befa5682Capital injected, Full suspension
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A SAVINGS BANK CLOSES ITS DOORS. LEAVENWORTH, Kansas, Sept. 16, 1873. The German Savings Bank did not open its doors to-day. The directors posted a notice on the door stating that all the available funds were exhausted by the run yesterday, and they were obliged to close the bank until an assessment can be made on the stockholders. Carl Moeller, the defaulting cashier, has not yet been arrested.
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LEAVENWORTH. Suspension of Germans Savings Bank. LEAVENWORTH, Sept. 16.-The Germans Savings Bank did not open doors today, but the directors posted a notice on the door that owing to the exhaustion of all available funds by the run yesterday they are obliged to close the bank until an assessment can be made on the stockholders to liquidate the liabilities. They assure the creditors, however, that every dollar of their indebted ness shall be paid: Carl Moeller, the defaulting Cashier, has not yet been arrested.
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FROM LEAVENWORTH. BANK SUSPENSION LEAVENWORTH, Kansas, September 16. - The German Saving bank did not open it doors this morning; but the directors posted a notice on the doors, owing to the exhaustion of all, funds, by the run yesterday, they were obliged to close the bank till an assessment can be made on the stockholders to liquidate the liabilities. They assure creditors, however, that 6Yery dollar of indebtedness shall be paid. Carl Moeller, the defaulting cashier, not yet arrested
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Merkly Times THURSDAY SEPTEMBER 18, 1873. THE GERMAN SAVINGS BANK. It can hardly be denied that an institution which does business under the laws of the State, and lives and thrives by the confidence of the people, should be exempt from pub!ic criticism when it makes mistakes. We do not own any of the stock of the German Savings Bank, but as a citizen of Leavenworth, desiring that every bod institution of the city should prosper, we wish the bank the largest measure of success, and the most enduring prosperity. The stories of Cashier Moller's defalcation in the sum of $20,000, and the embarrassment consequent are quite well known to the reading public of the city, and need no extended comment here. Subsequent proceedinga by the president and directory of the institution are not 80 well known, however, to the public, and we conceive it to be our right to express a plain, unvarnished opinion concerning them. It is a fact well known to every intelligent citizen of the community that the stockholders of the German Savings Bank are amply able to raise almost instantly a sum five times as large as the reported defalcation. The further fact is also plain that the directory _closed the bank in the face of the pablic yesterday morning and posted on the door a notice which in a halfpleading manner besought the patience of creditors until the books could be examined and an assessment levied, therefore creating the impression that an injury almost irreparable had been inflicted by the defalcation, whereas the trivial sum of $20,000 as compared with the capital of $500,000, was about the extent of the loss, and one-half of that amount had been'secured by the surrender of the cashier's real and personal property. Hence we have the spectacle of an incorporated institution, with a capital of $500,000, and under the law of the State, liable to depositors for one million dollars, acknowlc ing, in the language of the notice to creditors, "that the run yesterday had exhausted all available funds," when the run mentioned it amounted to $30,000. That run was made o on the impulse of the first rumor, and was p in all probability a stronger one than would have been made the day following. It is useless to say that the money could not have been raised, because it transpires that even M the bills receivable on hand aggregated more than the total sum of deposits. With b. the resources within reach, funds enough to lo have paid all checks could have been se$ cured without an assessment, if a skillful means had been made. a to show that to use All of of which the goes the harm the bank from the defalcation of the cashier T was trivial in comparison with the injury in inflicted upon it by the weak and demoralth izing course of the directory. When Mr. Molier was deposed, the Directie tors called Dr.J. W. Morris to his place, set trusting to his courage and experience for re assistance. The selection was an unfortunate CO one. Dr. Morris is a good citizen, but of m all men connected with the bank he was the most unserviceable for such an emergency, plu because of his lack of business nerve; hence lo the directory leaned upon a broken reed, eti and listening to cautious timidity instead of m cool courage, permitted a prestige of prosas perity worth more to the institution than all the money on deposit to be sacrificed in a day. There is no sounder institution in the whole western country than this same Gercla man Savings Bank, and upon the part of its wi depositors and creditors there is no alarm. The whole trouble results from the timidity of its management, and while the officers and directors may not thank us for the advice, we can tell them frankly that every de day the bank remains closed adds an injury all to its future business that can scarcely be the ert mated. If they want to re-assure the Bill public and invite the ience of cystoW let them open the bank to-day, and pay an even if individual be checke, mers sacrifices must le made to accomplish that end.
