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Bank Suspended. NEW YORK. March 14. 1 The bank of the State of New York has suspended payment.
Bank of the State (New York, NY)
Episode Information
- Episode UID
6282235790915- Episode Type
- Suspension → Reopening
- Bank Type
- state
- Bank ID
-
628223579hash - Start Date
- March 14, 1876
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
64795cc894f63962
Response Measures
None
Description
Failure caused by risky, concentrated loans and mismanagement; no clear depositor run described before suspension.
Events (3)
1.
March 14, 1876
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Clearing house suspended the bank after examiner found large unsecured overdrafts, impaired capital and risky loans concentrated to favored parties (Vice-President's loans, Smith & Girvan, Attrition Flour Co.).
- Newspaper Excerpt
- The Bank of the State of New York has suspended payment.
- Source
- newspapers
2.
March 15, 1876
Other
- Newspaper Excerpt
- The Clearing House Association... declared the Bank of the State of New York permanently suspended from operation (later actions reversed toward reorganization).
- Source
- newspapers
3.
March 18, 1876
Reopening
- Newspaper Excerpt
- The Bank of the State of New York... opened its doors yesterday, but business has not yet been resumed.
- Source
- newspapers
Newspaper Articles (24)
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Failure of a Bank. NEW YORK, March 14.-The W all street markets were electrified about 0000 by the announcement that the Bank of the State of New York (not the Bank of New York) had closed its doors. Theface are: 00 Saturday last the bank examiner reported to a member of the clearing house committee that the affairs of this bank were in such a condition as to re quire the attention of the clearing house. The clearing house committee were called together late on Saturday, and after discussion decided to call in the conference comm tree. A meeting of thejointcommitteeswas held this worning. and they called before them Mr. Duer, the President, and Mr. Patrick, the Vice President of the bank of the State of New York N receiving from thew a satisfactory explanation they unanimously decided to susp nd the bank frour the privileges of the clearing house until a full meeting of that body could be ob ained. This meeting will be held at 3 o'clock this p. m. The capital of the back is $2,000,000. It is one of the older back- having been organized May 18, 1836 and has hitherto borne a good reputation. 0 J examination of the bank it showed large unsecured over drafts. The capital is impaired about one half. At the clearing house this a. m., the bank was $104,000 in debt, which Was paid in immediately.
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DETAILS OF THE FAILURE Like a clap of thunder in a clear sky came the announcement yesterday morning that the old andas it was considered-conservative Bank of the State of New-York, at Exchange-place and William-st., had failed and closed its doors. For a time no one would believe the statement, and it was not until the positive demonetration of the closed doors had Inconfirmed it that people could be convinced. tense excitement followed the confirmation of the story, and the street scenes and rumors lent additional fuel to the flame. The facts of the failure are as follows: For some time past Bank Exammer Meiggs has been watching the condition of the bank. At the his last investigation the bank but not to such an as somewhat time of involved, extent had conrse been of to apprehensions. In the regular nnhe examined it last week, and evidence of the fact that was justify disputable business any the observed bank impaired to the amount of one-half of its capital. He quietly gave this information to one of the of the Clearing-house Committee on and a conference of the but no action was yes Saturday, members held, taken Committee until when the and examined George W. was terday again morning, Committee Duer, the Vice- met the and Richard Patrick, of the Bank, as to its of could explain away or President, President these gentlement condition. Neither modify the Bank Examiner's statement, and the Committee, with they were compelled to do, took counsel as the Conference Committee of the Clearing-house of Association, and formally suspended the Bank the State of New-York from the Clearing House, then this being the extent of their powers. They called a meeting of the Clearing-house Association for the afternoon to take final and more decided action in the matter. In the afternoon the Association confirmed the action of the Committee and finally made permanent the suspension. The causes of the failure for a time were not the No suspicions had been uttered on and the bank up to the hour of The inquiry 28 street, known. excellent reputation. closing to what bore caused an the failure was very earnest and very generally made. The officers of the bank would not the the question, for they caused the doors of be closed and then had a the inside to supplement the answer bank tioued to in policeman strength sta- of the iron doors and arrest the progress of any persons who might forcibly break through. As the excitement subsided, however, the facts began to leak out, not and the old story of collusive mismanagement. if actual fraud, was again repeated. Richard by Patrick, the Vice-President of the bank, means had obtained almost exclusive had