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K_/ X f tjl Li i M ft I I I I 141l 4 1 11 /' ft I J I ft
Jl—U 1/ i
VOL. I—NO. 184.
The Savannah Daily Herald
••MORNING and EVENING;
u> nujini n
«. W. MAHON A c:o„
, 111 Bar SrsarT. Savannah. Gmani.
man
a.Pt*e Ceiit*.
. Hummed . .$8 50.
.v.ir .... ■■■ ■ *K' <*>.
.aiiiTitiaa.
I V,,, l»llar» per Square oi Ten Line* for flm Ui
tjon . one Dollar for each subsequent one. Ad
.rrUKDent* insened Is the morning, will, if desired,
npeur in the evening without extra charge.
.JOlt PRINTING,
in very style, neatly and promptly done.
The Wall Street Panic.
>loi-e Tvoiihle Among the
Gold Operatorw.
suspension of Ketchum, Son
x Cos., the Well Known
Bankers*.
Sudden Departure of the Junior
Member of the Firm and the
Failure of His Broker*
VMRTLIXU WILL STREET REVELATIONS.
HISTORY of the GOLD CHECK FRAUDS
Statement of E. B. Ketchum
The isefaicatlou Variously Estimated at
trout SHOO,OOO to $2,000,090.
The Bankers Announce that
They Will Make a Fair
Settlement.
The Fourth National Bank
Secured.
Tlie revelations in Wall street lately made
abundantly testily that there is something
rotten in The manner in which business, to a
great degree, has been transacted in that
busy and wealthy locality. The three several
affairs of the past few days have done more
to threw light iuto the dark and sometimes
empty recesses of the gold speculators' vaults
limn have all the sworn affidavits of the offi
cer* ot numeiousestablishments made within
the past six months.
M SetCNSION OF MESSRS. KETCHUM, SON AND
COMPANY.
The excitement caused by the develope
ments in the case of the Pbenix Bank defal
cation wasslili at its height when the failure
of P. R. Mumford, involving the possible loss
of laige amounts, was announced in time to
a dil fuel to tbe fire At a late hour on Mon
day atleruoon a third, and, if possible, more
startling piece of intelligence was conveyed
to the down town speculators and business
community, wheu the suspension of pay
ment of the firm of Messrs. Ketchum, Son &
c ompany, and ihe discovery of torged gold.
i hecks to a fabulous amount, were announc
ed to the public.
THE FIRST DEVELOPMENTS,
a* above stated, were made on Monday af
ternoon, when tbe fact was proclaimed that
a number of forged gold certificates were in
circulation, drawn upon some of the Wall
street banks. The news, as may easily be
imagined, created the most intense excite
ment, and at night ao great was tbe anxiety
of the most experienced and cool-headed
speculators to dispose of their gold that no
less than eight hundred thousand dollars
changed hands. From the few items of in
formation which could be elicited at that
time it appeared that, these checks bad been
issued in the name of some of our most
prominent eity firms, including Vermilye &
Cos., Brockelinanu & Unger, Lockwood &
Cos., Einstein & Rosenfeld, and others, and
it wus reported that these checks were only
to be used as collateral for loans, with the
express understanding that they were not to
be allowed circulation on the street. Their
total value was at first estimated at no less
than two million live hundred thousand dol
lars, though some parties announce that the
amouut will not exceed one million dollars.
It will, however, require considerable time
to obtain a precise statement of the facts of
the case.
THE EXCITEMENT YESTERDAY MORNING.
Though the excitement was still intense,
the interested parties were enabled to look
into the details of the forgeries. Forty
thousand dollars in worthless certificates
were presented at the Bank of New York
for inspection early in the day, and were
at once pronounced forgeries. It is not yet
positively known who is the issuer of these
bogus checks. They were bypothetecated
in the name of Graham & Cos., No. 42 Ex
change place ; but there is little doubt that
some party has used the name of the firm
without proper authority.
