b6d129acBorrowed from banks or large institutions, Full suspension, Books examined
Other: Receivership appointed by Comptroller in Jan 1897
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The panicky feeling that inspired the run on the Mutual National Bank of New Orleaus for a few I hours on Monday, quickly passed, and the erisis seems to be well over. : The influx of the bounty money into the banks will further tend to restore confidence and insure the sta: bility of frnancial conditions.
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lank Suspends. NEW ORLEANS, Sept. 10.-The Mu. tual National bank suspended this morning. The capital stock is $200.000. The deposits are small. The bank has long been week. It says it will pay in full.
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FROM WASHINGTON. Correspondence of the Alexandria Gazette.] WASHINGTON, Sept. 10. The Treasury Department was infarmed this morning of the failure of another national bank in New Orleans, the Mutual. The cause couldn't be the dread of silver coinage, for the subsidized press of the goldites say Mr. Bryan will be overwhelmingly defeated. Dispatches received here this morning from London say the Bank of England has raised the premium on gold and its rate of Interest to prevent Englishmen from sending gold to the United States for investment. This shows that Englishmen, unlike American plutocrats, don't think ruin and destruction will be the necessary consequence of the resumption of silver coinagei this country. An immence crowd is expected here Saturday week, when Mr. Bryan will speak, not in Convention Hall, as previously arranged, but on the base ball grounds, where there will be room for all who may wish to see and hear him. He will be the guest of Major Selden, of the Metropolitan Hotel, a Virginia democrat, and Mr. Honey, also & Virginian, has offered him the use of a fine carriage and four splendid horsesduring his stay. Mr. Howell, who is in charge of the Washington branch of the national democratic headquarters, says all the information received there is not only favorable, but of the most encouraging character, and that it comes from the most reliable sources, and that, too, in the States of Ohio, Indiana, Illinois and Iowa, where the silver feeling is growing not only among the farmers, but the working men in the cities. Mr. Rixey, democratic candidate for Congress in the Alezandria district, is here to-day. He will speak at Ballston to-night and at Leesburg next Monday. He Bays the democratic prospect in his district is very favorable and that the goldites will cut no figure in the election there, The cotton report of the Department of Agriculture for September shows a decline from the August condition of the crop which was 80.1 to 64.2 per cent., a decline of 15.9 points. This is the lowest September condition reported in the last twenty-seven years. The average for Virginia is 80. Mr. A. P. Rowe, of Fredericksburg, who was present at the political discussion at King George court house last week, told an acquaintance here yesterday that nearly all the white pepple he saw there were free silver men. It is said here that many people of this city were seriously inconyenjenced yesterday by the fire in Alexandria. The hose was laid across the street there on which the Mt. Vernon electric cars run, and though the superintendent of the road offered to raise them on tripods, as is done in other cities, the city officials would not allow him to so. So the trains were considerably delayed and caused those who were on them a great deal of inconvenience, and some of them much trouble. The whole history of Senator Palmer, the bolters' candidate for President, while Military Governor of Kentucky, after the close of the war, is being prepared from official documents, and when published will not be likely to make him any votes in Kentucky or in any other Southern State. His order to arrest ex-Confederates and their sympathizers if seen near the polls, which has already appeared in the GAZETTE, is not a circumstance to some of his other acts, and he, too, & Southern born man. He made a speech in a convention there in which he advocated the right of free speech to negroes, but advised against it to ex-Confederates and those who countenanced them. He hanged Southern men and made all transportation lines carry negroes on the order of any of his subalterns. So outrageous was the exercise of his brief authority that even rank Union and republican
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PANIC IN NEW ORLEANS. Bank of Commerce Closes Its Doors Today. General Run on All the Banks In the City. FOUR BANKS BROKEN Since the Withdrawals of Deposits Started. U.S. Treasury Sends Substantial Help. New Orleans, La., Sept. 11.-The Bank of Commerce, a state institution, failed to open its doors this morning. This is the third bank to fail in this city this week and the fourth within the last three weeks. A general panicky feeling prevails and there is a quiet run on most of the other banks. The Iocal papers suppress all news of the bank failures. President Nichols of the Bank of Commerce gives the following explanation: "The unprecedented run on the bank for the past six weeks and the impossibility of realizing with sufficient rapidity on the assets and after, consulting with the vice president of the clearing house and submitting a statement to them, we deemed it advisable, in order to protect the interests of the depositors, so that they might be paid in full in a short while, as well as the stockholders, to take this step of liquidating, a step which none feel more than we do." The bank owes depositors between $300,000 and $400,000, while the assets of the bank are about $800,000. The bank had quite a long list of small depositors. The failure of the Mutual National yesterday and the Bank of Commerce today has unsettled the commercial situation greatly. The officials of the Union National, which suspended Tuesday, still refuse to make a statement, but it is admitted that the failure was due to a heavy defalcation. It appears that two sets of books of depositors' accounts were kept, one of which shows the amount due depositors to be $90,000 and the other set $600,000. It was the first set which was always submitted to bank examiners and directors. The defalcation is placed at $190,000. The resolution of the savings banks not to pay any money without sixty days' notice may prevent them from feeling the results of the lack of confidence. ASSISTED BY THE TREASURY. Washington, D. C., Sept. 11.-The treasury officials are doing what they can legitimately and lawfully to assist the national banks of New Orleans in tiding over any runs that may be made upon them. The New Orleans banks havenreserve agencies in New York, and at their request deposits are made in the sub-treasury there, and the subtreasury in New Orleans is then directed to pay the amounts to the banks. Already more than $1,000,000 have been so transferred, and, in case of need, further exchanges will be made.
