7852. Central National Bank (Boston, MA)

View Charter #2103 on SPMC

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
2103
Charter Number
2103
Start Date
November 19, 1881
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
0767641c

Response Measures

Accommodated withdrawals, Capital injected, Full suspension, Books examined

Other: Stockholders assessed to provide capital; clearing house support and directors consulted.

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1902-11-13
Date receivership terminated
1906-10-20
OCC cause of failure
Excessive lending
Share of assets assessed as good
68.8%
Share of assets assessed as doubtful
24.6%
Share of assets assessed as worthless
6.6%

Description

Multiple articles report a heavy run on Central National Bank on Nov 19, 1881; the bank stopped paying checks for about two hours (temporary suspension) and resumed payment the same day after assistance/consultation. The run was triggered by the suspension/failure of the Pacific National Bank and connections (advances on a broker Weeks), so cause classified as local_banks.

Events (5)
1. April 30, 1873 Chartered
Source
historical_nic
2. November 19, 1881 Reopening
Newspaper Excerpt
The Central National Bank, which stopped payment at 11:30 a. m., resumed payment at 1:30 p. m. This has inspired a marked feeling of confidence, and there is a generally expressed opinion that the worst is over.
Source
newspapers
3. November 19, 1881 Run
Cause
Local Banks
Cause Details
Run triggered by the suspension/failure of the Pacific National Bank and the bank's rediscounts/advances tied to that bank and broker Theodore Weeks; depositors drew funds fearing contagion.
Measures
Paid out large sums (reported $450,000); directors consulted; clearing-house/other Boston banks provided assistance; temporary stoppage to consult and examine accounts.
Newspaper Excerpt
A heavy run upon the Central National Bank was begun by depositors when the doors were opened to-day. This bank promptly paid over $450,000...the run upon it, however, was steadily maintained, and its banking rooms were crowded all morning.
Source
newspapers
4. November 19, 1881 Suspension
Cause
Local Banks
Cause Details
Suspension was precautionary and a result of heavy withdrawals and exposures related to the Pacific National Bank's failure and advances to broker Weeks; bank examiner consulted and directors reviewed accounts.
Newspaper Excerpt
At 11:30 a. m. the Central National Bank stopped paying checks. They do not wish it to be understood as a permanent suspension, but a temporary stoppage for the purpose of consultation among the directors...At the clearing house to-day the Central Bank was compelled to pay $400,000.
Source
newspapers
5. November 13, 1902 Receivership
Source
historical_nic

Newspaper Articles (19)
1. November 19, 1881 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 19, 1881

Click image to open full size in new tab

Article Text

THE STATE OF TRADE. THE LATEST TELEGRAPHIC REPORTS of ic of the Condition of the Markets at the Leading is Trade centers of the Country-The Rullag Prices for the Principal Staples-Flandcial and Commercial Affairs. NEW YORK. November 18.-MONEY-686 per cent per annum, 1.32 per cent per diem, closing at 6 per cent. Prime mercantile paper 6a7 per cent. e Sterling Exchange bankers bills steady at $4 30% e demand $181% Dry goods imports for the week $10,573,710. GOVERNMENTS-Unchang except for extended e 6s and coupon is, which declined 1/4 per cent. , U.S. 65 extended 1013 Lehigh & Wilkes 110% U.S.5s, extended 102 Sx. City firsta 10916 113% U. Pacific bondaists 117 41/8 coupons, 8, is, coupons 116) U.P. Land Grants 11316 130 Pacific 6s of '95 U. P. 8. F. Bonds 123 115% Texas Pacific I'd Central Pacific, 1st Krie seconds 1011 Tex. Pac. R.G. Div 901/2 RAILROAD Bonds-Irregular, but in the main weak and lower. 0 STATE SECURITIES-Moderately active. 36 Louisiana Consols. 68% Virginia 6s Missouri 6s 110% Virginia consuls, ex 1 10912 St. Joseph tra mat. coupons ..7916 73% Tennesice 6s 0 Virginia deferred 118% Tennemee 6s. new 73% STOCKS peculation was again to-day rather inactive, and the market was characterized by a feverish tone. At the opening prices were Irregular, although in the main, a fraction higher than yetterlay's closing figure. but before long a decline of to 2 per cent took place, the latter in Indiana, Bloomington & Western This was followed by an advance of 1/4 to 21/6 per cent, which was most marked in Manhattan Elevated. Indiana Blooming ton & Western and Houston & Texas. Towards midday speculation again became heavy, and prices fell off 182 per cent, Chicago, Burlington & Quincy and Missouri Pacific preferred leading the downward movement. Subsequently there was recovery of 1/683/6 per cent. but during the afternoon news from Boston regarding the bank trouble there caused n pressure to sell, which caused a steady decline until near the close, prices falling off per cent, the latter for Bos ton Air Line preferred: Chicago, Burlington & Quincy, Reading, Metropolitan Elevated, Missuri Pactice, Western Union and Indianapolis, Bloom ington & Westean being also notably weak. In the final sales some shares recovered a fraction, but the market closed feverish. Transactions, 345,000 shares. The Commercial Bulletin says the market early in the day wasagitated by rumors of bank failures In Boston. These were ut. first believed sensational and simply created an uneasy feeling. It was not until afternoon that it was certainly known that one bank failure had occurred, and that another bank had been brought to such a condition that it askept open only by the assistance of the associate ed banks of that city. The bank which suspended was the Pacific National, with n capital of $1,000, 000, of which about $800,000 had been paid in. This bank kept open to pay small checks until after one o'clock and then closed. In its suspension it cleav ed through the Ellot Bank of Boston. The Central National was the other bank in trouble, but this was carried through by the clearing house association. of which it was a member. According to the news which reached here both banks became involved by reason of advances on mining stocks, Silver Islet being the principal one, and low priced nailroad shares, which were being carried by a speculator named Weeks. The tendency of this disturbance in Boston will be to draw money from here. Already large amounts of stocks owned in Boston but having n market here have been thrown on this market, and the result was seen in the declining prices at our Exchange. In the last hours our entire stock market was weak, and prices declined 1/m per cent lower than yesterday, or outside of the Boston Air Line, 3% per cent. At times, when the market was not under the influence of this Boston news, the Vanderbilt stocks werestrong, They were active throughout, and there is still inuch diversity of opinion on the point as to whether B all this manipulation means that Vanderbilt is buy. ing all the stocks preparatory to closing up the rail road war, -

