14802. Atlantic National Bank (Brooklyn, NY)

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 1491
Charter Number: 1491
Start Date: May 26, 1869
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: 68c82464

Response Measures

None

Description

Multiple May 26–27, 1869 newspaper reports describe discovery of a ~$250,000 deficit in accounts of President Wm. C. Rushmore, which prompted a slight run that was checked when directors pledged personal assets to carry on. OCR variants of the president's name (Rushmer, Rushmore, Bushmore) appear in sources; corrected here to Rushmore as most consistent. No suspension, receivership, or permanent closure is reported.

Events (3)

1. July 26, 1865 Chartered

Source: historical_nic

2. May 26, 1869 Run

Cause: Bank Specific Adverse Info
Cause Details: Discovery of a deficit of about $250,000 in accounts of President Wm. C. Rushmore arising from advances to a contractor and purchases of real estate in his name (deeds held in the vault marked 'to secure the bank').
Measures: Directors pledged personal property and pledged to carry on the business of the bank; directors covered/check run by personal pledges.
Newspaper Excerpt: a slight run was made on the bank by uneasy depositors; but later in the day their fears were allayed by the Directors, who pledged themselves to carry on the business of the bank.
Source: newspapers

3. July 15, 1872 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (12)

1. May 26, 1869 The New York Herald New York, NY

Article from The New York Herald, May 26, 1869

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FINANCIAL AND COMMERCIAL. TUESDAY, May 25-6 P,M. The markets in Wall street to day were unusually dull, a spring languor seeming to creep over matters and things in that generally busy locality. "Orders" are "few and far between" with the brokers, but sumcient to make quotations quite active and give stocks the sembiance of great buoyancy. There was continued and somewhat excited discussion of the reticence of Secretary Boutwell in not declaring his policy in the question of buying bonds or three per cents to effect the sale of an extra million of gold. Those who are short of gold and governments seem to be harmonious in endeavoring to frighten holders into selling by enlarging upon the probabilIties of Mr. Boutwell's buying the certificates instead of bonds. The fact is, no one knows what his intentions are. The weaker feeling in gold is the secret of the weakness in governments, and the "bears" in the latter are naturally very earnest in spreading any reports which redound to their speculative benefit. The range of government ts to-day was a repetition in many points of the fluctuations of yesterday. The London quotation, 79, created a steady, if not a better feeling at the noon board, but the softening of the gold market, the dulness of exchange, which prevents the foreign houses from increasing their purchases, and the three per cont rumors operated for lower prices, and the market closed at five o'clock this evening with the fol. lowing quotations:-United States sixes, 1881, registered, 120% a 121; do., coupon, 121 1/6 a 121%; do., Ave-twenties, registered, 1161/6 a 1163/6; do. do., coupon, 1862, 12216 a 1221/4; do. do., coupon, 1864, 11616 a 116%; do. do., coupon, 1865, 1181/6 a 1181; do. go., coupon, 1865, new, 11914 a 1191/2; do. do., coupon, 1867, 11914 a 1191/2; do. do., coupon, 1868, 1191/4 a 11936; do., ten-forties, registered, 108 1/2 a 108%; do. do., coupon, 109 a 1091/6; currency bonds, 1061/6 a 1063. The money market was without any particularly movel feature until late in the day, when more activity ensued and, loans were more general at the full légal rate as a consequence of the furry produced by the announcement of the defalcation of the late President of the Brooklyn Atlantic National Bank. It was also reported that the bank had been compelled to suspend, but on examination the deficit was found to be limited to $250,000, for a portion of which the deceased president left certain deeds of real estate. Commercial paper was less active at rates ranging from seven to nine per cent. Foreign exchange shows further concessions on the part of drawers and the market is rather unsettled. A few days since large amounts might be purchased at figures lower than the market quotations. Now, a demand for a large sum would probably be regarded with suspicion and induce the drawer to put up his rates. The weakness which is characteristic of the immediate present of the market is due to the pressure to sell bond bills on the part of foreign bankers who bought governments freely on the recent advance in London. The following was the range of rates:-Sterling, sixty days' commercial. 10814 a 108 % good to prime bankers', 109 a 1091/4; short sight, 1093/8 a 1101;;; Paris, sixty days, 5.25 a 5.161/4; short sight, 5.1614 a 5.13 1/4; Antwerp, 5.25 a 5.161/; Switzerland, 5.25 a 5.161/4; Hamburg, 851/6 a 35% Amsterdam, 3934 a 401/6; Frankfort, 39% a 40%; Bremen, 7734 a 7814; Prussian thalers, 7014 a 71 . Gold was comparatively quiet, with the general tone of the market weak, under the reaction from the excitement which carried the price up to the verge of 145, the declining tendency being assisted to-day by the reports that Mr. Boutwell would buy three per cents instead of an additional million of government bonds. The highest price was 14134 and the lowest 140 1/2. From this latter figure there was reaction to 14034, due in a measure to apprehension for the final results of the defalcation in the Atlantic Bank of Brooklyn. The disbursements of coin interest from the Sub-Treasury amounted to $107,613. The course of the market is shown in the table:-

