First National Bank (Petersburg, VA)

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BY TELEGRAPH EFFECT OF THE NEW YORK PANIC PETERSBURG BANKS SUSPEND REPORTED SUSPENSION* OF PROMINENT BUSINESS FIRMS. MERCHANTS NATIONAL BANK PROTESTED FOR $60,000 IN N. Y. [Special to The State Journal.] PETERSBURG, September 23-3 P. M.-The following banks have suspended: Merchants National, First National, Citizens, and Planters. The last two expect to resume payment in a few days. The Commercial National bank is still paying over the counter, and it is asserted that they will continue to do so. The alleged cause of the suspension is owing to a panicky condition of the people, and the failure to procure discounts in New York. The Merchants National bank has been protested for sixty thousand dollars in New York. There is intense excitement on the street, crowds and groups of depositors and others discussing the condition of things. The oldest and hitherto soundest business houses are suspected, and rumors of failures are circulating all around, but are unauthenticated. Itis currently reported and believed that the following business houses have suspended: McIlwain & Co., Plummer, Young & Co., F. M. Wright & Co., James Jones & Plummer, and others.

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Bank Suspensions in Virgilia

RICHMOND, VA., Sept. 23.---The Merchants National Bank, the Plauters' and Mechanics Bank, the Peoples' Bank and the First National Bank, all of Petersburg, suspended this morn ing. The Citizens' Bank of Petersburg, though not suspended, declines payment. Rumors of heavy commércial failures are rife in that city. The bank of Richmond are all quiet. There is considerabie excitement here over the news from Petersburg.

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BY TELEGRAPH

EFFECT OF THE NEW YORK PANIC

PETERSBURG BANKS SUSPEND

REPORTED SUSPENSION OF PROMINENT BUSINESS FIRMS.

MERCHANTS NATIONAL BANK PROTESTED FOR $60,000 IN N. Y.

[Special to The State Journal.]

PETERSBURG, September 23—3 P. M.—The following banks have suspended: Merchants National, First National, Citizens, and Planters. The last two expect to resume payment in a few days. The Commercial National bank is still paying over the counter, and it is asserted that they will continue to do so. The alleged cause of the suspension is owing to a panicky condition of the people, and the failure to procure discounts in New York. The Merchants National bank has been protested for sixty thousand dollars in New York. There is intense excitement on the street, crowds and groups of depositors and others discussing the condition of things. The oldest and hitherto soundest business houses are suspected, and rumors of failures are circulating all around, but are unauthenticated. It is currently reported and believed that the following business houses have suspended: McIlwain & Co., Plummer, Young & Co., W. M. Wright & Co., James Jones & Plummer, and others.

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Bank Suspensions at Petersburg

RICHMOND, VA., Sept. 23.-The Merchants' National Bank, People's and Mechanics' Bank, People's Bank, and the First National Bank, all of Petersburg, suspend this morning. The Citizen's Bank of Petersburg. although not suspended, declines payment. Rumors of heavy.commercial failurs are reported in that city. The banks of Richmond are all quiet, but there is considerable excitement 1 here over the news from PetersSHIUUUU

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IN VIRGINIA

SUSPENSION OF FOUR BANKS AT PETERSBURG-EXCITEMENT IN RICHMOND. RICHMOND, Sept. 23.-The Merchants' National Bank, Planters' and Mechanics' Bank, People's Bank and First National Bank, all of Petersburg, suspended this morning. The Citizens' Bank of Petersburg, although not suspended, declines payment. Rumors of heavy commercial failures are rife in that city. The banks of Richmond are all quiet, but there is considerable excitement here over the news from Petersburg.

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A special dispatch to the State Journal dated at Petersburg, Va., Sept. 23, says the Merchants National, First National, Citizeus and Planters Banks have suspended. The Merchants National Bank had been protested for $60,000 in New York. The cause of the suspensions, is failure to obtain discounts in New York, and the panicy condition of the public mind. The Commercial National is paying its depositors, as fast as demanded. Mellwaine & €o., Plumper & Co., F. M. Wright & Co., James Jones and Plumner. and other business houses have su-pended.