2. November 19, 1881 Lancaster Daily Intelligencer Lancaster, PA
Article from Lancaster Daily Intelligencer, November 19, 1881

Click image to open full size in new tab

Article Text

ANOTHER EMBARRASSED BANK. Suspension that is Claimed to be Only Temporary. BOSTON, Nov.18.-At 11:40 a. m. Central national bank stopped paying checks. They do not wish it to be understood as a permanent suspension, but a temporary stoppage for the purpose of consultation among the directors as to the proper course to pursne. At the clearing house to-day the Central bank was compelled to pay 8400,000.

3. November 19, 1881 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, November 19, 1881

Click image to open full size in new tab

Article Text

The Boston Bank Trouble, BESTON, Mass., Nov. 19.-At 11 30 3. in. the Central National Bank stopped paying checks. They do not wish it to be understood 8; 8 permannet suspension, Lut is temporary stoppage, for the purpose of consultation among the directors BS to the proper course to Bureus At the clearing house today the Central Bank was competies to pay $100,000. [A later citpatch saye the bank has again resumed payment I

4. November 19, 1881 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 19, 1881

Click image to open full size in new tab

Article Text

The Troubled Bank. New York, 28.-The Boston bank which suspended to-day, was the Pacific National, with a capital of $1,000,000, of which about $800,000 had been paid in. This bank kept open to pay small checks until after 1, and then closed in suspension. It was cleared through the Eliott Bank of Boeton. The Central National was the other bank in trouble, but thie bank was carried through by the Clearing House Association of which it was a member. According to the news both banks became involved by reason of advances on mining stock, Silver Islet the principal one, and low priced railroad shares, which were being carried by a speculator named Wesks. The tendency of this dis turbance in Boston will be to draw money from here. Already large amounts of stocks are owned in Bos ton, but having a market here have been thrown on this market and the result was seen in the declining prices.

5. November 20, 1881 The Dallas Daily Herald Dallas, TX
Article from The Dallas Daily Herald, November 20, 1881

Click image to open full size in new tab

Article Text

Bank Stoppage. BOSTON, November 19.-At 11:30 a. m. the Central National Bank stopped paying. At the bank they don't wish it understood as a permanent suspension, but a temporary stoppage for the purpose of consultation among the directors as to the proper course to pursue. At the clearing house to-day the Central Bank was compelled to pay $400.000, and there was great apprehension on State street this morning until after the Clearing-house meeting announcement that all loans between banks had been promptly paid, and that the rate had not materially advanced. greatly allaved the general anxiety. The Central Bank. which stopped payment at 11:30 this morning, at 1:30 resumed payment and the resumption of payment by the Central Bank has inspired a marked feeling of confidence. here and it is the generally expressed opinion that the worst is over.

6. November 20, 1881 New-York Tribune New York, NY
Article from New-York Tribune, November 20, 1881

Click image to open full size in new tab

Article Text

BOSTON BANK TROUBLES. LOOSE MANAGEMENT AT THE PACIFIC. WEEKS OWES $1,260,000 TO THE PACIFIC BANKTHE CENTRAL NATIONAL RESUMES BUSINESS AFTER A BRIEF SUSPENSION-CONFIDENCE RESTORED HERE. The affairs of the Pacific National Bank of Boston were placed yesterday in the hands of Colonel Needham, the Bank Examiner, and a committee of the directors. Weeks's indebtedness turns out to be $1,260,000. The president says he made no entry of Weeks's transactions, but "kept it all in his head." The Central Bank suspended for two hours yesterday. It paid out $450,000 to meet the claims of other banks. In this city there was some alarm, but confidence was subsequently restored.

