National Bank of the State Bank (New York, NY)

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FLURRY IN WALL STREET

Suspension of the National State Bank of New York. Special to the Star. NEW YORK, March 14.-The National Bank of the State of New York suspended this morning, causing general excitement and alarm in financial circles. The announcement was everywhere received with surprise, as the National State Bank has always been considered a strong institution. LATER-ALL QUIET. The excitement that followed the suspension of the National Bank of the State of New York has now subsided, and there are no further apprehensions of trouble. The market was for a time feverish, but there were no serious apprehensions of a panic.

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FINANCIAL

CINCINNATI. March 14-1:30 P. M. The suspension of the National Bank of the State of New York caused great excitement in financial circles in New York this morning, and for awhile Wall street was feverish and panicky. The market is now quiet and steady and nothing serious is apprehended. Gold opened at 114% in Wall street and went up to 115, but soon declined again to 114 1/4 where it now stand's and is r eported steady. Here it is worth 114 1/6 buying, 114 4 selling for coin; and 114% for gold checks on New York. Exchange 18 quiet and steady. No change in rates. We quote Eastern 1-20 discount buying, and 1-20 premium selling. Sterling is quoted 4.90 sight draft, and 4.86 for 60 days, gold. Southern Railroad 7-30 bonds are worth 103 and interest. The money market is steady with a fair demand. Government bonds are quiet and steady, and quoted here as follows:

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General News

"The Select Castle of the Ancient Order of the Knights of the Mystic Chain of Pennsylvania," is now in session at Lebanon. 26 "Castles" are represented. Trains of railway carsalmost entirely loaded with plows, cultivators and other agricultural implements, it is stated, are now starting from Moline, Illinois, everyday, The ways and means committee yesterday agreed informally that on Thursday they would vote upon a motion of Mr. Morrison to fix a time for the consideration of the Tariff bill. The House commerce committee yesterday reconsidered its vote on Mr. Hale's bill for the partial aboliation of compulsory pilotage, and heard arguments of pilots in opposition to the bill. The Democrats of the Third District of Connecticut yesterday nominated David A. Welles for Congress, to fill the vacancy caused. by the death of Mr. Starkweather. The Republicans of the same district have nominated John T. Wait. The National Bank of the State of New York, in New York city, suspended yesterday. Its capital, $2,000,000, is said to have been impaired about one half. The cause of its failure is alleged to be "speculations by its Vice President with men on the Produce Exchange and giving loans without taking collaterals or accepting sufficient securities."

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The Bank Failure

The reported failure of the National Bank of the State of New York caused considerable excitement on 'Change here yesterday morning, and especially among bankers who had dealings with the Bank of New York, the two being confounded in the rumors, though the latter named institution was not affected. The press dispatches of last night give further particulars, showing that the suspension was by order of the conference committee of the Clearing House. A private diepatch received here yesterday afternoon by a banking house from a firm of leading bankers in New York saye: The National Bank, State of New York, depositors will be paid in full. No other banks affected. This comes as private ad vice from well informed men not connected with the bank under suspension, and leads to the belief that the suspension is only temporary, or that peouliar arrangements have been made to protect depositors, who are usually made to suffer for manager's mistakes.

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EXCITEMENT IN NEW YORK

Bank of the State of New York Suspended. The announcement was made officially at the Stock Exchange Tuesday morning that the Bank of the State of New York had suspended payment. The excitement occasioned in New York by the suspension is very great, quite a panic having existed there yesterday. The capital of the bank was $2,000,000, with Ph surplus of $400,000. Geo. W. Duer is President. The National Bank of the State of New York, which is reported as suspended, has no correspondents in New Orleans, and should not be mistaken for the Bank of New York National Banking Association, which is one of the oldest and most conservative banks of New York. We have been shown a dispatch from a prominent banker in New York to a gentleman in this city, which states that the depositors in the above bank will be paid in full. No other banks affected.