some the administration of its affairs. He and discounts in a most according to the statements manner, control made loans of and, remarkable of those the interested in the investigation, had conducted bank if it were his own. Some of his loans were as for a business man, and could be acastounding counted for on no other theory than that he was interested in the loans and discounts thus made. the The securities were absurdly insufficient to meet requirements of honest banking. From the developmade it appears that the bank was run in the at interest ments of a few produce speculators. A glance loans loans and over-drafts shows that enormous its made to a few favored persons. Vice-President Patrick were himself had loans aggregating $230,000. the check of his for $20,000 was found in minor bank A papers and credited as cash. These are The matters, however, compared with other loans. of of Smith & Girvan, hop and malt dealers, $875,000, firm 76 Broad-st., received the large sum of United No. of which was on stock of the $450,000 and New-York Attrition Flour Companies, the States which has no market value, and $425,000 in and of a loan or overdraft secured by hops amount shape said to be worth less than one-half the overdrafts malt, In addition it is reported that to a produce advanced. allowed commission aggregating house dealing were largely in Kentucky, is Besides these loans the bank of understood $250,000. to have suffered to the extent Sherman $100,000 by the failure of Duncan, the about $70,000 worth of protested paper bearing assets. Co., of that firm being among the There signature are also indications of other losses aggregat- to $140,000, protested paper of various persons losses, it ing amount having been discovered. believed The that that be seen, have been great, and it is 50 cent. will stockholders will not receive over per 40 per the think that they will not receive low as 20 per Some while persons others put the amount as secured cent, notes issued by the bank, being be cent. bonds The deposited at Washington, will of course reby paid, and the depositors will probably time ceive promptly their deposits in full, but this will require and patience. stockholders are shocked and indignant at the of The and inquiries as to the responsibility revelations. directors for the extraordinary loans and over- that the are being made. Stockholders declare control drafts directors either allowed the officers to did the bank completely, or they did not. If then they the the the officers to do as they pleased, stockholders allow claim that the directors were culpable did not, account of their remissness; and if they of the OIL must have participated in the making If the loans they and are responsible for them. of the loans, made clandestinely. then it was the caused duty the directors were to have discovered them and money to be returned to the institution. SCENES AT THE BANK. of the State of New-York is situated Wil- at The corner of Exchange the a plain. substantial marble north-west Bank Place of the building. and buildham-st., bank in proper occupies the first story manner. The fitted ap in a plain business-like to ing, Yesterday and is morning the tellers and clerks came
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Suspension. NEW YORK, March 14.-The Bank of the State of New York has suspended.
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NEW YORK Failure of the Bank of the State of New2 York. NEW YORK. FAILURE OF A PROMINENT BANK. The evening Post says the bank of the state of New York closed its doors to-day by reason of having been thrown out of the clearing house. This action of the clearing house com mittee was taken after all investiga tion suggested by the bank examiner, Mr. Meighs. He found the affairs of the bank in a bad condition, there having been large overdrafts made by speculators in merchandise. The clearing house will have it full meeting at three o'clock to ratily or disapprove the action of the cleaning house committee. The capital of the bank is TWO million dollars. By last Saturday's statement it had loans of $3,980,000; specie $322,000; legal tenders $1,095,000, circulation a quarter million, and deposits $2,855,000. At the cleaning house it was debtor this morning $104,000, which was paid. Depositors and note holders will lose nothing. The stock holders will be the only losers. The capital is impaired one half. Some days ago Meigs fonnd that irregular loanshad been made to produce debtors and that a great many bad debts were the result. Among them acceptances of Duncan, Sherman & Co., to the amount of seventy thousand. The facts were reported to the clearing house committee, and at a meeting this morning it was decided that a receiver ought to be appointed for it and the bank closed. It is thought the failure will not be followed by any other financial disasters. It is stated that the bank permitted one concern to overdraw $168,000, and accepted as security a patent about which little is known, and further lent some other concern $426,000 on time, secured by Malt worth half the loan. Another concern overdrew one quarter million with a book account as security The vice president owes $230,000 secured partly by real estate