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Yesterday the Business "German Savings the Arrested Cashier, Carl Noller at Bail Fixed His $10,000 to Come of His More Operations Light. A Book Representing Recovered. the The Directors of the of Bank Their Indulgence ThorUntil Creditors ough Examination Can be Made. in Circles Business Anxiety before long the pavement Yesterday morning, in the vicinity was thronged an excited assemblage German hours, Saving Bank of individuals, the statistics exact know anxious! the doors within, and draw ready their But make themselves were opened to safe against loss. as far appointment were they doomed the bank on run their participating for erned. opening When the time the of officiale appeared notice: "TO THE CREDITORS and the bank posted came on the one door the OF following THE GERMAN BANK: SAVINGS of the heavy our hansted able "In venterday consequence have compelled close the bank the funds, and will the books until stock such meeting time an levying holders, our In the ment liquidate be our creditors that them every of dollar with our hereby liabilities amure shall be honorably Pres't [Signed "SAM'I COCHRAN Director "GEO. SMITH, "GEO. UNMETHUN, HENRY KREZDORN M. HOFMANN, con created The appearance of this It notice was known that the Poard on siderable of excitement. Directors had been in what deliberating ip nearly all night, and this action of theirs closing was greater loss best to be done, was looked upon indicating than sustained business every men stood that first the reported. Little corner groups iscussing of the afmen results Laboring probable the fair their "little all" deposited the in notice who bank had gazed with blanched faces at and then turned sadly away by informed Shortly before president DOOR of the bank, that directors Mr. Cochran, at work and that an adjust- He be made possible. further ment would informed that bank of book the repre- banks Germany, had senting deposit gold been discovered room. in Hamburg, old shirt in Moller Gerof done up in an money belonged had This amount of this city and man citizen bank for collecweeks been left with the ago Mr. Cochran the tion. Several of the cashier in relation to inquired the account, and was given collection of took considerable time understand transfer that it and that would be all make the few weeks. It seems that noth- that straight ever been done about it, and all Moller ing had had the book in his session the time. Atten o'clock the directors got out shortly rant for the arrest taken of Moller, in custody and by Officer and afterwards he was excorted to the Marshal's Spaulding His bail was fixed at $10,000, and then office. retired to consult with his attorney Hon. Thomps P. Fenlon. After the great "legal light' had left two representatives of THE TIMES requested the an interview, and were at once shown into office. Mr. Moller was found seated upon lounge suffering from severe headache, the and of the worry and excitement of the last result days. He cordially extended his follow- hand few the reporters, and then ensued the ing conversation Reporter- 'Mr. Moller, we have called you for the purpose of getting your statement upon of the defalcation -that if you are disposed give it." Moller-"I have no particular objection that to give you statement beyond the fact do I am now under legal ad visement and not ferl liberty talk to any one but my attorney Reporter Without any injury to yourself, could you inform us an to the financial Was condition of the bank when you left it. it in condition stand 'run' Moller- "In answer that question will say that the bills receivat would more than why balance the deposits, and I see : reason the business of the bank should be stoppe the directors had not been utterly demoralized the slight embarrasements of the one bank would have been rectified and need have known about it.' Reporter- 'Then you believe that the affair might have been adjusted without giving publicity most certainly do. If the president or assistant cashier had been defaulters in twice the sum that em now involved, I could have fixed in a few hours, so that would not have worked to the injury of the bank Reporter- There are rumors afloat that your defalcations amount more than twice the sum originally reported. Is there any truth it?" to Moller- do not think that the loss the bank can be over $20,000. Of that sum propI have turned over $15,000 personal erty and real estate. The bank cinnot sibly lose more than $8,000 or $10,000.' Reporter But the directors have already called meeting of the stockholders, and inextend make at assersment Can you plain that?" Moller- In my opinion The notes not, now necessary and securities which might have been called have would in, money raised on them. more than paid the liabilities. delecate ques3, Reporter-"II rather tion but are the reports in relation to your fast living true?" have not lived extravagantly Moller1 My indebtedness to the bank was by business speculations, and not by fast and 17 riotous living What is your opinion in rela Reporter3 Is it tion to the management of the bank. 16 in good lands and are the officers properly qualified ?" 3. Moller- "Yes, think they are, but they OF have of late put too much responsibility my shoulders. I was often obliged to trans to act business that did not properly belong 4. me in my position.' Reporter- "Was the bank at all embar reased before your defalcation was discov 24 ered?" Mr Moller
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Leavenworth has had a bank panic. Carl Moller, Cashier of the German Savings Bank, spent fifteen cents of the bank fands for lager beer. When the deficit was discovered, there was a tremendous run on the bank, and the di rectors posted up a notice that the bank would be closed for a few days, until official action could be taken. An assessment was made upon the stockholders to replenish the capital and meet the current demand for funds, and Moller turhed over a box of paper collars to secure the bank from loss. Mc for is a native of Ireland, having been born in Schwackelheimstein, in that country. The bank will employ no more Irishmen.
