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A Suspended Bank. (Special to the Democrat.] Sr. LOUIS, June 20.-It is stated that the assets of the National Bank of the State of Missouri, recently suspended, are sufficient to pay depositors in full, of which fifty cents on the dollar will be paid very soon.
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The Suspended Missouri Bank. ST. LOUIS, June 20.-It is stated that the deposits in the National Bank of the State of Missouri were yesterday $2,000,000, including $240,000 belonging to the city and $130,000 officially placed by assignees, registers and master in chancery, all secured by bonds. It is claimed that the depositors will receive payment in full. It is said the officers of the bank were examined by the special examiner from the Treasury Department recently, which resulted in the election of new directors, who determined to suspend business. Great: shrinkage in values is one of the causes of the suspension.
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MISSOURI. Financial. ST. LOUIS, June 20. It is stated that deposits in the National Bank of the State of Missouri were yesterday $2,000,000. including $240,000 belonging to this city, and $130,000 officially placed by assignees, registers and master in chancery, all secured by bonus. It is claimed that the depositors will receive payment in full. It is said the affairs of the bank were examined by a special examiner from the treasury department recently, which resulted in the election of new directors who are determined to suspend business. Great shrinkage in values is one of the causes of suspension.
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THE MISSOURI BANK. People Not Much Surprised at Its Explosion Tuesdny---More Trouble Brewing. Special Dispatch to The Tribuna. Sr. Loris, Mo.. June 20.-The suspension of the National Bank of the State of Missouri has been the absorbing topic of discussion In commercial circles to-day. but among bankers there was not evinced a great degree of surprise, as it is alleged by them that they were fully prepared for such an event. It appears that the Missouri Bank has been considered shaky so long that its paper has not been received In the ClearingHouse for several months, other bankers collect. Ing by Immediate presentation of any checks that might come into their hands. All the leading bankers have been Interviewed to-day. and they agree in the assurance that the suspension will not affect any other St. Lonis In. stitution. They claim that the embarrassments of the Missouri Bank have been brought about, not by the general stringency of the times or shrinkage of values, but by the poculiar character of the investments made by the bank-for instance. such as $500,000 In St. Louis bridge stock: nearly $1,000,000 in the Jettles: 0,000 In the Merchants' Exchange Building, etc., stocks commanding a premium at the time of purchase, bnt now comparatively worthless. Several injudicious Investments in real estate were also made. A build. ing and lot purchased at $175,000 two years ago they have vainly endearored to sell, bnt could not get a better offer than $100,0 The bank has gradually accumulated these chips and whetetones nntil It found the greater part of Its capital absorbed In valueless property, making it Impossible to carry on the business any longer. The bridge stock. which they bought when It was quoted at 30 cents premium, la now not worth a cent on the dollar. Very few poor mon or small merchants were depositors at the Bank, and, consequently, there has been no excitement among that class of people, and consequent run on banks where the have money. The deposits, exceeding $2,250,000 were chiefly by the State, the City of St. Louis, various corporations here and thronghout th. State, Assignees in Bankruptcy. Registrare, and by private Individuals of large means who can af. ford to take the matter coolly and wait until the money is realized on sencis to pay deposits. There does not seem to be any doubt that all depositors will finally be paid. It is now said that 50 per cent will be paid in thirty days, and the balance within six months. The Bank Examiner is now preparing a statement which will be ready for publication Satur. day. It is announced to-night that a Receiver has been appointed and willtake charge of the bank's atfairs within a day or two, although none of the bankers. to far as can be ascertained, give evidence of alarm. Bank Examiner Henenstein, who has excellent facilities for knowing whereof he speaks, says there will be some more thunder next week, and explains the Intimation by saying that It will be surprising If certain other banks do not go under in a very brief time. It was ramored to-day that the New York National Bank of Commerce would be compelled to follow in the wake of the Missouri Bank, as it was an equally largo investor in such securities as the St. Louis Bridge and the jettics. The New York Directors of the Missouri Bank are also Directors of the New York bank. The general feeling here is, that If some false roport does not arise to cause a run on the banks by small depositors. there will be no further trouble; but there are, nevertheless, many merchants who fear that there in worse to come. Telegrame have ponred in all day from bankers and basiness men addressed to their correspondente here asking for reliable information on the subject. To the Western Associated Press. New Yonk. June 20.-The National Bank of Commerce of this city. the New York correspond. ent of the suppended National Bank of the State of Mismouri, losen nothing by the suspension, al. though surprised at It.
