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THE FINANCIAL CRASH. By telegrains in the St. Paul p:1pers of yesterday, we learn that the suspension of Jay Cooke & Co., on the 18th at Philadelphia, New York and Washington, was followed by that of E. W. Clark & Co, of Phil adelphia, Kenyon, Cox & Co., Fisk & Hatch, R. Schell and other prominent banking houses of New York. Fears are entertained of a general financial crash, and we await further news with anxiety.
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-The banking houses of Jay Cooke & Co., in Philadelphia, New York and Washington, suspended on Thursday. The banking firm of E. W. Clark & Co., in Philadelphia, also suspended. There was great excitement in Third and Wall streets, and a generrl decline in the stock market, but towards the close of the day a stronger feeling prevailed, no further suspension of consequence being expected.
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Co., bankers and brokers in this city, have suspended owing to the suspension of Jay Cooke & Co. and other prominent houses in New York.
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CANADA. The Bankers of Montreal and Tor. ronio Moving Very Causiously. MONTERAL, Sept. 20.-The only effect here of the panic in New York has been to make the bankers more cautions and less willing to let out their funds, which are ample for all legitimate commercial demands. The diecount rates for good bills varies from 7 to 8 per cent., according to the standing of the same. TOKONTO, Sept. 20.-H. J. More & Co., bankers and brokers of this city, have suspended, owing to the failure of Jay Cooke & Co., and other prominent houses in New York
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1 Foreign News. ( Jay Cooke, McCullough & Co. in Lon1 don-Suspension at Toronto-Carlist Defeat in Spain-Advices from Khiva---Crew of the Deerhound-The Coercion Act Suspended---Internationals in Spain---False Re. port Corrected. LONDON, Sept. 20. Jay Cooke, McCullough & Co. continue to do business as usual. TORONTO, Sept. 20. H. J. Moore & Co., bankers. have suspended, owing to the failure of Jay Cooke & Co., and otherprominent houses of New York. MADRID, Sept. 20. The Republican troops, under General Pavia, have entered Malaga without op position. The Carlists have raised the blockade of Olot, Gerona. They attacked Folossa yesterday, and were defeated with heavy loss. CITY OF MEXICO, Sept. 17 via HAVANA, Sept. 20. I The Government is re-establishing the navy. Sr. PETERSBURG, Sept. 20. Advices from Gen. Kauffmann report that Khiva continues peaceful, and the General has ordered the withdrawal of two detachments of the Russian force occupying the city. LONDON, Sept. 20. 1 Mr. Stuart, and a portion of the crew 1 of the yacht Deerhound, captured by a 1 Spanish cruiser, after landing a cargo of arms for the Carlists, have been released. DUBLIN, Sept. 20. f The operation of the Coercion Act has r been suspended in Sligo, Roscommon and Tipperary. LONDON, Sept. 20. . Donald Dalrymple, Member of Parlia: ment from Bath, is dead. S It is stated that there are 50,000 members of the International Society in Spain. It was reported that a civil war had e broken out in Morocco between a SOD and a brother of the deceased Emperor, but it is untrue. t
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THE FINANCIAL CRASH. When the news of the failure of Jay Cooke & Co. first reached us. we thought, as did the press and the people throughout the country. that the story was nothing more than a wild sensational fabrication. We would almost as soon have expected the suspension of the United States Treasury, 86 strong in public confidence had grown the great central New York house of the Cookes, as well as its Philadelphia, Washington and London branches. But the news was true. The ex citement in Wall street during Thursday. Friday and Saturday of last week was unpre cedented. The whole street is gone" was the ery of distress heard on all sides. Friday was. notably the most dismal day Wall street has ever known. and the wreck. ruin and despair which loomed up in quarters thought the soundest and the best, surpassed even the similar scenes of the "Black Friday" of 1869. The First National Bank of Washington, as well as the houses of the Cookes in Washington and Philadelphia. also suspended. The London house of Cooke, McCullough & Co. did not suspend and claims that it is a distinct and entirely solvent institution. The effect on the great speculating brokers in New York was disastrous in the extreme. One after another of them went down in rapid AUCcession until confusion worse confounded reigned everywhere. The papers have informed us that the failure of Jay Cooke & Co with all its dire consequences. was owing to the enormous amount of Pacific Railroad bonds which they were carrying. This is undoubtedly true. But there is another cause for the crash. which none of the papers we have seen have alluded to; and that is the power which the Grangers of the West have come to wield. The election in California in which the great speculative railroad interests arrayed themselves in solid line of battle against the people and in which the people gave the railroads of this class their Waterloo defeat is, in our opinion. the undoubted cause of the terrible fall of the mighty house of the Cookes. Henceforth the Grangers are a power in the land.