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EXCITEMENT ABATING.

New York, Sept. 23, 10 a. m.-The Gov- Terning Committee of the Stock Exchange have decided not to open the Exchange to- day. The Gold Exchange is open, and reg- ular transactions are being made. The ex- citement on the street seems to be lessening and wearing itself out, and a better feeling appears to exist. Brokers have congrega- ted in front of the Stock Exchange and formed a street market, all sales being for cash. A number of poor women and labor- ing inen have gathered at the Savings Bank, awaiting their opening, but nobody seems to think that anything like a run will take place.

ANOTHER BANK SUSPENSION.

The suspension of Henry Clews & Co. is announced. The failure tends to increase the excitement. The firm paid $1,250,000 in legal tenders to depositors during the past few days, and it was generally the impres- sion that they would pull through, but to- day the Fourth National Bank refused to clear their checke, although the firm had $500,000 of securities, against which $300,- 000 had been drawn.

The clearings of the Gold Exchange Bank are completed and balances will be paid as usual. The Assistant Treasurer has re- ceived $20,000,000 in greenbacks, from Washington, and is ready to buy all bonds offered. $3,800,000 of the $10,000,000 loan certificates issued to relieve the banks, have been taken up, and it is expected that the remaining $10,000,000 will be taken up to- day; in that event additional loan certificates will be issued.

At 20 minutes to 3 o'clock the banking house of Henry Clews & Co. suspended pay- ment. As soon as the announcement was made that the bank had suspended, large crowds gathered in front of the building. Intelligence that their checks were refused payment at the Fourth National Bank reached the banking house about 2:30 p. m., and the closing of doors followed the an- nouncement. Immediately after the closing of the doors, several prominent capitalists were eagerly seeking Mr Clews, who was not to be found. Assistance is necessary to pull through the day. There would have been had there been any suspicion that the bank wou'd refuse payment of Henry Ciews & Co's checks. The fact of the suspension created as much excitement as the suspen- sion of Jay Cooke & Co. The Clews left the street at the close of business in a condition of great excitement, and the headway made in restoring confidence, in a great measure lost. This afternoon Mayor Havemeyer, after consultation with several gentlemen, decided to issue an address on the present financial crisis and to tran mit it to the spe- cial Board of Aldermen which was called for to-day. When asked what his views were about the panic, the Mayor said he had intended to advise the working men and laborers of this city not to continue to run on the various savings banks, as he feit assured their deposits were perfectly se- cure, and that a run during the present panic might possibly result in the loss of both principal and interest of the amount de- posited.

The effect of the panic upon the importing business, or the withdrawing of goods trom the bonded warehouse for the current de- mands of trade, is hardly perceptible as shown by receipt of duties. The following dispatch is published:

London, Sept. 23.-Jay Cooke, McColloch & Co. are throwing out drafts drawn by Jay Cooke & Co. and which have come to hand since the news of suspension was received.

Washington, Sept. 23. The most promi- nent depositor in the First National Bank of this city, next to President Grant, was An- drew Johnson. At the time of the failure of the bank Mr. Johnson had $60,000 to his credit, on which he was receiving 6 per cent interest, which was his only revenue. Should the bank be unable to discharge its obliga- tions, a contingency by no means improba- ble, ex-President Johnson will be almost penniless. The widow of a former navy agent had $17.000, the proceeds of a sale of all the property she had, and it is said General Hunter had a large balance to his credit.

Mr. Knox, collector of currency, whose money was in the bank, said he hadn't money enough to go to market with, the day after the enspension.

General Schofield, commanding the de- partment of Columbia, has issued orders to the commanding officer at Fort Klamath, Oregon, to carry out on October 31 the sen- tence of the military commission which tried the Modocs. The Indians to be executed are Captain Jack, Schonchin, Shack Nasty Jim, Boston Charley, One-Eyed Jim and Stolock.

