The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-06
HISTORY OF A NATIONAL BANK SMASa-up.
The Failure Of the First National Bank OF
Asticn.
From the BniIalo Courier, Nov. Al


In April 1904 The First National Bank Q! Atica was
or RANKED, with William G. smith as President Godfrey
nominal capital $4,000 but, wi h one or two
exceptions Tie officers what flnrcialy termed
"mcn Of straw ihc bank ran on for several months,
and great wo5 the conldcuco reposed ia IL by the
residents of Wyoming county. Old people placed its
vaults the boarded savings OF a lifetime; soldiers
widows and ether poor people trusted 10 the little they
possessed % secure them from absolute want IL
irrational bank, ana the name cked the Of thoso
who believed their country and thought a rational
bank must have connection with national stability
But there were those who did not participate in tho
general cunndencs-gentleme who knew lie rrespon-
sbility pecunasiiy the officers OF tho institution;
who know that the bonds OF ito bank paid for By
10 issue who knew that the cash eisoans liable 10
be night several thousand dollars short and the
next, perhaps, as much over VINO knew coria.
CATO account was kept who knew, ia short, that tho
officials OF the concern knew nothing about banking aud
cared less and who more than suspected tina. il was
rotten 10 tho The result OF this was that In De-
cember. 1854, charges that The bank was insovent
and irsuduenlly conducted sent 10 the Depart
ment at Warrington, and In January, 1855, James
sheldon, radical candidate for state from this
district, wcnt 10 Alca, duly empowered by govern
ment TO examine aud report the condition or the
First National Bank Of Attica mr: sheldon arrived in
Atca during tho morning, and left tho evcuine,
having devoted few hours his labor OF inspection.
During this time ne did not cali upon the gentle
who Lad preferred the charges against concern
That gentleman, however, called upon tho udgo two or
three days after bis return to luis city and having
duccd himself, inquired the report tie department
had been forwarded. Judge Sheldon replied that he
drafted IT, but had not yet sent II Ia reply the
further inquiry as 70 the condition in which no found The
bank tho Judge replied that be found il en-
tlrely sound. The gentleman thon stated that he
knew 10 the contrary; that no mad preferred the
charges against the bank and could prove theln, and
worse than was untold; and begged him to hear his
proofs before sending onhs report FOR that report would
rovwc confidence IN the bank, which was somewhat
the wane nHd probably cause many thousands OF
dollars 70 disappear In ia rascly Golfers Judge Shell
don became some1ha warm, and asked hs visitor II he
knew that his aneuagc was slandernus. TO which that
gentleman replied thai no could prove every word Of "
aud much more ana was resdy to give $50 600 security
TO satisfy any judgment that could be obtained against
him. He further told the Judge that the bank was
rotten and would iali in very short time but that
gentleman stated ~ his fnai,y that lie had drawn up
his report and should not cbangeit
In tho same month tho report certifying tina, Judge
Sheldon found tho bank entirely solvent went 20 Wash.
ington. Great was the jubilaon In Atllca theron pom
Wavorng confidence Ia The bank revived and hard
earned gains 70 large amount deposited with "
The strength Of the report Of James sbclasn SIX
weeks later In March 1868, the bubble burst One Gns
morning the citizens OF Atca arose TO hear that the
First National Bank had failed and It's president and
cashier had soped for parts unknown We can briefly
dispose Of these individuals by saying that nothing has
been heard Of them SINCE
The smash was o bad one. Tho peYSonal liabilities OF
the officers amounted several hundred thousand dol
lars. portion Of which was On forged paper ON The