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A telegram from New York, 19th inst., announced the failure of the bankers, JAY COOKE & Co.,and a large number of bankers, brokers and business men in New York and Philadelphia.The panic in Wall street is represented as being unequaled in the history of bull and bear movements.
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THE CRISIS ELSEWHERE. ANXIETY IN LONDON-AMERICAN SECURITIES DEPRESSED. LONDON, Sept. 22-5 p. m.-Much anxiety is manifested on all sides to hear further news from NewYork. Jay Cooke, McCulloch & Co. continue to pay cash in the usual manner over their counter, and the run on their house has ceased. Much sympathy is expressed for the firm by the leading bankers. A. G: Cattell has telegraphed to Secretary Richardson that the business of the Syndicate is not distorbed by the financial troubles. Among the rumors current in the Stock Exchange is one that the Bank of England holds $800,000 of Jay Cooke & Co.'s acceptances. and that the Rothsschilds have $100,000 of the same paper. 5-30 p. m.-A dispatch announcing the closing of the New-York Gold Exchange has just been bulletined. This news is accepted as an indication of the gravity of the financial situation, and the market for American securities is again depressed. TWO BANK SUSPENSIONS IN PHILADELPHIA. PHILADELPHIA, Sept. 22.-The NN. Citizens' Bauk, a State institution. corner of Second and Racests., suspended payment this morning. On Saturday they passed over the counter $100,000. The Keystone Bank, a State institution. at Nos. 1,826 and 1,328 Chestnut-
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STATEMENT OF JAY COOKE & CO., NEW YORK. Holders of drafts drawn by the undersigned correspondents of Jay Cooke and Co. are referred for honor to the banks and bankers set opposite their respective names. Drafts drawn against money deposited since their suspension will be paid upon presentation. Present have -
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JAY COOKE & CO. THE GREAT FINANCIAL FAILURE. Great Excitement in Consequence of the Suspension. Suspension of Jay Cooke & Company. NEW YORK, Sept. 18.-Jay Cooke & Co. have suspended. Their suspension is in consequence of large advances made to sustain their Philadelphia house and a heavy draw upon their own deposits. PHILADELPHIA, Sept. 18.-Jay Cooke & Co. have closed. A great crowd assembled in front of their banking house when the fact of their suspension was known. WASHINGTON, Sept. 18-. Jay Cooke & Co. have closed. The First National Bank, Henry D. Cooke President, has suspended. WASHINGTON, Sept. 18.-There are assurances that the Freedman's Savings Bank had only eight hundred dollars in the First National Bank, and no balance with Jay Cooke & Co. The Bank holds only four hundred dollars of Northern Pacific bands collateral for a small loan. Excitement in New York. NEW YORK, Sept. 18.-Great excitement prevails in consequence of the Cooke failgre. The question is, who next? Business men attribute the failures to operaIt tors in the Northern Pacific Railroad. is feared the National Life Insurance Company will go under with Cooke. It is said that Jay Cooke lost largely in gold. Members of the firm say they are unable to make any further statement, save that they expect to resume business in a short time. The London Firm Stands by Jay Cooke a Co. LONDON, September 18.-The firm of Jay Cooke, McCulloch & Co. responds to his suspension by stating that all drafts and letters of credit on them, issued by Jay Cooke & Co., will be duly honored. PHIDADELPHIA, September 18.