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ANOTHER BANK GOES UNDER THE MUTUAL NATIONAL OF NEW-ORLEANS CLOSES ITS DOORS. ITS COLLAPSE PRECIPITATED BY THE TWO RECENT FAILURESPRECAUTIONS TAKEN BY THE CLEARING HOUSE TO PREVENT A PANIC. New-Orleans Sept. 0.-The Mutual National bank's Bank of this closed its known suspension doors this be has morning. bad been discounted. The Short- effect well to in a way. the a r after sit was American National and the Bank collapse failed of run was made on the Mutual the bank at that time appeared inevitable. the run was started on Saturday. shortby noon. and a in New-Orleans was on holiday Luckily. before Saturday fortune being By legal the half- side sore-pressed institution. it had a chance to recuperate. House held a meeting morning Clearing of the and the Monday to other The the banks of the city, fearing a panic, came rescue and advanced money enough to meet all demands on that day. Large sums of money here from various sources, and the United Sub-Treasury was sugar as fast as possible. noon bounty came States paying Before out the of that day run ceased and all says that a has The the president looked steady favorable. drain out been caused by depositors checking their money. The unexpected failure of the Union National on Wednesday aroused the suspicions of depositors, and another rush was made on the Mutual. The Clearing House banks had on the first occasion advanced $100,000 to the Mutual. a little more than $17,000 of which had been repaid. Last night the Mutual tendered to the Clearing House another lot of collaterals and asked for further assistance to the extent of $25,000. This the Clearing House refused and the suspension of the Mutual followed this morning says: "The bank owes depositors which we pay $92,993.72. The president have ample assets to dollar for dollar. President Baldwin. of the Clearing-House, says: "The officers of the bank foresaw what was coming and. as is customary in such cases, called on the other banks to come once more to their assistance. A bank in distress is expected to hypothecate securities of such a kind as will justify other banks in lending the assistance. The security offered by the Mutual was not considered the proper quality of paper to justify the Clearing-House in making the loan, and the assistance was refused." The Mutual National was organized in 1871 with a capital stock of $500,000. This was reduced in January, 1894. to $200,000. In January. 1895. the Mutual absorbed the Traders' Bank, and most of the stockholders of the Traders' became interested in the Mutual. At a meeting of the Clearing-House held last night. the financial situation was earnestly discussed and the following resolution was adopted: Resolved. That, for the present. the Clearing banks should not pay out on checks more to than $100 House any one depositor in one day. All other payments shall be made by certification of checks. which shall be received on deposit by the Clearing House banks. This step was necessary as a precaution. Money to meet their payrolls will be supplied to employers of labor. It was also agreed to adopt a system of Clearing House certificates similar to that utilized in New York and elsewhere during the crisis of 1893. The savings banks also took steps to prevent a run by posting the sixty-day rule. This is allowed by their charters. A depositor must give sixty days' notice of his intention to withdraw his deposit. There are no new developments in the case of the Union National Bank. President Chalaron is bitterly criticised to-day for his precipitate action in closing the bank without consulting the directors. He is in seclusion and will see no one. Bank Examiner Johnson, temporarily in charge of the Union, was formerly confidential bookkeeper and agent for A. & V. Meyer, whose failure seriously affected the bank. This fact has caused comment. To-day another bank examiner has been ordered here to take his place, a protest having been sent to Contreller Eckels against Mr Johnson's remaining in charge. Washington. Sept. 10.-Controller Fekels was to-day informed that the Mutual National Bank of New-Orleans had failed. At the time of its last report it had loans and discounts out amounting to $447,735 owed to individual depositors, $308,769; had undivided profits of $19,999 and owed to other banks, $13,396. The bank's capital was $200,000. Bank Examiner Tucker, of Chicinnati, has been instructed to take charge of the bank Controller Eckels has appointed F. 1. Richardson receiver of the American National Bank of New-Orleans, which failed recently The National City Bank of New-York reported yesterday that it was amply protected on its advances to the failed Mutual National Bank of New-Orleans
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ANOTIERER NEW ORLEANS BANK Forced to Close Its Doors-The Third Within 12 Few Days. New Orleans, Sept. 10.-The Mutual National Bank closed its doors this morning. The effect of this bank's suspension has been discounted, as it was well known to be in a bad way. Shortly after the American National Bank failed a run was made on the Mutual and the collapse of the bank at that time appeared inevitable. Luckily the run was started on Saturday, shortly before noon, and Saturday being a legal half holiday in New Orleans, Providence was on the side of the sore-pressed institution. By Monday morning it had a chance to recuperate. The clearing house held a meeting and the other banks of the city fearing a panic, came to the rescue and advanced money to meet all demands on that Monday. Large sums of money came here from various sources and the United States sub-treasury was paying out the sugar bounty as fast as possible. Before noon of that day the run ceased and all was serene. The president states that a steady drain has been maintained by depositors checking out their money. The unexpected failure of the Union National Wednesday aroused the suspicions of depositors and another rush was made on the Mutual. The clearing house bonds had on the first occasion advanced the Mutual $100,000. a little more than $17,000 of which had been repaid. Last night the Mutual tendered the clearing house another lot of collaterals and asked for further assistance to the extent of $25,000. This the clearing house refused and the suspension of the Mutual followed this morning. The president says: "The Bank owes depositors $92,993.72, which we have ample assets to pay dollar for dollar." The Mutual National was organized in 1871 with a capital stock of $500,000. This was reduced in January, 1894, to $200,000. In January, 1895. the Mutual absorbed the Traders' Bank. Most of the stockholders of the Traders' Bank became interested in the Mutual. At a meeting of the Clearing House held last night the financial situation was earnestly discussed, and the following resolution was adopted: "Resolved, That for the present the should Clearing House banks not pay out on checks more than one hundred dollars to any one depositor in one day -all other payments shall be made by certification of checks, which shall be received on deposit by the Clearing House banks." This step was necessary as a precaution. Employers of labor will be supplied with money to meet their payrolls. It was also agreed to adopt a system of clearing house certificates similar to that utilized in New York and elsewhere during the crisis of 1893. The savings banks also took steps to prevent a run by posting the sixty day rule. This is allowed by their charters. A depositor must give sixty days' notice of his intention to withdraw his deposits.