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MISSOURI'S INTEREST. ST. Louis, June 22, 1877. To allay any fears growing out of reports or intima tions that the suspension of the National Bank of the State of Missouri will prevent the payment ot the July interest on the State bonds it may be stated positively that there will be no default, as ample means will be in New York to meet the interest on the July coupons.
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No Default in Missouri Interest. Sr. Louis, June 99 -- - -To allay any fears growing out the reports or intimations that the suspension of the National Bank of the State of Missouri will prevent the payment of the July interest on the State bonds, it may be stated positively that there will be no default, as ample funds will be in New York to meet the interest on the July coupons.
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The old National Bank of the State of Missouri has concluded to wind up its business. on the ground that reasonable profits cannot be expected from its continuance. The directors wisely acted upon their resolution before the funds of the city of St. Louis, to the amount of three-quarters of a million of dollars. had been placed on deposit there, in accordance with the intention of the municipal Government. Had this money been poreived before the suspension, considerable embarrassment would have been caused. as the amount was to be used for the current expenses of "the city, The deposits of the bank amount to about two millions of dollars. and the depositors will probably be paid in full, though they will have to wait a long time for the assets to be realized upon. The sto kholders will. no doubt, lose the capital of $200,000. and have to make up a deficit The bank is one of the oldest in the West.
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HERE AND THERE. The Abdnetress of Mary Masterson Sentenced to Five Years in the Penitentiary. PHILADELPHIA, June 25.-Fannie Brown, arrested in St. Louis, was brought here on a charge of abducting Mary Masterson, aged ten years. She plead guilty and was sentenced to five years' imprisonment in the penitentiary. Captain Lowe, of the Navy, Crosses to the Other Shore. PHILADELPHIA, Pa., June 26.-Caps tain William M. Lowe, of the United States navy, is dead. Death of Robert Dale Owen. TROY, N. Y., June 25.-A dispatch from Lake George, announces the death of Robert Dale Owen. Receiver of the National Bank of Missouri. ST. LOUIS, June 25.-W. P. Johnstone, of Washington, has been appointed receiver of the National Bank of the state of Missouri.
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Receiver of the National Bank of the State of Missouri. [Special to the Democrat.) ST. LOUIS, June 25. W. P. Johnson, of Washington, has been appointed receiver of the National Bank of the State of Missouri.
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The old National Bank of the State of Missouri has concluded to wind up its business, on the ground that reasonable profits cannot be expected from its continuance. The directors wisely acted upon their resolution before the funds of the city of St. Louis, to the amount of three-quarters of a million of dollars, had been placed on deposit there, in accordance with the intention of themunicipal Government Had this money been received before the suspension, considerable embarrassment would have been caused, as the amount was to be used for the current expenses of the city. The deposits of the bank amount to about two millions of dollars, and the depositors will probably be paid in full, though they will have to wait a long time for the assets to be realized upon. The stockholders will, no doubt. lose the capital of $200,000, and have to make up a deficit. The bank is one of the oldest in the West.
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SUMMARY OF THE GENERAL NEWS. Failure of the Heaviest Bank in St. Louis. It is stated that the deposits in the National Bank of the State of Missouri were $2,009,000. Includ d in these deposits were $240,000 belonging to the city, and $130,000 officially placed by assignees, registers and masters in chancery, all secured by bonds. It is claimed that the depositors will be paid in full, of which fifty cents on the dollar will be paid very soon, the assets of the bank being apply sufficient for this purpose. It is also said the affairs of the bank were examined by a special examiner from the treasury department a few weeks ago which resulted in the election of a board of directors. Four new men were elected, and at the next meeting of the board an examination of the condition of the bank was made to wind up business. Since then no new business has been taken by the bank. Great shrinkage in real estate and other values are the [principal causes of the suspension.
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Suit for a Million and a Half Dollars. Sr. LOUIS, Mo., Feb. 4.-Parties representing the National Bank of Commerce, of New York, entered suit to-day against the National Bank of the State of Missouri for a million and a half dollars. The petitioner recites an agreement entered into Dec. 26, 1866, by the two institutions, whereby the former loaned the latter one million dollars in the form of a continuing loan. Of this amount $40,000, with interest, is still due. It is further claimed that the St. Louis bank is indebted to the New York bank for half a million dollars, for moneys paid on account up to the date of suspension. A third half million is claimed for money lent in the course of banking accommodation to the date of suspension. The State bank is in the hands of a receiver.
