2031. H. E. Offley & Co. (Washington, DC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
September 16, 1878
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
cb839a7f

Response Measures

None

Description

Multiple contemporaneous newspaper reports state the banking house suspended and made an assignment (assignees named), attributing the failure to heavy speculation/decline in District of Columbia 3.65 bonds. No run is reported. Assignment implies permanent closure/receivership.

Events (3)

1. September 16, 1878 Other
Newspaper Excerpt
have made an assignment for the benefit of their creditors to the undersigned... S. S. Henkle J. C. Marbury.
Source
newspapers
2. September 16, 1878 Receivership
Newspaper Excerpt
The assignees of the firm are J. Carter Marbury and Sol. G. Henkle, both well known... who will proceed to settle up the affairs of the bank.
Source
newspapers
3. September 16, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy investments/speculation in District of Columbia 3.65 bonds which declined in value, wiping out margins and forcing suspension/assignment.
Newspaper Excerpt
We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this morning.
Source
newspapers

Newspaper Articles (12)

Article from Daily Press and Dakotaian, September 16, 1878

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TELEGRAPHIC BREVITIES. STEAMER ASHORE. San Francisco, Sept 16.-The Britieh ship Jessie Osborne, from Port Augusta, went ashore last night, three miles north of Heads Row, and is lying full of water. Will be a total loss. All hands safe. The weather was thick at the time of the accident, and a strong wind. ORDERS CANCELLED. Washington, Sept. 16.-Orders for silver dollars, dated subsequent to September 13th, are being cancelled at the treasury department to-day, except such as come from national bank depositories. The amount of such orders cancelled up to noon was $31,000. STEAM THRESHER ACCIDENT. Rochester, N. Y., Sept. 16.-Phillip Lee, a farmer, near East Palmyra, was killed instantly this morning by a steam thresher. Three others were fatally injured. STORM WORK. Charleston, W. Va., Sept. 16-Travel on the Cbesapeake & Ohio R. R. is suspended. There is a heavy blockade of freight and passengers. Damage to the road between Cannelton and Hinton is very heavy. The Kanawha river le now falling. GRAND LODGE MEETING. Bultimore, Sept. 16.-The grand lodge I. O. O. F. of the United States met in regular annual session at this hall this morning. The report of the grand secretary says that whilst the annual returns exhibit an in crease in lodges and encampments and in the amount paid for relief over last year, they indicate, for the first time since 1893, a falling off in membership and revenue. BANK SUSPENDED. Washington, Sept. 16.-The banking house of H. E. Offley & Co. ruspended this morning. The decline in District of Co lumbia 3-65 bonds, in which the firm dealt heavily, is the cause of the suspension, HLOWN TO PIECES. Oil City, Pa. Sept. 16-1 special to the Derrick, dated Bradford, I'm. Sept. 15th says that between 12 and 1 o'clock to-day a


Article from The Cincinnati Daily Star, September 16, 1878

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A Busted Bank. National Associated Press to the Star. WASHINGTON, D. C., Sept. 16.-The following notice was posted this morning on the door of H. E. Offley & Co., bankers, of this city: "We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this A. M." No statement is made by the firm of their liabilities and assets. Their deposits, however, did not amount to much. The failure is caused by the decline in 3-65 district bonds, of which they were large purchasers at 81, 82, 83 and 84 cents. The recent decision adverse to these securities by Attorney General Schoomaker, of New York, hastened the break, which is regarded as a bad one.


Article from The Rock Island Argus, September 16, 1878

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WASHINGTON. W ASHINGTON, Sept. 16,-The banking house of H. E. Offley & Co. suspended this morning. The decline in District of Columbia 3.65 bonds, in which the firm dealt heavily, is the cause of suspension. Orders for silver dollars, dated subsequent to Sept. 13th, are being cancelled at the Treasury department to-day, except such as come from national bank depositories. The amount of such orders cancelled up to noon was $31,000.