-E. W. Clarke & Co., bankers, have suspended. Statement of the Suspended Firm. Jay Cooke & Co. make the following statement: "The immediate cause of the suspension of Jay Cooke & Co. was the large drawings upon them by their Philadelphia house and their own depositors during the last fortnight. Both houses have suffered a large drain upon their deposits in consequence of the uneasy feeling which has recently prevailed and which has effected more or less all houses closely identified with the new railroad enterprises. The Philadelphia house had previously been weakened by large cash advances to the Northern Pacific Railroad Company, of which they are the financial agents. Jay Cooke, McCulloch & Co., are Solvent, The business of Jay Cooke, McCulloch & Co., London, is entirely distinct, and that house is perfectly solvent, so that it will meet all its outstanding drafts and letters of credit without inconvenience to travellers, and have a large cash surplus to apply to the American house. The firm of Jay Cooke & Co., and its members have a large amount of real and personal property upon which however they cannot immediately realize. They are confident depositors will be paid in full. No Firm of Prominence will Probarly Succumb. NEW YOBK, September 18.-All the reports about the suspension of firms, excepting Jay Cooke & Co., Richard Shell and the small firm of Robinson, Snydall & Co., upon investigation, proved to be without foundation. This fact was made known on the street and confidence was again restored, and at the close of business a stronger feeling prevailed. It is not thought that any other firm of prominence will succumb,
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The Financial Crash in New York. The great commercial centre of the United States has experienced a terrible convulsion during the past week, owing to the failure of leading bankers and brokers, beginning with the famous house of Jay Cooke & Co., whose liabilities are estimated at twenty millions. The failure of this firm was in consequence of heavy speculations in the bonds of the Northern Pacific Railroad, and their suspension was followed by a general crash in Wall street, involving the failure of Fisk & Hatch, and many other leading bankers and brokers. The Stock Exchange and the Gold Exchange were compelled to suspend operations, because of the wild excitement created among the speculators in stocks and gold. The effect upon the gold market, however, has been inconsiderable, as the latest quotations are scarcely higher than before the crash. The cotton market has been more seriously affected, and prices have had a downward tendency, with the market dull and nominal. The depositors in banks, and especially the savings' institutions, were clamorous for a few days, but a better state of feeling existed at the latest accounts, and it was confidently expected that the worst effects of the storm had been experienced already. Of course, the monetary panic has spread throughout the the country, but it is hoped the financial troubles will speedily end, and business will again assume a placid appearance. The depression of the cotton market affects our people most seriously, but we hope that a re-action in financial circles will stimulate the price of cotton, SO that our farmers will be enabled to meet their obligations promptly, and without sacrificing the product of the year's labor.
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THE most important matter of the past week is the failure of about 20 prominent bankers and brokers in New York, among them Jay Cooke & Co., Fisk & Hatch, and other houses of the highest standing. A general panic in the financial affairs of the country was at first thought to be inevitable, but by the Government promptly coming to the rescue and buying several millions of bonds, such a calamity was happily averted, and the indications now are that there will be no serious disarrangement of the monetary end commercial affairs of the country.