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a banker of that place. A difficulty had occurred between the parties in a billiard room a short time previous to the shooting, in which Wintermut had been thrashed by the General. The former then went home and procured a pistol, and after finding McCook. fired three shots at him, one of which was fatal. Wintermut is in custody. The Mississippi River steamer James Howard, Captain Pegram, bound from St. Louis to New Orleans, was discovered to be on fire while lying at the wharf at Commerce, Mo., Sept. 12. The passengers and their baggage were all removed, and it having beenfound impossible to extinguish the fire, she was scuttled and sunk. Samuel C. Freeman. City Clerk of Fort Wayne, Ind., committed suicide by hanging himself at his residence on the night of Sept. 13. Domestic difficulties, which culminated in the application by his wife for a divorce, are stated to have been the cause. The steamer Ironsides, of the Milwankee and Grand Haven Line, one of the largest steamers on the lakes, foundered and sunk during a severe gale, seven miles off Grand Haven, Mich., Sept. 15 at noon. The passengers and crew all put off in boats, but some of the boats were capsized and their inmates drowned. Up to the night of the 15th, thirty-two passengers were reported saved and fourteen dead bodies had been recovered. It was feared that the boat containing Captain Sweetman and wife and five passengers had been lost, as they had not been heard from up to dark. The Illinois State Fair opened at Peoria, Sept. 15. The Kansas City (Mo.) Exposition opened Sept. 15. Governor Woodson delivered the opening address. The remains of the late General E. S. McCook were buried with Masonic honors at Cineinnati, September 16. Captain Denale Chapman. a member of the Chicago Board of Trade, committed suicide, September 16, by shooting himself through the head, in the wash-room of the Chamber of the Board of Trade building. Embarrassment in business matters was supposed to be the cause. The German Savings Bank of Leavenworth has temporarily suspended payment. but the directors claim their assets sufficient to pay all obligations. Another large fire occurred in Chicago, Sept. 17. It originated in the hay depot of the Chicago, Burlington & Quincy Railroad, on Newberry avenue, between Fifteenth and Sixteenth streets, in the West Division, and extended towards the northeast, consuming sixty-four buildings, principally small wooden houses and shops. The total loss is estimated at $250,000. The National Association of Spiritualists held their annual convention in Chicago, Sept. 17.
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THE NEWS. AI Bomo GREAT excitement was caused in Eastern cities on Thursday by the announcement of the failure of Jay Cooke & Co., the well-known bankers. The immediate cause of the failure is said to have been large advances to the Northern Pacific Railway. The announcement of the failure caused a panic in the market for railway shares, and prices of some stocks fell ten cents. A RUN on the German Savings Bank, at Leavenworth, Kansas, exhausted its available funds, and its doors were closed. FROM a report just issued it appears the American Bible Society consists of 1,125 life directors and 4,200 life members. The receipts for the last fiscal year were $737,881, of which $10,789 remain unexpended. During the fiftyseven years of its existence it has published 29,982,212 volumes in thirty-five dialects and languages. THE Rio Grande has overflowed its banks, and the upper country is inundated. There A an almost unbroken sheet of water from Brownsville to the Gulf. The corn crop is destroyed. The Rio Grande and Point Isabel Railroad track is washed away for over six miles A ECIAL from Fort Garry says " Gordon Gordon, who fled from Fort Garry for the Rocky Mountains, some weeks ago, has been captured 500 miles west by a Manitoba detective, and 'His Lordship' now finds himself behind the bata at Winnipeg." THE Pittsburg Stock Yard Company's buil ing at Fort Wayne was borned on Tuesday evening. Loss $45,000. THE steamship Great Eastern has arrived at Portland, Me. Her failure to repair the cable of 1865 depresses the stock, and, it is said, no further reduction in tolls is probable. BLOOMFIELD & MOORE'S paper warehouse, in Philadelphia, was damaged by fire to the extent of $70,000, on Tuesday evening. A RAILWAY collision occurred near Columbia, S. C., Wednesday, smashing both engines, killing two men and injuring three others. JAMES ENGLISH, William Spikes, alias Henry Davis, John Radford and Geo. Harrington, were arrested, Tuesday evening, on board a canal boat, in New York, while counterfeiting three und five cent pieces, A large quantity of spurious coin, moulds, &e were captured. English and Spikes have each served five years in Sing Sing prison for counterfeiting. Rev. DR. PADDOCK was, on Wednesday, solemply consecrated Bishop of the Episcopal dioeese of Massachusette The ceremony took place in Grace Church, Brooklyn, which was crowded. Several Bishops and a large number of persons participated in the service. THE New York and Oswego Midland Railway is financially embarrassed. A SAIL boat, having