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the Comptroller of Currency, John D. Knox, for the appointment of a receiver. The result of the investigation of the banks accounts tends to show that its failure will not affect any other banks, and it is thought that the failure will not be followed by any other financial disaster. Mr. Patrick, Vice President, underwent a long examination before the Clearing House Commission this morning. It is stated that the bank of the State of New York permitted one concern to overdraw $447,600 and accepted as secuity for over draft a patent about which little is known, and further lent the same concern $426,500 on time secured by malt to the value of about half the loan. Another concern connected with the southwest trade overdrew $250,000 and the bank accepted as security for the overdraft an assignment of a book account. The Vice President owes the bank about $230,000 secured by real estate; the party not to transfer an individual check for $20,000 drawn by the Vice President was counted as cash. It is understood that the bank has protested paper to the amount of $20,000. The depositors of the bank will lose nothing. The whole loss is estimated at about onehalf the capital, which will fall on the stockholders. It is said that the Vice President of the bank, Mr. Patrick, owes to it the sum of $230,000, secured by real estate which is alleged to be worth only half that amount. It has also been said that a check of Mr. Patrick's for $20,000 has been counted among the bank's cash. Over drafts to the amount of $450,000 have been permitted which are only secured by the patents of the United States Attrition Company and the New York City mills. These patents are for the new process of manufacturing flour, the money value of which has not been established. The company first named has the patent right for sale, while the New York City Mills Company was formed for the purpose of manufacturing by this method. The firm of Smith & Girvon, hop and mault merchants, No. 76 Broad street, are largely interested in the matter. Mr. Smith being the President of one company, and Mr. Girvon, of the other. In addition to this it is said time loans have been made to the amount of $425,000, secured by Smith & Girvon, by malt and hops, which are said to be of but half the value. It is further reported on excellent authority that overdrafts to the extent of about $250,000 were made on the bank by a southwestern produce and commission house, whose business is largely in Kentucky, and that these were secured only by an assignment of book accounts. A prominent member of the Stock Exchange said this afternoon that the tailure would probably cause affairs in Wall street to be unsettled for a few days, but that any excitement occasioned by it would soon die away. He could not see any reason why it should cause any other failures. John Thompson, Vice President of the First National Bank, said: "I look upon it as a failure that will not strike disastrously any persons except the brokers who kept their accounts there and got their checks certified there. In reality the failure is of no commercial or financial importance: The entire effect will not be one-fourth as great as that of Duncan, Sherman & Co. It was found that advances to a considerable amount had been made on grain in transit, some of the bills of lading for which are still.remaining in the bank under dates two years old. It is said that the Vice President had been speculating with parties on the Produce Exchange. The course of the Clearing House Committee in regard to the Bank of the State of New York was unanimously approved at a meeting of the Clearing House to day.
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Bank Suspended. NEW YORK, March 14. The bank of the state of New York has suspended payment.
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ACTION OF THE CLEARING HOUSE. The president of a national bank located on the north side of Wall street, between William and Nassau streets, was called upon by a HERALD reporter. He said he would give information willingly, but desired not to have his name used. He stated that he was present at the meeting of the Clearing House Association. The association was called to order at three o'clock in order to pass upon the status of the Bank of the State of New York. Mr. William Dowd, President of the Bank of North America, presided, and Mr. G. F. Baker, Cashier of the First National Bank, acted as secretary. There was but little discussion after the report of the Clearing House Committee had been read to the association. There was a large mass or figures in the report, which, after it had been read by the committee, was mailed to the Comptroller of the Currency at Washington, who, on receiving it will, it is understood, appoint a receiver to take charge of the affairs of the disabled bank. The informant of the writer stated that he did not wish to speculate on the causes of the trouble of the Bank of the State of New York. He believed that the bank had been doing a risky business, and doing too much of it, and that the institution must sink because of the temerity of its controllers in carrying indifferent paper belonging to other people. When the gentleman was asked what kind of business it was that the bank had done he declined to tell, and declared that the report of the Clearing House Committee would not be made public until it was published by the receiver. He also added that the Clearing House Association, on presentation of the report, had taken immediate and unanimous action, declaring the Bank of the State of New York permanently suspended from operation.