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EXCITEMENT IN NEW YORK

Bank or the state of New York Suspended. The announcement was made officially at the Stock Exchange this morning that the Bank of the State of New York had suspended payment. The excitement occasioned in New York by the suspension is very great, quite a panic having existed there this morning. The capital of the bank was $2,000,000, with n surplus of $400,000. Geo. W. Duer is president, The National Bank of the State of New York, which is reported as suspended, has no correspondents in New Orleans, and should not be mistaken for the Bank of New York National Banking Association, which is one of the oldest and most conservative banks of New York. The above appeared In yesterday's evening papers. Since then we have been favored, from a reliable source, with the information that the depositors of the National Bank of the State of New York will be paid in full, and that no other banks are affected.

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NEW YORK'S LAST EXCITEMENT

A Heavy Bank Failure." By American Press Association. NEW YORK, March 14.-The failure of the National Bauk of the State of New York to-day, caused intense excitement on Wall street, and the prices of all securities at the stock exchange fell off with a feverish feeling prevailing. The prices however afterwards rallied. At one timethere were fears of a run on other banks, and that a calmer and quieter feeling prevailed subsequently. The capital of the bank is $2,000,000; this it is thought will be reduced to $1,000,000 by the classes sustained and stockholders assessed for the deficiencies. The troubles of the Bank, it is understood arose principally from bad management and unfortunate advances made upon cotton, the price of which has been gradually sinking here and in Liverpool for some time past. The Bank however holds some of this staple as secnrity for loans. The Bank examiner says the bank will probably pay 50 cents oh the dollar to shareholders but au officer of the institution says they will pay 75 cents. At a meeting of the Clearing House Association this P. M., it was decid ed to suspend the bank from further privileges. It is expected a receiver will be appointed SOOD. An evening paper says. suspension of bank is partly due to overdrafte the result of loaning on warehouse receipts that these overdrafts amount to $80,000 and that an officer of the Bank is rumored to be connected with them.

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of the National New York

Failure news State which of little began before to circulate noon The street a flutter of bein the caused a hours, excitement but under the ship" yesterday ensuing two wave passed closed still comparative an old fore for three the and o'clock the business "the water. of the The day sudden which had never institutionstorally a and shock gave alarm, excited of the suspension in of been 80 distrusted, but the refacts assuring developed character and the the day during allayed uneasiness, it is the that only serious believed sufferers be the of The the will bank. stockholders be will full, they paid although depositors by suffer some inability inconvenience of the while affairs in are But bank be will they paid ultimately will to use their the funds course of settlement. in full, and the of are, note course, holders secured against all as our note under national holdersare, of the large proportion in this up less, bank system. the bank A is swallowed falls on the suffer. stockon effect capital of but the loss will not slight holders, failure, and the general community business will be imperceptible. This consequences of so little of the and The almost event, whose immediate importance, deserves condian of our and tion of the merits indication We will first attention are happily as a national symptom banks, and defects look we which the system. of the picture, light than at the bright in a more with the pected cannot of present side this failure favorable house of unex- Dun& Co., den many by comparing failure of the banking which was equally victims sudits into vortex. the two When failures. can, and Sherman startling There and drew is a striking Duncan, contrast it was their found suspended fell assets several and that besides many between Sherman & short Co. of their liabilities the irretrievable individuals by the millions, of the banking house sufferers whereas State of York ruin firms were National severe Bank of the except the the bank. of one and failure of the drags nobody down This difference the illustrates bank national Duncan, system. stockholders New of of the best features Sherman & to do for Co. after years business continued it because became insolvent, of was any control authority empowered its and affairs condition. publish the free concern from the supervising by law to inquireintoi Nonational its its on can and thus bank trade reputation a if the credit, maintain national factitious or adlaw even fairly banking is rigorously It a is of the chief merit system ministered. of it in the can none go banks included on the for public imposing insolThe vent. that on deceiving and time after it has become Bank of the of has New State York a of that none early stage any length career of of the National been arrested will at be SO creditors in a loss, whereas serious involved banking the of kind same supera on vision false may it until reputation in the final crash. parties innocent house not subject continue to to engulfs do business a multitute Had of & Co. to been obliged Sherman Duncan, of to the their reports condition been they a to liable of make frequent of the Currency, affairs had under the that direction officer as it their Comptrollectratiny of their as he thought been have would career necessary, it cut unand than was, short much earlier have from been saved suspecting people would The these between difference a is failure strong great conspicuous losses. cases of the of national at bank so early sys- a argument two in detects favor insolvency bank cannot be tem, which that creditors reasonable of a vigilance on stage if there Comptroller is of the supervision Currency. ruined the part of the of government also furnishes The banking advantage institutions the wild crotchet who an the soft money the of argument against democrats, national banks and only If that currency. would of abolish tender notes the the busibe would make legal should be done into surrendered be no effiwould check private ness of banking hands, on such and abuses there Sherman were practised & Co. by cient the house of acquires Duncan, its right through of super- the government - omination with of by vision connection The and of the currency, national and banks the if gov- all the the currency issue and banking were issued were made would a lose priernment the community the abuses of a vate chief business, safeguard against banking firm which could its factitious credit. Any a high reputation it had had once enjoyed reputation long after an unsustrade on that and inveigle which become community insolvent, to make sham deposits was exposed, bank pecting lost when the creditors of the of the losses would security be of the as contrasted with private the house which banking a of the The which failed creditors yesterday, of the failed important last autumn, system superiority an suractive under and before veillance the have sunk part they greater demonstrates which keeps the forces banks them to suspend of their assets. account; This is the favorable side of is the not

