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NATIONAL BANK TROUBLES. Reported Collapse of the Unadilla National Bank-Liabilities $200,000. A report reached the city yesterday that the National Bank at Unadilla, in Otsego county, liaNew York, had made a bad break, with bilities said to amount to $200,000. The bank was chartered about twelve years ago, under the old Safety Fund law of this State, and about two years since it took its national character, with a capital of $150,000, and power to increase to $250,000. Its officers were Arnold B. Watson, President and Clark J. Hayes, Cashier. The President, it is said, owned $100,000 of the capital, and the balance was in the hands of the Cashier and some relatives in Albany. will It is reported that the assets of the bank not go far towards meeting its liabilities. Fast living on the part of somebody connected with the institution, together with wild and unprofitable speculations in produce and mining stocks, contributed to its downfall. Its redemption agency is said to be the house of Watson & Co., leather dealers, of Albany. N. Y. Heraid. TROY, N. Y. July 27.-It appears upon trustworthy information that the management of the Unadilla National Bank has been of an exceedingly reckless character. The managers of the bank own a large majority of the stock, and it understood that they have lost it in extravagant mining and produce speculations. In doing this they have not only used up the capital of the bank, but have also taken the special deposits, at a very heavy rate of interest, from all the old farmers and other confiding people in the neighborhood. On these special deposits they have paid seven per cent. interest, while the usual interest upon such deposits ranges not to exceed five per cent., and oftentimes as low as four per cent also learn that many of the merchants in and around that neighborhood have been sending certific ates of deposit on this bank to pay their debts in New York, which, having been returned to the bank for New York funds, have remained in the hands of the Unadilla Bank unpaid. It 18 probable that the holders of these certificates will be compelled to await the action of the receiver, to be appointed, before the they can ascertain what proportion of assets they will receive as dividends. For some time the authorities of this bank have struggled to get back under the old State system, to the end that they might administer their affairs much more economically and with less popular suspicion. Of course the innocent people of that section of the country are in the highest state of alarm and indignation at the reckless acts of the bank officers. Corresponding banks throughout the country, which have sent the Unadilla items for collection, have in no instance received a response for some time past. Hence it has been found necessary to send special agents to Unadilla to ascertain the true status of affairs. It appears that the Government Examining Agent some time since paid the bank an official visit to ascertain its standing, and to learn it it was complying with the National Banking law. It is understood that the bank was then very deficient in the number of legal-tenders which the law required it to have on hand. This shows full well that the law can be violated at any time by all national bank officers. In the case of this failure, as in many other similar instances, it has been ascertained that the legaltender security to be kept in the bank for the benefit and safety of depositors has always been found missing when the receivers are appointed. The assets of the bank are very light compared with the liabilities. Defunct Newton (Mass.) National Bank. BOSTON, Mass., July 27. -The newly appointed receiver of the Newlon National Bank, lately defunct, has collected the liabilities and forwarded the amount to Washington. The discount notes amount to $ 110.000, of which a nearly $90,000 has been collected. The balance, f $10,000, is considered good, and $10,000 doubtfulor bad, including in the latter category $2500 a of forged paper of William H. Lane. The authorities having charge of the bank 0 propose, in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer. e d The Weedsport Bank Defalcation. The Auburn Advertiser prints the following e respecting the collapse of the Weedsport Bank:'We are informed that the failure is in conseo quence of dabbling in stocks by a prominent y officer of the bank. who, finding himself in a close corner, pledged everything available in le order to carry the speculations along while h awaiting a rise in stocks, and effecting an insuh rance to the amount of $30,000 on his life to be f used as 'collateral.' The failure sweeps the entire capital of the bank $100,000. We une derstand a receiver is to be appointed at once to is wind up its affairs." ts Additional Particulars of the Collapse of S the Unadilla National Bank. TROY, N. Y., July 28. The assignment of the Unadilla National Bank is a general one. and the institution is still kept open according y law. though doing no business. A receiver al from Washington has been applied for, and will a probably arrive in a few days. The owner of of $20,000 ot the stock in Albany is a son of Mr. Watson, the President of the bank. s tated or by the President and Cashier that had the bank al been closed some months ago, something would e. have been saved; as it is, the loss will, I am told, be total. ed I telegraphed last night, great distress prent vails in ali the country surrounding Unadilla. a he my information showing that one woman, nt widow, has become crazed by her losses, and that another has attempted to commit suicide. eir The losses cover a wide extent of country, and as will be desolating in their effects. Probable Collapse of the Whole National he Bank System. ny The following National Bank failures have ny been reported within the past few days. The weakness of the whole system is here exhibited. hip If in piosperous times these institutions cannot set sustain themselves, what effect would a sudden as financial crisis have upon them? They would go off by the bundred:ter UNADILLA NATIONAL BANK, OTSEGO COUNTY, as NEW YORK. Cause of failure. of Provision and stock speculations. rk. President Arnold B. Watson. Cashier int Clark J. Hayes. $150,000. Capital $200,000. Liabilities. ng Redemption Agents Watson & Co., Albany. W WEEDSPORT NATIONAL BANK CAYUGA COUNTY NEW YORK. eld Cause of failure. Stock speculations. D.E. Havens. President ect Cashier W. Lawrence. $100,000. gh Capital $100,000