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MISSOURI. A Big Bank Suit. St. Louis, Feb. 4.-Parties representing the National Bank of Commerce of New York, entered suit to-day against the National bank of the State of Missouri for $1,500,000. The petitioner recites an agreement entered into December 26th, 1866, by the two institutions, whereby the former loaned the latter a million dollars in the form of a continuing loan. Of this amount four hundred thousand dollars, with interest, is still due. It is further claimed that the St. Louis bank is indebted to the New York bank for half a million dollars for money paid on account up to date of the suspension. The third half million is claimed for money lent in the course of banking accommodation, to date of suspension. The State bank is in the hands of a receiver.
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Business Embarrasments PHILADELPHIA, February 4. - The Hestonville Passenger Railroad Company permitted notes to the value of $20,000 to go to protest. The appointment of a receiver is inevitable The total floating and funded debt is $461,000. CHICAGO, February 4.-Wm. Sturges, well known in railroad circles, filed a voluntary petition in bankruptcy late today. Secured debts $752,500, with securities valued at $141,000; unsecured debts $412,762. He is also liable on bills and accounts to the amount of $35,000. The assets consist of stock in the Crescent Iron Company to the amount of $250,000 and stock in the Leavenworth, Lawrence and Galveston railroad to the amount of $500,000. ST. LOUIS, February 4.-Parties representing the National Bank of Commerce, of New York, entered suit today against the National bank of the State of Missouri, for & million and a half of dollars. The petition recited an agreement entered into Dec. 26, 1866, by the two institutions, whereby the former loaned the latter one million of dollars, in the form of & continuing loan; of this amount, $400,000, with interest, is still due. It is further claimed that the St. Louis bank is indebted to the New York bank $500,000 for moneys paid on its account up to the date of suspension. A third half million is claimed for money lent in the course of banking accommodation to the date of suspension. The State bank is now in the hands of & re. ceiver
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AN INSOLVENT BANK SUED. ST. LOUIS, Mo., Feb. 5, 1878. Parties representing the National Bank of Com. merce, of New York, entered suit to-day against the National Bank of the State of Missouri, for the re. covery of $1,500,000. The petition recites an agreement entered into by the two institutions on the 26th of December, 1862, whereby the first named bank loaned the other $1,000,000, in the form of u continuing loan. or this amount, $400,000 with interest, IS still due. It IS further claimed that the St. Louis blank is indebted to the New York bank 16 the sum of $500,000 for moneys paid ou us account up to the date of its suspension. Another half million dollars 18 claimed for money loaned in the course of banking accommodations to the date of the suspension. The State Bank of Missouri is now in the bands of a receiver.
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General News. Jacobs M. Jacobs, aged one hundred years and two months, died at Oswego, N.Y., Monday evening. He was in the United States Naval service during the war of 1812. In the Ohio House, yesterday, the House joint resolution asking Congress to repeal the resumption act was adopted by a party vote-the democrats voting in the affirmative and the republicans in the negative. The National Bank of Commerce of New York has entered suit against the National Bank of the State of Missouri, at St. Louis, for $1,500,000 loaned and paid on account since 1862. The Missouri institution is in the hands of a receiver. The public school board imbroglio in Allegany county, Md., has been definitely setttled by the resignation of Judge Buchanan, which places the newly-appointed board in power, that board having also the official recognition of the comptroller of the treasury. Dr. Clemence S. Lozier, of New York, has failed, with $112,000 liabilities, of which $110,000 are secured by bond and mortgage on city property; nominal assetts $4,000, real $452. Downer, St. John & Co., drug brokes, New York, have failed with $172,000; assets $66,000.
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A Sult for $1,500,000. ST. LOUIS, Feb. .-Representatives of the National Bank of Dommerce of New York entered suit today against the National Bank of the State of Missouri for the recovery of $1,500,000. The petition recites an agree ment entered into by the two institutions on Dec. 26, 1862. whereby the hrst-named bank loaned the other $1,000,000 in the form or a continuing loan. or this amount $40,000, with interest, is still due. It is turther cisimed that the St. Louis bank is indebted to the New York bank in the sum of $500,000 for moneys paid on its account up to the date of its suspension. Another hall million dollars is claimed for money loaned in the course of banking accominodations to the date or the suspension. The State Bank of Missouri is in the hands of a receiver.
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AN INSOLVENT BANK SUED. ST. LOUIS, Mo., Feb. 5, 1878. Parties representing the National Bank of Commerce, of Now York, entered suit to-day against the National Bank of the State of Missouri, for the re. covery of $1,500,000. The petition recites an agreement entered into by the two institutions on the 26th of December, 1862, whereby the first named bank loaned the other $1,000,000, in the form of u continuing loan. or this amount, $400,000 WILD interest, IS still due. It IS further claimed that the St. Louis bluk is indebted 10 the New York bank 10 the sum of $500,000 for moneys paid ou ILS account up to the date of its suspension. Another half million dollars is claimed for money loaned in the course of banking accommodutions to the date of the suspension. The State Bank of Missouri is now in the bands of a receiver.