2. May 26, 1869 Evening Star Washington, DC

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RUNONA BROOKLYN BANK. NEW YORK, May 26.-It was reported yesterday that the accounts of Wm. C. Rushmore, late President of the Atlantic National Bank of Brooklyn, (who was killed by the recent Long Island Railroad disaster,) showed a deficit of nearly $250,000, and a slight run was made on the bank by uneasy depositors; but later in the day their fears were allayed by the Directors, who pledged themsel yes to carry on the business of the bank. It is now ascertained that the deficit proceeds from advances made on securities to a contractor, whose account is largely overdrawn. and also from the purchase of real estate by Mr. Bushmore, in his own name. Deeds for this property were put away in the vaults of the bank, and were marked, "To secure the bank."

3. May 26, 1869 The Evening Argus Rock Island, IL

Article from The Evening Argus, May 26, 1869

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By Telegraph. ARRIVAL OF A CUBAN COMMISSIONER. JOHN COCHRANE TO SUCCEED MINISTER M'MAHON. THE FRENCH ELECTIONS THE McCONNELL MUR DER TRIAL. No Jury Yet Impaneled. Eight Hundred Musical Clubs for the Peace Jubilee Chorus. JUDGE BUSTED TO BE OVERHAULED. A Determined Suicide. DEFALCATION OF BANK OFFICER. FIRES. ETC. NEW YORK May 26.-Judge Allen, formerly of Arizona, died in Paris, on Monday The loss by the sinking of the Austrian ship Sigler, yesterday, was $400,000. It was stated yesterday that the account of Wm. Rushmer, president of the Atlantic National of was by the recent Long Bank, deficit Brooklyn, Island of nearly railroad who quarter siaugh killed ter, showed a a of a million of dollars. When this rumor be. came public a slight run was made .20 iss their fears were allayed by the directors, who pledged themselves for the businesstransac tions of the bank. Among the passengers by the steamship Rising Star, yesterday, was Senor Bethene voat, commissioner of the new Cuban gov. ernment to Washington H. B. Wiley's stables in Brooklyn, a large structure, was burned last night. Loss nearly $100.000. Chas A. Starr, of Tarrytown, N.Y., committed suicide yesterday after four attempts. He shot himself twice in the head finding these wounds ineffectual he shot himself twice in the left side. It is stated that the state department has finally become uneasy at the continued silence of Minister McMahon A letter of recall was sent to him several months ago, but no answer has been received. John Cochrane will probably be appointed to suc ceed him A Paris special to the Herald of 25th says the Orleanist legitimist and moderate republican candidates have been beaten every where in the elections. The radicals are victories in Paris and Lyons. Thiers and Jules Favre are defeated. The new Corps Legislatiff will be composed almost wholly It of government and radical members meets on the 15th of June. Tranquility prevails throughout the country. MONTGOMERY, ALA., May 25. Judge Busteed is now holding a term of the U.S. Court here. A Congressionl committee to investigate his conduct is expected to-night. Busteed has been here two weeks. BOSTON, May 26 Over eight hundred vocal organizations have reported to the executive committeet heir intention to join in the great national peace jubilee chorus, and are diligently rehearsing music to be sung on the occassion. JACKBONVILLE, ILL May 26 The sec. ond day of the trial of Robinson, for the murder of Hon. Murray McConnell, was consumed in an effort to procure a jury. The process WAS a protracted one, and at the hour of adjournment ninety six person had been examined and only eight accepted. The courtordered a special venire for nine. ty-six additional jurors. DEWITT, IOWA May 26.- Five warehouses, containing between 25,000 and 30,000 bush. els of grain of various kinds, were entirely destroyed by fire yesterday afternoon. The fire caught from sparks from the locomotive of a passing train. The amount of loss is heavy, but cannot yet be ascertained.