7. November 20, 1881 New-York Tribune New York, NY
Article from New-York Tribune, November 20, 1881

Click image to open full size in new tab

Article Text

CARRIED IN HIS HEAD. Examiner Needham says it was impossible for any director or official of the bank to have learned, by examination of the books, that the bank had been placed in a perilous condition. as the president concealed the transactions from every one. He had made no record or entry of business with Weeks, but 'carried it all in his head : and it was only when the fact stared him in the face that he had exhausted every dollar of the depositors' money. and had none on hand to meet the ordinary drafts of customers, that he made known to the directors the ruined condition of the bank. A RUN ON THE CENTRAL NATIONAL. ITS DOORS CLOSED FOR TWO HOURS-ITS DEBIS TO OTHER BANKS PAID PROMPTLY. BOSTON, Nov. 19.-A heavy run upon the Central National Bank was begun by depositors when the doors were opened to-day. This bank promptly paid over $450,000, the amount of the balance due other banks. The run upon it. however, was steadily maintained, and its banking rooms were crowded all morning. The officers announced that the bank would pay every dollar in full, and checks ere cashed as fast as presented up to 11:30 a. in. At that hour the paying teller stopped cashing checks. and the directors went into consultation as of action. It was simply stated were the to that the they best course considering situation, looking over the balances, and that business would be resumed in the ordinary way in a brief period. Based upon these grounds, reports of the suspension of the bank flew all over the city, quickly swelling the crowd of depositors with many other anxious inquirers. The Central National Bank, which stopped payment at 11:30 a. m., regumed payment at 1:30 p. m. This has inspired a marked feeling of confidence, and there is a generally expressed opinion that the worst is over. The following will show how the Central National Bank became involved The bank, though doing a comparatively small business, has always had an excellent reputation in New-England, and its credit has been of the best. Its Its president is Charles J. Bishop. capital stock, all paid up, is $500,000. and its New-York correspondents are the First National and the National Park Banks. In its last statement one item of its resources was $435,185 36 "due from other National Banks." So far as can be learned it appears that a good portion of this sum wasmoney due on collateral rediscounted for the Pacific Bank. The bulk of this amount was probably still due them yesterday when the Pacific Bank's suspension was announced; and the fear the and not be undoubtedly led, in a to the 'scare" of thismorning. As entertained would paid by depositors makers much others large of of thispaper measure, that it, in it 18 weil indorsed, and as the many instances, are good for every dollar of their obligations, it would seem that the fears were, in part at least, groundless. Undoubtedly some of Weeks' collateral is among the rest, and to that amount only is there the least danger. That even is very small when it is considered that the creditors of the Pacific Bank are in no way likely to lose anything, as has been stated on good authority to-night. SOME OF WEEKS'S OPERATIONS. It has been a common practice with Weeks to present the time certificates of deposits given to the Pacific Bank on his for a consideration, Central him by Bank, and, collateral obtain at the in exchange a Central Bank certificate of deposit payable on the following day. With this, and by paying a very high rate, he would get on the same day a gold certificate which he would take to the Eliot Bank and there deposit to meet a of the next day. This practice involved the of a double rate of heavy check payment interest of money. for the sake of gaining one day's use The result of this and other things has been the collapse of Mr. Weeks, the refusal of the Pacific Bank's checks,and the consequent involving of the Central Bank. Although this morning, for a few moments, the