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IN CRASH NEW ORLEANS The Mutual National Forced to Close Its Doors. AT THE END ITS TETHER Refused to Advance on The Clearing H Its Last der of Collaterals. PRESIDENT OWINSAYSITWILLPAY OUT Situation in Und Crescent City Relieved by the Action of the Treasury and the Worst Is Believed to Be Over. New Orleans, Sept. 10.-The Mutual National bank closed its doors this morning. The effect of this bank's suspension has been discounted as it was well known to be in a bad way. Shortly after the American National bank failed a run was made on the Mutual, and the collapse of the bank at that time appeared inevitable. Luckily the run was started on Saturday, shortly before noon, and Saturday being a legal half holiday in New Orleans, Providence was on the side of the sorely pressed institution. By Monday morning it had a chance to recuperate. The clearing house held a meeting and the other banks of the city fearing a panic came to the rescue and advanced money enough to meet all demands on that Monday. Large sums of money came here from various sources and the United States sub-treasury was paying out the sugar bounty as fast as possible. Before noon on that day the run ceased and all was serene. The president states that a steady drain has been maintained by depositors checking out their money. The unexpected failure of the Union National Wednesday aroused the susof on the the first occasion the a more house was picions Mutual made had on depositors $100,000, Mutual. and little another The advanced clearing than rush $17,000 of which had been repaid. Last night the Mutual tendered the clearing house another lot of collaterals and asked for further assistance to the extent of $25,000. This the clearing house refused and the suspension of the Mutual followed this morning. The president says: "The bank owes depositors $92,993.72, which we have ample assets to pay dollar for dollar.' President Baldwin of the clearing house says: "The officers of the bank foresaw what was coming, and as is customary in such cases called upon other banks to come once more to their assistance. A bank in distress is expected to hypothecate securities of such a kind as will justify the other banks in lending the assistance. The security offered by the Mutual was not considered the proper quality of paper to justify the clearing house in making the loan and the assistance was refused. The Mutual National was organized in 1871 with a capital stock of $500,000. This was reduced in January, 1894, to $200,000. In January, 1895, the Mutual absorbed the Traders' bank. Most of the stockholders of the Traders' became interested in the Mutual. At a meeting of the clearing house held last night the financial situation was earnestly discussed, and the following resolution was adopted: "Resolved, That for the present the clearing house banks should not pay out on checks more than $100 to any one depositor in one day-al other payments shall be made by certification of checks, which shall be received on deposit by the clearing house banks. This step was necessary as a precaution. Employers of labor will be supplied with money to meet their pay rolls. It was also agreed to adopt a system of clearing house certificates similar to that utilized in New York and elsewhere during the crisis of 1893. The savings banks also took steps to prevent a run by posting the sixty day rule. This is allowed by their charters. A depositor must give sixty days notice of his intention to withdraw his deposit. There are no new developments in the case of the Union National. President Chalaron is bitterly criticised today for his precipitate action in closing the bank without consulting the directors. He is in seclusion and will see no one. There are all sorts of rumors, one to the effect that two sets of books were kept by the Union National-one for thedfrectors and one for the bank officers-and that there is a discrepancy between these of an amount exceeding $600,000. Bank Examiner Johnson, temporarily in charge of the Union, was formerly confidential bookkeeper and agent for A. & V. Meyer, whose failure seriously affected the bank. This fact has caused much comment. Today another bank examiner here to take his place, having been a has protest been ordered wired to Comptroller Eckels against Mr. Johnson's continuance in charge.