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POST'S FINANCIAL ARTICLE.

NEW YORK, March 15, Evening.—The Post's financial article says the excitement which followed the suspension of the National Bank of the State of New York has disappeared and Wall street markets are quiet.

Gold opened at 114 3/8, advanced at 10 o'clock to 114 1/2, and all sales since have been at 114 1/2 @ 114 5/8. Gold loan rates have been 4 @ 7 for carrying, renewals having been at 4 1/2. Exchange nominally 4.86 1/2 @ 4.90 for prime bankers' bills, with actual rates at 4.86 @ 4.86 1/4 and 4 89 1/4 @ 4.89 1/2.

The money market has not yet recovered from the violent disturbances of loans yesterday but is in process of recovery. The rates for call loans at the Stock Exchange are 5 @ 7 ⅌ cent. Government bonds in the market are 1/4 lower for 65's and 67's, 1/8 higher for 68's and currency 6's.

The stock market is quiet; prices opened 1/8 @ 1 ⅌ cent higher than yesterday's closing prices, except for Lake Shore, which is 1/8 lower and Union Pacific, Rock Island and Michigan Central, which are unchanged.

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THE National Bank of the State of New York suspended last week. Its capital was $2,000,000. The de- positors in the bank will lose noth- ing, neither will the note-holders. The total loss will fall on the stock holders, who will realize only about 50 cents on the dollar of their stock.

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THE PACIFIC Commercial Adbertiscr