8. November 20, 1881 Daily Los Angeles Herald Los Angeles, CA
Article from Daily Los Angeles Herald, November 20, 1881

Click image to open full size in new tab

Article Text

could gain admission. To avoid the otherwise inevitable seramble found necessary of admission, tickets it has been and to to issue only enticket holders are permitted ter. the doore opened, and in a every few At 9:30 minutes seat was of the octhe larger proportion being ladies. at 9 o'clock, arrived spectators cupied, and Guiteau without the of the crowd, was part particular demonstration taken on where at to the prisonet's room, breakfast once he ate his and expressed the prohimself well satisfied with gress of the case. Scoville was questioned in relaGuiteau's tion counsel, to Judge Magruder, alleged of Mary- new not stated that was of any tender aware land, and he of He services had from Judge Magruder. several to him, yers, received strangers offers and from mistake feared lawhe might make a greater by taking, at this late stage of the trial, counsel unknown to him He than by proceeding alone. does not expect other assistance than Robinson. The Court opened without incident and Geo. C. Maynard, the electrician, was put on the stand and testified to loaning Guiteau ten dollars at one time and fifteen at another. Guiteau protested against this line of evidence. He didn't think it anybody's business whether he owned twenty-five dollars or some one owed him. "Maynard is a good fellow and Iowehim twentyfive dollars." The foilowing witnesses were examined up to the adjournment: George C. Maynard, J. M. Burrard, John O'Meary, Gen. Swain, Col. A. S. Rockwell and Dr. Bliss. During the examination of the witnesses, Guiteau, notwithstandefforte of the officers of the to Court, ing the continued contradict and make and interrupt the witnesses, himself in many ways conepieuous and disagreeable. -aspended Payments. BOSTON, Nov. 19.-At 11:30 the Central National Bank stopped paying checks. The officers say it is a temporary stoppage for the purpose of consultation among the directors as to the proper course to pursue at the Clearing House today. The Central Bank is compelled to pay $400,000. The Hoston Bank Tambles. NEW YORK, Nov. 18.-The Bos. which suspended to-day was Pacific a ton the bank National, dollars, with of capital of one million which about eight hundred thousand dollars had been paid in. This bank kept open until after one, and then closed in suspension. It cleared through the Elliot Bank of Boston. The Central National was the other bank in trouble, but this was carried through by the Clearing-house Association, of which it was a member. The Execution of 14 Noted Murderer. Ark., 19.LITTLE Rock, executed Nov. at Boge Jackson was county, for the murder day, Hamburg, Ashley of Ben Jordan, yester- noted both colored. Jackson was a desperado, having committed two or three murders previous to the one for which he was executed. The Valican and England. ROME, Nov. 18-It is stated that the Pope will consult the Bishops of Britain and reto the gard Great question Ireland of the in reestablishment of diplomatic relatiols. Deporting Criminals 10 the United mentes. LIESTEL, Switzerland, Nov. 19. -The authorities have deported to the United States a confirmed criminal named Dunkel. Consul Mason protested, and will bring the matter to the attention of the United States Government. A Count Assassinated. PARIS, Nov. 18.-The Count of was on urday near his Logono assassinated plantation at Sat- S&D Rafael No clue to the murderera.

9. November 20, 1881 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 20, 1881

Click image to open full size in new tab

Article Text

Closing of a Boston Bank. BOSTON, November 19.-The Pacific National Bank closed its doors yesterday. From its inception it has labored under disadvantages, and has never been a member of the clearing-house. A catastrophe has been impending since last January, when the bank began to carry O. C. Weeks, a stock broker, who became heavily indebted to the bank. BOSTON, November 19.-Theodore C. Weeks, advances to whom are said to have caused the failure of the Pactic National Bank, is well known upon the street as a shrewd and heavy operator in stocks, but being unable to procure funds to secure himself against an unexpected decline in stocks of which he was a large holder he has suffered a financial defeat. A few months ago he was placed in a shallar position by the collapse of the Boston, Hartford and Eric Londs, in which he was largely interested, but after making a satisfactory arrangement with his creditors he again appeared on the street, and it is understood that his losses were made good by a subsequentadvance of the bonds. At 11:30 A. M. the Central National Bank stopped paying checks. They do not wish it to be understood as 2 permanent suspension, but a temporary uppage for the purpose of consultation among the directors as to the proper course to pursue. At the clearing-house to-day the Central Bank was compelled to pay $400,000. There was great apprehension on State street this morning until of the clearinghouse meeting. The announcement that all loans between the banks had been promptly paid and that the rate had not materially advanced greatly allayed the general anxiety. The Central National Bank. which stopped payment at 11:30 A. M., at 1:30 P. M. resumed payment. The resumption of payment by the Central Bank has inspired a marked feeling of confidence, and there is 7 generally expressed opinion that the worst is over.