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Dapositors Became Suspicious and Made a Run That Causes the Failure. MORE MONEY COULD NOT BE HAD Now All Clearing House Banks Will Only Pay One Hundred Dollars on Checks. NEW ORLEANS, LA., Sept. 10.-The Mutual National Bank closed its doors this morning. The effect of this suspension has been discounted as it was well known to be in a bad way. Shortly after the American National Bank failed a run was made on the Mutual and the collapse of the bank at that time appeared inevitable. Luckily the run was started on Saturday shortly before noon, and Saturday being a legal half holiday in New Orleans, fortune was on the side of the pressed institution. By Monday morning it had a chance to recuperate. The clearing-house held a meeting, and the other banks of the city, fearing a panic, came to the rescue and advanced money enough to meet all demands on Monday. Large sums of money came here from various sources, and the United States sub-treasury was paying out the sugar bounty as fast as possible. Before noon of the day the run ceased and all looked favorable. The president states that a steady drain has been made by depositors taking out their money. The unexpected failure of the Union National Wednesday aroused the suspicions of depositors and another rush was made on the Mutual. The clearing-house banks had advanced the Mutual $100,000, a little more than $17,000 of which had been repaid. Last night the Mutual tendered the clearinghouse another lot of collaterals, and asked for further assistance to the extent of $25,000. This the clearing-house refused, and the suspension of the Mutual followed this morning. The president says: "The bank owes depositors $92,993 72. which we have ample assets to pay dollar for dollar." President Baldwin of the clearing=house says: "The officers of the bank foresaw what was coming, and, as is customary in such cases, called on the other banks to come once more to their assistance. A bank in distress is expected to hy pothecate securities that will justify other banks in lending the assistance. The security offered by the Mutual was not considered *the proper quality of paper to justify the clearing-house in making the loan and the assistance was refused." The bank was organized in 1871 with a capital of $100.000. In January, 1895, the Mutual absorbed the Traders' Bank and most of the stockholders of the Traders' Bank became interested in the Mutual. At a meeting of the clearing-house the financial situation was discussed and the following resolution was adopted: Resolved, That for the present the clearing. hous banks shall not pay out on checks more than $100 to any one depositor in one day-all other payments shall be made by certification of checks. which shall be received upon deposit by the clearing-house banks. This step was necessary as a precaution. Employers of labor will be supplied with money to meet their payrolls. It was also agreed to adopt a system of clearinghouse certificates similar to that used in
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Still Another Closed. NEW ORLEANS, Sept. 10.-The Mutual National bank, 624 and 626 Canal street, closed its doors this morning, Henry Maspero, president; James Tarelteton, cashier. The capital stock of the bank was only $200,000, and its line of deposits very small. It has been regarded as weak for a long time. The bank is said to have sufficient security to liquidate its entire indebtedness. Yesterday a rumor was in circulation that the bank was about to go into liquidation, though the directors had not taken action on the subject. They have now concluded to close.
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Another New Orleans Bank Closed. New Orleans, Sept. 11.-The Mutual National bank suspended Thursday,
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ANOTHER NEW ORLEANS BANK Clases Its Doors and Will Go Into Liquidation. New Orleans, September 10.-The Mutual National Bank closed its doors this morning. The capital stock was only $200,000 and its line of deposits very small. It has been regarded as weak for a long time. The bauk is said to have sufficient security to liquidate its entire indebtedness Yesterday a rumor was in circulation that the bank was about to go into liquidation, though the directors had not then taken any action on the subject. Washington, September 10.-Comptroller Eckels late this afterroon received a telegram from the bank examiner at New Orleans stating that the clearing house had begun the issue of certificates and that the danger of further trouble had passed. Bank Examiner Tucker, with headquarter3 at Cincinnati,has been placed in charge of the Mutual National Bank, which suspended this morning.
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ANOTHER BANK CLOSED. The Mutual National, of New Orleans, Will Go Into Liquidation. NEW ORLEANS Sept. 10.-The Mutual National Bank, Nos. 624 and 626 Canal street, closed its doors this morning. Henry Maspero is president and James J. Tarleton cashier. The capital stock of the bank was only $200,000 and its line of deposits very small. It has been regarded as weak for a long time. The bank is said to have sufficient securities to liquidate its entire indebtedness. Yesterday a rumor was in circulation that the bank was about to go into liquidation, though the directors had not then taken any action on the subject. They have now concluded to wind up the business. It is stated that leading banks of this city hold in cash assets an amount which is twice as large as that usual at this season of the year and are perfectly sound financially. A dispatch from Washington says: The treasury officials are dong what they can, legitimately and lawfully, to assist the national banks of New Orleans in tiding over any runs that may be made upon them. The New Orleans banks have reserve agencies in New York. and at their requests deposits are made in the subtreasury, and the subtreasury in New Orleans is being directed to pay the amounts to banks. Already over a million dollars have been so transferred. and, in case of need, further exchanges will be made. Controller Eckels has appointed F. L. Richardson receiver of the American National Bank of New Orleans, which failed some weeks ago.