on board five persons left Sodus, on Lake Ontario, for Rochester, on Monday morning. That afternoon the boat capsized and three of the occupants were drowned. Tuesday afternoon the other occupants were found clinging to the upturned boat and resened. ANNA] DICKINSON, accompanied by Prof. Hayden and party, walked to the summit of Long's Peak, Saturday, the 13th, making the ascent in three hours and ten minutes. A FIRE at Manistee, of Gardner and Bixly, jewelers ; Russell Bros., harness dealers Jas. Comerhill, harness dealer P. Johnson, shoemaker Wm. Baer, tailor: J. Burdick, barber. Insurance $12,000. THE statistician of the Department of Agriculture, after a careful revision of the monthly returns, gives the following as the present status of the cotton crop. The indicated increase of area is a little over ten per cent. The condition of the crop is lighter than in September last year in Arkansas, the same in Tennessee and Louisiana. In each of the other cotton states worms have been more abundant, yet their ravaged have been disas trous or sweeping but in few cases. A MASTAD IN skeleton has been discovered on a farm eight miles from Richmond, Ind., near New Paris, Ohio. About a quarter of a ton o bones were exbumed, which, according to ac knowledged proportions of the animal, ind cate this one to have been very large. proba bly seven feet high and thirty-eight feet long One tusk unearthed is twelve feet long and its weight 150 pounds. They hope to get the entire skeleton. THE veterans of the Mexican war celebrated the anniversary of the capture of the City of Mexico in New York, on Monday. Delega tions were present from Baltimore, Wash ington, Philadelphia and other citi 8. THE Broadway Hotel in Lexington, Ky., was burned Saturday evening. Loss $14,000. A DISPATCH from Havre announces the death, near that city, of the Duke of Kransores, hueband of Queen Christine of Spain. A NUMBER of emigrants who left England for Brazil have returned. bringing doleful accounts of their treatment. They declare they have experie need great hardships ever since their departure from their homes, and that the promises made by agents of the Brazilian Government, were flagrantly broken. A MISPLACED switch Sunday night threw the evening train from Saratoga, while entering Albany, from the rack, and the engine. ten der and baggage ear went down an embank ment into Patroon's Creek, Tue fireman was killed, and the engineer, baggage master and another employee injured. Ex-CITY TREASURER SPRAGUE, of Brooklyn has been arrested on the charge of malfeasance in office. VENDUN, France, was evacuated by the Germau troops Saturday morning. Immediately after they had left, the streets were filled with rejoicing residents, and numberless French flage were displayed from the buildings. A FIRE in East St. Louis, Sunday night, conzumed the flouring mills of Henry Schaffer & Bros., six tenement houses, a new house, raloon and stables belonging to the mill. The mill contained 1,200 barrels of flour and 2,500
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te recommends that those having trades in options shall arrange between themsel ves for settlement or continuânce of the contracts until the property is paid for. LEAVENWORTH, KANSAS. LEAVENWORTH, September29.-There is much indignation among the stockholders and depositors of the First natioual bank here in consequence of the vice-president ordering the bank to stis= pend, and at the same time drawing from the bank ninety thousand dollars in currency to sustain the credit of Scott Con bankers, of which firm VicePresident Lyman Scott is a partner. The German Savings bank and Shyre & Co. reopened to-day, and are abundanily able to meet all demands. The other banks here are paying checks. VICKSBURG, MISS. VICKSBURG, September 29 - The Vicksburg bank, E. S. Butts cashier, continues business as Usual. CHATTANOOGA, TENN. From the Chattanooga Times.] Chattanooga is fortunate in having three banks of undoubted solvency and possessing the entire confidence of the community. There has been no run upon them, and there will be none; and they are transacting their accustomed business as well as they can, with their correspondents in every direction suspended. The banks of Chattanooga have always done a legitimate business and sustained the business men through many hard times, and the confidence inspired by their past course cannot be shaken. Ever since the crash began our merchants who had remittances to make, instead of sending the currency abroad and withdrawing their deposits, have been depositing their currency and checking upon it for exchange. In this way the community gets the benefit of the currency and our manufacturers are enabled to pay their hands promptly. With such a feeling existing between the banks and the people there can be no possibility of a panic here. The panic elsewhere will affect us temporarily, by curtailing our business with other points, but after passing through the burst of the Alabama and Chattanooga railroad, to say nothing of the flood and fire, we can stand anything but a lack of confidence in our own resources, and that is not likely to come. If there is any weak point in Chattanooga, it is modesty.