4. May 26, 1869 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, May 26, 1869

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A Bank in Trouble. NEW YORK, May 26.-It was reported yes. terday that the accounts of Wm. C. Rushmore, late president of the Atlantic National Bank of Brooklyn (who was killed by the recent Long Island Railroad disaster) showed a deficit of nearly $250,000; and a slight run was made on the bank by uneasy depositors, but later in the day their fears were allayed by the directors who pledged themselves to carry on the business of the Bank. It is now ascertained that the deficit proceeds from advances made on securities to a contractor whose account is largely overdrawn, and also from the purchase of real estate by Mr. Rushmore in his own name. Deeds for this property were put away in the vaults of the Bank, and were marked "to secure the Bank."

5. May 27, 1869 The Evansville Journal Evansville, IN

Article from The Evansville Journal, May 27, 1869

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TELEGRAPH SUMMARY. Judge Allen formerly of Arizona, died in Paris on Monday. The loss by the sinking of the Austrian steamer Figleaf, in New York harbor, on Tuesday, was $400,000. Lieut. Gen. Phil. Sheridan and the archtraitor John C. Breckinridge were in Cincinnati on Tuesday. H. B. Wiltie's stable in Brooklyp, a large structure, was burned on Tuesday night. Loss nearly $100,000. Among the passengers by the steamship Rising Star, on Tuesday, was Senor Bethenscourt, Commissioner from the new Cu_ ban Government to Washington. Judge Besteed is now holding a term of the U. Court in Montgomery. The Congressional committee to investigate his conduct were expected there on Tuesday night. Over eight hundred vocal organizations have reported to the Executive Committee their intention to join in the great National Peace : Jubilee. Choruses are diligently rehearsing to the music to be sung on the occasion. Charles H. Starr, of Tarrytown, New York, committed suicide on Tuesday, after four attempts. He shot himself twice in the head. Finding these wounds ineffectual he shot himself twice in the left side. The Ladies' Union Aid Society of St. Louis decl' ne to take part in the decoration of the soldiers' graves because the ceremony takes place on the Sabbath. General A. H. Terry and family are in St. Louis, ea route to Atlanta, Georgia, where the General will take command of the Department of the South. The large music store of Compton & Doan, of St. Louis, was taken in charge on Tuesday by the United States Marshal in pursuance of proceedings in the Bankrupt Court. General Wyndam, Commander-in-Chief of Her Majesty's forces in British North America, in company with P. S. Stevenson, General Freight Agent of the Grand Trunk Railway, and S. T. Webster, of Chicago, General Agent of the National steamship Company, of Liverpool, are purchasing lands at Manhattan, Kansas, of the National Land Company. An immense emigration from Canada is going into Kansas, and great numbers of new comers setting along the Kansas Pa. cific Railway. It was stated on Tuesday, in New York, that the accounts of William C. Rushmer, President of the Atlantic National Bank of Brooklyn, who was killed by the recent Long Island Railroad slaughter, showed a deficit of $250,000 When this rumor became public/aislight run was made on the bank by depositors, but later in the day their fears were al ayed by the Dir ctors, who pledged themselves on the business of the bank James Budiang, a Booklyn merchant, was arraigned before Justice Dodge, on Tuesday, on a charge preferred by Mr. Clinton Gilbert, Vice President of the Greenwien Savings Bank, of false representations, by means of which he obtained Mr. Gilbert's endorsement to a promissory note, for thirty-ave hundred dollars, and which the latter was compelled to pay. Budlang pleaded not guity, and was committed in default of S ven thousand dolindi lars' ball

