Litchfield enquirer., 1859-07-07


 sing the hocus pocus that too generally beiogs and covers up these performances, were some thing like this As soon as the rotten concern had foated fairly out into the deep water of discount and circulation, it's bills came pouring back from the great rcdeemiug banks in New York and Boston in fashion quite novel and startling to folks accustomed to the lrisurely way they do business in Litch6eld. The bank being without any real capital, could not re- deem so the foster-fatbers of the institution filled .rs pockets with it's neatly executed "promiscs to pay" and put out to raise the wind. What, speciousness of argument was used in addition we are not informed, but upon an hypothecation of $7,0oO the Connecticut Bank of Bridgeport furnished specie funds to the amount of $5,000-the Bridgeport City Batk furnished some $5O00 in similar ma.,- ncr, and the Hurlburt Bank of Winstcd $8, 900 The Connecticut Bank on failure to meet and renewal of the first note, accepted some $5000 in the notes of Van Clief and others New York fancy operators, as further collateral, and the Bridgeport City bark another $5,000 of the same. The H1rlburt bank received as coliat- eral the notes of home parties of rather b,t- ter st It than the Van Clief Soon as an il junction was prayed out by Commissioner Moves and it became apparent that the bank must go down, the Connecticut aud Bridgeport City banks showed off their bills it appears as if with view to give them the character and en- title them to the consideration of circulation D. F. Hollister of Bridgeport bought the $T ,000 of tie Litchfed bills from the Connec- ticut Bank for $500 and Dca. E. B. Middle brook Of Bridgeport purchased the $500 of the Bridgeport City bank at % per cent, or $1775 Here comes in the point. At the time the injunction was prayed out, assets and claims of the bank being arrested and their legal condition fixed, the indebtedness of the Litcbfcld Bank was but 5000 to each of these baliks They however sold and sacrificed on their collateral, the bills, with view to their presentation as circulation, passing tie proceeds to the credit of the Litchicld Insti- tuition, and presenting the balance as a claim to the Receivers Ii the course of these banks is approved, the result will be that where all original indebtedness of only $l0,00O existed. the enjoned bank will have to pay total of some $l4, 300 upon the bills, aud $S,225 npon its notts---to say nothing of the Van Clief sc- curities. The position taken by the Receivers is that the transfer of the bills after njuuction was in its nature fraudulent that by the hy pothccation of the bills the creditor banks get no additional securty-that the whole tranSac- tion is in the character of a common indebted ness, and that the creditor banks are entitled to 10 other consideration than all ordinary creditor, second to the claim of the boua tde holder. In default of the presence of certain witnesses the hearing was further adjourueu to July 9th, at F. M.
 The relation of the Receivers to the stock subscribers of the Bank brings out new con- pications. We will mention Mir. Charles ChurcI's case as the representative of class Mir. Church claims never to have subscribed for stock in the bank, but with others at the entreaty of Graves and Hollister. loaned the bank his note of $2,000, receiving back at the same time written agreement that the ncte should not go out of the possession of ths bauk, should not be sold or transferred in any shape bnt should be returned without charge, trouble or expense previous to maturity. This was to show to the commissioners, and give the bank the appearance of being engaged in a home business. The note (there were half a dozen others like it, given by Berry, Downs, Ashborn, Taylor, &c., was duly returned and again loaned his note to the bank, under the cutuC ftpfc6culdtIOuo dLu UUI without any writing being drawn. This note (and others in tbe same way) was nabbed by the injunction aud falls into the hands of the Receivers, who deem it their duty to collect it. Church claims never to have himself sub crbed for stock, never understandugy gave a power of attorney so to sign, first kuew of lis appointment as Director through the news papers, never attended Director meeting. but did sign resignation as Director What are Church's obligations as a debtor to the bank upon note given without consideration, and what his duties as director when he cousen- ted. not to accept but to rcsgn?
 Another complication arises out of the fact that Ball and Hazcton of New York agreed to become stockholders n the bank under cer- tain considerations, and the Receivers intended to hold them liable as such. But the late Leg islature has revoked or repealed the charter of the bank, and it is now impossible for the bank to comply with conditions precedent. Can Ball aud Hazelton be now held to their con- tract or not
 The last phase taken on in these transactions is this: It is alleged that Bail aud Hazclton Tn their haste to get their nerks out of the scrape, took away the property of the bank A criminal process is about to be if not already issued, and acquisition made upon the Gov ernor of New York for their surrender and pro- fuction for trial. Shall they be squeezed till they disgorge, or how? The case thickcns as 1t proceeds, aud is like to become aa event in our financial history Winsted Herald
 HE WHEAT HARvEsr.-From the States in which the wLeat harvest has commenced, the accounts are favorable In lower Virginia the lar farmers are cutting their wheat aud there is good prospect of fine crop. In Kentucky and Tennessee the yield of grain will be large and the quantity is unsurpassed. The Knox- vile Glenn. Whig says that the what cr.n