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IMPORTANT JUDICIAL RULING. Sr. LOUIS, Feb. 8, 1878. In the United States Circuit Court Judge Dillon today delivered an important ruling. The receiver of the National Bank of the State of Missouri brought suit against O. H. Laflin to recover the value of eighty-five shares of bank stock sold by him a short time prior to the suspension of the bank to James H. Britton, the president, on the ground that an officer of a national bank has no right to purchase the stock for the benefit of the bank. Laflin put the stock in the hands of a broker, from whom Britton bought. and entered It on the books of the bank as purchased by him as trustee. The Court held that Laflin was relieved of responsibility, it not being proved that he know Britton was buying as trustee, the presumption being that Britton purchased in bis individual capacity. 1 ne decision applies to a number of cases, involving a large amount of stock which was bought in by the bank. Notice of appeal so the Supreme Court was sewen.
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their cordial sympathy and prompt and noble benefactions to the afflicted and distressed citizens of Tennessee during the late terrible epidemic. Governor James D. Porter, the outgoing Executive, to-day delivered his Message to the Legislature. On the subject of the State debt he said:The State has issued 49,393 bonds, amounting to $49,173,316 66; the number cancelled is 28,385, amounting to $28,163,016 66; the number now outstanding as a liability against the State is 20,219, amounting to $20,221,300. In ten years the State has paid three instalments of interest, seven are past due, amounting, after deducting $149,050 paid to educational and charitable institutions, to $4,052,717. making a debt of principal and interest of $24,274,000 17. The settlement of this debt is paramount to all questions of legislation that can engage the attention of the General Assembly; it involves the honor and good name of the State, the credit and honor of every one of its citizens. It is a liability that was voluntarily contracte 1, and whether it was wisely created or not cannot now be a question. In December, 1877, certain creditors of the State proposed to adjust that part of the debt held by themselves upon a basis of fifty cents for principal and past due interest, and offered assurances that the great body of the creditors would accept the same terms; this proposition was submitted to an extra session of the Fortieth General Assembly and its acceptance earnestly recommended. I am satisfied that the creditors making this proposition would still make the adjustment; settled at fifty cents the debt would amount to $12,137,000; the annual interest upon this sum, at six per cent would amount to $728,220. I do not hesitate to again urge the acceptance of this proposition. I cannot be mistaken in the opinion that the people of the State are anxious to be delivered from a further discussion of this question and from a longer postponement of its settlement. If this recommendation is adopted the Comptroller should be invested with authority, after a day to be fixed by law, to make publication, with notice to financial agents of the several counties, announcing the number of old bonds returned and cancelled, with the number of new bonds issued and the amount of revenue to be provided to meet the interest, with the amount assigned to each county; upon this publication and notice the county courts should be required to make the necessary levy to meet the interest without further legislation. MISSOURI FINANCES-THE CONTEST BETWEEL THE GOVERNOR AND STATE TREASURER IN REFERENCE TO THE MASTIN BANK FAILURE. Sr. LOUIS, Mo., Jan. 8, 1879. Governor Phelps' message to the Legislature is , lengthy document. It reviews the relations of the Governor with the State Treasurer, and the connection of the latter officer with the defunct Mastin Bank, which was one of the State depositories. It says the State Bank of Missouri, from its incorporation to its close, was the financial agent of the State. When it failed, a year and a half ago, there was no law prescribing where and how State funds should be deposited; nor was there any law giving the Governor or Auditor any supervising power over the matter. The Treasurer was simply required to give account to the Auditor of receipts and expenditures. The constitution requires the State's money to be deposited in a bank selected by the Treasurer and approved by the Governor and Attorney General, but the passage of a law was necessary to give force to this requirement, and the Legislature failed to pass such a law. In this condition of things, if the surety of a Treasurer became insolvent or removed from the State, neither the Governor nor any other official had power to demand another bond; neither did, nor does, the Governor possess power to remove a Treasurer for neglect of duty. Before the failure of the Mastin Bank the State Treasurer had no understanding with Governor Phelps as to the deposit of the State's moneys. When the Mastin Bank failed State Treasurer Gates had about half a million of the State's funds in it. The Treasurer had the bond of the bank for $1,000,000, also some valuable securities, the sale of part of which has realized $220,000, leaving in the Mastin Bank about $280,000. Last fall the Bank of Commerce, of St. Louis, and the Exchange Bank, of Jefferson City, were made depositories of State funds under the law, both giving satisfactory bonds and depositing in the hands of trustees in New York securities of the United States and of this State for the faithful performance of their contract. State Treasurer Gates brougat suit against the Mastin Bank and its bondsmen immediately after its failure for the recovery of the State funds. No legal proceedings have been instituted by Governor Phelps against the State Treasurer or his bondsmen, as it is thought the State has no right to sue until the Treasurer is forced to give a new bond. The State Treasurer was indicted at the October term of the Criminal Court of Jackson county for alleged criminal transactions with the Mastin Bank. Governor Phelps immediately instructe the Attorney General to assist the Circuit Attorney of Jackson county in prosecuting the State Treasurer, as well as his predecessor, who was also indicted. The State could not proceed in the case at the last session of the Court on account of the absence of witnesses. The Governor says if the State Treasurer is guilty he should be punished. The Executive will protect no one from punishment. The law must be executed against all, without distinction, but as an act of justice to the State Treasurer, the Governor says, he has demanded a speedy trial.