6. May 27, 1869 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, May 27, 1869

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NEW YORK, May 26, - Judge Allen, formerly of Arizona, died in Paris last Monday. The loss by the sinking of the Australian ship Fig Leaf, yesterday was $400,000. It was stated yesterdy that the accounts of Wm. C. Rushmer, President of the Atlantic National Bank of Brooklyn. who was killed by the recent Long Island railroad slaughter, showed a deficit of nearly $250,000. When this rumor became public a slight run was made on the bank by depositors; ut later in the day their fears were allayed by the directors, who pledged themselves on the business of the bank. Judge Budlong, a Brooklyn merchant, was arraigned before Justice Dodge yesterday, on a charge preferred by Mr. Clinton Gilbert, VicePresident of the Greenwich Savings Bank, of false representations by means of which he obtained Mr. Gilbert's endorsement to a promissory note for $3500, and which the latter was compelled to pay. Budlong plead not guilty, and was committed in default of $7000 bail. Among the passengers by the steamer Rising Star, yesterday, was Senor Bethenscourt, Commissioner from the new Cuban Government to Washington. B. Writties' stable, in Brooklyn, a large structure. was burned last night. Loss, nearly $100,000. Charles H. Starr, of Tarrytown, committed suicide yesterday after four attempts. He shot himself twice in the head, and finding these wounds ineffectual he shot himself twice in the left side. It is stated the State Department has become uneasy at the continued silence of Minister McMahon. A letter of recall was sent to him several months ago, but no reply has been received. John Cochran will probably be appointed to succeed him. It is reported in this city by well informed parties that the Spanish government will soon issue a decree requesting that all citizens of the realm or the colonies residing in foreign countries, who may own property in Cuba, shall, within a stated period, register their names with the nearest Consul, and taketheoath of allegiance to the mother country. A failure to comply with this order will render all such property liable to seizure.

7. May 27, 1869 Nashville Union and American Nashville, TN

Article from Nashville Union and American, May 27, 1869

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NEW YORK. The Curse of Money-Trouble and Af. fillition-Ugly Rumors. NEW YORK, May 26.-The loss by the sinking of the Australian ship, Figleaf, yesterday, was four hundred thousand dollars. It was stated yesterday that the accounts of Wm. C. Rushner, President of the Atlantic National Bank of Brooklya, who was killed by the recent Long Island railroad slaughter, showed a deficit of two hundred and fifty thousand dollars. When this rumor became public a slight run was made on the bank by the depositors, but later in the day their fears were allayed by the directors, who pledged themselves on the business of the bank. James Budlay, a Brooklyn merchant, was arraigned before Justice Dodge yesterday on a charge preferred by Mr. Clinton Gilbert, Vice President of the Greenwitch Savings' Bank, of false representation by means of which he obtained Mr. Gilbert's endorsement to a promisory note for $3,500 and which the Teller was compelled to pay. Budlay pleaded not guilty and was committed, in default of $7,000 bail. Among passengers yesterday was Senor Bethenscourt, Commissioner from the new Cuban government to Washington. H. B. Writter's stable in Brooklyn, a large structure, burned last night. Loss $100,000. Charles H. Starr, of Tarrytown, New York, committed suicide yesterday, after four attempts. He shot himself twice in the head; finding these wounds ineffectual, he shot himself twice in the left side.