Article from Evening Star, September 16, 1878

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SUSPENSION OF A BANKING HOUSE H. E. Offi y & Co. Make an Assignment What is Known and Said About the Failure. At an early hour this morning those who passed the banking house of H. E. Offley & Co., on the corner of 15th street and Pennsylvania avenue. had the opportunity to read the following card posted on the glass door of the entrance: "NOTICE. WASHINGTON, Sept. 16, 1878. " We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this morning. HISTORY OF THE HOUSE The firm of H. E. offley & Co. was started about three and a half years ago. It was composed of H. E. Offley (formerly chief clerk of the Navy department and his brother. There was at the time it started a rumor that ex Secretary Robeson was a beneficiary in its profits, but it is not thought he had any cap. ital invested, though he may have aided the new enterprise by giving it such navy business as he could throw into its way. More recently the firm was composed- to the hour of closing-of H. E. Offley and R. C. Hewitt. of this city. THE BUSINESS IT DID. The bank never did much of a deposit business. Its principal feature was to shave no speculate in stocks, and buy and sell District of Columbia securities. is known that when the bill to provide a form of government for the District of Columbia was pending, last winter, the bank carried heavy margins on 3.65 District bonds. They bought when these securities ranged at 75 to 79, and, pending ac tion on the bill, the securities advanced to 85 and 86, through which, it is alleged, they made considerable money. Emboldened by the success of the enterprise, the firm again invested largely, but, unfortunately for them, the bonds did not rise, but steadily fell. THE DISTRICT 3-65's. It is known that H. E. Offley & Co. have done eve rything they could to have the Secretary of the Treasury place the bonds on the public debt statement, believing that if this was done, the bonds would have been considered by the public a national security, and their value enbanced. Only day or two ago letter from the firm to the Secretary of the Treasury called forth a statement from the U S. Treas ury, de tailing the amount of 3-65 securities outstanding which was intended to offset an unfair and unjust opinion recently made by the Attorney General of the state of New York, which had the effect of sending the bonds down, and from which they have not since recovered. THE HEAD OF THE HOUSE AND THE ASSIGNEE Early this morning, between eight and nine o'clock, H. E. Offley, the head of the firm, came to the city in a car of the Washington and Georgetown Railroad Company. He was in deep and earnest con versation with Carter Marbury, esq., of Georgetown, a lawyer, to whom he is related by marriage, and to whom. it is said. be has executed the assignment. In the car was Mr. Greene, the popular book keeper of Middleton & Co. Offley exchanged the usual salutations of the day with him and gaged briefly in conversation with him. but did not indicate that he contemplated a sus pension. He got out of the car at 15th street and passed into his bank. and immediately wrote the notice' hereinbefore given and went away. Marbury kept on in the car, and was supposed to have gone to his law office. near the City Hall. Hewitt, the other partner of the firm, was not about the place of business. NO EFFECT ON OTHER BANKS. From the best information attainable in banking circles, it is not believed that the failure will have any effect on any other of the District banks. This for the reason that H. E. Offley & Co. could never have been classed as bankers, but rather as brokers. If any one with money wanted to buy gold or stocks on a margin, the firm would act as brokers for them. charging a commission. They did not have any deposit account worth speaking of. The loss, therefore, whatever it may be, will fall principally on the individual members of the firm. CAUSE OF THE FAILURE. It is believed, as before stated, that their investment of their own means in 3.65 bonds led to their suspension. It is alleged that the firm bought large amounts of the District securities a margin, at prices varying from 84 to 82. The bonds are quoted at 791/4 this morning. The probability is that that price was below the margin they bought at, and the firm was called upon by their agents in New York for a settlement they could not meet. Hence they concluded to put up the shutters. WHAT THE SPECIAL PARTNER SAYS. R. C. He witt, the special partner of the firm, came to the banking house at 12:50 'clock. He tried to get admittance at the back door, but did not succeed. For some time he remained around the bank. and then passed on up 15th street. To a representative of the STAR, he declared that he had no idea that the bank intended to close its doors that he was merely: special partner: that he originally put in $25,000 and subsequently 5,000 more. He said that be did not know where Offiey was, and was not adv ised of any intention on his part to suspend. GENERAL KETCHAM'S DENIAL. Meeting Gen. Ketcham, the STAR representation indicated to him that the rumor was afloat that he was interested with Offiey in his 3-65 bond investments. This Gen. Ketcham stoutly denied. He declared that he never had any business transactions of any kind with the snspended firm that he did not even know ho composed it that he never specu lated in any manner in District securities, and did not own asingle dollar of them. NOBODY SEEMS TO KNOW HOW THEY WORK. The most careful inquiry failed to get at even an approximation of the bank liabilities and assets. Hewitt declares he don't know what they are that he was only a special partner, and left the details of the manage ment of the affairs solely to Offley. DESPONDENT DEPOSITORS One lady read the notice on the bank this morning and said she had $1,200 deposited with it. A contractor it is said raised upon a deed of trust on Saturday 1,200 and deposited it with the firm. He drew on Saturday $500 This morning after the bank opened he went in and wrote his check for the six hundred ad ditional. Officy at that time had not arrived, and the contractor was requested to call again. When he came the second time Officy had arrived, but the doors were shut. The United States will lose no money, for what business the firm heretofore did on account of the Navy department has long since been taken from them. THEIR LAST EFFORT H. E. Officy & Co., after Treasurer Gilfillan had replied to their letter of inquiry concern ing the District 3.65 bonds, by giving only the laws and the plain facts in regard to them. without expressing any opinion as to whether they were government securities or not, ap plied to Secretary Sherman. The Secretary made answer only that he endorsed the letter written by the Treasurer on the subject. ASSIGNEES. TWO The assignees of the firm are J. Carter Mar bury and Sol. G. Henkle, both well known yers in this city. At half-past one o'clock Mr. Marbury came to the bank, and was ad mitted by a clerk through the side entrance on F street. To a STAR representative Mr Marbury stated that the assignees would soon prepare a statement for the public, but at the present time he had no idea of the liabilities or assets of the bank that it was a new business to him and that he would have to go over the accounts of the firm to ascertain how they stood, after which the public would be given an account of the affairs of the concern. says the failure is attributable to the fact that the bank invested largely in 3.65 District of Columbia bonds, which have depreciated in value and wiped out the margin at which they had bought. He does not think the deposits of the bank werelarge. MISCELLANEOUS RUMORS. There are a good many idle rumors afloat that the failure will involve other banks. This seems to be absolutely groundless, inasmuch as the business which Officy conducted being more that of a broker than a banker the busi ness transactions between the Officy firm and the other banks was hardly worth mentioning. ONE OF OFFLEY'S CLERKS made the statement to-day that R. C. Hewitt, the special partner, had promised to put into