10. November 21, 1881 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 21, 1881

Click image to open full size in new tab

Article Text

Adjourned. BOSTON BANKS. Another Bank Temporarily Shuts Up Shop. BOSTON, November 19.-The Central Bank has suspended the payment of checks, temporarily, in order to give the Bank Examiner an opportvnity to exanine the accounts. There is no suspicion on his part of anything wrong, but the measure is simply a precautionary one. It was hinted on the street and in Washington dispatches yesterday that the Central had some of the questionable paper, which had passed through the Pacific Bank, and last evening some of the brokers predicted trouble at the Central today. The more conservative financial backers did not share this lack of confidence, however. The Directors, however, resolved to be prepared for any emergency, and opened this morning with over $500,000 in ready cash to meet all demands. The run began as soon as the doors opened, and by 11 o'clock the bank was crowded with depositors. These were all accommodated as fast as they could be at tended without a question or comment. The Bank Examiner, however, thought best to suspend operations of this kind for the moment until a full opportunity for consultation revealed the resources of the Boston banks, and shortly after 11 o'clock payment was stopped. The bankers and directors are in consultation, and have resolved to do all that is necessary to meet the emergency. In the meantimo additional funds are being stored in the vaults of the Central bank preparatory for prompt payment, as soon as the Examiner gives his consent. NEW Yonk, November 10.-Special dis. patches to Bradstreet's any that the suspension of the Pacific National Bank of Boston was caused by the operations of Theodore Weeks, the well-known stock broker, who, about n year ago, was very successful in his operations in Boston, Hartford and Erie stock and bonds, making nt that time about $350,000, which gave him the confidence of a number of prominent banks to carry out his operations in eastern railroad stock to the extent of three or four million dollars. He used n number of the banks-the Pacific to the amount of $700,000. One other bank is said to be interested to the extent of $500,000, and still another for a less amount. The last two are understood to have made arrangements to pull through. It is thought that the Pacific depositors will be paid in full, the loss falling on the stockholders. The bank was never admitted to the Clearing House, but cleared its checks through the Elliott National Bank. One of the directors of the suspended bank, in conversation, said that the cause of the temporary trouble was that a large operator had been allowed to overdraw his account to a large amount. This caused an exhaustion of the cash on hand, but still the necessity for suspension was a surprise. Complete arrangements have been made whereby funds were to be in readiness to meet the checks of depositors, but these arrangements had failed to be carried out promptly enough, and the result was that what would have been a suspension for an hour or two, was noised about until n run was inaugurated, which, for a moment, the bank was unable to meet. No depositor could lose his money, and there was no doubt but the bank would resume business immediately. The only damage would be whatever loss of confidence would result. BOSTON, November 19-3 P. -The Central National Bank has resumed pay ment.

11. November 21, 1881 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 21, 1881

Click image to open full size in new tab

Article Text

THE BANK TROUBLE IN BOSTON. A Run on the Central National. AFFAIRS MORE QUIET. Effect in Wall Street. Nov. 19. There was great appreon State street this after hours. The hension BOSTON, the clearing announcement morning until that all loans between had paid, and was been made promptly Nothing that the there banks had been no material advance. ne. V was made known in to the the and business moved way Pacific, regard in situation its usual at until 11 o'clock, when a run the National was When the doors opened positors. Central after begun heavy by this the upon bank deover $450,000 of due other promptly the balance paid banks. of the maintained, The amount run it, however, was steadily roo ns were crowded and upon its stoppage hour all the the bank morning. After the of an resumed payment. THE EXCITEMENT SUBSIDING. over the Pacific National Bank and the The suspension excitement reported practically embarof the Central Bank has The of no loss be entailed upon subsided. rassment will publicity depositors the fact the that of anxie- the Pacific Bank was sufficient to quell ty which prevailed on Friday, while the amtardy aid, extended to the Central its friends has its The among ple, by though patrons. restored accounts tranquility of by both banks are undergoing careful scrutiny the bank examiners, who will probably report on Monday. for a reorganization is still going and effort to The on, movement every will be the made presiLewis Coleman accept It is not definitely a rewill take nor be dency. have organization Mr. place, decided his that will work. it examiner has If matters as as is to that he a reason until he the finds hope will, completed favorable reorganization there It will take place and the bank will go on. is said that President Benyon favors the proposal to make Mr. Coleman president. THE EFFECT IN NEW YORK. The report of the failure of the Central Bank, right upon the announcement of the crash of the Pacific Bank, created considerable and methods as questionable anxiety include apprehension of banking the bolstering that prevail such in which of certain and large amounts of upon Boston, speculators, capital the mining lending stocks of and railroad stocks of uncertain market value, might not be confined to that city. There was considerable disturbance of loans by reason of the fright, and money on call rose to 1-64 and interest. The market was better during the last hour, and, by heavy of leading the excitement was purchases allayed. Mr. being operators, J. sustained A. Garland, the vice of National of this corressecond Bank president city, which National the is the First Bank pondent of the Central of Boston, said: The latest we have heard is that, by the advice of the bank examiner, the Central National has suspended temporarily until the bank accounts could be thoroughly examined. It looked this morning to us as if the to over would be but I suppose pressure became to great. successful, efforts The Central tide the National it Bank's balance in our bank is not yet exhausted, but, as soon as is. of course we shall out money on It not be for me would stop paying right hands." to its state account. Presi- the amount of its balance in our dent of the Gallatin he did the as a affair, not Tappen regard failure Bank serious said and that its effect would be transient. BOSTON, Nov. 20. It has been learned to day that the entire capital and also a heavy assessment upon the stockholders of the Pacific Bank will be necessary to cover the liabilities. It further appears that,the bank's dealings with Weeks are not by any means the extent of the transactions of the same nature. They have, for instance, been sustaining a large piano manufactursng company. The following is Weeks' method of transacting business: He would deposit to the Pacific his own or another broker's check and receive a certificate of deposit for the amount with the understanding that it should not be returned for payment until a certain numberof days. In this way President Benyon secured the free use of the money for a specified period, (usually from ten to thirty days.) A CARD FROM THE DIRECTORS. We, the directers of the Chntral National Bank, Boston, have causeda examination of its books to be an error found and sinhas and been assets therein, made, and with the not the gle exception of its claims against Pacific National Bank with collateral held to secure the same, will ultimately result in little if any loss to this bank. The bank will be open for business Monday morning, prepared to meet its obligations. Cashier Young's resignation has been demanded, and a new cashier will be on duty Monday morning.