Richmond, Va., Sept. 23-The Mer- chants' National Bank, Planters' and Me- chanics' Bank, People's Bank, and First National Bank, all of Petersburg, failed this morning. The Citizens' Bank, although not enspended, declined payment. Rumors of heavy commercial failures are also rife in that city. The banks of Richmond are safe, but there is considerable excitement over the news from Petersburg.

Chicago, Sept. 23. A report gained cir- culation here to-day, that there were rumors in New York of the failure of heavy grain dealers in this city. There is not the plight- est foundation for the report, as there have neither been failures nor rumors here.

The slight run which began on some of the savings banks yesterday, has entirely subsided, and the banka are now paying those who cell for deposits without asking any no- tice.

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ALBANY

Sept. 23. Tue run on the Auburn Savings Bank here. ceased this noon. and the deposits the close were much larger than the amount paid out. The panic is over here. RICHMOND, VA. Sept. 23. The Merchant- Nat., Bank. Planters & Mechanics Bank. People's Bank, and 1st Nat.. Bank. all of Petersburg, suspended this morning. The Citizens Bank of Petersburg although not su-pended, decline payment. Rumors of heavy commercial failures are rife in that city, There is considerable excitement here over the news from Petersburg. PHILADELPHIA, Sept. 23. The financial crisis is over and bankers and brokers are transacting business as usual. All the State Banks that were under temporary difficulties have resamed, except the Union & Citizens, and the latter willsoon restime. The National Banks stand firm. and nodoubts are entertained of their stabilly, CHICAGO, Sept. 23. A report gained circulation here today that there were rumors from New York of failures among several of the grain dealers in this city. There is not the -lightest foundation for the reports as there has been neither failures nor rumors here.

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Respension of Virginia Banks

RICHMOND, Sept. 23.-The Merchants' National Bank, Planter's and Mechanics' Bank, People's Bank and First National Bank, all of Petersburg, suspended this morning. The Citizens' Bank of Petersburg, though not suspended, declines payment. Rumors of heavy commercial failures are rife in that city. The banks of Richmond are all quiet. There is considerable excitement here over the news from Petersburg.

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failures reported were the Union Trust Company (the cashier of which was said to be a defaulter to the amount of $600,000), the National Trust Company, and the National Bank of the Commonwealth. The excitement and panic which followed the announcement in the Stock Exchange of the suspension of these institutions were beyond description. The Stock Exchange resembled a mad-house, and the streets were blocked with people, all laboring under great excitement and frenzy. Prices tumbled from two to sixteen per cent., and stocks were slaughtered without any apparent regard to values. President Grant and Secretary Richardson proceeded to New York on Saturday night, and on Sunday a conference was held with some of the leading financiers at the Fifth Avenue Hotel, to endeavor to arrange some plan for governmental relief. A proposition was made that the President authorize the Secretary of the Treasury to place $30,000,000 of legal reserve in the city banks, and Commodore Vanderbilt offered to add $10,000,000 more. This proposition was declined, the President stating his belief that he had no constitutional power to afford the relief asked for in this manner. It was finally determined that the Assistant Treasurer be instructed to purchase all the government bonds offered for sale to any amount, and as the savings banks hold many millions of these bonds, it was thought probable they would sell them and deposit the proceeds in the national banks, which would give them relief. At Washington, on Saturday, there were continued runs upon the Freedmen's and City Savings Banks, but both held out. In Philadelphia the Union Banking Company suspended; in Chicago, the Franklin Bank, and at a meeting of the officers of the different savings banks, it was unanimously resolved to notify their depositors, that they will avail themselves of the privilege given them by their charter of giving sixty days' notice before paying their depositors.

The managers of the Eastern railroads have come to a determination to issue return passes to stock drovers on and after October 1st.