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TELEGRAPH. [SPECIAL DISPATCHES TO THE GAZETTE.] Finance al Affairs. NEW YORK, Sept. 30-12:30.-There is considerable pressure to sell and realize on stocks and prices have declined from one to three per cent, from the opening quotations. The following are the prices at this hour, the market being feverish and unsettled : New York Central, 90; Pacific Mail, 33. Brokers gener; ally display disinclination to operate for custo mers on margins before affairs become more settled. LONDON, Sept. 30-3:30 p. m. -The of bullion withdrawn from the Bank of Eng. land on balance to-day is £50,000. LEAVENSWORTH, Ks., Sept. 20.-There is much indiguation among the stockholders and depositors of the First National Bank in this city in consequence of the Vice-President or7 dering the bank to suspand and at the sametime drawing from the bank nearly $100,000 in currency to sustain the credit of Scott & Co., brokers, of which firm the vice-President. Lyman Scott. is a partner. The German's Savings Bank and Insley, Shire & Co., bankers, re-opened yesterday and are abundantly well able to meet all demands. The other banks here are paying checks in limited sums. LONDON, Sept. 30--5 p. m.-The demand for discount at the Bank of England, as well as in open market to day has been heavy at the rate of 5 per cent. NEW YORK, Sept. 30. The sub-Treasurer paid out $6,500 on discount of the November interest. Smith & Seaver, who were reported suspended on the 19th inst., announce that they will pay all demands in full and continue business as heretofore. LONDON, Sept. 30.-A special dispatch from Berlin to the London Hour hints at financial troubles in Germany. Fancy stocks and bank shares are not saleable, and some have fallen as much as 20 per cent. There is some talk of government interference. CHICAGO, Sept. 30.-The directors of the Uuion National Bank, after paying out about $400,000 yesterday, decided at a meeting last night to go into liquidation. The officers state that the assets are abundantly sufficient to pay all liabilities in full. NEW YORK. Sept. 30.-The announcement was made iu the Stock Exchange that Smith & Seaver would pay in full in cash all claims against them. This was received with cheers and hailed as a good omen. The impression now prevails that all the leading houses will pull through. There was a decided improvement in foreign exchanges, which was looked upon as a favorable symptom of returning confidence Leading bankers advanced their rates to 1.064 for sixty days sterling and 1071 for sight, but actual business was at a reduction from these rates. Gold has been weak and lower. The price declined from 1124 to 111 and then recovered to 1124. At the opening loans in gold were made flat to 1 32 for use, but afterwards 1 32 was paid for carrying gold. Southern State securities are dull and without a feature. CHICAGO, Sept. 30.-The City Council have passed an ordinance authorizing the issue of $300.000 in Treasury scrip with which to pay the current expenses of the city during the lock up of currency. There is much difference of opinion along business men as to the expe dieney of this issue. MEMPHIS, Sept. 30. - At a large meetiug of the Chamber of Commerce this morning to cousider the financial situation, a resolution was received from the banks of the city to the effect that they would not suspend but would open in addition to the u ual business an exchange account to be paid in kind for the purpose of moving cotton, which was unanimously adopted by the Chamber. PROVIDENCE, R. I., Sept. 30.-An adjourned meeting of the Providence banks, this noon, received and adopted the report of the committee recommending a liberal policy on the part of the banks toward each other and their customers, that each bank should request its depositors to draw checks payable through the clearing house and should certify checks payable through the clearing house; that deposits made in the banks in currency be paid out to such depositors in currency, and that deposits made in certified checks be paid in kind. LONDON, Sept. 30.-The steamship Donau, which sailed from Southampton for New York to-day. took 136.000 pounds in bullion. LONDON, Sept. 30. ..-The 50,000 pounds drawn from the Bank of England on balance to-day is to be shipped to New York.