8. May 27, 1869 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, May 27, 1869

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Run on a Brooklyn Bank--Defalcation. NEW YORK, May 26.-William C. Rushmore, President of the Atlantic National Bank of Brooklyn, who was killed by the recent disaster on the Long Island railroad, proves to have been short $250,000. This discovery caused a run on the bank to-day, which, however, was checked by the directors pledging their personal property to make good the deficit.

9. May 27, 1869 The Daily Phoenix Columbia, SC

Article from The Daily Phoenix, May 27, 1869

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prevent their tailing into the hands of the insurgents. The Parett has arrived at Kingston, Jamaica, after landing an expedition in the Bay of Nip+ oDomestic News. NEW YORK, May 26.-Wm. C. Rushmer, President of the Atlantic National was killed the Brooklyn, who by Bauk, recent of Long Island Railroad disaster, has been found to be short $250,000. A run on the bank was checked by personal pledges from the directors. The Quaker City was seized yesterday, for a contemplated violation of the neutrality laws. She claims British protection. The Presbyterian Committees, to which the basis of re-union were referred, meet in Pittsburg in August. The Herald's account of the fight at Nipe Bay, says that the fillibusters, while fortifying, were surprised by a large force of Spaniards, who carried the unfinished works, capturing a flag and five guns. The fillibusters rallied, recapturing the works and guns, but failed to recover the flag. Thre fillibusters turned the guns on the Spanish steamer Marsella, which escaped with two shots through her hull. RICHMOND, May 26.--A large conservative meeting, held in the park this afternoon, was addressed by Hon. Thomas S. Flournoy and others, in favor of Walker (Republican) for Governor. Walker was present, and made a brief address. His appearance was welcomed with cheers. The American Baptist Free Mission Society commenced its twenty-sixth annivorsary meeting here this morning. Rev. A. L. Post, of Pennsylvania, was elected President, and Rev. Rufus L. Perry, of Brooklyn, New York, Secretary. Twenty-nine States and Canada are represented by 106 delegates, including two ladies. A large majority of the delegates are colored. MOBILE, May 26.-A fire occurred on Commerce, between St. Michael and St. Louis streets, last night, by which Childress & Davis, grocery dealers, Foster & Gardner, F. E. Stollinwerck & Brother, commission merchants, Ober & Anderson, feed store, and Baker & Co., forwarding merchants, were burnt out. Col. L. T. Woodruff, one of the most prominent business men, and President of the Board of Trade, lost his life. Two others were seriously injured by the falling walls. The loss is estimated at between $40,000 and $50,000. P.M.-The funeral of Col. Woodruff, late President of the Board of Trade, was the largest ever witnessed in Mobile. The body lay in state in the Board Rooms until 4 o'clock, when it was removed to the Methodist Church, followed by the Board and Presbyterian Assembly in a body. All the stores were closed throughout the day out of respect for the deceased. In the General Assembly the greater part of the morning was spent in discussing a plan for the evangelization of the blacks. Dr. Guardlan made an able speech in favor of the plan which was recommended. It provides that where practicable, the Presbyteries may organize separate colored churches, to be supplied for the present with white pastors, and ruling elders of their own color. The pastors of our white churches to supply these pulpits as far as possible. That suitable colored exhorters may be employed under the direction of the pastors. That when colored candidates for the ministry show themselves fitted for ordination, they shall be ordained, with the understanding that they shall henceforth be ecclesiastically separated from us. Our ministers and people are urged to earnest labors among them. SAVANNAH, May 26.-The trial of the murderers of Broadbacher and Brickman, has resulted as follows: Two were convicted of murder; four plead guilty of manslaughter, and a nolle pros. was entered against three. CHARLESTON, May 26.-Arrived-schooners N. W. Smith and Constitution, New York; W. B. Mann, Philadelphia. Sailedsteamers Saragossa, New York; Sea Gull, Baltimore; schooner Annie Lewis, St. Mary's, Ga. -0Washington News. me