The Assistant Treasurer at New York continued purchasing all the 5-20 bonds that were offered by the banks on Monday, for the purpose of easing the money market. Both the Stock Exchange and Gold Exchange continued closed during the day. A run was commenced on the savings banks in the early part of the day, but later a feeling of greater security prevailed, and the crowds of depositors dispersed. The day closed with a general confidence that the crisis was entirely over. On Tuesday, 23d, the New York Stock Exchange continued closed, but the Gold Exchange was open and regular transactions resumed. Up to 2 o'clock p. m. the monetary situation might have been summed up in a sentence, "Confidence is restored, the banks are conducting business as usual," but just as the street was beginning to feel that the end of the panic had been reached, the painful rumor started that the house of Henry Clews & Co. had suspended payment. As soon as the announcement was made that the doors of this banking house had closed, the most intense excitement again prevailed, only equaled by the first announcement of Jay Cooke & Co.'s failure. The run on the savings banks was continued moderately throughout the day, but the time rule allowing the banks to require thirty days' notice on all sums over one hundred dollars, was generally enforced. A London telegram announced that Jay Cooke, McCulloch & Co. were throwing out drafts drawn by the American house and which have come to hand since the news of their suspension was received. A Petersburg dispatch announces that the Merchants' National Bank, Planters' and Mechanics' Bank, People's Bank, and First National Bank, all of that city, had suspended. The Citizens' Bank, although not suspended, declines payment. Rumors of heavy commercial failures were also rife in that city.

It is stated that the Pennsylvania Railroad Company have reduced the hours of work for laborers and road men to eight hours per day, and the pay rolls will be reduced accordingly. The laborers, it is said, will strike against the new rule.

Up to noon on Wednesday, the Government had purchased about $12,000,000 of bonds in New York City, but the financial crisis was apparently not yet over. The principal failures announced were the London house of Clews, Habecht & Co., and that of Howes & Macy, New York-both brought about by the suspension of Henry Clews & Co. on the previous day.

At Philadelphia, Sept. 24, Thomas B. Parker, a wealthy retired iron merchant, shot his wife and then killed himself with