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CURRENCY CONDENSITIONS CAIRO,ILL-The banks have adopted the certified check system. TORONTO.-The Government has ordered £500,000 of gold from England PITT6BURGE-Outlo much improved. The Lawrence Savings Bank resumed to-day. MILWAUKEE.-Chamber of Commerce adjourned till to-day without doing any business. CONCORD, N. H.-Currency payments suspended No apprehensions of serious trouble. PATTERSON, N.J.-The Grant Locomotive Works to-day discharged 175 men, and the Danforth works 100. CHARLOTTE, N. C.-The banks are doing business as usual, and the people sustain them by large deposits. LOWELL, Mass.-The banks to-day adopted the prevailing plan in regard to currency payment There is no alarm. READING, PA-Business in this city is quietly, and banks are meeting progressing promptly all demands. the SALT LAKE-Situation greatly improved and panicky teeling subsiding First National, suspended Saturday, preparing to resume. Sr. PAUL, MINN.-There is no exor alarm here, and the of the citement stoppage purchase aside of wheat from business goes on as usual. CHARLESTON, S. C.-The Chamber of the Secretary of to lurnish to be Commerce Treasury petitions $500,000 the ueed in the purchase of New York ex. change. CHARLOTTEVILLE, VA.-In conseof the money crisis quence made the Univer of Virginia has arrangefor credit to all ments sity students temporarily embarraesed. JEFFERSONVILLE, IND.-The First National Bank declines to pay currency,except in small amounts The Cit izens National Bank is meeting all demands mands made upon it. LEAVENWORTH.-The Vice President of the First National Bank drew out $100,000 and then ordered a suspension -much indignation. German Savings Bank resumed payment. COLUMBUS, O.-The financial trouble has had a very upon While all the are thie city. yet slight effect banks prepared for a run, thus far the precaution has proved unnecessary. BosToN.-Owing to the defalcation of $40,000 by the cashier of the Hingham National Bank. that institution has been closed by the National Bank Examiners. The Savings banks require notice. INDIANAPOLIS - Financial matters quiet. No further run anticipated. LITTLE Rock-Money panic continued; greatest stringency ever known. MONTGOMERY, ALA.-No run on Sat arday. Deposits exceeds withdrawale DUBUQUE, Iowa.-Commercial Na the bank mands in tional is currency. only Merchants meeting First all de- Na- Na. tional entirely suspended tional paying partially. Savings banks runs subsided. SPRINGEIELD, ILL.Banks have taken no action, and are doing business as usual. HARRSBURG, PA-All met and unanimously agreed to suspend pay ment of currency. BALTIMORE-Saturday closed without additional excitement or reports of failures. ATCHISON, KAN- banks doing business on Saturday, and declare they will not suspend. Sr. Louis-Express lines are bring= ing a much larger amount of currency than they are taking away. NEW HAVEN, Coxx-Manufacturing. establishment obliged to suspend, for lack of currency to pay hands. AUGUSTA, Gs.-Believed the BUEW pended banks will be able to resume currency payments early this week. LOUISVILLE-Twelve banks met Saturday night and adopted clearinghouse articles. not PHILNDELPRIA-Bankere the resolved market, to force any securities on and not to do anything to cause a decline of securities at the Stock Board
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A Smart Bank President. LEAVENWORTH, Kan., Sept. 30. There is much indignation among stockholders and depositors of the First National bank here in consequence of the vice president ordering the bank to suspend, and at the same time drawing from the bank nearly one hundred thousand dollars in currency to sustain the credit of Messrs. Scott & Co., brokers, of which firm Vice President Lyman Scott is a partner. The German savings bank, and Insley. Shire & Co., bankers, reopened yesterday, and are abandantly able to meet all demands. Other banks are paying checks in limited sums.