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The Suspended Bank. NEW YORK, March 15.--No receiver has as yet been appointed for the suspended Bank of the State of New York, and probably the bank will go into voluntary liquidation.
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Condition of the Bank of New York NEW YORK, March 15.-The Evening Post says: "No receiver has yet been appointed for the Bank of the State of New York, and it was learned this morn. iug, that Comptroller of Currency Knox is making an effort to have the bank go into voluntary liquidation. The bank officers are willing to adopt this course, and believe they can carry it out successfully. The bank building was open this morning, and the officers were in attendance, to answer the questions of the depositors, who visited the bank in large numbers. The Vice-President Patrick, said nothing could be done by the managers until the decision of the banking department at Washington was announced Alsohe said in regasd to the overdraft and loans which have been censured, that the reports of these had been exaggerated. One of the directors said there was no foundation for the statement, that he had made an overdraft on the bank to the extent of $200,000.
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New Board of Directors. NEW YORK, March 15.-At a meeting of the stock holders of the Bank of the State of New York which suspended yesterday, the resignation of the old board was accepted and the fol owing new board was appointed: August Belmont, R G. Ralston, G. F. Talman, D. D. Wither, Lawrence Tuemure, John R. Marshall, Daniel Drake Smith, Adrian, Iselin and Henry Morgan. Mr. Belmont was elected President. The new board meet to-morrow to appoint other executive officers, reorganize affairs and give bond to the controller of the currency that the bank assets will be applied to the liquidation of its debts, and the institution will resume business at an early day. The ex-President Mr. Deur, remains with the bank in advisory.
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Reconstructing. NEW YORK, March 15. At a meeting of the stockholders of the Bank of the State of New York, which suspended yesterday, the resignation of the old board of directors was accepted and the following new board was appointed : August Belmont, R. G. Rolston, G.F. Tolman, D. D. Withers, Lawrence Turner, John R. Marshall, Daniel Drake Smith, Adrian Islin and Henry Morgan. Mr.Belmont was elected president. The new board meet to-morrow morning to appoint other executive officers and reorganize the affairs, and give a bond to the controller of curreney that its bank assets will be applied to the liquidation of its debts. Depositors representing about $1,000,000 have consented to allow their deposits to remain for 60 or 90 days to enable the bank to realize on its bills receivable and loans. The institution will resume business at an early day. Ex-President G. W. Duer remains with the bank in an advisory capacity.
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TORS AND CHOICE OF A NEWBOARD-ACGU BELMONT ELECTED PRESIDENT-EFFORTS TO PREVENT THE APPOINTMENT OF A RECEIVERTHE DECISION WHETHER TO RESUME OR LIQUIDATE BE MADE TO-DAY-RICHARD PATRICK STILL DECLINES TO MAKE A STATEMENT. The officers of the Bank of the State of NewYork concluded that it would be advisable to open the loors yesterday, if not for payment, at least for inquiry on the part of stockholders, depositors, and others intersted 111 the affairs of the bank. They were very cautious, however, only one section of the door being opened at a time; but as there was little excitement they decided to extend the aperture until the whole entrance was revealed. Two policement were stationed at the door check any possible demonstration, and to prevent the The entrance of people who had no business there. clerks were at work as usual, making up their accounts for the information of the directors, who were to meet later, to decide upon the proper course to be pursued. All day long there was a stream of inquirers calling to ask questions as to their balances and special deposite of securities, &c. Special deposits, of course, were exempt from any liability by the suspension, but the officers did not wish to give them up until the Banking Department at Washington had decided on some action n the matter. In the bank parlor directors and stockholders held informal conferences to exchange views. Mr. Duer acted RS 2 commitee of one to receive inquirers and lament the catas rophe which had overtaken the bank. In the clerical department of the institution could be seen the actual 55 head of the concern-Riehard Patrick. About r 60 years of age,six feet high, and broad in proportion. with head slightly