Maryland free press., 1866-05-10
StaptkEPoln UndersA

EF- Another National Bank-ths NIer-
chants Of Washington b. O'pTelosed. ts
doors on depositors and note h3,9Qlfd|sgs last
week Sorrespon5dqqnhts qhs Of IT. the 1@dP PAT Sun
says:-- 1TlngI aur go aaZaU3 TsL5 r
=, The .bapk5openedi its doorsst usual this
snSernine butdeelined to- honor any drafts
or checks, epr transact business pfYply Kind.
fftbe fftbii' presentation Of a, heavy, check of a
gov, government official yesterday disclosed the
'shaky d6hditioG ofthe CONCERN. and upon
investigations at issstatedin an. afternoon
paper 4 that,a Baltimore broker, some time
since, got $150, 900 from the bank, and
afterwards, Ito save themselves, the bank
directors allowed him other sums. Last
evening" q committee of national bank pres
iients here went to Baltimore to examine
the collaterals of the borrower, but they
were reported insufficient, though full
report of the examination will probably be
arenaeredahy them tomorrow. .IAlii %"s.F'2
The bank stockis selling to day as low
as two cents on the dollar, by holders anx-
ious to get rid of it, because Of Individual
responsibility.
There is believed to be d deficit Of about
% million Of dollars, three quarters of which
sis owing ,by J.. b. Bayne, of Baltimore.
land whose reliable assets are less than fifty
thousand dollars, aThe government has
St40,Oo0 security for deposits, and only
$4,000 on deposits under the. draftr of
General Spinner. ',1". .e d Tia .a"taybss
Major Paulding, a paymaster, had oh
deposit nearly seyeen. hundred. AZ thousand d9l-
lars, which should haYe been in other banks,
and was unknown to either the Paymaster
General or Treasurer Spinner SO the Gov
ernment will lose over half a million, and
private deposjtors win lose q quarter of a
million, while the note holders are secured
and the stock is all lost, being offered to-
day for two cents on the dollar 70 o. l." .'i
Bayne lost very largely by operating in
stocks aud gold, and was a heavy dealer in
Cutawissa and Michigan Southern &c. He
lost heavily some months ago. and has been
going deeper and DEEPER in order to try
and, get sopt whole, :. .The!baak Aaslno.ser
curities from him, and he has assigned a
large amount of assets to them, but they
are of comparatively little value. An cx-
animation Of their liabilities and the assets
will be made public To- o-mi09rErow..1
The Liabilities of the Bank will exceed
$1,0o0,Q00, .6while its capital was hut
$500, 600. And yet we see it stated in a
Washington. paper, that one paymastcr of
the army had on deposit in the bank $780,
OOO-the tt!e institution having been ldssigna-
ted ted as. as government depository-.the pay
master representing also that recently he
had drawn some $500, 900 from other de-
positories to place in this bank, at the in
stance of officers of other National banks in
Washington, ,on the hypothesis that it'wbuld
enable the Merchants National Bank to
overcbne' SOME temporary difficulties and
thereby secure the other amounts deposited
therein. AL this is anything but right
indication Of how National banks may re-
gard their peculiar relation to the govern
ment and its funds. t shows how the
funds and credit,of the government may be
indirecly brought to bolster private inte-
rests, fancy stock scheehs es, and general
speculation. ls..,... g. ,,'pg ni co.: --..l.
~ t.asl.y1 Ill III : I..i., i sarrt'1 Ill :-,