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BANK BURSTS. Mutual National of New Orleans Closes Its Doors-Others Will Follow. NEW ORLEANS, La., Sept. 10.-The Mutual National bank closed its doors this morning. The effect of this bank's suspension has been discounted, as it was well known to be in a bad way. Shortly after the American National bank failed a run was made on the Mutual, and the collapse of the bank at that time appeared inevitable. Luckily the run was started on Saturday, shortly before noon, and Saturday being a half holiday in New Orleans, fortune was on the side of the pressed institution. By Monday morning it had a chance to recuperate. The clearing house held a meeting and the other banks in the city, fearing a panic, came to the rescue and advanced money enough to meet all demands on that day. Large sums of money came here from various sources and the United States sub-treasury was paying out the sugar bounty as fast as possible. Before noon of that day the run ceased and all looked favorable. The president states that a steady drain has been maintained by depositors checking out their money. The unexpected failure of the Union National Wednesday aroused the suspicions of the depositors and another rush was made on the Mutual. The clearing house banks had on the first occasion advanced the Mutual $100,000, a little more than $17,000 of which had been repaid. Last night the Mutual tendered the clearing house another lot of collaterals and asked for further assistance to the extent of $25,000. This the clearing house refused and the suspension of the Mutual followed this morning. The president says: "The bank owes depositors $92,993.72, which we have ample assets to pay dollar for dollar." President Baldwin of the Clearing house says: "The officers of the bank foresaw what was coming and, as is customary in such cases, called on the other banks to come to their assistance. A bank in distress is expected to hypothecate securities of such a kind as will justify other banks in lending the assistance. The security offered by the Mutual was not considered the proper quality of paper to justify the clearing house in making the loan, and the assistance was refused." The Mutual National was organized in 1871 with a capital stock of $500,000. This was reduced in January, 1894, to $200,000. In January, 1895, the Mutual absorbed the Traders' Bank and most of the stockholders of the Traders' Bank became interested in the Mutual At a meeting of the clearing house last night, the financial situation was earnestly discussed and the following resolution adopted: Resolved, That for the present the clearing house banks should not pay out on checks more than $100 to any one depositor in one day-all other payments shall be made by certification of checks which shall be received on deposit by the clearing house banks." This step was necessary as a precaution. Employers of labor will be supplied with money to meet their pay rolls. It was also agreed to adopt a system of clearing house certificates 1 similar to that used in New York and elsewhere during the crisis of 1893. The savings banks also took steps to prevent a run by posting a sixty days rule. There are no new developments in the case of the Union National. President Chalaron is bitterly criticized today for his precipitate action in closing the bank without consulting the directors. He is in seclusion and will see no one. Bank Examiner Johnson, temporarily
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Another New Orleans Bank Suspends. NEW ORLEANS, Sept. 10.-The Mutual national bank closed its doors Thursday morning
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A NEW ORLEANS BANK FAILS. The Mutual National In the Hands of An Examiner. New Orleans, Sept. 10.-The Mutual National Bank closed its doors this morning. The effect of this bank's suspension has been discounted, as it was well known to be in a bad way. Shortly after the American National Bank failed, a run was made on the Mutual, and the collapse of the bank at that time appeared inevitable. Luckily the run was started on Saturday, shortly before noon, and Saturday being a legal half holiday in New Orleans, providence was on the side of the sore pressed institution. By Monday morning it had a chance to recuperate. The clearing house held a meeting, and the other banks of the city fearing a panic came to the rescue and advanced money enough to meet all demands on them Monday. Large sums of money came here from various sources of the United States sub-treasury was paying out the sugar bounty as fast as possible. Before noon of that day the run ceased and all was serene, The president states that a steady drain has been maintained by depositors checking out their money. The unexpected failure of the Union National Bank Wednesday aroused the suspicions of depositors and another rush was made on the Mutual. The clearing house banks had on the first occasion advanced the Mutual $100,000, a little more than $17,000 of which had been repaid. Last night the Mutual tendered the clearing house another lot of collaterals and asked for further assistance to the extent of $25,000. This the clearing house refused and the suspension. of the Mutual followed this morning. The president says: "The bank owes depositors $92,993.72, which we have ample assets to pay dollar for dollar." President Baldwin of the clearing house says: "The officers of the bank foresaw what was coming, and as is customary in such cases, called on other banks to come once more to their assistance. A bank in distress is expected to hypothecate securities of such a kind as will justify other banks in lending the assistance. The securities offered by the Mutual was not considered the proper quality of paper to justify the clearing house in making the loan and the assistance was refused." The Mutual National was organized in 1871 with a capital stock of $500,000. This was reduced in January, 1894, to $200,000. In January, 1895, the Mutual absorbed the Traders' bank. Most of the stockholders of the Traders bank became interested in the Mutual. At a meeting of the celaring house held last night the financial situation was earnestly discussed, and the following resolution was adopted: "Resolved, for the present, That the clearing house banks should not pay on checks more than one hundred dollars to any one depositor in one dayall other payments shall be made by certificates of checks which shall be received on deposit by the clearing house banks." This step was necessary as a precaution. Employers of labor will be supplied with money to meet their pay rools. It was also agreed to adopt a system of clearing house certificates similar to that utilized in New York and elsewhere during the crisis of 1833. The savings banks also took steps to prevent a run by posting the 60-day rule. This is allowed by their charters. A depositor must give sixty days' notice of his intention to withdraw his deposit. There are no new developments in the case of the Union National. President Chalaron is bitterly criticised to-day for his precipitate action in closing the bank without consulting the directors. He is in seclusion and will see no one. There are all sorts of rumors, one to the effect that two sets of books was kept by the Union National-one for the directors and one for the bank officers, and that there is a discrepancy between these of an amount exceeding $600,000. Bank Examiner Johnson, temporarily in charge of the Union, was formerly confidential bookkeeper and agent for A. & V. Meyer, whose failure seriously affected the bank. This fact has caused much comment. To-day another bank examiner has been ordered here to take his place, a protest having been wired to Controller Eckels against Mr. Johnson's continuance in charge. Washington, Sept. 10.-Controller Eckels was to-day informed that the Mutual National Bank of New Orleans had failed. At its last report it had loans and discounts out amounting to $447,735; owed individual depositors $308,769; had undivided profits of $19,999, and owed other banks $13,396. The bank's capital was $200,000. Bank Examiner Tucker of Cincinnati has been ordered to take charge of the bank. A HIGH WIND AT PARIS.
