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Savannah daily herald. (Savannah, Ga.) 1865-1866, August 21, 1865, Image 1

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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,