Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-13

Answer paid brokerage quarter Of one per cent.
The witness signed his examination.
Mr. 0. De Forrest Grant was sworn. ne nare-
sdent of the city, aebber in the dry goods business,
of the firm Of Grant q Barton. We have Kept an &C
count with the Phenix Bank for several years. With
in the last l6 months we have had paper discounted
by the PhenIx Bank for which we have taken drafts
on distant places for the proceeds. The first TRANSACT
ton was, think, the 18th New 1885, the amount
took from cheque book this morning; It was for
Sl06S66S in several notes, payable in Mississippi
sppi The Phenix Bank charged us 6 per cent ex-
change, and the regular interest; do not know
what the exchange and nteres; amounted to. We
received Phenix Bank cheque $4,000 on Natchez
as the proceeds. This cheque was worth and half
per cent less than par at that time in this city we
sold 1t that day, or day or two afterwards, at the
best rate we could; 1t was very good trade too
Most OF this paper we sold the bank came back pro-
tested. we still owe the Phenix Bank; when the pa
per came back we gave chequeato Mr. Delafied for
it; when gave chcque for these Identical notes
they came back protested the bank did not rSturn
us any of the exchange charged at the time of dis
counting. We paid them with other notes. payable
in Mississippi and the South, and discounted by Mr..
Delafed for us; they were payable all over the
South, Georgia. Mississippi Alabama, louisiana
The banks never return discounts.
Queson-When the bank discounted those last
notes. with the proceeds of which you paid up the
protested notes, what was charged upon them?
Answer-Interest and exchange, of course.
Question What did they charge you for ex-
change?
Answer-The exchange varied according to the
place where the notes payable from one TO hive
per cent. cannot specify the particulars; lpresume
the rate with the places where the bank
did business Exchange varies with these places
from day To day. The next transaction of this kind
with the Phenix Bank Nov "a 1886 at this time
the bank discounted s6lO424 on paper payable in Mis-
sssipp or the south generally. The discount charged
was per exchange and the interest. Ii paid
by checque on Mobile for $500. At the time we
received this chscque, sold 1t at "a per cent be-
sides quarter per cent brokerage on the other
This was the best we could do; the price of broker
age Isl good one and they setrch on H. II IS bet
ter business than legislative business at IS per day.
Nearly quite all these notes came back protested;
we have paid the bank for them. The bank did not
return us any of the exchange when we paid for
the notes. They neper do, or have done so, lnmy
experience. The next transaction was JAN Path or
25th 1897. At this time, the Phenlx Bank discount
ed for us So l65 81 in notes of the class paya
BILE in the south generally The bank charged us the
interest and per cent for exchange; and pad US IN
a checque on Macon (Georgla) for $1,000. We sold
this checque ourselves at l. per cent under par the
the bank, on Mr.. Delafelds assurance that we might
draw for it. Our came back, all OF them, be-
lieve protested; we paid for them in the way men
toned before by giving fresh notes. but we sun owe
| the bank The bank never returned any exchange
On February II, 1897 we had another similar trans
action for slosil44; and again on 9th March, 1887
for SS0l5.l2.
Question-Were these different discounts made by
the bank to you on condition that you would take
drafts payable at distant places for the proceeds?
Answer-I should think they were. l solicited the
checque Macon myself went to Mr.. Delaheld
for a discount for $1,000; he said he had not the
funds here, but could give me checqse on SEINE
Southern places, where he had mauy points on which
he could draw he named them, and selected Ma
con, which he drew me a checque. This relates TO
the SIC, 900 loan. The broker through whom sold
the note, do not remember; but think il was
| Shipman, Corning & Co.
[The Committee here intimated its intention Of sitting
from 10 I'LL B. and having an afternoon session, COM
mencing AT O'clock after teday.l
Mr.. John J. Bailey was sworn.-Is merchant OF
this city Of the firm of Bailey, Keller & Remsen. We
have kept our account with the Phenx Bank for
months with that which we hsSe received wSSa
discounts the proceeds Of which distant pla-
ces Inc frst one was on the 9Th January, 1887 the
amount OF discounted notes that occasion exceeded
boO they were payable principally in the South
Alabama mississippi, Louisiana, Ohio, Georgia,
Virginia They charged us at the rate of per cent
interest on the notes averaging TO 80 days anc
about two and half per cent exchange. The notes
were discounted, and passed TO our credit on the
books Of the bank; and we received in part the
Cashiers QMr: Delaheld's) draft on Savannah for
fhenlx Bank we were authorized TO draw for. We
drew our checque for $4,000 the proceeds of discount
and received the draft on Savannah; this was the form
| required by the bank.
Question-How much was that draft under par at
| the time you receivedit
Answer negotiated it with the Bank of the State
OF New York IN this city al and l2 per cent dis
count the same day received il frem the Phenix
Bank. This was the best could do with the draft
by per cent Almost all the notes discounted
were paid principally by the parties who drew them
some came back but only few, and all now ar
ranged. The bank returned us exchange on those
that came back we did not ask il and none has ever
been returned us by any bank in the CITY, The next
transaction was n the 10th March, 1897 when we
had discount Of about $4,000 at the Phenix Bank,
on notes payable in this city, at go days; on these
We were charged interest at the rate Of per cent and
received in part payment the cashiers draft on Sa-
vannah for Sl5, 600. We sold this, al the best we
could to John Ward Il Co. for two per cent as soon
as we received IT, These belve TO be all the transac
tons with the Phcnix Bank on similar terms.
QuesuoR-Were either Of these discounts, or both,
and which of them, made on condition that YOU
should receive for the proceeds, any part draft or
drafts on distant places7
Answer cannot speak with sufficient certainty
upon that point; but am snder the impression that
on one OF the occaGens referred to- made The appli-
cation myself for draft on Savannah, having frsl
ascsrtaned at what rate could dispose oft. As to
the other cannot say cannot tell to which Of the
transactions the Savannah draft refers.
Questien-Why did you apply for draft on Savan-
nah il under a belief that il would aid you in
obtaining the discount because you really wanted
funds on Savannah
Answer did net want funds on Savannah.