Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-15

OF the Southern dras less and half per cent or did
you pay brokerage in addition
Answer-l paid BROKERAGE quarter of one per cent.
The witness signed his examination.
Mr.. O. De Forrest Grant was sworn. He 10 a re-
sdent of the city, jebber in the dry goods business
of the firm Of Grant q Barton We have kept an ac.
count with the Phenix Bank for several years. With
IN the last Is months have had paper discounted
by the Phenix Bank, for which have taken drafts
on distant places for the proceeds The first transac-
ton was think, the l4h New, 1886, the amount 1
took from our cheqae book this morning il was for
$40 Dos, in several notes, payable in Mississippi
and Louisiana, think the most of them in Missis-
sppL The Phenix Bank charged Us per cent ex-
change and the regular interest; | do not know
what the exchange and interest 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 al that time in this city, we
sold II that day, or day two afterwards, at the
best rate we could; il was very good trade toe.-
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 cheque TO Mr. Delafied for
II; when we gave our cheque for these identical notes
as they came back Protested the bank did not return
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..
Deiaheld for us; they were payable all over the
South Georgia, Mississippi, Alabama, louisiana
The banks never return discounts
Question-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 TO five
per cent. cannot specify the particulars; Ipresume
vas the current rate with the places where the bank
dd business. Exchange varies with these places
from day tn day. The next transaction of this kind
with the Phenx Bank, was Nov. "a, 1886 at this time
the bank discounted SCI 04 "a on paper payable in Mis-
s:sspp, or the south generally. The discount charged
was per cent exchange and the interest Ii paid
by checque on Mobile for $500. At the time we
received this checque we sold it at s. per cent; be-
sides quarter per cent brokerage, as on the olher
TINS was the best could do; the price of broker
age IS good one and they gerich il. 1t is bet
ter business than legislative business at SO per day.
Nearly, or 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 nerer do, or have done 80, in my
experience. The next transaction was JAM 24lb or
10Th, 1887 AT this time, the Phenx Bank discount
ed for us $40 1861 81 notes of the same class paya-
BILE IN the south generally. The bank charged us the
interest and per cent for exchange; and paid in
checque on Macon (Georga) for $4,000. We sold
this checque ourselves at | per cent under par the
sane days indeed, we sold it before we bought it Of
the bank, on Mr.. Deafeld's assurance that we might
draw for IT, Our notes came back, all of them, be
leve protested; we paid for them in the way men,
toned before, by giving fresh notes; but we still
the bank. The bank never returned any exchange
On February H. 1897, we had another similar trans
action for sl0sil4a; and again on 9th March, 1897
for S60!512
Question-Were these different discounts made by
the bank TO you on consition that you would take
drafts payable at distant places for the proceeds?
Answer-I should think they were. / solicited the
checque on Macon myself | went to Mr.. Delafed
for a discount for $1,000; he said he had not The
funds here, bat could give me a checque on some
he could draw; he named them and selected Ma
con, on which he drew a checque This relates to
the $1,000 loan. The broker through whom sold
the note, l do not remember; but think it was
Shipnan, Corning & Co.
THE Committee here ntmated it's intention of sitting
from 10 till B. and having afternoon session, COM
mencing ats clock, after today.l
MIR. John J. Bailey sworn.-Is merchant of
this city OF the firm of Bailey, Keller & Remsen. We
have kept our account with the Phenix Bank for
number of years. We have had transactions within
Is months with that bank, by which have received
discounts, the proceeds Of which distant pa-
ces The FIRST one was on the 9lh January 1887 the
amount OF discounted notes that occasion exceeded
$2l 800; 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 run 80 days, anc
about two and half per cent. exchange. The notes
were discounted, and passed 10 our credit, on the
books OF the bank; and received in part, the
Cashiers (Mr Delafeld's) draft on Savannah for
$4,000; any balance that might be due US by the
Phenix Bank we were authorized TO draw for. We
drew checque $50 000 the proceeds of discount
and received the draft Savannah this was the form
required by the bank
Question-How much was that draft under par AT
the time you receivedit7
Answer negotiated il with the Bank of the State
of New York in this city at and l.2 per cent dis
count the same day / received il frem the Phenix
Bank. This was the best could do with the draft
by one per cent Almost all the notes discounted
were paid principally by the parties who drew them
some came back but only few, and are all now ar
ranged. The bank returned US no exchange on those
that came back did not ask il and none has ever
been returned US by any bank in the city. The next
transaction was the 10th March, 1887, when we
had discount Of about sic 900 at the Phenix Bank,
on notes pnyable in this city, at go days; these
we were charged interest t 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 q Co. for two per cent. as soon
as rccevcd il. These belive be all the transac-
TONS with the Phcnix Bank on similar terms.
Queston-Were either of these discounts or both,
and which of them, made 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 / snder the impression that
on one of the occasens referred to- made the appli-
cation myself for draft on Savannah, having frsi
ascertaIned at what rate could dispose Oft As 10
the Other cannot say cannot tell TO which OF the
transactions the Savannah draft refers.
Quesen-Why did you apply for draft on savan-