The suspension of Ketchum, Bon & Cos.,
wa» announced early, and subsequent to this
the suspension of Mr. Chas. Graham, brought
about by his close i onuect'on with the first
named firm. Both of these incidents were
productive of additional excitement, and
were the theme ot conversation for the bu
siness men, whether directly interested in
the affair or otherwise.
SPECULATIONS.
It was supposed at first that the firm of
Ketchum, Bon & Cos., had been concerned in
large stock speculations,and being unable to
carry ihe balance against ibem bad been com
pelled to stop. Before long, however, these
rumors aitumed * different shape, and it
ww eurrsotly »ut»d thatoos ofvjjs mn
>V» *'*•*«, KMIMI, «Ms»
SAVANNAH, MONDAY, AUGUST 21, 1860.
°L th ®. *!;“ U>r p “* ner ' had abstracted bonds
lbe amount of two
° LdCdlo rV 7hicll the other mem
b*s had been nnable to make good, and
hence the suspension. Another verson
K hTf f ° rth «“l
SttsWS hadfbrgwl gold certificates
Uf h n H iWe of two millions and a
; hich certificates had been
R l *®?* ln ‘ h e coffe r s of the banks thus des
“■*£l* l , he u Prmc'Pai sufferers. It was
also declared that E. B. Ketchum, having
rwiJlf n h s r,?e ° f the busiueßs of Mr
Chwlei Orttain, . broker in Exchange
place, during an illness of that gentleman,
mU.i e n 9Ca i Ped T' th * Veral ch ecke which were
missing from his check book ; and this fact
in connection with the discovery of a num
berof forged gold certificates drawn upon the
Bank of New Y ork, led to the immediate
suspicion that the young man was implicat
ed in the forgery, and had made eo id his
escape,
RUMORS NEAR THE TRUTH.
On tnquiiy it was ascertained that all these
reports were, to a certain extent founded in
k •* alleged with sufficient certainty
that E. B. Ketchum was a defaulter to a
large amount, not less, it is estimated, than
one, and perhaps two millions of dollars, and
it is presumed that he procured the money
partly byabstracting securities from the house
with whicli he was identified, and partly by
issuing fraudulent gold cirtificates. The
young man, it is said, had been for some time
entrusted with management of the affairs of
the concern, bis lather being temporarily ab
sent from the city. No one can suspect the
the parties who may have enticed him into so
dangerous a speculation.
THE FIRM HOPEFUL.
On the discovery of the facts recited above,
which are measurably deserving of credit,
Mr. Morris Ketchum, yesterday morning or
dered payment to be suspended, and declared
that in a few days he would be prepared to
submit to his creditors a proposition for li
quidation. Meantime all remittances from
a distance have been deposited in bank to the
credit of the remitters. It is supposed that
the large oipital of the firm and tbe wealth
of the senior paitner render it probable that
the creditors will not sustain so heavy a loss
as was at first foreshadowed.
It is also said that Mr. Graham lias been
victimized to the extent of .*285,000 by forged
certificates, which he had negotiated as col
laterals and was obliged to take a.
THK HODBK OF KKTCHCM, SON AND COMPANY
possessed the entire confidence of the com
munity, aud its failures is as much a matter
of surprise as of regret, to all who have
chanced to have dealings with its members.
STATEMENT OF CHARLES GRAHAM.
Mr. Charles Graham, senior partner of the
house of Graham & Cos., stated at the board
yesterday that he had been prevented from
attending to the affairs of his firm for the
past two months by sickness, and was there
fore unable to account tor many things which
had occurred duriDg his absence, but added
that he hoped to effect a settlement of ail his
present stock contracts at current prices.
TBs. SUMMING UP.
Such were a portion of the tacts of the
case, as ascertained yesterday afternoon,
amid the uuiversal excitement which prevail
ed amoDg the speculative community. In a
few days further developments will tie made
which may implicate other prominent par
ties, and perhaps lessen the magnitude of the
offence committed by the defaulting member
of the firm of Ketchum, Son & Cos.