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The Crash in New York. The last fourteen days have been the most eventful that have been known in the Empire City for many years past. A monetary crash. such as has only e occurred but once before in the history of our country, has shaken financial circles from centre to circumference; and scores of the leading banking houses in the eastern cities have utterly failed to inect their obligations. and have been declared insolvent. Among the many firms that are gazetted, we may name Jay Cooke & Co., Fisk & Hatch, and Henry Clews & Co.,-the liabilities of these three houses, in ex. cess of their assets, aggregating probably One Hundred Millions of Dollars. Thousands of depositors in these and other institutions were ruined; gold took a sudden rise to 113; business of all kinds was prostrated, and gloom still prevails. In the midst of the calamity President Grant and the Secretary of the Treasury hurried to New York. By their orders Ten Millions of the Government funds wereimmediately placed upon the market, and that afforded a temporary relief. It was then ordered that the Forty-Four Million Dollars of the Government Reserve Fund be placed "where it would do the most good," in case the panic continued. Our latest advices are to the effect that confidence is again partially restored: but that thousands who ten days ago were immensely rich. are now tasting the bitter dregs of the direst poverty - A singular episode of the crash is the fact that Ex-President Andrew Johnson, who bad deposited 800,000, (his entire wealth) in the First Na. tional Bank of Washington. lost every cent by the bankruptcy of that concern : while President Grant, who had $100,000 in the Fame institution, did not lose n dime. Mr. Graut was ina I. formed by the officers of the bank that 18 the institution was about to suspend payment, and immediately drew out bis money. while poor Andy Johnson was allowed to suffer the loss of all he had de in the world. Comment is unnecessaa ry.
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NEW YORK. Special Disvatch to The Chicago Tribune, NEW YORK, Sept 28.-The bright prospects with which the wook closed for Wall street continuo to-day, and there is visible nothing of the intense excitement which characterized last Sunday. The street yesterday, and the hotels today, have been dull in fact, business on tho street le 80 far suspended that the excitement thore, on Saturday, was less than on ordinary days at this time of the year. The prospects for tho week are that BUSINESS WILL RESUME WITHOUT DELAY or much excitement, unless in the Stock Exchango. Tho difficulty in selling foreign exchange Becms to have been overcomo in a large measure, and heavy shipments of allsorts of grain were made yesterday. The demand for freight room WAS unusually heavy at generally advanced rates. The suspended firms are rapidly reorganizing, and promise a resumption of business before the end of the week. Howes & Macy have practically resumed already. Clows & Co. say they will bo ready to begin anow before the statement of their affairs is ready for publication. Fisko & Hatch, more conservativo, declino to begin again until all their past indebtedness is cleared off. Jay Cooke & Co. promise n favorable showing soon, but it is believed they will be kept down by the Northorn Paciflo Railroad. The Union Trust Company will get on italegengain. It is naturally a strong concern, each sharoholder being hold liablo for the amount of his stock; but the Bank of the Commonwoulth is probably a hopeless wreck. The opening of the Stock Exchange on Tuesday, BB resolved on, creates great unoasinoss, both in stock and commercial circles, particularly in the latter, whose members anticipate renowal of excitement, which may again extend to the commoreial exchanges and produce great distross to morcantilo houses. The Produce and Gold Exchanges RESUMED WITHOUT DISARTROUS RESULTA, and this fact encourages the hope that 110 bad effects will follow the roopening of stock gambling. The announcement that business will be resumed at the Stock Exchange implies that the conflicting and confused nocounts of the brokers have boon straightened out and settled. Otherwise, the opening would be only a signal for & renewal of the pauio, and of a fierce light between bulls and boars. Now, it is hold, there is little cause for controversy on the Bourne, and EVERYTHING PROMISES PEACE and quietness, at loast until the futuro shall divido the members into distinct parties again. It in claimod by dealers that business, for some time, at least, will be conducted with more modoration than formerly. Dr. Thomas Carlton. on being asked if he
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The financial panic in New York has resulted disastrously to banks and brokers in many towns and cities. In New York, the banking houses of JAY COOKE & Co., HENRY CLEWS & Co., Un. ion Trust Company, HOWES & MACEY and many other influential houses have suspended. A number of banks in Philadelphia, Richmond,Petersburg, Biltimore, Washington City, and other places, have been closed.