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THE SITUATION ELSEWHERE. CONDITION OF THE BOSTON BANKS-AN IMPROVING STOCK MARKET-EFFECT OF A BANK DEFALCATION ON HARTFORD AND ERIE-RESULTS OF THE MONEY STRINGENCY IN MANUFACTURES AND TRADE. [BY TELEGRAPH TO THE TRIBUNE. BOSTON, Sept. 30.-The full benefit of the loan certificate arrangement is not yet felt, for the plan is not yet in full working order. The banks were lable to discount more generally than heretofore, but the available supply of money has, of course, been inadequate. In the course of a day or two, however, everything will be adjusted, and it is not anticipated that there will be a lack of currency then. The discounting of the banks to-day has only been to meet urgent necessity, and outside the best paper has gone begging. The bank statement reflects the struggles of the past week. Their available resources have been drawn away to the extent of some $5,000,000; deposits have been drawn down $3,369,700; balances due other banks, $1.753.800; circulation. $4,700. To meet this, loans have been reduced $2,275,000; balances due other banks, $2,516,000. The legal reserve has been diminished less than half a million, and the banks are relatively stronger than before the panic. Stocks sold higher; railroads gaining from one to three per cent (Michgan Central gaining the latter figure), and mining stocksfrom one to five. Late in the afternoon. after the closing of the Board, there was a bad break in Hartford and Eric 78, caused by the discovery that Lovett, the defaulting cashier of the Hingham Bank, had been speculating in them. Prices at the Board ruled at 24 to 25; but 20,000 were thrown on the market then, and the price went down to 22-the lowest price for years. No steps have yet been taken for the arrest of the cashier. and at last accounts he was still at the bank. The depositors will lose nothing. and the directors will reduce the capital and continue. One of the curious features of the pante has been the unusual amount of exports for the past week and the large receipts of breadstuffs. The receipts of flour show au increase of 5.284 barrels, and of corn 78.000 bushels over the previous week. The exports for the past three days have amounted to over $800,000, more than for any three days of the present year. Manufacturers have not been seriously embarrassed, and do not anticipate any more trouble. J.1 P. Squire & Co., large pork packers, having about 1,000 employés, were slightly embarrassed, and discharged about 100 men. but will take them back at an early day. The American Watch Company and the Howard Watch Company are the only other prominent manufacturers that make any reduction in their force. The Hinckley Locomotive Works employs 500 men. and asits present orders re-nearly all for the Chicago, Danville and Vincennes, and the Atlantic and Pacific roads, it expects no trouble from the panic. PHILADELPHIA FAILURES-STATEMENT OF CLARK & CO. PHILADELPHIA, Sept. 30.-A meeting of the creditors of E. W. Clark & Co. was held to-day. A statement was made. showing as follows; $1,042,526 Liabilities secured 1.041.498 Liabilities unsecured $2,084,024 Total Assets. including stocks, bonds, loans. bills receiva2,464,355 ble, and other securities and real estate $380,331 Leaving a surplus of A committee of three was appointed to investigate the affairs of the concern. The meeting was unanimously in favor of rendering proper aid to the firm in its efforts to realize on its assets and make settlements with its creditors, believing that their own interests would not suffer by pursuing such a course. The report that the firm of Martin, Londenberger & Co. had suspended is contradicted. Harrison Grambo, who failed 80 disastrously nearly a year since, has resamed business, having settled nearly $900,000 of his liabilities. STRANGE CONDUCT OF A KANSAS BANK OFFICERSUSPENDED BANKS REOPENED. LEAVENWORTH, Sept. 30.-There is mueh indignation among the stockholders and dépositors of the First National Bank, *in this city, in consequence of the Vice-President ordering the bank to suspend, and at the same time drawing nearly $100,000 in currency to sustain n the credit of Scott & Co., brokers. of which firm the Vice-President, Lyman Scott. is a partner. The German Savings Bank, and Insley, Shire & Co., bankers. reopened yesterday. and are abundantly able to meet all demands. Other banks here are paying checks in limited sums. FINANCIAL EXCITEMENT IN GERMANY-THE BULLION MOVEMENT. LONDON, Sép. 30.-A special dispatch from Berlin hints at financial troubles in Germany. Fancy stocks and bank shares are not salable, and some have fallen as much as 20 per cent. There is some talk of Government interference. The £50,000 drawn from the Bank of England on balance, to-day, is to be shipped to New-York. The steamship Donau, which sails from Southampton for New York to-day, also took £136,000 in bullion. LATER.-The Gazette publishes a notice for a meeting of the creditors of Clews, Habieht & Co. on Nov. 23. The steamer Parthia, which sailed to-day for New-York, took $100,000 in bullion. FINANCIAL NOTES. There was no particular change in the financial situation at Cincinnati yesterday. Harrisburg manufacturers approve the action of the banks of that city in adopting the certified check plan. The banks of Memphis have resolved not to suspend, but to open, in addition to the usual business, an exchange account. to be paid in kind, for the purpose of moving cotton. Responsible merchants have subscribed and paid in $320,000 to the First National Bank, which will enable it to resume business at once. The Providence banks adopted, yesterday, a report recommending a liberal policy on the part of banks toward each other and customers; that each bank should request its depositors to draw checks payable through the Clearing-house, and should certify checks payable through the Clearing-house; that deposits made in banks in currency be paid out to such depositors in currency, and that deposits made in certified checks be paid in kind. The Providence banks are in a generally
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BESFENWORTH BANSAN The financial "unpleasantness" is about at an end in Leavenworth. The banks are meeting all demands, and growing stronger every day from fresh reinforcements of currency. It is probable that they have now more than thirty-live per cent. of their liabilities in cash in their vaults-a reserve ample to meet all demands for currency in ordinary times. This reserve will increase every day if customers pursue a sensible course, and not draw from the banks more money than is required to meet the wants of business. The receipts of currency by express in this city for the past two days amount to $250,000, and large sums are on the way hither from Chicago, St. Louis and New York. P The German Savings defalcaclosed on account of the tion, re-opened last Monday in the face of the panie, and has since that time given the public ample evidence of its solvency.