When the forged checks first began to be
presented to the banking house of Ketchum,
Son & Cos., with the hope of getting rid of
Ahem, he paid about two hundred aud eighty
thousand dollars of them, at which point tie
stopped, finding the amount greater tUan he
anticipated. There the ,_ase rests. Mr.
Ketchum is not to be found. Tbe house of
Ketchum, Son & Cos., is not otherwise involv
ed than by his being one of the partners. If the
banks do bold any they have margins and
the responsibility of the borrowers to fall
back upon. It is not at all likely that they
will suffer so as to interrupt thei. - regu ar
business. The shock is distributed mostly
among private bankers and speculators in
that particular business of gold dealing.
There is no ground, therefore, for appre
hending any general disturbance of the mar
kets outside of Wall street.
THE LAST SEEN OF K. B. KETCHUM.
Young Ketchum was last seen upon the
streets between two and three ociock cn
Monday afternoon, going up Wall street, by
a friend of his who remarked to him that it
was a very careless way in which he was
carrying so much money, Ketchum at the
lime having an armful ot greenbacks, done
np in packages, which he was grasping very
carelessly. He observed, in reply to bis
friend, that he would take good care of the
money, and wrapped the covering a little
tighter about the bundle.
After leaving his friend Ketchum went
into the trnuk store ot Mr. Caltnaoh, on
Broadway, near Wall street, ami asked to be
shown some toilet bags, at the same time put
ting tbe package of bills on the desk in a very
indifferent mauner. The proprietor of ttie
store remarked that Ketchum had a pretty
big lot of money in the bundle, and was toid
by Ketchum that there was oniy twenty
thousand dollars, but it looked large a; it
was all in small bills. Mr. Cattnach observ
ed, pointing to one package:
“That’s not very small, 1 see it's marked
ten thousand dodars, and here is one with
nothing but five hundred dollar bills in it."
He, however, paid no more attention to
the circumstance, as Mr. Ketchum was a cus
tomer of his, and as he and other parlies
bad frequently purchased bags to carry
money in.
Several travelling toilet bags were shown
to Ketchum, and he finally purchased a No.
4 Pelessier bag, which is about twenty inches
long and a foot wide ; placing it on the desk
beside tbe money he, with the assistance of
Mr. Cattnach, put the currency in the bag.
There were fitteen packages, and Mr. Catt
nacb judged that there must have been at
least sixty thousand dona's worth of green
backs.
Alter the bag bad been carefully locked
ketchum hesitated,ar if intending to purchase
I went to his home, leaviog there shortly after,
I since which time nothing has been seen of
I him.
THE REPORTED CONFESSION OF KETCHUM.
jfKetcbum is about twenty five years of age,
is married, and is the father of one child.
| Previous to leaving ho-fie he wrote a letter
1 and left it for his father, in which he confess
ed his guilt, and stated that he had provided
I for himself, and asked his father to provide
| fur bis wife and child. His late residence is
1 in Madison avenue, and he also has a sum
, mer residence at Westport, Connecticut.
THK CHECK ROOK
I from which E. B. Ketchum obtained the
1 blanks for these forged gold checks has not
; been recovered. It was received by him in
; June last, professedly for Mr. Chas. Graham,
who denies that he ordered it or had any
knowledge of it. Hi claims to have been
the innocent tool of Ketchum. The checks
I in this book are numbered 58,501 to 59,000;
; and as three hundred and eighty-five of them
are believed to have been used it was sup
posed that the amount out would be *1,900.-
000. Some of tbe checks, however, are for
small sums, and we have heard of several as
small as five hundred dollars. A number of
the checks have also been withdrawn and
cancelled, and it is possible that some were
spoiled by the forger in preparing his ficti
tious documents tor market.
CARD FROM THE FOURTH NATIONAL BANK.
The following card has been baDdcd in for
publication. A* containing a portion of the
history ot the Ketchum case it is given en
tire:
THE SUSPENSION OF THE HOUSE OF KETCHUM,
SON AND COMPANY,
the senior paitner of which was formerly
President of this bank, has given rise to a
report that the bank will be a heavy loser by
that house.