12. November 21, 1881 The Evening Critic Washington, DC
Article from The Evening Critic, November 21, 1881

Click image to open full size in new tab

Article Text

Run on Boston Central Bank. A run was made on the Central National Bank of Boston on Saturday on account of its relations with the suspended Pacific National Bank. After some $70,000 had been drawn out payment was stopped. The directors, however, assured depositors that the bank had ample funds to meet all demands, and confidence has been partially restored. The other Boston banks have come to the assistance of the Central, and it is promised that business will go on as usual. The suspended Pacific National Bank of Boston did not open its doors on Saturday. The broker Weeks, who borrowed its funds, is said to owe the bank not less than $1,000,000.

13. November 21, 1881 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 21, 1881

Click image to open full size in new tab

Article Text

THE Central National Bank of Boston suspended business for a couple of hours on Saturday, but then resuined. Its stockholders have paid a large assessment, enabling it to withstand the run that was made on Saturday. It is believed that the worst trouble in Boston is over. The losses of the Pacific Bank by Weeks' speculation are stated at $1,260,000.

14. November 21, 1881 New-York Tribune New York, NY
Article from New-York Tribune, November 21, 1881

Click image to open full size in new tab

Article Text

BANKS AND BUSINESS. Business during the past week has been much disturbed by the disclosure or apprehension of unsoundness in banks. The Tradesmen's Bank of this city was assailed by rumor early in the week, but was quickly pronounced entirely solvent after an examination by a committee of the Clearing House. Nevertheless rumors of forthcoming disaster continued, and a run on the Newark Savings Bank kept apprehension alive. On Friday the Pacific National Bank of Boston, a comparatively unimportant concern with a highly speculative reputation, closed its doors, and the Central National of the same city, having rediscounted largely for the Pacific, was distrusted on Saturday, and suspended payment for a few hours. These events, though in themselves unimportant, have added fuel to the flame of distrust which the Newark failure kindled. The strong and well managed banks feel that it is unjust to think of them with suspicion because two or three banks have stopped payment. But the popular impression is that there may be other banks, now considered safe, which have become entangled in speculation, and that absolute confidence in reputable directors and official examinations does not seem to be justified by recent events. It is feared by some, too, that the unexpected demands upon the Boston banks may cause a considerable withdrawal of money from this city, though telegrams from that point represent that the disturbance is over. The money market became close on Friday and Saturday, not merely because of these apprehensions, but because it happened that the Treasury was taking some money from the banks. Up to Wednesday night the market had not been much affected, although it had not received expected aid by the operations of the Treasury. From Wednesday the 9th to Wednesday the 16th the Treasury increased its balances $5,000,294, of which $4,000,000 was received from the Mint; but while it took from the banks $1,000,000, their statement of Saturday shows that they lost only $416,200 on the week's averages, 80 that they appear to have received some money from other cities. After Wednesday, however, the Treasury drew about $2,000,000 more from the banks before business closed on Saturday. This drain, coming in place of the reinforcement which many had expected from the sale of bonds on Wednesday, may naturally have caused some disappoint-

15. November 22, 1881 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, November 22, 1881

Click image to open full size in new tab

Article Text

That Boston Bank. Boston, Nov. 21.-No run on the Central national bank to-day and the deposits fully equal the drafts. The directors appointed assistant bank examiner Joseph W. Daily, temporary cashier. The excitement in financial circles has evidently completely subsided.

