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LOSS OF HALF A MILLION. THE FARMERS AND MECHANICS' NATIONAL BANK OF HARTFORD IN TROUBLE-DIS ASTROUS CREDITS-THE SURPLUS CAPITAL SWEPT AWAY. [BY TELEGRAPH TO THE HEBALD. HARTFORD, Conn., Feb. 7, 1877. Rumors that have been in quiet circulation for several days past affecting the condition of the Farmers and Mechanics' National Bank of this city culminated to-day in a public announcement of a deficiency estimated at from $400,000 to $500,000. In the Brokers' Board yesterday the sales of its stock were made at 125, about the usual rate, but this morning the stock suddenly dropped to 76 bid, to 92 asked, and after the Board met the stock further dropped on the street to sales at 70 and so. A host of holders being panic stricken from the rumors circulated were anxious to sell at any price. The source of the trouble is extensive loans on insufficient securities, together with overdrafts of a considerable amount. WHERE THE MOXEY HAS GONE. These loans were made by President John C. Tracy, and include, according to information to-night from an officer of the bank, loans of $100,000 to Elisha J. Smith: a Hartford distillery, $80,000; to George H. Penfield, a real est to broker, $50,000; to the Sharp Rifle Company, of Bridgeport, $50,000; to the president of the Hartford Pump Company. of which Mr. Tracy is treasurer, and various smaller loans, agaregating $150,000, making a total of $440,000. It 18 impossible to give the exact figures at this writing, as the bank directors, who were in session yesterday and to-day, have not yet finished their examination. Bank Commissioner Mygatt has been summoned and will probably begin an official investigation to-morrow. It may be stated that the loans are not wholly valueless, and further than this that securities to a considerable amount have been received from the borrowers since yesterday. so that 11 is estimated that the losses will no more than sweep away the surplus. OVER CONFIDENCE OF THE PRESIDENT. The difficulty into which the bank bas been led is attributed to the over confidence of President Tracy in granting discounts to personal friends whom he benevea financially good, and without submitting the paper to the inspection of the directors, who had no knowledge whatever of the loans. In justice to him 11 should be said that no wrong intent IS suggested. THE BANK WILL GO ON. In an interview with the HERALD correspondent this afternoon Cashier Chapmon stated that he could not give the precise figures until the examination is concluded. He admitted that the bank will sustain a heavy loss, probably not less than $300,000, but that Its stability will not be endangered, for the reason that last statement, dated January 20, showed a capital of $1,100,000 and a surplus of $300,000, and $48,000 undivided profits. This surplus will be swept away. but the stockholders are men of large wealth, and will make up any deticiency that may be discovered on the official examination. The sensation created by this affair IS heightened by the fact that the First National Bank had a similar experience only last month. resuiting 183 the election of a new president, who 18 more exacting with borrowers, and that the Connecticut River Banking Company, within a few weeks, had an overbauling by its directors, who struck off a lot of worthless paper and made a fresh start
