The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-10-28
Extensive Financial Operations.

1hE MkhCHANTs' EXCHANGE BANK OF ASAC05TA
u. c., SO CALLED IN TRoUBLE--ALLEGED FRAUD
ARREST OF ONE OF THE SUPPOSED PRRPRrR "A rORS
Information given laat wes 10 the Chief OF Police
that fankirg sgeney had been got up in this city
which vas sntsly worthless having issued large
ber Of bills, snd circulated the same out West which
wss not secured by spsce funds in this city The
hank which is can-d ttte Merchants Exchange Bank
Anacosts, c. hea IL alleged sxist.u - other
tssp thst he face cf the paper and the h,lders Of
htiIs sId sccs were therefore in immin hazard OF
htcemrg losers TO iarge extent Several pAtties IN
jig fsrsard sni maliog complaints against the mana
&c this Institution for excessive frauds upon them
tie ra'ter vas placed in the hands Of Mr.. McKsIlae,
'h Ia 'he hies office, who has been successful hare.
ooe In bsesiirg several fraudulent banks ami who
NV hs bscare quits active In ferreug ont the guilt
psr'ies In ths transaction The whole matter therefore
came up tefpre the Chief Mr.. Mstse yesterday when
tie srpsssd particulars iste to the extensive aud
bsrefsced fraud trsnspled -
Prom The eaiseyit Of tn. cashier of the bank Fed
eIick Curtis of los Third avenue, ii wouli appear
that In July last person him ami said there
wssa Few bank shout starting and that the parties
eogtd there wan cd him for cashier The salary being
fixed Mr. Curtis accepted the proposed situation He
was Immediately SET to work signed about 900 in
bills, which BEING also signed by Mr Dewey the pre-
sident, cirsusted principally out west From the
evidence OF Mr. George G. Jones, OF Cincinnati agent
for the Cincinnati Little Rock and Slate Company IL mp
peers that be made contract with Mr. psweo 10 which
was liked that $50 COO worth OF the Gin ti Little
Rock ane slate Company to be purchased 1T par bat
that the was to be- m 'ds IN notes o. the bauk
in tsanfas, ard redeemed by Nr Jonas whenever pre-
sptedi erder that the bank might footia
with Other state banks in 7aom 3sons Bank Noe Reporter
Mr.. Fncsu'd OF 20 Water street, treasurer OF The
Hsverstrav Iron snd Mining Company dsposed that h
mace contact with M.ssrs lewey, Westbroox, and
o,hsIs of this estaog far $40 coo of tbs Bills
ewn tqnk far
$500 and the other sor $3.50
Mr. Fncsuld vas corroo,rated In his evidences by Mr..
William Arnoij, of % Water street, far the
tract wa concerned He stated that person calling
himself the counssl VI tho bank, called npon Mr. Fin.
t-os threes; that the bills which wes
10 hare been redeemed at No 80 William arrest, wee
never Iecsemsd And also that he, DIR Arno.d). hid
qusntiy Of tho bills hinssf, whish hs presented for
payment, bus not getting tho cash for them he
s.rsghtvay to the office Of the Chief of Police and made
COMPLAINT agsinss tie parties th,t directed the affairs
Of the bank That he met there by webook one Of
the managers, who ssid If HI would 90 with cl the
corner Icons rd s.re.t ana Broadway be would paw
him all that due hIm; tia. he ent with him ana
received in money and srock ths snonnt due hir ana
that at prior tine in conversation with Mr. Dewey
(Mr lt~es said ia had beu +, Anaeosta stuck M
a sign there.
Into,wation was slso givea the authorities q. the
ChiePs office hat large qusniy OF these balls
being sen. ont asst, upon which officer scpaer-on
djspst,hed 10 the bar king establishment in william,
snc TO ssize rpon the entire contents of the Office
snr Of ron ssfe which r. suppos.1 tn conaio MS
remsnoer cf these shinpsser notes st issusd Tor
circussicp Toe whole OF the property brought 10
the Chiefs cnice.
Warrants then ssued for the parties implicated
In the hansscsioo and lie ,rard Westhook
In his poesesfion found $74 in bank bills OF this
bank also sundy papers which VIII impl, sts him 10
this t1sDsSotion. He Joesed up for xsBiin<ton,
until some faitber arrests be and other eyi.
6snce OBJ aired.
AS representation Of the bills Of this deuact nstu
til will be onnd interesting readers a6x ths
following which sime of these nils The paper
upon which the engraving samre5 is very and
the general OF the Dill very poor. Across
end of it the words "redeemej ct the bankog
sgeecy, No co Willism street, N Y' The following is
the fac simtle Of one Of the two dollar bills
Q Q Q
q q MERcH.Nrs, EXCHANGE BANK 9 1nasaSsso 1na,ss.aStss,
o oeeooo Mercury o o
Vignette. o Will pay Two ollArs with the 0
oSsiPr with demani. horn of o
o o hat on ando to the bearer oplenty o
Q oLe hand ANAcosTA, winged o
the DISTRICT OF COLUMBIA, wand.
capAtAn O 90
Fsma'e o
figure 0
with o