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THE secretary of the treasury very wisely declines the proposition of the produce exchange, of New York, and refuses to go into the brokerage business in England with the government funds. If he had come to this conclusion when he first entered upon the duties of his office perhaps there would have been no such panic as that brought about by the suspension of Jay Cooke & Co. and Henry Clews, the pet bankers of the administration. But it is never too late to mend.
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THE New York Tribune of the 19th, treat ing of the suspension of Jay Cooke & Co., says "By some it was thought the trouble was the designed result of a New York combination by others that it was the result of carrying too much in Northern Pacific Railroad securities. The latter is, upon the authority of Jay Cooke, the correct surmise, that gentleman having so explained to-night. The crisis of to-day was unexpected by the firm in this city. They have been lately tampered now and then by the stringency of the money market, but at a recent consultation of the firm the members arrived at the confident belief that the storm which threatened had passed. They had advanced large sums to the Northern Pacific Railroad Company for the completion of its road, taking bonds as securities, and expecting to realize from the sales of these bonds. For some weeks there has been a constant flow of money from the East. The country banks and individual depositors kept up a continual drain on their deposits in the hands of the firm, who found that sales of Northern Pacific bonds were neither large nor rapid enough to reimburse them, and hence the suspension."
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The Financial Crash. NEW YORK, Oct. 1.-Wall street is as quiet as usual, and matters are beginning to assume their normal condition. The crisis is over, although the scarcity of currency is seriously felt, and will be for some time to come. The feasibility of resuming specie payment is exciting attention among our leading financiers and business men, and especially those bankers who issue bills of foreign exchange. An argument heretofore set forth, that to resume specie payment would depreciate values, can hardly be advanced, now that stocks and securities are flat. The suspended firms are rapidly reorganizing, and promise a resumption of business before the end of the week. Howes & Macy have practically resumed already. Clews & Co. and Fisk & Hatch will resume within a few days. The following table shows the prices current for leading stocks on Wednesday, Sept. 17, the day before Jay Cooke & Co. failed, and those current on the street to-day
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AN INDIANA BANKER. HUGE M'CULLOCH IN LONDON-HIS HOUSE RE-ESTARLISHED. A London letter says: The news of Mr. McCulloch's return, and his determination to remain and reorganize his banking house, gratified a great number of friends, both English and American. The Times in its financial columns, welcomed him back in this fashion: "The announcement made yesterday that the Lodon correspondents of Mr. Jay Cooke & Co., of New York, are now entirely dissociated with that firm, and that their business will henceforth be carried on under the style of McCulloch & Co., has been received with much satisfaction. On the 18th of September last, the news was telegraphed of the failure of Jay Cooke & Co., with liabilities estimated at nearly £2,000,000 sterling, and the first impression was that the London house of Jay Cooke, McCulloch & Co. must inevitably be 80 tar compromised as to be forced, even in the best, to a temporary suspension. It was ascertained, however. that their immense business had been conducted with such safety and precision that they wereable not only to meet all the acceptances which the failure of Jay Cooke & Co., at New York, would leave them for the time to provide for, but likewise every other liability. Such a result, with totals of the magnitude involved, is almost, if not entirely, without precedent, and constitutes a most creditable feature in mercantile history. If the house had stopped, even but for a short period, the indirect consequence might have been most serious in the then state of the London stock and money markets. That this diaster was avoided is due to the self-posession displayed by the partners, acting as they did under the best legal and other advice, and the gratification felt here at the future prospects preserved for the house must be experienced in an equal degree in America, Mr. McCullouch having been Finance Minister at Washington through four most trying years, and the firm holding the most important position of agents in London for the Navy Department of the United States.