16. November 22, 1881 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 22, 1881

Click image to open full size in new tab

Article Text

Brief News Items. President Arthur will occupy the White House this week. In many of the pulpits in New York on Sunday Guiteau's crime was the subject of sermons. Rev. A. J. Cantield spoke of cranks and fast-living in America as a source of national peril. Saturday would have completed President Garfield's tiftieth year, had he lived, and it also marked the expiration of two months since his death. Two Boston banks are in trouble. The Pacific National Bank of that city, the bank-examiner says, will require $1,250,000 to resume business. There has been a heavy run upon the Central National Bank. All this is the result of the Newark failure. It looks as if Mahone is strongly in favor of ex-Senator Lewis, the present Lieutenant-Governor elect. He is backed by a large number of the Readjusters, and by the entire Republican party in the State.Washington Capital. Governor Cornell has appointed the Hon. Charles Andrews, of Syracuse, chief judge of the Court of Appeals of the State of New York, to succeed the Hon. Charles J. Folger, who resigned to accept the secretaryship of the treasury. Lieutenant Luke Clarke, retired, United States army, committed suicide Saturday at Bueyrus, Ohio, by throwing himself in front of a locomotive. Mr. Clarke was about thirty-six years of age. He was a native of Lancaster, Ohio, and was an adopted son of the late Thomas Ewing, the father of Mrs. W. T. Sherman. Sunday morning early it was discovered that the corner-stone of St. David's Episcopal church of Scranton, Pa., had been rifled of its contents, and that the gold and silver coins deposited therein had been carried off during the night. The coins were enclosed in a copper box, with papers and records, and included a 85-gold piece, a silver dollar, and other specie. General Mahone said to a newspaper interviewer that the stories that he expected to go into the Cabinet or have the appointment of a member of the Cabinet did not originate with anything he had said. "If the President makes up his Cabinet to suit himself it will suit me. If he should ask my advice, why, of course, I should cheerfully give it." On Sunday evening the body of Mrs. Hannah Steger, wife of Christian Steger, saloon-keeper at the southeast corner of Fourth and Moore streets, Philadelphia, was found lying in the yard attached to his residence with her throat cut from ear to ear. Mrs. Steger was fifty years old, and had no trouble of any kind, but for some time past had been suffering from melancholy. The striking hack-drivers in New York are still determined in their effort to secure a higher rate of wages. To the number of 200 they met Sunday night in the hall at No. 147 west Thirty-second street, where they listened to addresses. They claim to be able to stay out until after the holidays, and also have received offers of assistance from other organizations. Thomas A. McDerman, marshal of Boonville, Mo., shot and killed A. B. Thornton, editor of the Boonville News, a Greenback organ, Saturday afternoon. The News Saturday morning contained an article severely reflecting on McDerman's official acts, together with some personal abuse. McDerman met Thornton on the street late that afternoon and an altercation ensued, during which blows were struck and pistols drawn. McDerman shot Thornton twice-in the side and in the head. The second shot killed him instantly. McDerman gave himself up to the police.

17. November 25, 1881 The Windham County Reformer Battleboro, VT
Article from The Windham County Reformer, November 25, 1881

Click image to open full size in new tab

Article Text

Bank Troubles In Boston. As announced by a brief despatch to the REFORMER last week, the Pacific National Bank suspended Friday. It had a capital of $1,000,000, but that has all been swallowed up, and possibly as much more, in "carrying" Theod ore C. Weeks, a broker and stock gambler, who was allowed to overdraw his account at pleasure. If the stocks in which Weeks is dealing should happen to go up, a portion, and in a remote possibility the whole of this might be saved; otherwise he, the bank, and the stock holders must go down together in irretrievable ruin. Weeks is a man who has failed no less than four times in bis career, and that a bank should trust him to such an extent shows how recklessly men handle other people's money in Boston. Benyon, the president of the bank, appears to have been formerly connected with E. D. Winslow, the forger, and to have once been ruined by his operations. He was "set" up again at the head of the bank by his admiring friends, who evidently thought that because he was incapable of managing his own affairs successfully, he was the proper man to intrust with those of other people. Saturday, there was a good deal of a panic in Boston. The Central National Bank was found to have furnished the Pacific with $800,000 for its wild-cat operations on securities representing only $250,000 at face value. A run on the bank began, and it was obliged to suspend for a few hours. The other bank presidents of the city, however came promptly to the rescue, and furnished $500,000 in cash to set it in operation again. But for this, where the troub'e would have ended, we can only guess. Evidently the other bank presidents were afraid to have the lid lifted off their transactions.