Article from The New Orleans Daily Democrat, September 17, 1878

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WASHINGTON. Failure of the Banking Firm of H. E. @ Offley & Co. WASHINGTON, Sept. 16.-The following notice was posted this morning on the door of H. E. Offley & Co., bankers, of this city: "We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this morning." No statement is made by the firm of their liabilities and assets. Their deposits did not, however, amount to much. The failure is caused by the decline in 3:65 District bonds, of which they were large purchasers at 81, 82, 83 and 84. The recent decision adverse to these securities by Attorney General Schoomaker, of New York, hastened the break, which is regarded as a bad one.


Article from New-York Tribune, September 17, 1878

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A FAILURE IN WASHINGTON. A FIRM OF BROKERS SUSPEND. NO EXCITEMENT IN CONSEQUENCE - SPECULATION THE CAUSE. [GENERAL PRESS DISPATCH. W ASHINGTON, Sept. 16.-The banking house of H. E. Offley & Co. suspended this morning and the following notice is posted on the door : September 16, 1878. We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this morning. H. E. OFFLEY & Co. The decline in District of Columbia 3 65 bonds, in which the firm dealt heavily, is the cause of the suspension. The firm has been in existing only four or five years. The suspension creates little excitement.


Article from The Daily Dispatch, September 17, 1878

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Washington Items. WASHINGTON, September 16.-W. V. S. Wilson, assorting teller in the national-bank redemption division of the Treasury. was dismissed Saturday, and an examination of his books to-day showed a deficit of $1,000, which was abstracted on the 9th instant. Heretofore his integrity was unquestioned. Wilson was from New Jersey, and has been an employé of the Treasury for fifteen years. He has been arrested. H. E. Offley & Co., bankers, of this city, have suspended and made the necessary assignment. The Secretary of the Treasury to-day issued the seventy-first call for the redemption of 5-20's. Five millions are called inthree millions registered and two millions coupons. The State Department is advised of the wreck of the American ship Mabel Clark on the Island of Tristan d'Acumba on the 10th of May last, while on a voyage from Liverpool to Hong Kong. The second officer and five seamen were drowned. The captain and seventeen men were saved.