It affords the undersigned pleasure to as
sure thq frieuds of the bank aud tne public
that ketchum. Son & Cos. are not now and
never have been in any way iudebted to tbe
bank.
The only possi lie loss the bank can suffer
is on *255,000 of gold certificates which are
supposed to be forged, and which the hank
holds as collateral security on loans made to
other parties.
The condition of the bank Is pertectly
sound and its capital unimpaired ; its earn
iugs lor the last six months largely exceed
the amount of forged certificates held by it.
P. C. Calhoun, President.
- The Bank of New York will not he a losir
by the defalcation.
WHAT CONSTITUTE GOLD CHECKS.
Gold checks, as explained by . those who
are deeply versed in the arts and sciences ap
pertaining to the transaction of b siness upon
Wall street, are simply certified checks Oi
the Bank of New York, supposed to stand in
he place of the precious metal stored by the
parties obtain ug tbe certificates in tbe spa
cious vaults of that establishment—that is,
to be more explicit, a party having five
thousand dollars in gold, or a larger or a
smaller sum, would take the same to the
bank of New York, deposit it there, and re
ceive tor the same a cenain form of Certiti
cate of deposit, specifying the date and sum
there placed to his credit. The endorsement
of the officers of the New York Bank, 01
clearing house for gold, made the check in
effect gold, and as such tne document pass
ed trom bank to bank and from individual lu
individual as gold defacto Tnis was deeuieu
necessary, some time since, to prevent loss
by swindlers, who canied lead in their golu
hints, to save the trouble of transporting valu
able parcels through a crowded street, tnu*
offering temptation to those supposed to be
unable to resist it, aud for tbe more general
convenience of the go and merchants iu tUeir
daily transactions with each other. In some
cases these certificates would circulate
through the various channels ot trade anu
commerce, and several days would intervene
before they would finally reach the house
making them for redemption. Eight of tneue
cheCES, each one for the sum ot five tbusand
dollars, were presented at the counter of tbe
Bank of New York yesterday morning, but
payment was not demauded, and they were
at once pronounced forgeries. Had tbe
holder asked tbe gold upon the checks it
would have been refused as the fact of their
fictitious character was plan upon their face.
THE FORGED DOCUMENTS,
are such poor imitations o f the genuiue that
they would hardly deceive a persou conver
sant with the signatures of the officers of tue
Bank of New York. They have never been
ottered for sale, but have geueially been put
up as collaterals at oiuer bankiug bouses as
security for discounts at a smasuing shave.
In some of these cases a special agreement
was entered iuto that the pledged gold
checks should uot be put upon the market
from any pretence whatever. Os couise
those who have thus received the fictitious
paper, and paid tor them in short time loans
or accommodations, obtaining a high rate ol
interest or discount for tne same thus being
paid for their risk, will not find the sympathy
at the hands of the public at large that will
be readily conceded tuose who took the bad
coin iu good faith in purely legitimate busi
ness trim-actions. Tne “shaver" cut to the
bone, it is said. In this instance it is “dla
mood cut diamond,” and the shaver ap
parently, has much the better in he ettn
niug operation.
HOW GOLD IS KEPT UP.
From the preceding, and the chapters
given yesterday and on Saturday last, iu the
1 history of banking as carried on in Wall
; street, even the unprofessional readsr can
. hardly (ail in obtaining a realizing sense of
1 the extreme security surrounding ihe opera
| lions of the dtaler in the currency of the
country. He will at the same time take a
: valuable lesson in scientific fiuaucial kuow
| ledge which be will be liable to remember to
tbe last day of his existence, more especially
if he has been bitten by tue recent operators
in gold, and bas the scar left to act as a con
stant reminder. He can now perceive, wueu
the secrets of the auriferous prison house are
thrown open to tbe gaze ot tbe whole world ;
j when the mysterious curtain is suddeuly
1 rung up and tbe naked stage discovered, au
PRICE. 5 CENTS
in gold during the war, it was not ab
solutely necessary that Grant or Sherman
should t<e defeated in a battle or Ihe rebels
be successful in a raid or skirmish. Tnese
were aids, to be sure, and were large’y u-ed
as such. But tbe gold operator bad a more
certaio influence to bring to bear U|>oii the
mercury of the gold-ometer. All he bad to
do was to apparently glut the market, m ike
gold a drug, show bis pile to a lew outsi
ders—the pile consists of fictions gold
checks, of course—and down fell the quick
-ilver plump decidedly. Then he could buy.