bald and hair and whiskers tinged with gray, be was a very impressive looking bank officer. Ie attended to all the inquirers who had actual business o transact. He answered all questions that did not reate to the mismanagement of the bank, and he walked about the rooms with a placid, smiling countenance, sceningly acting the part of an adroit and trustworthy friend who had been called in at a critical moment and given complete control. Mr. Patrick, having disposed of a number of persons who were awaiting his attention, W28 asked to furnish the of with his statement of the causes of the failure and to explain theextraordinary pablic he bank, and loans which to himself he had made to Smith & Girvan of Broad st., and others. Mr. Patrick replied that he was too much engaged: that his time was occupted, and therefore he could not be expected to make a statement. Mr. Duer ad new information to give, Mr. Patrick having had of the business of the bank. and Later in the day matters barge knew no nothing. began the dire to grow tora actived, and although Mr. Patrick still had no statement. It was evident that more time was, if smake possible. Institution the August intention Belto rearimate the Bank mont, one of the largest stockholders was present. Meigs was offering the benefit of and President Vermilye of the bank officers also gave advice, and assistance the production of nce, and erial Examiner other upon Merchants proper his offered supported expert securi- Bank ma ies. At the request of the persons interested, y the Bank Examiner, Controller of the Currency Knox the appointment of a receiver in tiler the bank might go into voluntary raminer Meiga had stated that its obligations to 10303 but ad withheld to Hquidate however. depositors the liquidation. bank The and had Bank other Con- the preditors. This was not sufficient roller inviated that he should have a proper written custom tee that the integrity necessary for the applicathe assets to the payment The directors and themselve on paper. Controller that he must have this guarantee, and lebts o traphed ion commit existed of stockholders Knox hesitated the of after- tele the oon was spent in discussing the matter. According to an authoritative statement the obliga ions of the bank are about $3,000,000, in round numers. or this amount depositors representing $1,000, 00 have agreed to wait some time for their Against money. leaves about $2,000,000 be provided for. his there are $1,500,000 cash and the securities neces for the procuring of the deficiency of $500,000. if the necessary guarantee can be of the bank will RO apply all obligations on demand, managers Yow, ry guidate Controller obtained the but assets Knox will that allow as will the to grant the request not to appoint a receiver, be bank to liquidate and reorganize. At the meeting of be directors yesterday these facts were very clearly exrought out. The condition of the bank was also } ined in detail by Mr. Patrick CHANGING THE DIRECTORS. The deliberations long and earnest. and the result 1 their was that the directors concluded that the best them to would be to retire, and enable business sagacity was not Accordingly George W. Duer, Vice-President. Isaac H. hing hour uen whose places. for impaired Reed, President, resigned, to John take A.M. Proudat, and Lloyd Aspiawall dehard steward. Patrick. of the bank 11 dividually and collectively, as directors Board of in their places were installed the following D. ore: August Belmont, George F. Talman, Henry Morgan. R G. Rolston, D. John R Marshall, and Lawrence Turnure. selin, Diree withers, D. offices Smith, August were A. selmont was elected President, and the other eft August vacant Belmont, for the present. as is well known is the ageat of the tothschilds in this country. R. G. Relston is President if the Farmers' Loan and Trust Company, and the other This ew directors are very wellknown business men. have change in control was deemed essential, as It would eep impossible for the bank to get back to the Clearing it even with Mr. Patrick as s manager. Nor could of cause egain popular confidence as long as the same Board Directors remained in office. A meeting of the new directors will be held this decide more to examine the affairs of the bank and to ng whether to resume immediately, or to go into voluntary out liquidation, the deaire being to keep the institution of a receiver. The Controller of the Currency given notice of the facts, and ill August Belmont is one of the of the bank. and in the event of M It receiver. as be olders hands been beaviest permanent largest not losers. appoint stock aue pension would have been one of the . expected that he will take measures to compel Girvan, the im of the loans made to Smith & Mill