10. May 29, 1869 The Charleston Daily News Charleston, SC

Article from The Charleston Daily News, May 29, 1869

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LARGE BANK DEFICIT IN BROOKLYN, NEW YORK-EXCITEMENT AND INVESTIGATION.-The New York papers contain full accounts of another bank sensation, from which we take the following: It was stated on Tuesday that the accounts of Wm. O. Bushmore, President of the Atlantic National Bank, of Brooklyn, who was killed by the recent Long Island Railroad slaughter, showed a deficit of nearly two hundred and fifty thousand dollars. A slight run was made on the bank by uneasy depositors, but later in the day their fears were allayed by the directors, who pledged themselves to carry on the business of the bank. The deficit proceeds from advances made to a contractor on securities whose account is largely overdrawn, and also from the purchase of real estate by Rushmore in his own name. The deeds for the purchase of this property were put away in the vaults of the bank, and were marked "To secure the bank." The New York Tribune says that Mr. Rushmore may have intended to preserve the bank unharmed by these purchases, but as the facts stand, the property belongs to the Rushmore estate, and the money that paid for it is suspected to have belonged to the bank. The Tribune also says: "On Tuesday after the death of Mr. Rushmore Mr. George S. Puffer, the acting president, discovered that certain discrepancies existed in the accounts, and found that there was a deficiency of the securities of from $100,000 to $500,000. Up to that time it was believed that the bank was in a highly prosperous condition; that the capital of $500,000 was secure; that a surplus of $78,000 was on hand, and that $85,000 of the earned money was available for the July dividend. When the discovery was made that the capital was reduced from a quarter to half the original amount, the fact could scarcely be realized. The more diligent and constant the scrutiny, however, the more certain it became that the bank had sustained a serious loss through the mismanagement of the ex-president."

11. June 2, 1869 The South-Western Shreveport, LA

Article from The South-Western, June 2, 1869

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MISCELLANEOUS. MONTGOMERY, ALA., May 25.-Busteed in town, holding a term of the United States Court here. The , Congressional committee to investigate his conduct are expected here to-night. Judge Busteed has been here d two weeks, and was here when it was stated from 0 Washington that he desired the investigation to proceed at Washington, because it would be unsafe for him to come to Alabama. NEW YORK, May 25.-Steam tug William Parks exh ploded at the foot of Dock street. Four killed. Fire at Hunter's Point progressing. Over four acres burning. Eight propellers and other vessels burned so far. f Oil tanks on docks now burning and an explosion expected. Loss will certainly exceed $1,000,000. i H.B. Varmaker, President of the Durango Silver Mining Company, cut his throat fatally. Nocause given. Steamer Russia, from Liverpool, run down Austrian ship Figlia, anchored off Peblose Island, which sank in 15 minutes. None lost. NEW YORK, May 25.-Spanish Consul in this city, this afternoon, filed libel in United States District Court against Quaker City, now called Columbia, on ground of intended violation of neutrality laws, by aiding Cuban insurgents. Necessary order granted, and United States Marshal seized vessel. Sub-Treasury receipts $2,842,500; payments $1,649,000; balance $85,897,000. MOBILE, May 26,-Fire occurred on Commerce, between St. Michael and St. Louis streets, last night, by which Childers & Davis. grocery dealers, Foster & Gardner, F. E Srollenwerck & Bro., commission merchants, Ober & Anderson's feed store, and Baker & Co., forwarding merchants, were burnt out. Col. L. T. Woodruff, one of the most prominent business men and President of the Board of Trade, lost his life and two others were seriously injured by falling walls. Loss estimated between forty and fifty thousand dollars. NEW YORK, May 26.-Wm. C. Rushman, President of the Atlantic National Bank, Brooklyn, killed by the recent Long Island railroad disaster, short a quarter of million Run on bank checked by personal pledges from directors. NEW YORK, May 26.-The Qoaker City, seized yesterday for contemplated violation of neutrality laws, claims British protection. Presbyterian committees to which the basis of reunion was referred meet at Pittsburg in August. The Herald's account of the fight in Nipe Bay, savs filibusters, while fortifying, were surprised by a large foree of Spaniards, who carried unfished works, capturing a flag and five guns. Filibusters rallied, recapturi g work and guns. Fired on Spanish steamer Mar cella, which escaped with two shots through her bull. NEW YORK, May 26.-Sub-Treasury balance $79,500 060. NEW YORK, May 27.-Committees of Old and New School Presbyterians have reported a plan for union. RICHMOND, VA., May 27.-State convention of colored men, to consider exclusion of colored men from posts of trusts and profit and the jury box, met to-day. One hundred delegates present. All parts of the State represented. Dr. Thos. Bayne, of Norfolk, was chosen President, and adjourned. AUGUSTA, GA., May 27.-Accounts from the cotton crop discouraging. The cold nights and the unseasonable weather caused plants to die in many localities Weather for the last two days has been very warm, indicating rain this evening. NEW YORK, May 27.-The Columbia took a quarter of a million in specie. NEW YORK, May 28.-Old and New School Presbyterians adopted plan of union proposed by the com mittees, the New School unanimously and the Old School dissenting. Plan of re-union involves acceptance of church standards pure and simple. Rev. Dr. Howard, New School, opposing baste, hoped judicious delay would secure union with Southern Presbyterian Church. This action of the assemblies requires endorsement by the Presbytery before consummation. NEW YORK, May 28.-A number of influential gentlemen of this city have organised themselves into a Southern land company, under a charter from the Nortb Carolina Legislature, with a capital of a quarter million. LOUISVILLE, May 28.-Col. W. C. Breckinridge delivered an oration at Battle Grove Cemetery, Cincinwati, Ky., on the occasion of the unveiling of the monument to the Confederate dead.