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THEFTS WRECK A BANK Two Bookkeepers Are Charged With Filching $500,000. ONE ATTEMPTS SELF DESTRUCTION The Tangled Afairs of the Union National Bank of New Orleans-Almost a Financial Panic In the Crescent City-Four Recent Bank Failures. NEW ORLEANS, Sept. 12.-The rottenness in the Union National bank was made known when United States Bank Examiner Johnson swore out affidavits against the two principal bookkeepers, charging them with embezzling the entire amount of the deficits. One of the guilty men sought escape by suicide. Mr. Johnson reached the conclusion that these were the guilty men after working hard for two days on the books and lost no time in notifying District Attorney J. Ward Gurley of the situation. He went to Mr. Gurley before the latter had breakfasted and explained his haste to he due to the fear that the guilty men would escape unless arrested at once, The first affidavit charged Bookkeeper Frank B. Leefe with embezzing $185, 558.79. The second charged Bookkeeper L. Lacombe with the embezzlement of the remainder, in round figures about $406,000. The amount of the embezzlement, so far as can be ascertained, is $592,000. The bank examiners have 60 far failed to implicate any of the other officials. It has not been ascertained, either, when the men began the peculations charged. Bookkeeper Leefe had been in the employ of the bank for 19 years and has been considered the soul of honor. He was very devout. Mr. Lacombe has been in the employ of the bank 16 years, and while he lived very well for a man on a salary of $150 a month no suspicion has ever been attached to him. Bookkeeper Leefe Arrested. Leefe has been arrested and placed on bond of $10,000. When the United States marshals went to serve the papers on Laoombe, it was found that he had learned of his discovery and attempted to commit suicide by taking a dose of morphine. He was placed under guard at his home. He is in a comatose condition, and it is thought he will live but a few hours. The panic is about over. The rottenness in the affairs of the American Na. tional and Union National, from which $1,000,000 was taken, caused the people to lose confidence, and the run they made on the Mutual and the Bank of Commerce, neither of which was very strong, caused the Mutual and the Bank of Commerce to close. There was a slight run on the People's, but It was soon stopped, and now the panio is over. Six out of the 18 banks in the city have closed their doors within the last year and four within the last month. New Orleans has never known such a panic since the days of 1873.
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SMASH OF THE UNION NATIONAL. The Controller Explains the Receivership Scandal. Washington, Sept. 11.-Referring to the New Orleans dispatch to the effect that much dissatisfaction existed there over the fact that Examiner Johnson had been placed in charge of the failed Union National Bank, Controller Eckels this morning said to a reporter for the Southern Associated Press that had he known of Mr. Johnson's connection with A. & V. Myer, the firm whose failure so seriously affected the Union bank, he would not have designated him to take charge. The assignment, however, Mr. Eckels said, was merely temporary, because Mr. Johnson was already in charge of the affairs of the American Bank, and that was enough to engage all his time and abilities. As soon as news of the Union failure reached the bureau Controller Eckels directed Examiner Escott of Louisville, Ky., to proceed to New Orleans and relieve Mr. Johnson, which had already been done. The preliminary report of Mr. Johnson, upon the condition of the Union bank had not reached the controller at noon, but Mr. Eckels said he had no doubt of the truth of the statement sent out last night from New Orleans that two sets of books had been kept, and that a discrepancy of at least $600,000 exists between them. Ex-Deputy Controller Tucker has been appointed receiver of the Mutual National Bank, which closed its doors yesterday, and he was expected to take charge today. Acting under the general instructions given them, the receivers of the several failed national banks at New Orleans took possession of all the property found in the vaults of the institutions. Among these were a number of boxes containing securities and other papers of depositors, and others left with the banks for safe keeping. Comptroller Eckels to-day wired instructions to the receivers to deliver the boxes to all owners who are not indebted to the banks, and to allow the owners to remove the papers not relating to their transactions with the bank, or which could not be used in settling them. Mr. Eckels explained that it was not only not the wish of the department to interfere with or embarrass the business men of the city in any way by the management of the receivers, but on the other hand, to facilitate and help them as much as possible. In order to aid as greatly as possible in restoring confidence to the people of New Orleans in their financial institutions, the treasury department had sent by telegraph and express to the subtreasury in that city within the past two days, $1,350,000, to be used in meeting sugar bounty claims and other demands upon the government. Up to the hour of closing the department this afternoon, Comptroller Eckels had received no report from the agents and employes of the bureau in charge of the failed banks.