Companies," Mr. close of the proceedings last evening asked if he had any be t mediate as the Attrition payment statement Patrick, considering for Mr. and publica Patrick others the ion. He said that he had been have matter and Inded that he would let others He now. and then his turn would come. no it understood now, however, director or officer in the $500,000 of the loans which the onger beir ished About "any bank. that bank be Examiner had was out taudin were paid off by the customers. Bank notes of in his official capacity. presented several to : Hggs, the counter for redemption in order the technical point and protest but the tellers, acting on the paid the notes in legal payment; make he he officers, bank over tenders. refuse instructions them for to make non- of Smith & Girvan and their friends still with statement in regard to their connection upon the ny A reporter of THE TRIBUNE called yesterday jr. of that firm, finding him at States Attrition Flour Company. to the report that the stock given as loans granted by the Bank of asked ank. he or 1. C United Smith. as the the security State office When 80 of of to Smith & Girvan was to comply with a requisite represented any monetary the New-York because placed the large it form merely value, and that not he explanations, remarking relined to make any enough already. The United
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THE RECENT BANK FAILURE. NEW YORK, March 14.-The Post says the Bank of the State of New York failure is of no commercial or financial importance. The entire effect will not be one-fourth as great as the failure of Duncan, Sherman & Co. NEW YORK, March 15.-No receiver has yet been appointed for the suspended Bank of of the State of New York. It is probable the bank will go into voluntary liquidation. NEW YORK, March 15.-At a meeting of the stockholders of the Bank of the State of New York the resignation of the old board of directors was accepted, and the following new board appointed: August Belmont, R. J. Ralston, G. F. Tolman, D. D. Withers, Lawrence Turúure, John R. Marshall, Daniel D. Smith, Adrian Islin and Henry Morgan. Belmont was elected president. The now board meet to-morrow to reorganize and give a bond to the Controller of the Currency that the bank's assets will be applied to the liquidation of its debts. Depositors representing about $1,000,000 consented to allow their deposits to remain for sixty or ninety days, to enable the bank to realize on its bills receivable and loans. The institution will resume business at an early day.
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The Broken Bank. A message telegraphed from Washington yes terday said that the Comptroller of the Currency has deciced not to appoint a receiver for the broken Bank of the State of New York. The managers were 10 ser sion nearly all day, out their decision relative is the continuance of the bank could not be oncertained They elected Mr. Turnure, of Moses Taylor & Co. Vice President: but befond that they did nothing thus they were willing to make public.
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NEW YORK. The Insolvent Bank. NEW YORK, March 16.-The directors of the Bank of the State of New York met to-day and elected Lawrence Tumure Vice President. They also appointed a committee to investigate the affairs of the bank and report as soon as possible. No instructions have been received to day from the Comptroller of the Currency. It is said that the required extension of 60 days has not been signed by the necessary number of creditors and hence the appointment of an investigating committee. Private despatches from Washington announce that the Comp. troller of the Currency has decided not to appoint a receiver in the case of the suspended bank, and that the new directors will at once resume operations. Democrats not Enthusiastic for Gov. Tilden. An Albany special says at a secret meeting of the Democratic state committee, yesterday, a remark by Mr. Apgar in favor of Mr. Tilden as a presidential candidate, brought out severe remarks against Tilden from Josepn Warren, John Kelly and Richard Shell.
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THE BANK OF THE STATE OF NEW YORK The bank of the State of New York has suspended payment and closed up.
