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RUN ON THE MUTUAL BANK. The Chatham National Bank the Cause of the Difficulty-It Refuses to Redeem the Checks of the Mutual and Ceases to Have Any Dealing with It-Excitement of the Depositors. The Mutual Bank 18 an institution doing business on Broadway, between Astor place and Ninth: street. A passer-by on yesterday might have observed an unusual commotion around the building, and if had entered he would easily have perceived what was the difficulty. A number of excited individuals, with bank books in their hands, were pressing forward to the cashier's window to receive cash for their checks or draw their deposits. The paying teller had his hands full. The receiving teller had nothing to do. The clerks wrote on with their usual imperturbability, but their unconcern was not shared in by the President or directore, who were seated in an inner apartment carnestly consulting. The cashier was engaged in receiving angry applicants, who were rushing in every moment to ascertain what their losses were, if any. At no time, however, were there more than thirty people in the office. and these were princi. pally small depositors. The small depositors were paid instantly, but with the larger ones there was more trouble, as their accounts could not be easily settled. The cashier, in response to their solicitations. would say, Not for a day or two, out it will be all right;" and, making a virtue or necessity, the anxious depositor was forced to depart. young man with a menacing attitude presented a check for $15 to the cashier, saying, "Is that any good 712 'As good as gold," said the cashier. "when give me $15 on it," said the young man. The money was instantly paid, and he went on his way rejoicing. A HERALD reporter sought out Mr. Samuel A. Hills to geta statement of the difficulty, and the following is the story that Mr. Hills told. He said: "There is no difficulty about the matter. The bank is strong and solvent, and we have ample security for the amount of our deposits. The cause of the temporary trouble is the action that has been taken by the Chatham National Bank, with which we did business. We had an account of $75,000+ with them, and on Friday they very unexpectedly issued notices saying that after that day they would no longer REDEEM OUR NOTES AND CHECKS. We always kept an account open with them, and at no time were overdrawn more than $5,000. The reason that impelled them to close accounts: with us do not know. They owed us $4,000, which was paid this morning." REPORTER-What is your capital, and what is the amount of your securities? Mr. HILLS-Our paid up capital is $106,000, nominally $200,000, and we have been doing a. prosperous business. The securities will fully cover the indebtedness. We had $75,000 in securities and stocks deposited in the Chatham National Bank, and the balance, consisting of the building, office fixtures and money, we hold in our own hands. On Saturday a run commenced upon the bank, and before we closed $23,000 was withdrawn. The same day $12,000 was deposited. REPORTER-Do you expect to pay as much today ? Mr. HILLS-No, I don't think we shall. It is a matter of some difficulty to convert our securities: into money at so short notice. We have not borrowed anything yet, but we expect to do so in: a day or two. If we don't succeed I suppose we shall BE FORCED TO SUSPEND for a short time. We will continue to pay as long as we have any money left. When the money fails. of course we shall be compelled to close. We had: no warning that any such difficulty was going to ensue; if we had we could have been better prepared to meet it. At this point the conversation was interrupted by the entrance of a blonde young gentleman with a long memorandum in one hand and a number of che ks in the other. His case required immediate attention, so Mr. Hills, with the explanation given above, was forced to leave the reporter. In the office the people who were interested continued to busily draw their money. The paying teller took as long as possible to hand over the amounts. He counted the money of each person several times over with great deliberation, but he probably wanted to be very correct in his payments. One old gentlemen presented a check for $750 with fear and trembling depicted in his countenance. The cashier took and gazed earnestly at the figures on its face. Then he PASSED IT OVER TO THE TELLER, who gave the old geutieman five $100 bills and a number of smaller ones. He looked as happy when he received the bills as If some disaster had befallen his mother-in-law, and clutching the bills tightly he trotted off. The bank continued to pay all small amounts up to closing hours. visit was subséquently paid to the Chatham National Bank, and an interview was sought with the cashier, Mr. G. M. Hard. who, in response to inquiries, made the following statement. He said :"We have for the past year been dissatisfied with the manner in which the Mutual Bank has transacted its business with us, and for more than a year we have been trying to get rid of this account, but did not succeed in doing so, as no other bank would take it off our hands. They have been frequently overdrawn as much as rather hazardona: but
