Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-03-02
DOMESTIC.
The following gives curious account OF Bank "Pe-
rations in the West, and develops system of roguery
of the most vi!lanous character:

Correspondence cf the Ohto Statesman.
GALIIroLis, o., Feb. =, l-il.
This Mace has for the last ten DAYS, been in con
slant state of excitement in consequence of the entire
failure Of the Bank. II is now well ascertanrd that
the circulation largely exceeds the amount reported Dy
the Bank This amount of excess cannot no" be Ger
tainly known, but as an amount OF notes exceeding
so, 900 (Which all as by report in circu!ation,)
has already been taken in and from all quarters We
hear of large amounts, the excess 1t IS supposed
amounts 10 S200,000.
On an examination Of The vaults, $4,000 in notes
not signed and 100000 of those filled up and sgned
of the denominations of ], 23, D. 10, 20, lou, were
found And Of the 100000 filled up and signed, it is
said the President l.. f. Smiths name was forgery,
it is also threeiourhs Of all the notes III c'rcula-
ton. .,,
In one package, over 100000 of notes and bills Of
exchange, drawn by John Murphy, and signed ny Jno
0. Bailey and BY Morris Sullivan, were found These
bills were payable some The IT, s. Bank OF Pa, and
others at Banks in New York All these were evident
Is frauds and 10 be used for fraudulent purposes, sont
of which had been entered the books rs notes DIS.
counted and forwarded to New York for collection and
in the redemption OF tho notes Of the Bank CHECKS al
sixty days had been drawn on this fictitious paper.
No register Of the notes issued had ever been kept, or
if kept had never been seen BY any Of the Directors,
nor has yet been found The question IS frequently
asked how could the Directors overlook SO material u
document in their examinations and certify 70 the
amount Of notes put in circulation.
Ii out the ryamlnltlnU "a llc LcstiiHoHy
against the President his examination on the charge
Of obtaining money under false pretcnces that during
the months Of October and November last specie to the
amount of twenty-one thousand dollars was by the
Cashier sent off at the hour of midnight, unknown to
the Directors being thus taken three different times
And also that after the report Of the committee the
first Of JAM the Cashier took Of 3d. 900 III gold that had
been counted as assets of the bank shown such BY
him 10 the Directors.
II appeared also, that some connexon existed be-
tween this Bank and the Bank Of Mllngton, as on the
arrest Of A. G.. Harrington, the late President from
$50 to S23 900 Of this kind of paper was found with
him
On the whole, greater system Of rascaty has
been put into operation in the Western country, and
the amount of the Impressions OF notes hand shows
that the matter was not fully carried out. and that the
design was TO pu, at least 81 100000 in circulation.
That you may understand more fully all the matters
heretofore mentioned will give Tie names OF all the
officers Of the Bank up to the time of lis explosion
In 1880 L. +. Smith Of New Hampshire was elected
President and a. H. Scovl!c, OF New York, Cashier,
and were continued in Office such until December
$50 when upon the death Of MIR Smith, A. H. SEQ
vile was elected President and Frederick +. Whiting
appointed Cashier. This arrangement was continued
until the 18th of January si, when \. {. harrington
was SAID 10 have bought out Tie stock o.! the Bank and
was on that day elected President and appointed f..
Slratton Cashier harrington is from New ork, STRAIT
ton from Boston None Of the citizens Of the place
have ever had ans office in the Bank except as
each of whom, it is said, held stock to the amount Of
ten dollars.
On the 18th ult, Harrington was arrested on charge
Of obtanlng money under false pretences and held 10
bail in the Of 500.
On the 2gh nit he again arrested an charge Of
utcrng and passing forged notes Of the Bank OF Gal
lpolis, and examination held 10 bail III the
Of 100000, which he unable 10 give and has been
committed TO the jail of the county.
On the 2Sth ult one of the Bank Commissioners
made his appearance in midst but the Directors
fused possession and took ''the responsibility" and
which may prove heavy one.
BASKRurr LAw.-The New York American thinks
there is growing disposition in that city to include
Banks in the bankrupt law before Congress, and
say is not surprised at this "or many Of them have
provoked the forbcarance of an honest community al
most beyond endurance" writer in the Journal Of
Commerce endorses this opinion, and says-"Many
merchants of this city, who last year opposed it,
approve it; and simply because they know Of rule
Of equity which should absolve Bank from being
compelled TO pay its honest debts, any than IN
dvidna merchant. And The full conviction of any
Bank that if it did not punctually pay lis debts, it
would be wound up, would most elrciually put end
all the wild and rninous expansions Of the Banks,
from which the country has suffered SO much during
the last five years.