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MISSOURI HISTORY (By Floyd C. Shoemaker) In April, 1877, after publication June 21-27 of a statement which showed a Old Bank Suspended condition that was none too strong, June 23, 1877, is significant in the bank was investigated by the Missouri banking circles as the day treasury department. The treason which the National Bank of the ury examiner found that the bank State of Missouri at St. Louis was held much dead paper and about placed in the hands of a receiver 40% of the bank's capital was gone. by the comptroller of the U.S. The bank was not ordered closed, Treasury. but another and fuller investigaAlthough when it finally failed tion was planned. this bank was fundamentally Cable, in his book, "The Bank of changed from its organization at the State of Missouri," attributes its beginning in 1837. its failure the bad condition of the bank in marked the end of "one of Ameripart to the apathy of the stockca's great banks." In its early days holders. For three years before the then known as the Bank of the treasury investigaton, meetings State of Missouri. the official state had been called, but as a quorum bank, this bank had set standards never appeared, there was no elecof sound and conservative finance tion of officers. Dividends had been and had played a great role in the paid regularly, and the stockholddevelopment of all Missouri and ers did not take the trouble to inthe Mississippi valley. quire into the status of the bank. The state remained in the bankA ten day examination of the ing business through this banking house from 1837 until 1866, but in bank by a committee showed that the bank was hopelessly insolvent. that year it sold its stock to a syndicate of St. Louis headed by James The board of directors met June 19, B. Eads, and the bank was nation- 1877, and after an all day session. admitted insolvency and asked for alized. This firm continued to do busi- a receivership. ness until the bank was placed in There was little immediate effect the hands of a receiver in 1877. in St. Louis following the closing of the bank. The faiure was a surThe comptroller's report on the bank states that the cause of its prise to the people, but not unexfailure was fraudulent manage- pected to bankers. However, withment. excessive loans to officers in sixteen months, fourteen banks in St. Louis had closed and a total and directors and depreciation of of 25 banks in the whole state were securities. Although it was the undisputed closed during the same period. leader of Missouri banking affairs By 1879, Walter S. Johnson, rein 1866, and larger than any west- ceiver, reported that 70% dividends ern bank, having an authorized on approved claims had been paid. capital of $5,000,000 of which $3,- The affairs of the bank were finally 410,000 was paid up, the policy of closed in June 16, 1887, creditors the bank was changed by its new being paid 100% with interest owners. through Edgar T. Wells. who sucThe National Bank of the State ceeded Johnston as receiver in of Missouri, though considered by 1885. the public as still conservative, was known to banking circles as a Charles Wilkerson returned last "plunger" and a dealer in specula- week from Iowa City, where he had tive investments. Among the pro- studied the past year in Iowa Unijects financed by the bank were in- versity. He received his master's cluded the North Missouri Railroad, degree in English literature. Next the Eads Tunnel and Bridge, the year he will teach that subject in Eads Jetties, the Merchants Ex- DePauw University at Greencastle. change, and numerous real estate Ind. Charles is another of Holtransactions. den's boys who has made a mark The panic of 1873 was met by the for himself. National Bank of Missouri by reducing its capital, and cutting Mrs. Titsworth and Mrs. Marling down its circulation by retiring U. spent the week end with Mr. and S. bonds. Failure was avoided by Mrs. Elzy Lanning. this drastic method, but the bank had received a blow from which it never recovered.