Article from National Republican, September 17, 1878

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OFFLEY'S SUSPENSION. Excitement Caused by the Closing of a Bank. An Assignment Made and Formal Notification Given to the Public-Heavy Speculations in District Bonds said to be the Cause-An Interview with Mr. Offley-The Firm will Meet its Liabilities. The news of the suspension of H. E. Officy & Co., bankers, corner of Fifteenth and F streets northwest, was circulated about the streets early yesterday morning and was the general topic of conversation along the Washington Wall street. The following notice was posted on the front door about nine o'clock and attracted many readers: NOTICE. WASHINGTON, Sept. 16, 1878. We find it necessary for the benefit of all concerned that we should suspend and make an assignment, which we have executed this morning. About one o'clock in the afternoon another notice was posted up, which read as follows: This bank is closed. H. E. Offley & Co. have made an assignment for the benefit of their creditors to the undersigued, who will proceed to settle up the affairs of the bank as speedily as possible. Notes falling due in this bank will be paid at the National Metropolitan Bank. One of us will be found here from one to three p. m. daily until further notice. S. S. HENKLE J. C. MARBURY. A reporter of THE REPUBLICAN visited the residence of Mr. Offley, No. 49 Second street, Georgetown, last evening. The scribe was invited to enter the parlor, and found Messrs. Offley, Hewitt, and Marbury engaged in an animated discussion. Upon being asked for a statement regarding the liabilities and assets of the bank, Mr. Offley said that it would be impossible for him to say anything about the matter at present. He had turned everything over to the assignees and they alone could make a detailed statement. He did not think. however, that the liabilities would reach $25,000, and there were enough available assets, both in cash and checks, to meet that. He could give no reason for the suspension other than that he thought it best for all concerned that he should stop business before he became more heavily involved. Upon the question of the purchases of the 3.65 bonds he declined saying anything, as it might have a tendency to depreciate them. The bonds were now holding their own in the market. Mr. Officy stat that he had been trented unfairly in the Star article, as it was intimated that he was afrail to meet his creditors. Yesterday morning, about half-past nine o'clock, he went to the bank. and shortly after visited his attorney, General Henkle, for the purpose of making an assignment. This business occupied his time until afternoon, when, acting under the advice of his counsel, he returned home to seek needed rest. He would make a statement shortly which would place him properly before the public. The following statement explains itself: WASHINGTON, D. C., Sept. 16, 1878. R. C. Hewitt. esg. DEAR SIR Having seen the statement in the Star of this evening in relation to your connection with our bank. I deem it Justice to you to deny, over my own signature, the statement that you had failed to put up the amount of capital agreed upon, and also to deny that you had at any time drawn out any of the capital so paid in, nor do I believe that any one of my clerks made the assertion attributed to him in the Star statement. If were not utterly prostrated by sickness I would also deny " large part of the Star article in relation to myself. Truly COLMER E. OFFLEY. yours, The firm of H. E. Offley & Co. commenced the banking business about three and a half years ago, and consisted of H. E. Offley and his brother. The latter drew out a short time ago, and Mr. R. C. Hewitt became a special partner, putting in $25,000 capital. The bank did not transacta heavy deposit business. preferring to shave notes and buy and sell District socurities. The fall in the price of the latter is said to be the cause of the suspension. As far as known. no other banks are affected by the failure, as the broken firm did not transact much outside


Article from The New York Herald, September 17, 1878

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A BANK SUSPENSION. H. E. OFFLEY & CO., BANKERS, WASHINGTON, MAKE AN ASSIGNMENT-DECLINE IN DISTRICT OF COLUMBIA BONDS SAID TO BE THE CAUSE. W ASHINGTON, Sept. 16, 1878. The banking house of H. E. Offley & Co. suspended this morning. The decline in District of Columbia 3.65 bonds, in which the firm dealt heavily, is the Ca use of the suspension. The firm has been in existence but-four or five,