When his fancy stocks took unto them
selves wings then he could sell at an ad
vauce. And thus lie rung the changes on
the coin of the country, became exceedingly
rich, and none was the wiser.
Stocks felt the effect of these ex
citing operaiions. They fell. There was a
panic. How much they fell and which
ones were affected our money article will
show.
The origiual estimate for the New House
of Parliament,’' not yet completed, was £760,-
000; the cost so far has been close upon
£3,000,000.
EINSTEIN,
ROSENEELD
& Cos.,
B A 1 K ER S,
No. 8 Broad Street,
New York.
We draw at sig,.t, and at sixty days,
on London, Paris, Frankfort, and all
other principal cities of Europe.
Parties opening current accounts, may
deposit and draw at their convenience,
the same as with the Crrr Banks, and
will be allowed interest on all balances
over One Thousand Dollars, at the rate
ot pour per cent, per annum. Orders
foi the purchase or «ale of various issues
of Govt am nt and .ther Stocks, Bonds,
•xe. uted on Commission.
RAMunug av uer orest,
BANKERS AND BROKERS,
Wo. 19 Wall Street, Wew York,
Dealers iu
Gfcld, Silver, Foreign Exchange
and Government Securities.
GlVtf special attention to the purchase and anla o
Virginia, North Carolina, .south Carolina, Geor
gia Alabama. New Urlean* and Tenne-see Bank
totes Southern * fates Bonds and Coupons, Railroad
Bond? and Coupons.
Interest llowed <>n deports. jylft-Sm
IW^URANCR.
INSURANCE.
Anthorized Capital—slo,4oo,ooo.
CHARLES L. COLBY A co. are prepared to tike
Marine Kink* to any dom -actc or foreign p irt,
and Fire Rians in this cty la the following named
first class New York Companies
AT THE LOWEST RATES.
COLUMBIAN MARINE INSURANCE
COMPANY $5,000,000
MORRIS EIRE AND INLAND INSCR
ANCB COMPANY 5 000,000
0 4«sa,’l FIR 5 ttflUß VN33 GUPi.. SOj.OOO
STANDARD FIRE INSURANCE COMP'V.. 200,000
Office in Jmes’ Block, cor. B ly ml Abercorn st*.
Branch Office, corner Drayton and Bryan streets.
nut 8 ts ____________
THE
Underwriters’ Agency
Os New York,
CASH ASSETS,
Three Million Dollars,
ISSUE POLICIES OF
Fire & Marine Insurance
Made payable in GOLD or CURRFNCY.
Negotiable and Bankable
CERTIFICATES OF INSURANCB
Aax is.van mr this association.
J. T. THOMAS & CO.,
ault-eodlm _UI Bay strreet^
IS YOUR LIFE INSURED ?
T BIS It an important question fir every man and
important also so every Wile and mothar, aa it
•iffecta their future welfare.
SEE TO IT AT ONCE. DO NOT DELAY.
The “Kutckerb icker LPe Insurance'' of New York
will Insure yon at the nanal rates In any earn from sloo
llODOii. They also issue the f vorue TEN YEAR
NO Po idea and will after tw ■ years
payment give a tall p.iid ap Policy for Two Tenths the
whole sum. and Tnree Years Three Tenths and so
on. Tbits a Policy o. sio.oi)ii. Twi Premium» p aid
upon it will be entitled to a paid up Policy oi $ VKIO.
utd five yean flve-teutha fir every additional year.
For fanner Information apply to
A WILBUR, Agent,