12. May 18, 1884 Savannah Morning News Savannah, GA

Article from Savannah Morning News, May 18, 1884

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# The National Banking System. The panic in Wall street last week directed public attention in a very marked manner to the national banking system. That it is the best banking system the country has ever had there is little, if any, doubt. Nobody who holds the notes of the broken Marine Bank or the Atlantic National Bank of Brooklyn is disturbed in the least, and if the other New York national banks which experienced temporary trouble last week had permanently suspended their notes would have passed as currently as those of the soundest banks in the country. National bank notes of a broken bank are as good as the notes of a bank of good standing. There is never, therefore, any uneasiness about the notes of any national bank. How different was the condition of affairs under the system of State banks! Under that system there was always doubt and suspicion about bank notes. The notes of many banks were not only subjected to a light or heavy discount, but there was never any certainty that they would be redeemed. When a State bank suspended its notes ceased to circulate, and in the majority of cases became partially or wholly worthless. National banks fail, of course, but in nearly every case the failure is caused by a violation of the national banking laws. Congress has thrown safeguards of all kinds around the national banks which, if regarded as they should be, would protect them from harm. The capital of the Marine Bank was $400,000, and under the law it could only lend to one party one-tenth of that amount, or $40,000. As a matter of fact it loaned the firm of Grant & Ward $2,000,000. Such a flagrant violation of the law ought to subject the guilty official to the severest punishment which the law provides. The offenses of the President of the Second National Bank of New York against the law came near wrecking that institution. It can be said for the national banking system, however, that the banks are less liable to failure from the wrong-doing of their officers than banks under the old State system would be, because they are hedged about with greater restrictions and are subjected to greater supervision. What is needed now is the enforcement of the law against delinquent bank officials. If they break the law, let them suffer the penalty of the law. Because they do not stand, in popular estimation, on the same plane that a common criminal does, is no reason why they should escape punishment for their misdeeds. The temper of Congress appears to be to thoroughly overhaul the reprehensible practices of national bank officials, and to discover, if possible, a way to check them.