Article from The Stark County Democrat, September 19, 1878

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NEWS OF THE WEEK. Concord, N. H., Sept. 12.-The Democratic State Convention assembled this morning. Hon. Hasla W. Parker was chosen President. Hon. Frank A. McKeon was nominated for Governor by accls. mation. Hadlev B. Fowler, David H. Young and E. R. Peterson were nominated for Railroad Commissioners, also by acclamation. Constantinople, Sept. 12.-The Albanian insurgents have celebrated the massacre of Mehemet All Pasha as a victory. The agitation in Albania is increasing. Fresh outrages are apprehended and the Christians are fleeing into Montenegro. The Albanian League is sending forces to Uskub and Mitsovitza and into Epirus. A later movement is intended to forestall the cession of Epirus to Greece or to prevent the Greeks from rising. Chicago, Sept. 16.-Advices from La Salle, Illinois, state that Herman Chapan, an express driver of that city, was assaulted by three men Satur day evening and robbed of $14,000 and a watch and left in a badly bruised and dangerous condition. The money belonged to the Matthersen & Hegler Zine Company here, and was sent by the First National Bank to Chicago. The place where the robbery was committed was much frequented, and it is remarkable that the deed had no witnesses. Washington, Sept. 16.-The Banking House of H. E. Offley & Co. suspended this morning. A decline in the District of Columbia 365 bonds in which the firm dealt heavily is the cause of the suspension. The bakers of Constantinople discontinued the sale of bread because of the high price of wheat and depreciation of the currency. The Sultan thereupon remitted the grain tax, and he has ap. pointed a commission to devise means for retiring the paper currency. The commission will rec. ommend the conversion of the currency into a four per cent. loan, secured on a specific revenue w be not aside for that purpose.