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NEW YORK. Pacific Mail Investigation. Rumored Flight of Schnmacker-Irwin Inclined to Reveal Rverything. NEW YORK, Jan. 5.-A Washington despatch says that the receiver of Jay Cooke & Co., has been summoned before the Pacific Mail committee, as it is believed he will show where one of Schumacker's $50,000 checks went to. Schumaker was paid the cash at Riggs & Co's. banking house for the other $50,000 check. He has not been seen by any one yet, and the report is current that instead of waiting on the committee at the Fifth Avenue Hotel last Sunday, as represented by his partner, be took a steamship for Europe, where his family have been living for some time. [Another despatch says. Schumaker was in his seat in the House to-day, and is ready to answer ail questions.] The Scandal Suit-Drawing of the Jury Commenced. The City court in Brooklyn was filled with jurors, witnesses, journalists and spectators, to hear the commencement of the proceedings in the suit brought by Theodore Tilton against the Rev. Henry Ward Beecher, for the seduction of his wife. Eleven o'clock was the hour at which the court was to open, but it was long after this before the judge took his seat upon the bench. In the meantime the idle crowd amused themselves as best they could, reading the morning papers and engaging in general discussion on the issues of the case.
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The stringency which had occurred in fall of 1871 and 1872 was significant of approaçning absorption by expandcredit of the legally limited amount paper currency. In the summer of 873 the Granger agitation at the West rightened investors from railroad bonds, nd crippled the enterprises which deended on the continuance of these inestments for funds. The rebuilding of bicago and Boston had also caused a absorption of circulating capital. eptember 8 the New York Warehouse Security Company failed, followed one or two firms involved in railroad onstruction. Confidence in persons known to be urdened in this way was impåired, and run on them for deposits began. Sepember 18th Jay Cooke & Co. succumbed this demand, and a panie followed. 'he country depositors began to run on heir banks, though without panic. The ountry banks called for their balances, nd the city banks called their funds in rom the brokers. On the 20th the Union Trust Company suspended, followed by wo or three other banks and trust ompanies. The panic on the Exhange was 80 great that the Exchange was closed, and remained losed for ten days. The Gold Exchange losed on Monday, the 22d, gold at 3½ premium. Ou the 20th the Associated Banks ormed an alliance by which seven per ent. certificates were issued for seveny-tive per cent. of the value of securities leposited by any bank, which certifiates were good for Clearing-house bâinces; $22,000,000 of them were issued beore the tide turned. The President and Secretary were in New York on the 21st, ut refused to draw on the $44,000,000. The Secretary ordered bonds to be ought as a measure of relief, and $12. 00,000 were bought. This depleted the asn on hand, and before January 1 he vas obliged to issue over $26,000,000 of he $44,000,000 for current expenses. This carried the greenbacks up to $382,00,000. The suspension of paper paynents by the banks lasted until Novem22. Meanwhile the crisis was affectindustry in all forms. It produced a general doubt of the status and of the uture. Hours of labor and wagés were reduced and workmen discharged. The ack of reviving courage and enterprise been marked, and is due to nothing lse tuan the general feeling that there be no permanent cure until the inancial problem is solved. The failires in 1878 were 5,183, liabilities, $228,100,000; those in 1874, 5,830, liabilities, $155,200,000. The act of January 14, 1875, specified January 1, 1879, as the day for resuming specie payments. The people of a new country are not ikely to be very careful financiers. They have no traditions to carry down the warning of the past. They are not trained LO look back or to look forward. They do not look back, because the great achievements of yesterday only provoke a smile to-day. Tuey do not ook torward, because they trust their power to deal with whatever may come. must not expect what is inconsistwith the conditions. If we look to be past, there has been great progress. Tue theories on which the colonists based their paper "banks" obtain attenon from no sober men to-day. The banks, whatever their faults, are not like those of 1846, nor yet not ike those ot 1836. On the other hand we still struggling with the problem of