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CLOSING PRICES-3 P. M. Pacific Mail 813 211/2 a 21 1/4 Mil & St P pf 81% a a West Un Tel 57 I C. & 681/ C. C, 584 68 a 20 1914 Atl & Pac Tel.. C. C&IC 4 41/2 a 17% 1191 a Quicksilver 1193 Del. L & W 1814 a 24 Erie a 221/2 Quicksilver pf. 201/2017 201 a Han & St Jo Mar Land & M a 91/2 18) 817 18 a 28 a 29 Mar L & M pf. 10% Han & St Jo pf 91/2 Adams Ex a 110 109 Lake Shore. 643 a 643/6 a 64 American Ex. Mich Central 631/2 6434 a 65 a 74 73 Y & Harlem. USEX 141% a 1431/4 a 87 Y C & R a 114 Wells-FargoEx 86 107 105 NJ Cen Chic & Alt a 105% a 1071/2 a Clev & Pitts 961/2 96% Ohio & Miss 20% a 21 133 a Panama a 138 4317 Chic & N W 4314 3% a 41/6 Chic & N W pf. 64% a 64 Tol & Wab Chic & R I 1103 a 110% Union Pacific 651/2 a a a Missouri Pac Mil & St P 43)4 43% 14% 1436 ADVANCE AND DECLINE. The following are the changes in closing prices compared with those of yesterday:ADVANCE-Erie,% Lake Shore, /; Michigan Centrai, 3/4; Northwest common and preferred, % Ohio and Mississippi, 1/4; Quicksilver, 1/4; St. Paul common, 1/6; Western Union, 1/6. DECLINE-Rock Island, Xi Pacific Mail, 1/4; C., C., C and I., 1/2. STATIONARY.-Atlantic and Pacific preferred, Atlantic and Pacific Telegraph, C., C. and I. C., Delaware and Lackawanna, Hannibal and St. Joseph common and preferred, Harlem, Illinois Central, Missouri Pacific, New Jersey Central, Panama, St. Paul preferred, Wabasn, Union Pacific and gold. THE MONEY MARKET. Money on call loans was freely supplied at 4 and 5 per cent. - Prime paper is quoted at 4 1/6 and 6 per cent. Foreign exchange was firm; prime asking rates, 4.87 and 4.90 1/4; selling rates, 4.86 1/4 a 4.86 1/2 and 4.893/4 a 4.90. Reichmarks, 95% a 95 1/4 and 95% a 96% Cables, 96 a 96)4. Prime Paris, 5.13% and 5.1114. The following were the rates of exchange on New York at the undermentioned cities to-day:Savannah, unchanged; Cincinnati, slow, par to 50c. premium; Charleston, unchanged; New Orleans, commercial par, bank 1/6 premium; Chicago, 50c. premium, and St. Louis, 25c, discount to par. THE BANK STATEMENT. a The bank statement shows some violent changes in the different items. There is a general decrease, the loans being down $6,881,700; specie, $770,400; legal tenders, $2,021,400; deposits, $6,517,900, and circulation, $214,400. As a result of these figures there is a loss in the reserve of the banks of $1,162,325, which leaves a surplus reserve of $12,831,275. The mere failure of the Bank ot the State of New York does not entirely account for this important change, but has had a great deal to do with 14 inasmuch as it is evident that capitalists have been frightened by the possibilities of further disaster. Loans have been called in, deposits have been recalled, and all the symptoms of an incipient panic were manifested. The following is a comparison of the bank figures for the past two weeks:March March 18
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THE SUSPENDED BANK. The Bank of the State of New York, which suspended on Tuesday last, opened its doors yesterday, but business has not yet been resumed. The committee appointed to examine into the affairs of the bank, with Mr. August Belmont, the newly elected president, at the head, were busily engaged all day investigating the books and securities, They, however, declined to give any information as to what the result of their in quisition had been. It is generally thought that the bank will reopen for business in the course of the next fourteen days.
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GENERAL NEWS. A bill is to be presented to Congress designed to prevent straw bids for postal contracts. An economist says he can live on seven cents a day, but he can only live one day in that manner. It is understood that to-day a reduced freight tariff will go into effect from Chicago to the East. Business is said to be very lively in Minnesota. The wholesale trade of the cities is greater than ever before at this season of the year. The gale in France on Sunday last was very serious in its results. It was followed by a flood which has destroyed a large amount of property. The loss of life is represented to be very serious. The suspended Bank of the State of New York expects to resume business. There was a severe gale in Ohio Thursday. At Cincinnati the loss is estimated at about $7,000. The great snow blockade on the Pacific Railway continues. and the prospects for speedy relief are not encouraging. The take of buffalo robes in Montana the present season is the heaviest for several years. Some of the dealers will ship from 8,000 to 10,000 robes each. A Missouri farm contains a fountain of whitewash, and all the owner has to do is to take his house over to the spring and have the job immediately done. Thus is avoided that disastrous experiment of standing in an old plug hat and linen duster on a tipsy stool on the backstairs and trying to lay it on smooth without getting a drop in your eye.
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THE Bank of the State of New York, New York City, has suspended. The capital of the bank was $2,000,000. It is said the depositors and note-holders are fully secured, and that the stockholders will be the only losers.
