. Their trouble was however, owing to their interest in a railroad enterprise, viz: the Chesapeake and Ohio. It is understood that large amounta/of money are due them from the Central Pacific/Railroad and other responsible companies, and the general impression is that their suspension is merely temporary. Greenleaf, Norris & Conhave also been a considered eminently sound, and Mr. Norris was one of the ice-Presidents of the Stock Exchange. with WHO IS SAFE? AZ One of the worst features of this panic is that the suspension of firms heretofore believed to be pre-eminent ly safe and conservative impairs confidence in all firms. Jay Cooke has been looked upon as the Rothchild of America. He was the exponent of the national credit. Bonds which passed through his hands were held in every town and county throughout the Union. Fisk & Hatch were also large dealers in Government securities and people say, "When Jay Cooke, Fiske & Hatch, the New York Warehouse Company, and such firms fail, who is safe There is, however, no reason why this should extend beyond the immediate neighborhood of the Stock Exchange. With the exception of Jay Cooke & Co., the firms which have suspended did not hold large deposits from outside houses. Neither have the larger firms falled disastrously. Most of them are said to require only time to enable them to meet their obligations in full. Very few, If any, New England, Southern, or Western concerns will fail because of losses sustained by the failure of any New York institutions which have yet been reported, Besides, the present condition of the country at large is more