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Mr. John Thompson, of New York, on Financial Panics, their Causes and Periodical Return. The following is from the speech el Mr. John Thompson, of New York, before the r Banker's Convention at Niagara, Wednes. day: The question is often asked, When will this great prosperity end, or when will another panic sweep over the country? that It becomes not only interesting, but absolutely to our safety, to get the best idea poesible and to analyze the signs of approaching danger. Panice do occur about every decade. This ten -year period quite natural; it takes about five years after a revulsien to pay up, compromise or wipe out indebtedness. Then follows five years of prosperity, expansion, confidence in credits-in fact, a "boom " The last panic was in 1873; the present prosperity commenced in 1878. We have now had three years of extraordinary augmentation of riches, much of it real solid, but t most of it eminating from raising prices or 8 putting up quotations. The signs of an approaching "bliszard" are numerous, but n very delicate as yet. At present there is 0 but one alarming indication of trouble, t and that is in the number end magnitude of new enterprises, involving the issue of it millions on millions of obligations, In 1871-2, and for half of 1873, this same a sign of coming trouble was apparent, but to a fractional extent as compared with the present. As this is purely a convene, tion of bankers, and 88 am probably the oldest member of the Association, 1 must 1. be excased in uttering a word of caution e to many managers, more particularly to a those at the head of deposit banks. We t are positively going too fast, and it is the e part of windom, and I conceive it d to be our duty, to pnt on the of "hrakee," that the wreck when it does come may be the less disastrons. I in. n stance an item of the panic of 1873. Ear. y one morning the active managers of p, three of the New York city banks were a invited to the office of Jay Cooke & Co. of We were informed that one million of le dollars were necessary by 10 n'clock to of save that house from protest. What to. curity do you offer? was asked. Answer: d None: our securities are all used. It is needless to ray that the million was not of forthcoming. We left. In fifteen min. to utes Wall street wasin A panic. And this a in ee y not e'abor. it only 1857. Company when duplicate suspended. the OLio of Insurance what I will transpired and Trust ate the progress And resulte of those pan08 ice, for you are all conversant with what by transpired is and following 1873. Suffi-
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IN the address of President Thompson of the Chase National bank of New York, to the national bankers, he related the following historic fact: "I instance an item of the panic of 1873. Early cne morning the active managers of three of the New York city banks were invited to the office of Jay Cooke & Co. We were informed that $1,000,000 were necessary by 10 o'clock to save the house from protest. "What securities do you offer?" was asked. Answer- None; our securities are all used." It was needless to say that the million was not forthcoming. We left. In fifteen minutes Wall street was in a panic, and this is only a duplicate of what transpired in 1857, when the Ohio Insurance and Trust company suspended. Some of the best financiers of this country, and some in Europe as well, agree that material exists in New York for a panic at any time, and that there is especial danger now.
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THIRTY YEARS AGO, Was Black Friday in Wall street, and a great panie was started by failure of Jay Cooke & Co. and two smaller concerus. Victoria C. Woodhull was re-elected president by Spiritualists in convention in Chicago. President Grant and Secretary of the Treasury Richardson met financiers in Fifth Avenue Hotel, in New York, to discuss panic, and it was suggested that entire treasury reserve be put at service of Wall street. Three banks failed in New York and stocks went down from 2 to 10 per cent; every effort was being made to stop panic. Prof. Wise failed in alleged attempt to cross Atlantic in balloon. Heavy purchases of bonds by the government helped to calm the panic in Wall street; Chicago bankers arranged to protect each other. News received in Paris that Dr. Livingstone, the African explorer, was alive and well in the preceding July,
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OF MANY COLORS Here's a page from an old diary: "September 18, 1873-J - Jay Cooke & Co., bankers of New York, fail. A financial panic is precipitated. The New York clearing house is forced t suspend. The presidents of the banks meet in council to devise ways of relief. "President Grant declines to accede to the bankers' request to aid the banks with the treasury balance of $44,000,000. Runs are made on banks and private bankers, and many strong houses fall during the ensuing 10 days." Americans lately have been talking about business depression. Compared with some of the old-time panics, sledding is easy. Get grandpa to tell you about 1873. Then you'll appreciate the Federal Reserve banking system, the shock absorber.