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weapona our wee I THE ROSH to RESERVED The shadow of caming Events. 1010 may Rech " *** REF. Beston March Charlee = North & Co., estensite 1 parkers went represent Returned The house claims . surples in December of more than half . million dollars and will probably only ark an extension P. M. Oliver & Co provision deal. era ste reported is have failed, ewing North & Co. $40,000 R e & Co. wool dealers. are also reported to have failed. New York, March R-8AAA T Meyer. real estate operatore. 13 Walker street. have suspended The firm has lost ever $400,000 by on. dorements for friends who have : failed. Baltimore, March B-Warner. Presel & Co., tobacco and shipping merchants, have suspended. The I amount of their liabilities, part or which are in Kurope. are not yet ⑉ e certained. The immediate cause for . the failure was the suspension of I Thompson & Randall, whose notes a they hold for twenty thousand dollars. e Dresel has been German Consul at this I port for many years. p Atlanta. March 8 --Cook & Cheek have failed. Liabilities supposed to be $300,000. Baltimore. March 10. - Thompson I & Hall, commission merchants. have 1. . suspended. Liabilities said to amount to $900,000. le N. Y. March 13. - Daniel Drew n who has been deemed worth about 1, l $14,000,000. has failed for $1,500, our. Two or three years ago he had e o n corner on the Chicago and North western railroad. w N. Y March 14.-The bank of elo 1. state of New York with a reputed cap isul of 82,000,000, has failed. It ha over drawn its capital stock largely. of a Duluth, Minn., March 14.-The First National Bank of Duluth ha as failed for 882,000. d Milwaukee, Mareli 20 -The Even e ing Wisconsin announces the failure o e John Naxro & Co., hardware and iro . dealers of that city with $400,000 i in liabilities The assets is estimated n 8 $100,000.
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THE BIG BANK FAILURE-$100,000 HOUSELABOR MARKET-DREw's FAILURE-TUE WOMEN'S CENTENNIAL-THENEW HAMPSHIRE ELECTION. NEW York, MARCH 20, 1876. THE BIG BANK FAILURE. To the surprise of everybody, the Bank of the State of New York closed its doors Tuesday. This was one of the oldest banks in the city, and was presumed to be one of the soundest, and the failure created a profound sensation on the street. Stocks went down trightfully, other banks shivered in anticination of runs, and for a while it seemed probable that a panic would sweep over the street. But, fortunately, the event passed without a widespread trouble. This failure lets in a flood of light on New York business and New York business men. When this >taid, solid old bank-this eminetly respectable "financial institution," went under, and its affairs came to be investigated, it was found that none of the directors, or, for that matter, any of the officers, knew anything about its management, that not one of them had ever looked into it, there had never been a regular meeting of the board, and that the whole management was left in the hands of one man, the Vice-President, Patrick! As a matter of course Mr. Patrick had lent himself $200,000, he had leut the "Attrition Flour Co." $400,000 on $600,000 of its stock, which stock was worth about four cents a pound, and equally as a matter of course every shyster concern in New d York in which Mr. Patrick was interII ested, or felt friendly toward, had its h e money on just as worthless security r The directors were all surprised when y the failure was made known to them. 7 The effect of the failure will be bad in one sense and good in another. I will be bad because it will unsettle con fidence, and make distrust. It will be good because it will compel directors to look into the management, and see what is being done with the money with which they are entrusted. All th R. banks, with a few exceptions, are in : tight place. Their securities are un sound. Real estate was their favorite security, and on real estate loans hav i been made quite up to its value. But alas, real estate has shrunk in valu Tover a half since these loans were made e. and when the banks come to foreclos only a half can be realized. Busines men dread to have the condition of th or bauks looked into, for fear that the will all be found to be rotten, which would result in such a smash-up as thi city never Saw. They prefer to shu their eyes and let things drift, hoping that something will turn up to let then out. But it has gut to come. Ne York is not at the bottom of its troub les yet.
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The shrinkage of bank capital in New York since the panic of 1873 amounts to over $16,600,000. Part of this has been lost outright and part withdrawn and returned to the shareholders. Ten banks have lost their entire capital, amounting altogether to $6,250,000, the largest failure being the bank of the State of New York for $1,200,000. Eight banks, with a capital of $10,850,000, have withdrawn from business and distributed their money among their stockholders. A number of other banks have reduced their capital some $500,000. Such a shrinkage of capital in SO short a time is alarming indeed. If the "hard times" continue much longer they will leave New York entirely without capital.