Article from The Abbeville Press and Banner, October 2, 1878

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excitement followed, men, women and children shouting and screaming for help. The loss to coal and lumber men alone is estimated at $30,000. Western and Southern States. The steamer Nadine struck & snag while on her way to St. Louis. on the Mississippi, and sunk, carrying down three of her crew. Dr. E. M. Wright has been nominated for governor of Tennessee by the Republicans of that State, in convention assembled at Chattanooga. Alexander Austin, ex-collector of San Francisco and a prominent citizen of that city, committed suicide by shooting himself through the heart. Financial troubles are said to have led to the act. General Miles struck a large party of Bannack Indians near Clark's Fork of the Yellowstone at 4 A. M., with his command of twentyseven soldiers and thirty-five Crow Indians. General Miles made a very vigorous attack, killing thirteen hostile Indians and capturing thirty-four men, women and children and 200 ponies. Captain Bennett, of Company B, of the Fifth Infantry. was killed and one soldier was wounded. This most important victory probably finishes the Bannack war. The Indians are now scattered into small and helpless bands. A few days ago & terrible tornado passed through portions of Virginia and North Carolina. Its path was only about 100 yards wide, but its fury and devastation are described as unprecedented. Every house in its way was demolished, several persons were killed or injured, a large amount of live stock was lost, while timber, wearing apparel and bedding were scattered for miles around the country. A quarrel occurred in the store of Chancelet Chaix, at St. Charles, La., between Charlie Baptiste (colored), and Mr. Valcour St. Martin, ex-deputy sheriff, which resulted in Baptiste being stabbed and instantly killed by St. Martin. The latter was lodged in jail. During the night a crowd of from 100 to 200 colored people broke open the jail. and, taking the prisoner therefrom, riddled him with bullets, the contents, it is supposed, of fifty guns. The funeral of Matilda Stanley, late queen of the gypsies of the United States, took place at Dayton, Ohio, in the presence of more than 20,000 persons. The ceremonies attending the burial did not differ essentially from any Christian service. The gypsy qaeen died in Vicksburg, Miss, last February, and her body had been embalmed in such a manner as to retain a life-like aspect. A dozen chiefs and their tribes from different parts of the United States were present to pay their last respects to the deceased. The eight children of George Lynch-the eldest seventeen years of age-were murdered in cold blood at Hackley, Texas. Lynch, the father, was awakened at midnight, by a pistol shot, the ball striking him in the breast. He sprang up and saw 8 masked man standing in the middle of the room, pointing a pistol at him. Another shot being fired. Lynch fell unconscious, and when he recovered he found himself in a lane, outside the premises. The assassin, thinking Lynch was dead, seized a hatchet. put the witnesses out of the way, and then set fire to the house. The distracted father saw the house burn and fall on the bodies of the children. The bodies were exhumed and an inquest held. Several of the skul 8 showed hatchet marks. Lynch was not thought to be fatally wounded. From Washington. General James Longstreet hasbeen commissioned revenuelagent. and assigned to 8 district of Georgia and Florida. The Indian bureau is engaged in collecting a vast amount of material showing the history of the Indian service from the beginning under the war department, and subsequently under the civil branch up to the present time. This is to be submitted to the congressional committee appointed to consider the subject of transferring that bureau to the war department. The secretary of the treasury has ordered the exchange of greenbacks for silver to be stopped, owing to a question concerning its legality. From recent returns made to the department of agriculture it is believed that the cotton crops this year will equal the great crops raised before the war. The secretary of the treasury has issued the seventy-first call for the redemption of fivetwenty bonds of 1865, consols of 1865. W. V. S. Wilson, assorting teller in the office of the redemption division of the treasury de. partment, has been arrested as a defaulter, an examination of his books leading to the discovery that $1,000 had been abstracted from a package (consigned tc him for delivery to the custodians of the vaults in the general order of business. H. E. Offley & Co., Washington bankers, have suspended and made an assignment. Foreign News. Nobiling, who tried to kill the emperor of Germany some time since and then attempted to commit suicide, died of his self-inflicted wounds a few days ago, in Berlin. Over 600 bodies have been recovered of persons drowned by the disaster to the excursion steamer Princess Alice on the Thames. About 300 lives have been lost by an explo sion of coal gas in a Welsh colliery near Newport, Monmouthshire. Soon after the explosion a number of dead bodies were recovered, but owing to the burning gas that burst out of the mouth of the ventilating shaft search parties were enabled to penetrate only a short distance. A cable dispatch, sent soon after the disa-ter occurred, says " This disaster is the most terrible that has ever occurred in Wales. The scenes at the mouth of the pit


Article from The Superior Times, October 12, 1878

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WASHINGTON. A MOVEMENT is on foot to obtain a sufficient amount for the expenses of a commission of experts to be selected after consultation with leading members of the American Public Health Association, to investigate the yellow fever epidemic, the nature and cause of the disease, its treatment, and es pecially its prevention. THE Chinese embassy has arrived at Washington, and is quartered at Twentieth and F streets. Soon after presentation to the president the chief ambassador, with a portion of those accompanying him, will go for a time to Spain and Peru to organize the Chinese diplomatic service in those countries. THE secretary of war has returned to Washington. Edward McPherson, chief of the bureau of engraving and printing, will become political editor of the Philadelphia Press. He has resigned his office in the treasury, to take effect on the appointment of a successor, and will at once enter upon his editorial duties. THE commissioner of the land office wil urge upon congress the importance of the reorganization of that office. The commissioner says: "More clerks are needed and salaries sufficient to command the services of competent men." THE banking house of H. E. Offley & Co. suspended on the 17th inst. A decline in the District of Columbia 3-65 bonds, in which the firm dealt heavily, is the cause of the suspension. ORDERS for silver dollars dated subsequent to September 13, are being canceled at the treasury department, except such as come from national bank depositories. The amount of such orders canceled up to noon on the 16th was $31,000. THE modification of the order with regard to the distribution of the standard silver dollars, while forbidding their exchange for United States notes, permits the sending of them to depositary banks only, at the expense of the mint, and there they will be exchanged for United States notes. OFFICIAL tables of the census of the District of Columbia are just published. The population of Washington is 131,947, of Georgetown 11,571, and of the county 16,533; total in the district, 160,051. The proportions of white and colored areasfollows Whites 106,427; colored, 53,624, showing the extraordinary proportion of one colored man to every two whites.