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Mr. H.-Whenever confidence can be restored. CLARK & co. At Clark & Co.'s Bank our reporter found the teller, Mr. G. H. Hyde, willing to anwer questions. Mr. A. M. Clark is in Salt Lake, and Mr. M. E Clark in St. Louis. Our reporter tackled Mr. Hyde in this fashion: Reporter-How are depositors feeling to day ? Mr. Hyde-Feeling good. They seem to be well satisfied. Reporter-Have you any idea, Mr. Hyde, bowlong this thing will continue Mr. H.-It is hard to tell. The government could easily remedy this trouble by a free banking system, 80 that a man could exchange bonds for currency when currency wanted, and convert his currency into bonds when currency was over-plentiful. Reporter-What per cent of the deposits of Leavenworth could to-day be paid in carrency by the banks? Mr. Hyde-I thi at the outside 25 per cent. Our currency balances are locked in the vaults of Eastern banks. Reporter-What can business men do this trouble lasts ? Ir.H-They can use certified checks. Reporter-Ar your country correspond, ents drawing their balances? Mr. -Not to any great extent. INSLEY, SHIRE & CC. Our reporter found Col. Insley ready to receive conundrums, and pay out answers on demand. f Reporter-When do you expect to pay checks, Colonel? Col.-We did expect to open next Monf day, and would open to-morrow, it we could f obtain our currency deposits in Eastern banks. Reporter-How will the suspension of the banks affect trade in the city. Col. -It will not have a serious result. Certified checks can be exchanged until the banks are ready to pay currency. Reporter-Is there DO way of avoiding hardships among the laboring classes who have email deposits in the banks, and need their money for the necessaries of life? Col.-Our bank would favor a plan to pay small checks, and thus relieve distress, and hope to make an early arrangement to do 80. Reporter-What is your opinion about the German Savings Bank--will it be able to reopen on the day appointed for its resumption? Col.-I do not see how they can open before the other banks of the city resume. NEWMAN & HAVENS. Without any extra ceremont our reporter entered into conversation with Mr. Paul Havens. Oar interviewer had talked with 80 many bankers that he began to believe he knew more of the banking business than the man who invented currency, and bence approached Mr. Havens with the confidence of one who knew what he was talking about. In thisstyle the trouble commenced. Reporter-If l had $10,000 in U. S. bonds, Mr. Havens. how much currency could I get from you by depositing my bonds as se curities? Mr. Havens-Yo couldn't get a dollar. Reporter-Why? Mr. H. Because bonds are plenty and currency scarce. (Havens found out someway that the reporter didn't have the bonds). Reporter-Are the country banks generally calling for their currency? Mr. H.-At this season of the year their balances are very light, but they have been calling it in. Reporter-How do your depositors feel over the suspension? Mr. H.-They recognize the necessity of it. The situation was unavoidable. When the St. Louis and Kansas City anksdeclined payment we had to resort to the same course to save ourselves from the effects of a run. Reporter-Is there any way to assist the needy depositors? Mr. H.-I would favor the plan of paying email checks. Reporter-How will this suspension affect merchants? Mr. II.-They can use certified checks, The banks have agreed to make settlements every Saturday evening. (Here Levi Wilson interfered by teiling how a man met him on the streets and inquired when his "damn'd hole" up town would open again, saying that he had $2,000 in it. Levi says he looked at the fellow and replied, "You d- pauper, you never had twenty cents in a bank in your life. That closed conversation between Levi and the discontented citizen.) FIRST NATIONAL Late in the evening our reporter hailed in found out other the the cashier among telegraph of the office, things First and that National the government deposits at the First National amounted to $225,000, which was amply secured be U. S bonds, The information was obtained that the First National hadnot loand ed a dollar of depositors money and would reopen as soon aw the New York banks could get straightened out. ( Here our interviewing man suspended.