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ANOTHER NATIONAL BANK BUBBLE BURST. Suspension of the Farmers' and Citizens' National Bank of Williamsburg. INTENSE EXCITEMENT. Heavyl Losses Among the Business Men of the Eastern District. The rotten and unsound condition of the national banking system has been again exemplified in the suspension yesterday of the Farmers' and Citizens' National Bank of Will amsburg, and the transferral of its books and assets to the charge of the receiving officer appointed by the Treasury Department. Starting irregularities in the affairs of this institution have been already brought to light, and yet more interesting and astonishing developments may be expected before the investigation, which has just been commenced, is concluded. is The immediate cause of the suspension was an order islued by the Treasury on the 5th inst., which has been already published in the HERALD. The regulations of the Treasury require that all country banks, under which class the Farmers' and Citizens' was enrolled in the list of national banks, shall maintain a reserve fund in legal tenders in their vaults amounting to at least fifteen per cent of the gross sum of their deposits and circulation. The Farmers' and Citizens' Bank held about $1.000,000 of deposits, and was permitted to issue a circulation of about $250,000 in national bank currency notes. It had also about $9.000 of old state notes floating about in the financial world, and as these bills, when gathered in, would be converted into national bank currency, the government counted in that amount as part of the ciroulation of the bank. In order to comply with the requirements of the Treasury, therefore, the Farmers' and Citizens' Bank ought constantly to hold in its possession about $210.000. About a month ago the agent of the government whose duty it was to see that this regulation was observed, discovered that there was a considerable deficit, the amount of which is unknown, and is variously stated at between $20.00 and $100,000. A notification that this deficiency must be made up was at once served upon the president of the bank, Mr. O. M. Beach. The conduct of this gentleman, if the statement of the directors Jan be credited, from this stage of the affair, has been quité extraordinary and wholly inexplicable. Instead of convening a special meeting of the board of directors and explaining the critical position of the bank, for the prosperity of which they were, equally with himself, morally responsible, he kept the fact of the notice having been received a profound secret. Since the receipt of this important notification ur of the regular weekly meetings of the directors have been beld; but the actual condition of the bank has never been on either of these occasions disclosed, or any intimation whatever given of its impending fate. The directors declare that the stoppage of the bank was as sudden and unexpected a blow to them as to any of the stockholders or depositors, of whose interests they were the custodians; and several of them urge, in corroboration of this, that within the last week they have themselves confided larga sums of money to the care of the bank, one of them having thus deposited no less an amount than $26,000. What the motive of the president could have been in thus concealing the truth from the knowledge of his brother officials is as yet wholly unexplained, but further developments will probably dispel the mystery now resting upon this portion of the affair. Under these cl rcumstances, of course, none of the measures that might have been adopted to preserve the credit of the bank and render its suspension needless have been adopted. The stockholders assert that they would have been perfectly willing to have had an assessment, pro rata, made on their shares, if such a course would have restored the bank to a condition of perfect and unimpeachable finan. cial health. The Farmers' and Citizens' Bank was organized as a national banking association about two years ago, but it had existed as one of the banks of the State of New York for a long time previously. Its capital amounted to $300,000, in shares of $20 each, and had all been subscribed. Up to the time of the suspension the fair fame of bank had never been questioned, and it enjoyed an enviable reputation for its and the experience and the financial the extremely resources the strength ability of of officers to whom the charge of its affairs had been committed. Its stock only recently was quoted at eight per cent and last July a dividend of five per cent was and the customary bank pub. declared, premium. $40,000. statement, This state. lished below, showed a surplus of 18 now generally took place in Williamsburg upon speculation ment, however, discredited. effected yesterday only Some at the shares of the bank. but sales were a ruinous discount. The following are the officers and directors of the bank:-President. Oren M. Beach, gentleman; cashier. Henry W. Redfield; directors, John Hicks, smith; Sylvester Tuttle, coal merchant; S. W. Woolley, gentleman: Watson Sanford. grocer; Howell Smith, stationer; Anthony Betts, gentle nan; David Sturtevant, not in the directory W. J. Pooley, publisher; Sylvester M. Boards. coffee mill; George Ricard, gentleman; David Williams, lawyer; Daniel D. Leary, not in the directory. Mr. Beards is also the Pres dent of the Williamsburg Savings' Bank, and Mr. George Ricard is one of the officers of the same institution. The following 18 the last statement of the Farmers' Citizen