SATURDAY, APRIL 8. FOREIGN NEWS. LONDON, Mar. 14.-The Marquis of Hartington, of the League of Liberals. gave notice in the House of Commons this evening that he would oppose the assumption by the Queen of the title of Empress of India. PARIS, Feb 14.--A statement has been issued by the Ministerialists setting forth that a Republican form of government has been founded in France, and that there never was a government more legitimately established and that it will endeavor to secure external peace, regretting all warlike adventures, and asks the confidence and loyalty of the people toward the President. BELGRADE, Mar -The Turkish troops massed upon the Servian frontier having committed depredations, the Servian militia has been mobilized and ordered to march to the frontier. DISASTROUS INUNDATIONS IN CENTRAL ECROPE.LONDON Mar. 16 5 A. M. -A Paris dispatch in the Times reports that the inundations have stopped work in the tobacco factory and in the foundries of Alfortville. Two hundred houses are flooded at St. Maur. The gale of Sunday caused a frightful destruction of life and property. Eleven persons were killed in Cambray. At Lettiers the Rhone rose twenty or thirty feet. inundating the whole country. At Coblentz the Rhine rose below the railway bridge like a water-spout to the height of houses. Hamburg and Frankfort have also suffered. NEW YORK, Mar. 14.-The failure of the National Bank of the State of New York to-day caused intense excitement on Wall street, and the prices of securites fell off. with a feverish feeling prevailing Prices, however, afterward raised. At one time fears were entertained of a run on other banks, but a calmer feeing prevailed subsequently. The capital of the bank was two million. This, it is thought will be reduced to one million by the losses sustained, and the stock holders will be assessed for the deficiency arising from the troubles of the bank. It is understood the failure arose principally from bad management and upfortunate advances made upon cotton. the price of which has been gradually sinking here and at Liverpool for some time past. LONDON, Mar. 16.-A Times special from Berlin says a letter from Peko Paulovich, who commanded the insurgents at the battle of Muratovizza, asserts that a force of 1,550 insurgents attacked 3,200 Turks. Only 700 of the latter returned to Gatzchko. About 800 were killed, and the others were drowned or dispersed. The insurgents captured 675 rifles, and four rifled cannon. BOSTON, Mar. 16.-A dispatch to the Globe, from Concord, N. H., saysthat the nearly complete returns show that the Republicans have carried the State and have a majority of the council. and will have at least 28 majority on joint ballot. LONDON, March 17.-The Paris correspondent of the Times says the recent report of the probability of war between Japan and Corea attracts considerable attention here. It must have been circulated purposely to direct attention to the Corean question and to the Russian action in Asia. I learn that the Russian army, numbering 12.000 men, has entered Corean territory under pretext pursuing brigands. If war on the southern coast of Corea, Russia would be quite ready to co-operate in the north. The occupation of Corea or at least of Corean ports, may be presumed to have been not unforeseen. We shall perhaps hear more concerning Russian action in Corea. Meanwhile the Russian Government is taking measures to practically utilize the recent acquisition of Saghalein. A regular steamer service will soon be commenced between Saghalein and Shanghai. It is announced that the steamers of the new line will be gunboats. BOSTON, March 17.-In honor of the one hundredth anniversary of the evacuation of Boston by British troops, business was generally suspended to-day. Flags were displayed from the shipping and from the State and national buildings, and many private residences. NEW YORK, March 17.-A foot of snow has fallen to-day in the northern portion of the State. and in portions of Maine, New Hampshire and Vermont it is still snowing. LONDON, Mar. 17. A Vienna dispatch asserts that the Servian ministry seems to favour immediate war. The situation is aggravated by continued raids of Turkish troops on the frontier. The Turks are rendered utterly reckless by want. LONDON, Mar. 18--6 A. M.-A Vienna dispatch says it is stated that Servia has determined to rise a compulsory loan for military purpose. and to exact it immediately, with the utmost rigor. It is reported that Greece has offered to form an offensive alliance with Servia and Roumania. All the Servians are convinced that Russia, although temporarily co-operating with Austria, cannot, for her own interest, permit Austria to occupy Servia. The Servians, therefore, disregard Austria. They are preparing to take the consent to grant, though it would accept accomServian race. MADRID, March 16th.-Don Caldron Coolants, Foreign Minister, speaking in the Cortes relative to the religious question, said the Government trusted to the Pope and his affection for Spain. They hope Providence will prevent 80 eminently Catholic a nation from being divorced from the common head of the faithful. Later on, Senor Sagasta, in opposing the address in reply to the speech from the throne, defended religious toleration, which he declared the Vatican would never consent to grant, though it would accept accomplished facts.

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THE RECENT BANK FAILURE

NEW YORK, April 8, 1876. To THE EDITOR OF THE HERALD:In connection with the recent suspension of the National Bank of the State of New York the name of our firm bas been freely placed before the public by those who have no special interest in our good name. We have not taken any notice of the remarks pub. liahed from time to time tending to our disparagement as an honorable business house, knowing that our vin dication would in due time appear. The transactions of our firm with the bank, extending over several years, have been large, and it has received property from us of much greater amount and value than the loans. It has been alleged in published statements that our firm has received large loans on stocks of the United States Attrition Company. Limited, and the New York City Attrition Mill Company. This is a mistake. The stocks represented a large value, and were merely placed with the bank AS further collateral. In all the circumstances of the case it is due to our friends and also to ourselves to say that, whether any loss will be sustained by any interested in our affairs, depends on the judicious action of the holders of our property. SMITH & GIRVAN. Respectfully,