Jay Cooke panic. So-called; Jay Cooke & Co., a large banking house in New York, failed
September 18, 1873. A panic followed. The Union Trust Company stopped business temporarily
(partly as a result of a defalcation of $500,000 by its secretary) ; the Bank of the Commonwealth
closed its doors and never reopened them and numerous other financial concerns and stock
brokers went down in the crash. At 11 o'clock on Saturday, September 20, the governing
committee of the New York Stock Exchange ordered the exchange to be closed and it was not
reopened until September 30. The failure of Jay Cooke & Co. was brought about by the collapse
of their effort to finance the Northern Pacific Railroad, which was then in course of construction.
The so-called Jay Cooke panic is also generally known as the panic of 1873.
September 18, 1873. A panic followed. The Union Trust Company stopped business temporarily
(partly as a result of a defalcation of $500,000 by its secretary) ; the Bank of the Commonwealth
closed its doors and never reopened them and numerous other financial concerns and stock
brokers went down in the crash. At 11 o'clock on Saturday, September 20, the governing
committee of the New York Stock Exchange ordered the exchange to be closed and it was not
reopened until September 30. The failure of Jay Cooke & Co. was brought about by the collapse
of their effort to finance the Northern Pacific Railroad, which was then in course of construction.
The so-called Jay Cooke panic is also generally known as the panic of 1873.
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