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SYNDICATE OF ROBBERS Seven Persons In the New Orleans Steal of $602,000. CONFESSIONS HAVE BEEN MADE. Two Clerks of the Union National, Colcomb and Leone, Did the Work Inside. Money Spent In Luxurious Living and Speculation-Arrests to Be Made. NEW ORLEANS, Sept. 14.-There is only one more secret to come out in the wreckIng of the Union National bank and the bank panic which raged here last week, and it is announced that it will be disclosed within the next 24 hours. That is the names of the confederates, the men on the outside who drew out and appropriated the $602,000 of the bank's money. Colcomb and Leone, the bookkeepers, cooked the accounts so as to keep the bank always in debt to these confederates. The bank was robbed by a syndicate composed of seven persons, two on the inside of the bank and five on the outside. The whole transaction was businesslike and systematic, including an agreement as to the amount to be drawn out or stolen each day and the division of the funds. Colcomb, whose lack of nerve was shown by his suicide the moment suspicion pointed to him, was the organizer of the project and its director. It is reported that a confession has been made: that three members of the syndicate have been named, and that the only reason their names are not now made public is to prevent any escape, as some of them are out of town. The money went mainly in riotous living, the balance on speculation, with the hope of recovering the amount stolen. In the big cotton speculation last year when cotton went up so high the syndicate was ahead of the game. The sadden collapse of the market prevented it from making good the bank's money and rendered a new raid necessary. The bank has been plundered more heavily than ever since. The outside members of the syndicate are said to lie high livers. Not so Colcomb and Leone; they could not be so, for they were kept all the day at their desks working away to cover up the crookedness in their books. Money Spent In Luxurious Living. They had little time for a spree. Colcomb spent most of his share of the swag on his family. He lived most luxuriously, had ten servants and a housekeeper to relieve his wife of the trouble of domestic affairs, a rather large household for a clerk on a salary of $150 a month. He had evidently anticipated that the defalcation would come out sooner or later and had determined on suicide when 18 did, for he carried the poison on his person. to be used at a moment's notice. He had many friends, and they all speak of him as generous and brave. To commit suicide is the only thing a gentleman could do under the circumstances, they say. Colcomb was interviewed on Thursday night about the bank's condition. He was calm and collected then and apparently in the best of humor, although it was only a few hours before his death. and he had then evidently determined on suicide. He did not tell his family of his intention, and it was not until several hours later that he took the poison and was discovered in an insensible condition. Once or twice in the next 36 he rrs he opened his eyes and looked argePPine room, but he neither spoke nos seemed to know any one. Colcomb's death renders the work of investigating the defalcation very difflcult, and United States Bank Examiner Escott doubts whether it will ever be pos. sible to know all the details. The receivers of the Bank of Commerce and American National bank will take possession of them today. The other two closed banks, the Mutual National and Union National, still remain in the hands of the United States examiners. It is thought that the panic is over. United States Bank Examiner Escott completed his first trial balance of the Union National bank and found the amount stolen to be $602,687.07. This is subject to an increase when all the accounts are carefully examined.
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Another New Orleans Bank Failure. NEW ORLEANS, La., Sept. 12.-The third bank failure here in a month occurred to-day when the Mutual National closed its doors. The general feeling of distrust caused a quiet but continued run on the bank for the past two weeks. It received aid from the clearing house, but was unable to continue after the rush of yesterday.
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THROUGHOUT LOUISIANA. The Bayou Goula Tragedy. Calimia Tomasso, the alleged accomplice of Rocco Bunara, who is charged with the distardly murder of Mrs. Landry at Bayon Goula, some weeks ago, and the simultaneous wounding of her foster-daughter, Miss Madeline Hebert, is safe in the parish jail in Plaqemine Tomasso was captured in Gretna some days ago, and on receipt of the information from the Gretna authorities that the prisoner was behind the bars, Sheriff Brown of Iberville parish sent Deputy Sheriff Gervais Petit to take the Italian to Plaquemine. The prisoner was taken from the jailhouse in Gretna by the deputy, and the start for Plaquemine was made. Tomasso shuddered when the handcuffs were placed on him, and stated that he would go in absolute peace if the cuffs were not used. But the deputy said that it was a matter of precaution, and, with a protest, Tomasso submitted. During the trip the prisoner said that he had done nothing, and he felt that it was wrong to jail an innocent man, yet he felt sure that he would escape the charge in a short time. In relation to the murder he said that he was not with Rocco that night, nor does he remember whether his fellow-prisoner was at the house the next morning He said he went to Mrs. Landry's place and saw her dead body, as well as the wounded o girl, and he himself condemned the job n as a most brutal one. Tomasso said that he would give anything if he a could name the murderers, or give d anything that would lead to their e identity and capture. As for Rocco . speaking to him, he said that not once has the other accused mentioned the a the crime to him. t "Yes, you arrest the innocent, but the guilty men are out," said he. y Another New Orleans Bank Failure. The Mutual national bank New Or leans has closed its doors. The effect e of this bank's suspension had been dis. Ncounted, as it was well known to be in e a bad way. Shortlyafter the American e national bank failed, a run was made on y the Mutual, and the collapse of the bank n at that time appeared inevitable. The president states that a steady drain has been maintained by depositors checking out their money. The e unexpected failure of the Union national bank aroused the suspicions of r. the depositors, and another rush was d made on the Mutual. The clearing house e banks had on the first occasion ad le vanced the Mutual $100,000, a little y more than $17,000 of which had been rs repaid. The Mutual tendered the is clearinghouse another lot of collater de als, and asked for assistance to the a reaused, and the suspension of
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THE NEW ORLEANS BANK FAILURES. The failure of four National Banks within a short time in New Orleans, to-wit: the American, Mutual, Union and Bank of Comшегсе, has alarmed the people throughout Eouisiana. The causes assigned for the-failure of two of them are gross mismanagement, and criminal conduct on the part of the officers in charge.. It is said that in China when a bank fails the law is to cut off the head of the man who is responsible for the management of the bank, and more than a thousand years have passed since one has failed in "The Flowery Kingdom." Every one thought when the $5,000,000 of sugar bounty money was paid into the vaults of the banks it would make them safe and sound, and nothing can make up for the criminal course pursued by the officers in charge of those institutions. A bank failed in Glasgow, Scotland, some years ago, the effects of which were felt far and wide and much distress and poverty was entailed upon the depositors on account of its failure. The law took hold of this matter, and every director, no matter how High his station in life, was held to strict accountability for the mismanagement of the Bank. But in this country it is unfortunate the case that when a man has money, power and influence through the ability of his law yers and influence of his friends,- no matter how guilty, he almost in every instance goes unwhipped of justice- How far the officers of these New Orleans institutions will be held accountable to the law for their shortcomings remaine to be seen- The truest test of a high covilization is the manthem enfureed
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Bank Receiver Appointed. The controller of the currency has appointed William E. Huger of New Orleans receiver of the Mutual National Bank of New Orleans.
