The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-09-08
ANOTHER NATIONAL BANK BUBBLE BURST.
INTENSE EXCIT EMENT.
Heavy Losses Among the Business Men of
the Eastern District.

The rotten and unsound condition Of the natona
banking system has been again exemplined in the
pension yesterday Of the Farmers Citizens National
Bank Of Will amsburg and the transferral Of its books
and charge OF the receiving officer appointed
BY the Treasury Department Startling Irregularities in
the Affairs OF institution have been already brought
20 light and yet interesting and astonishing deyel
opmcnts may be expected before the investigation.
which has just been commenced, Is concluded.
The immediate cause Of the suspension was an order
issued BY the Treasury the 5th ns which has been
already published in the HERALD The regulations of
The Treasury require that all country banks,
under which class the Farmers and Ci,izens'
was enrolled in the list of national banks shall
maintain reserve fund in legal tenders in
their vaults amounting at least fifteen per cent Of
the gross sum of their deposits and circulation. The
Farmsrs' and Citizens Bank held about 81 600 600 OF
deposits and was permitted to issue . circulation OF
about $3.50 900 in national bank currency notes 1t
also about So 900 OF old floating about in the
financial world and these bills. when gathered in,
would be converted into national bank currency the
government counted in that amount part OF the
oulatiou Of the bank. In order TO comply with the
requirements OF the Treasury therefore, the Farmers
and Citizens Bank ought constantly to hold ts pos
session about 500 900. About month ago the agent
OF the government whose duty was to see that this
regulation was Observed discovered that there was
considerable deficit, the amount Of which is unknown,
and 10 varousy stated at bs $50 900 500 O0O
notification that this deficiency must be made up
vas at once served upon The president Of the bank.
Mr.. o. N. Beach. The conduct OF this gentleman, il
the statement of the directors be credited from this
stage Of the affair." has been quite extraordinary and
wholly inexplicabe. Instead Of converting a special
meeting OF the board directors and explaining the
critical position OF the bank for the prosperity OF
which they were, equally with himself morally respon-
sble he kept the fact Of the notice having been re-
csived profound secret Since the receipt Of this i'm
portant notification ur OF the regular weekly meetings
Of the directors have held tho condition
Of the bank has been either Of these occasions
disclosed or any intimaon Whatever given OF its i'm
pending fate The directors declare that the soppage
the bank sudden and unexpected blow to them
~ to any Of the stockholders deposors of whose
tsrests they the custodans and several OF them
srgs in confederation OF this that within the last week
they have themselves conhded largo sums Of money
70 the Of the bank, Of them having thus de-
posted no less amount than $4,000. What the
motive Of the president could have been in thus con-
ceaing the truth from the knowledge Of his brother
omcials Is as yet wholly unexplained but further de-
vsopmens will probably disps the mystery rest
Ing upon this portion of the affair Under these rcum.
stances Of course of the that might have
been adopted to preserve the credit of the bank and
render Its suspension needless have been adopted The
stockholders that they would have been perfectly
willing TO have had assessment, pro rata made on
their shares IL such would have restored the
bank 10 condition Of perfect and unimpeachabc nnan.
cal health.
The Farmers aud Citizens Bank was organized as a
national banking association about two years ago. but
had existed of the banks Of the State Of New York
for . long time previously. Its capital amounted to
scrbsd Up to the time Of the suspension the far fame
Of tho bank had been questioned, and il enjoyed
extremely enviabls reputation for the strength its
financial resources aud The experience and ability Of the
officers TO whom the charge Of Its affairs had been
mitted Its stock only recently quoted " eight per
cent premium and last July dividend of five per cent
was declared and customary bank statement pub.
lshed below showed surplus Of $40 900. This state.
mept however. Is generally discredted Some
speculation took place Williamsburg yesterday upon
the shares of the bank but effected only at
xuinous discount.
The folio wing the officers and directors Of the
bank President Oren NJ. Beach, gentleman; cashier
Henry W. Redhed; directors John Hicks smith Syl-
vester Tuttle coal merchant; g. w. woolley, gentle
man Watson Sanford grocer; Howell Smith, ststioner:
Anthony Belts gentle nsn David Surevant in the
directory; W. j. Pooey publisher; sylvester Boards.
censs mill; George Rcard, gentleman; DAVID Williams,
lawyer; Daniel d. Leary, not in the directory Mr..
Boards IL also Pres dent OF the Savings
Bank and George Rcard Is OF the officers OF the
same institution.
The following Is the last statement Of the Farmers