18. November 26, 1881 Democratic Messenger Snow Hill, MD
Article from Democratic Messenger, November 26, 1881

Click image to open full size in new tab

Article Text

NEWS OF THE DAY GENERAL ITEMS died York, John Reilly, from one hundred In New years old, by his clothing Saturday catching burns received his pipe. fire from a spark from Central National Bank of Saturday Boston -The for about two hours difficulty. suspended resumed without any has been and then Pacific Bank of Boston examturned The over to the Government of the Central iner. The suspension excitement in the disasters street, caused as it was great feared that other would follow. The schooner Monsoon, said seventeen to be a craft, which has been is berotten out from Muskegon, Mich., with all on days to have gone down of six. lieved captain and a crew board-her George Law, a well known famous citizen capitalist, and once a died and steamship owner, of New York, Friday night. Albany Evening Journal ten coun- has The returns from all but and Kings received New York (New York maties of showing the following included), Carr, 12,351; Ira Davenport, 5,911; jorities: Russell, 13,296; Seymour, French, 13,338; 12,213, and Maxwell, 791. sued for Bowdoin students have been upSeven injuries inflicted by hazing on freshman. Pacific National Bank of Bos- of has The suspended in consequence whom the ton failure of a stock broker bank the was supporting, and will probably be unable to resume. The New York State canals will be closed on December. bark H. A. Parr, from Liver- on The New York, was abandoned up pool October for 30 and her crew was picked by the Carniola. The Imbecile Asylum near but Colum- every Ohio, was burned Friday, uninone bus, of the 754 inmates escaped jured. full vote of Pennsylvania for is The at the late election State Treasurer the Philadelphia Times Noble, as folgiven by Baily, (Rep.) 265,293; (Ind. Rep. lows 258,387; Wolfe, Wil(Dem.) 19,969; Jackson, (Grbk.) For President 14,946 last son, (Proh.) Garfield 4,512. had 444,70 Hancock, scatyear 407,428; Weaver, 20,668; Dow and tering, 1,986. Forty-three fishermen and seven disbelonging to the Gloucester season of 1881. trict vessels werel during the fishing is rumored in Washington Min- that -It Kilpatrick, the American that if he is General is dead, and also ister to Chili. will be recalled. It is of not he that President Calderon, Chilian Peru, rumored has been arrested by the Admiral Lynch. comet, the seventh of Swift. 1881, has been A new discovered by Professor Kimball's Woollen Mill, at It cost $150,000. Pascoag, Horace R. I., was burned Thursday. fire Thirteen persons perished in a board the Glasgow steamer Solway, Wed on from Bristol to Glasgow, burst on on bound A barrel of naphtha in the nesday. deck and the contents took fire steerage. was a run on the Howard N. J., There Institution at Newark, who Savings bank paid all depositors end of applied but the and had a surplus at the the day of $250,000. that Washington it is reported by At Lincoln will be succeeded Storrs Secretary Beale, that Mr. Emory Gen. General the new Attorney General, Navy, exwill be Secretary of the of the Interior, Senator Longstreet and Chaffee Mr. Chauncey Secretary I. Filley Postmester-General. Willes, who attempted Howard Mr. Jay Gould, waived exto blackmail and was remanded to await amination action of the Grand Jury the ten o'clock Wednesday evening twenty the -At body of Miss a Normal Ellen Kesner, School pupil, with years was found of age, in a suburb of Chicago the head cut off. Buffalo Convention the to Since States the Land League has sent the United home executive $127,835.74 -A sharp earthquake was Cal. experienced Tuesday noon at San Jose, Maretzek has sued Adelina alleged Patti -M. $40,000 damages for an Mexico in 1861. breach for about of contract to sing in Burglard at Youngstown, Jesse Ohio, Bald- blew in the house of and $40, win open and a safe stole between $30,000 000 in gold. J. L. Cabell, President his annual of the Dr. Board of Health, in appeared National that yellow fever United report says locality in the ended, States in only during one the summer just at Key West. FOREIGN ITEMS. Tunis it is said the Sultan French is still In with the Arabs. The wantampering the south are dispersing but the troops in bands of insurgents, yet been dering main body of the Arabs has not attacked. In Ireland Galway, Father has McPhine, been arrested of Athenry, County Hunting is being stopped are in s a n spect. Tipperary and agrarian outrages still rife in Connaught. -A Nihilist newspaper murder at St. of Peters- Presiburg Garfield denounces and the says nothing country. can exdent resort to force in a free Nihilist, cuse a Suhanoff, an alleged is by the police. Lieutenant said to have been secretly executed MarReinforcements are leaving in Tunis, and seat of war Ali seilles 5.000 men for the will be sent to Algeria.

19. November 29, 1881 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, November 29, 1881

Click image to open full size in new tab

Article Text

What are the Examiners for T What is the use of having examiners of the Government for the protection of the public, if such a state of affairs can occur as is shown by the disclosures of the condition of the Pacific and the Central National banks in Boston, following closely upon the explos sion in Newark ! It is an open secret that many of these examiners are incompetent clerks, unskilled in bookkeeping, who are sent out from Washington by favor on a sort of holiday excursion. Baldwin contrived, as cashier, to get away with two millions and a half, which would bave been impossible with any rigid test of the bank's accounts. He called the examiner's work a mere farce, which in no way interfered with his operations. Over two millions are swamped in the Pacific Bank of Boston, consuming the whole capital and an outside million from the stockholders. And the was in and odor, although may institution be said to have carried bad on its business under the cover of another bank in good standing, it was allowed to go on without the scrutiny which the law provides as a security against impotent or corrupt management. The Central Bank was only saved by outside aid. The books are reported to be correct, but the President carried enormous loans "in his head, made without the knowledge of the directors, to a speculator in stocks who not long age had been cornered in a venture very similar to that in which he was upheld by this President, who is reported by the examiner to be "honest." The Comptroller of the Currency, who makes these appointments, ought to be held to strict account for their fitness and integrity by safeguards that would provide against ignorance and collusion. Some of the most glaring failures may be traced directly to the selection of favorites and of relatives for this duty of examination. Banks reported to be unquestionably solvent have been immediately crushed down by a load of transparent fraud. A brotherin-law examiner, who made the report in the notorious case of the German-American Bank in Washington, right under the eye of the Comp6 troller of the Currency, has been profitably employed for years as its receiver, deriving his authority from the same source.