7741. Union Bank (New Orleans, LA)

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THE NEW ORLEANS BANKS. 4 Very Rotten State of Affairs Developed. [New Orleans Special (March 20) to Chicago Times.] Several days ago the attention of the Times correspondent was attracted to the statement of the Southern bank, wherein assets given at $672,728.30 were found by the quotations of that day to be worth but $273,669.12, and that the bank was short $429,256. The Times man at once called the attention of Mr. Thomas Layton, admitting that the analysis of statement was correct, and that its publication would RUIN THE BANK, asked for delay to straighten its affairs, at the same time exhibiting a letter from the London Joint Stock bank which prompted an early remittance of $30 a share of the stock it had. The condition of the bank was also known to Messrs. Bradish Johnson and John T. Moore, two of the directors, both of whom were made cognizant of the facts, and all three pledged their faith that if public attention was not attracted to the true condition of affairs, the depositors, to whom $628,869 was due, would be paid. These same parties, by an understanding with C. E. Girardy, DECLARED THE BANK INSOLVENT under act 166, of 1855. C. E. Girardy presenting a check, which was protested, the sheriff who accompanied him seized the bank and read an order from the Fourth district court declaring Thomas Layton, John T. Moore and C. E. Girardy receivers. This had the effect of placing the principal officers in possession and depriving the depositors of all recourse. A deposit of $2,900 was received at the moment the bank closed its doors Monday evening, never to open again for business. It is estimated that $700,000 is the full loss involved, and it is known that the bank has existed for years upon a nominal capital. ANOTHER COLLAPSE. The suspension of the Mechanics' & Traders' bank, which occurred on Tuesday, occurred by an identical process. Deposits were received up to noon, when suddenly the sheriff appeared with a citation, answer and order of court containing the appointments of G. Lanaux, J. A. Blaffer and A. Lehman receivers, all on the same sheet of paper, and, with the exception of the signatures, in the same handwriting. Here an over-valuation of $238,000 is apparent in the statement as assets, and the actual deficit is probably double the amount. Another crash following in such quick succession CREATED A PANIC, and there was a heavy run on the Canal, Louisiana State, Germania, Union and People's banks. In the latter institution $500,000 was drawn out on Tuesday. At a meeting of the funding board S. H. Kennedy presented a resolution of the board of directors declining to any longer pay the past due State coupons. The board failed to withdraw the $374,000 of State funds he has on deposit. During the evening THE CLEARING HOUSE passed a resolution declaring that until March 29th no depositor can draw more than $200 in one day, and that all other drafts are payable in certified checks. It is asserted that but for this resolution the Union, State National and German banks would have failed to-day. This morning certified checks were selling at 1 per cent. discount, and it is apprehended that they will be lower, in consequence of the number of sight drafts from the west for much larger amounts than the limit allowed. Among the more intelligent financiers this is regarded as the forerunner of crash, which will swallow up every bank out of line. MEETING OF DEPOSITORS. At a meeting of the depositors of the broken New Orleans Savings bank to-night, the committee of experts reported the total liabilities to be $1,432,000; assets, $817,044, with a deficit of $614,955. The law incorporating this bank declares it a felony for any trustee to use the means of the institution for any purpose, but notwithstanding that fact, David Urquhart, president of the board, loaned $90,000 to a concern in which he is a partner, and nearly every trustee is heavily indebted. No prosecution is even hinted. AN EXPLANATION of the frightful rottenness and the great apprehension which exists can only be made in one way. During the spring of 1877, $22,000,000 accumulated in the banks in consequence of an utter lack of confidence produced by the Presidential controversy. When Nicholls was installed this large sum was used for speculating in State consols. The banks carried the bonds on margins, and when bonds reached 93 New York and Amsterdam unloaded to the extent of $10,000,000. The margins by which these bonds floated were swept out of existence when THE STATE DEFAULTED upon her interest. The bulk of the State debt has, by the course of depreciation, been thrown back upon the banks and insurance offices of the city, and the threatened repudiation, which would deprive them of the greater portion of their capital, has created this feeling of uncertainty. The suspension ordered last night may be prolonged, but it is believed sufficient money can be raised for the ordinary movement of tlade. The disaster is attributed to the IMBECILITY OF FRANCIS T. NICHOLLS, who was informed shortly after his inauguration of the exact status of the State debt, and it is held he was urged to reanimate confidence and restored the bonds to European bondholders by a vigorous financial policy, but the gentleman who gave him the information and made a suggestion which would have supplied to commerce ample capital was politely told to mind his own business. Want His Name Samuel But Not Tilden. [St. Charles (Minn.) Times-Dem.] The Winona Herald raises at the head of its editorial columns the following: For President in 1880, Samuel J. Tilden. Subject to the decision of the National Democratic convention. Our friend Whipple of the Herald is generally pretty clear headed, and in his political predictions is always more than half right. In the above he is about two-thirds right, the Samuel J. being correct, but the Tilden he could better have written Randall. We make no prediction, nor do not wish to be understood as stating any preference for a Presidential candidate at this early dav