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or over $13,000,000, "Prompty put out in purchasing bonds, as incupeediest way of relieving the demand for currency. If recomrse could not have been had-to-the reserve, the Secretary would have been, ander the necessity of selling coin to obtain the currency necessary to pay the government indebtedness, or would have suspended currency payments. That there was no doubt as to the right to issue all or any portion of the reserve was best shown by the limited amount of the currency balance when the minimum amount of legal tender notes was in circulation. Now that but $18,000,000 of the reserve remained, with no authority to exceed the $400,000,000 limit, it would be necessary to hold it in reserve for any emergency. There was no reason for apprehending any further expansion of legal tenders beyond $332,000,000. There had been much criticism as to the power of the Secretary of the Treasury to contract the value of greenbacks. If the proposed act, fixing the amount at $400,000,000, became a law, it would not, as he had already said change the existing law, and the minimum would still be $356,000,000, to which point, in his opinion, it could again be reduced. With regard to increasing the national banking circulation, the addition of $46,000,000, with a redistribution of $25,000,000 in accordance with the existing act, would undoubtedly give those portions of the country clamoring for more banking facilities all the capital they needed for years to come, and he had now no reason to believe that Congress would pass any measure which would not meet with his ungualifled approval. Termination of the Labore of the Alabama Mixed Claims CommissionAmount To Be Paid the British Government. Henry Howard, Esq., late Agent of her Majesty's government, under the American and British Mixed Commission, will disburse the money awarded by it to British claimants-a little less than $2,000,000-which sum is to be paid by the United States to the British government by the 26th of next September. The money will be paid by Mr. Howard to the claimants or their legal representatives. The amount thus to be disbursed is included in the estimates of the Department of State. The business of the Commission was closed to the entire satisfaction of all its members. Thomas C. Cox, Esq., the late Secretary and Disbursing Officer of the Commission, to-day received the following letter:LONDON, FOREIGN OFFICE. March 19, 1874. SIR:-The Mixed Commission having concluded its labors, and your duties in connection with it being terminated, I am directed by the Earl of Derby to thank you on behalf of Her Majesty's government for the services you have rendered as Secretary to the Commission. His lordship has great pleasure in bearing testimony to the ability and impartiality with which, as he is informed, you have discharged very delicate and sometimes perplexing duties, and he has no doubt that the successful termination of the labors of the Commission in the period allowed by the treaty, was in great measure owing to your efforts. I am your most obedient humble servant, TENTERDEN. Dividends to Creditors of Insolvent National Banks. The Comptroller of the Currency yesterday declared a dividend in favor of the creditors of the First National Bank of Mansfield, Ohio, of twenty-five per cent; also the Merchants' National Bank of Petersburg, Va., of twenty-five per cent. Dividends were also declared during the month of March as follows:National Bank of the Commonwealth, New York, fifty per cent; First National Bank of Petersburg, Va., twenty-five per cent; First National Bank of Carlisle, Pa., twenty-five per cent; First National Bank of Washington. D. c., twenty per cent, making in all a dividend of fifty per cent. A dividend will also be paid to the creditors of the First National Bank of New Orleans of twenty-five per cent as soon as the necessary schedules can be prepared, making dividends of sixty per cent in all, to the creditors of that bank. The Financial Bill Amended and Under Consideration in the Senate. The following is the Finance bill as amended and as it now stands before the Senate:A bill to provide for the redemption and reissue of United States notes and for free banking. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the maximum amount 01 United States notes is hereby fixed at $400,000,000. SECTION 2. That $46,000,000 in notes for circulation, in addition to such circulation now allowed by law, shall be issued to national banking associations now organized and which may beorganized hereafter; and such increased circulation shall be distributed among the several States as provided in section 1 or the act entitled "An act to provide for the redemption of the three per centum temporary loan certificates and for an increase of national bank notes," approved July 12, 1870. SEC. 3.-That each national banking association now organized or hereafter to be organized, shall keep and maincain, as a part of Its reserve required by law, one-fourth part of the coin received by it as interest on bonds of the United States deposited as security for circulating notes on gov. ernment deposits; and that nereafter only onefourth of the reserve now prescribed by law for national banking associations shall consist of balances due to an association available for the redemption of its circulating notes from associations in cities of redemption, and upon which balances no interest shall be paid. SEC. 4.-That nothing in this act shall be construed to authorize any increase of the principal of the public debt of the United States.

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FINANCIAL NOTES

There were reports yesterday that arrangements had been made for the completion of the Chicago and Canada Southern Raitroad, and to this report was attributed the advance on the bonds. W. G. White, Cashier and Chief Clerk at the Sub-Treasury 111 this city, and Ac ing Assistant Treasurer in the absence of General Hillhouse, has been reappointed. The Controller of the Currency has declared a dividend of 35 per cent to the creditors of the late First National Bank of Petersburg, Va. This is the second dividend, and makes a total of 60 per cent. At a meeting of the general superintendents and general freight agents of all the railroads leading to the South-West, at Chicago on Thursday, it was decided not to poel the earnings, but to advance the pres 11 freight rates to south-western points 10 per ceat. opposition between the companies is now obviated, high rates will be obtained. Articles of association under the General Railroad law of New-Jersey were filed yesterday in the Secretary of State's office, at Trenton, for the construetion of the Timber Brook Railroad, to run from a point on the Morris and Essex Road at or near Port Oram, in Morris County, to a junction with the Green Pond Rillroad, at or near the mines of the Timber Brook Iron Mining Company, in Rockaway Township, Morris County. The length of the road 18 12 miles. The capital stock IS $200,000. The Commissioners to settle up the affairs of the Freedmen's Savings and Trust Company are ousily eagaged at Washington examining the Cooks of the institution, and will. in the course of a few days, issue a circular to those interested, giving an approximate statement of what they expect to be able to do; and urging them not to sacritice their claims, but retain them, If possible, until the affairs of the institution can be arranged, when it is expected that nearly the whole amount of the claims will be paid.