Lippincott's Magazine of Popular Literature and Science, Volume 12, No. 33, December, 1873Various
Science
Lippincott's Magazine of Popular Literature and Science, Volume 12, No. 33, December, 1873
Various
Literature, Modern -- 19th century -- Periodicals; Science -- Periodicals
On Monday there was a run on most of the city savings banks, which was
met by an agreement among their officers to avail themselves of
their legal privilege to require thirty or sixty days' notice of
the intended withdrawal of deposits; and this being announced by the
respective institutions, the run, as a natural consequence, ceased,
and, fortunately, without the slightest popular disturbance. On
the 22d the Security Trust Company and a private banking-house in
Pittsburg, Pa., suspended, as also a banking-firm at Wilmington, Del.
The failure of Henry Clews & Co. on the afternoon of Tuesday, the
23d, followed by that of Clews, Habicht & Co., London, caused fresh
uneasiness. This house, being the financial agent of the Burlington
and Cedar Rapids Railway, a new line, had been run upon for some days
previously, and it showed much strength in holding out so long. The
news was almost simultaneously received that the Baltimore banks had
agreed upon the issue of six per cent. certificates in the manner
adopted by the New York association, and that five National banks in
Petersburg, Va., had closed their doors. On the morning of the
24th Howes & Macy, known to be a very strong and conservative
banking-house, suspended, and this added fuel to the flame of
excitement, and wild rumors of impending failures were again afloat.
The steady but quiet run which had been kept up on the banks now
increased, and they decided upon the issue of another ten millions of
certificates, and a third issue of a like amount, if required.
They also agreed to certify cheques "payable only through the
Clearing-house" until the first of November, the payment of currency
for cheques, for the accommodation of their dealers, to be optional in
the interval with each individual bank. This involved a suspension of
currency payments by all the banks in the association. The failure of
the Dollar Savings Bank and a private banking-house at Richmond,
Va., was reported on the same day, as also that of a banking-firm at
Baltimore, and another at Wilkesbarre, Pa. On the 25th there was no
change in the situation in New York, but the banks of Cincinnati,
Chicago and New Orleans suspended currency payments, as those of
Baltimore had done previously, and two banks at Memphis, Tenn., three
at Augusta, Ga., all those at Danville, Va., and a savings bank at
Selma, Ala., closed their doors. On the 26th six National banks at
Chicago suspended, and a trust company, and two banks at Charleston,
S.C., in addition to a banking-house at Washington; and the last day
of the week, the 27th, opened on anything but an encouraging prospect.
The telegrams from Europe reported an unsettled market for American
securities; gold for a short time rose to 115-1/2; seven of the
Louisville banks suspended, and the Boston and Washington banks voted
to suspend currency payments, and (those of each city) to issue ten
millions of certificates on the New York basis. But toward the close
Public-domain text, read in full here on John Shaqi.
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