The New Orleans crescent., 1868-07-01

From the Avalanche June % .t.
Suspicion that all was not right has rested upon
the Merchants National Bank for some months,
and the affairs of the institution have been very
generally discussed in public places for nearly
week past, especially as il was well known that
lynx eyed agent of the government was In the
city foT the supposed purpose of investigating the
details of its management and operations In the
Avalanche of yesterday brief reference was made
10 the matter for the first time.
But all was not destined to be as lovely as the
officers fondly expected. Gen. Wilson, the bank
examiner, had become satisfied that the affairs OF
the bank were rotten, and that the national bank
ing law had been disregarded in nearly every par
ticular. eI .. ..I
The result was another draw on the bank yester
day morning, this time from the directors. By
ten OF eleven o'clock, so persistent was the de-
maDd, it was found necessary to suspend payment.
In a little longer, by request OF the directors,
Gen. Wilson was in possession of the keys, books
etc.. belonging to the institution, and had made an
order of liquidation.
Gen. Wilson found no cash on hand on taking
possession, and nothing to the credit of the con-
cern with other banks OF correspondents. Paper
amounting to about $500 900 had been sent to New
York banks at different times to raise money on,
all credited and discounted TO the Merchants Ma
tional Bank, and now maturing. This. OF course,
will return protested and be liability of the col
lspsed Institution, which. added TO the amount
due depositors-sey $50 900 to S2O0,000 as vari.
ously estimated-wi make the gross liabilities OF
the bank about $500, 900. As for assets, in sddi-
ton to the paper in New York, the bank has he; Q
about s400 000 in paper, at least half of which is
under protest or past due. Thus the assets are
apparently 500 600 in paper, good, bad and in
different, Of which, at fair estimate, about
twenty Eve per cent is all that can be collected
in these disjointed times.
The depositOrs caught by the failure were mostly
heavy ones and few in number, the small ones
who generally make the most noise, having been
paid with few if any exceptions. The heaviest
sufferer by the collapse will be the Metro politar
Bank of New York. In fact the weight of the
failure is very largely in New York, and will be
felt here only affects credit and the deposit
tors 10 whom we have made reference
A letter Of the 18th, from W. Il. Cherry, presi'
dent of the bank TO the Memphis Bulletin says
that when they closed payment they owed de
positors, not provided for, less than $23 900 in
stead of sl50,000 10 100000, as reported, and
this will show why there WAS little money OF
hand when they closed. That on the way by ex
press was partly used in payment TO Deposition
and part was retired to bank lending IT, after thel
closed, and even with the small amount remaining
70 be paid TO depostors, they took up during th,
morning by cash $500 of their exchange, whicl
bad been previously paid out, and would hay'
been promptly met if they had been permitted &
go on. He was rendered during the morn
ing from two undoubted sources money to NEE
all checks II be would only continue to pay; bu
not being able TO get assurance that they woul
not be closed, though they should continue I
pay all depositoIs, he was unwilling to use thei
money so kindly rendered.