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NEWS OF THE FAILED BANKS Washington Institution Closes With a Depositors-Pa1d-in-Fuli Notice, Olympia, Wash., Jan. 27.-The following notice was this morning posted on the door of the First National bank as the first announcement of its suspension: "Owing to unexpected heavy withdrawals of deposits, this bank is compelled to suspend until we can realize on our assets. Depositors will not lose a dollar. "A. A. PHILLIPS, President." Mr. Phillips stated that the immediate cause of the suspension was the withdrawal by the state treasurer of $35,000 of state money. This frightened other depositors, who made a run on the bank, forcing it to close its doors. The state deposits were withdrawn on January 1. The liabilities of the bank are $100,000, $75,000 being individual deposits of residents of this town and county. The assests are stated to be $226,000, a large amount of which can be realized on very soon. Youngstown, O., Jan. 27.-It is estimated today that at least 100 people living between East Lewiston and Columbiana will lose sums ranging from $500 to $20,000 each through the failure of the Ohio Lumber and Mining company, which went under about a month ago, carrying with it the Easterly bank at Columbiana. This company, composed of members of the Mennonites, a religious sect, was incorporated eight years ago, with a capital stock of $50,000. The company bought 24,000 acres of fortst land in Virginia with the idea of making and selling railroad ties, but things went from bad to worse until a crash came, and it comes out that this was the strain that broke the Easterly bank last month. Cincinnati, O., Jan. 27.-The probability of a clash between the state and national authorities over the receivership of the First National bank of Newport seems now to be remote. Judge Helm is away in Washington, as are also Receiver Wilshire and Commissioner Hodge, who was to have been appointed receiver by Judge Helm. Itnow appears that the course proposed by Judge Helm will not be followed, and that there will be no interference/with the appointment of Wilshire. made by Comptroller Eckles. Washington, Jan. 27.-The Merchants' and Planters' National bank, of Bryan, Texas, which suspended payment December 23, 1896, having complied with the conditions imposed by the comptroller of the currency and its capital stock being now unimpaired, has been permitted to re-open its doors for business. Washington, Jan. 27.-The First National bank of Holidaysburg, Pa., which suspended payment December 14, 1896, having complied with the conditions imposed by the comptroller of the currency and its capital stock being now unimpaired, has been permitted to re-open its doors for business. Washington, Jan. 27.-The comptroller of the currency has appointed William E. Hughes of New Orleans receiver of the Mutual National bank of New Orleans.
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Dan Stuart has admitted that the attle ground of the Corbett-Fitzsimnons mill is to be in Nevada. Oranament, Typhoon and Dr. Cutett are quoted at 6 to 1 in a winter ook for the Kentucky derby. The senate by a vote of 41 to 15, has confirmed W.S. Foreman, of Illinois, internal revenue commissioner. Eleven men were severely burned, fatally, by an explosion in a coal mine at Foster, Ia., Wednesday night. According to official reports, there have been 4,395 cases of plague at Bombay, and 3,275 deaths from that disease. Building Inspector John R. Gillman has been arrested in connection with the Minneapolis, Minn., boodling scandal. Mrs. J. L. Flood, wife of the well known California millionaire, died in San Francisco Wednesday night of pneumonia. John P. Jones was re-elected to the senate from Nevada Tuesday. The vote in the assembly stood: Jones, 28; McMillan, 2. The following postoffices have been established; Indiana-Sharon, Jasper county; Tennessee-Compton, Rutherford county. Fire in the malt house of Overman & Schoeder at Cincinnati early Thursday morning did damage aggregating nearly $200,000. Jack Glasscock led the batters, Arthur Twineham the catchers and Bill Hassamear the second basemen in the Western league last season. The comptroller of the currency has appointed William F. Huger of New Orleans, receiver of the Mutual National bank of New Orleans. The senate has confirmed the ap pointment of William C. McCreery to be collector of internal revenue for the First district of Missouri. A movement is on foot to postpone the February term of the district court in Douglas county, Kas., until the contest between Riggs and Smart is settled. C. C. Merrill of Los Angeles, Cal. has secured the contract for putting in a sewer system in the City of Mex ico. The contract will amount to $3,000,000. The Nebraska senate has adopted : resolution directing Senator Thursto to vote for any measure providing fo the free coinage of silver at the rati of 16 to 1.