Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-06-30
BANK SMASHERY.

I
T'he Merchants National Bank Closed
/ Yesterday-Partieu OF she Col-
lapse, and What Brougbs 1t Abont.
II From the Memphis Ayalanche. Jane 2s.
II Suspicion that all was not right has
rested upon the Merchants National
Bank for some months, and the affairs OF
khe institution have been very EeneralIy
discussed ii public places for nearly q
! week past, especially as it was well known
that lynx-eyed agent Of the government
was in the city for the supposed purpose of
investigating the details of its manage
/ ment and opsrations.- In the Avalanche
OF yesterday brief reference was made to
the matter for The FIRST time. IL was ahen
stated that neeting Of the Directors was
held Friday evening, at which everything
was pfeseaIed by the officers In so favora-
bic atight that very satisfactory arrange
ments were made for trimming the
machine through safely. Large suras of
moEey,it ia said. were planked down by
the conkding Directors, and on the top Of
this came apaekage of $50, 900 from New
York. Everything looked lovely to the
hitherto sanxiOus officials, and to add to
their happiness, some deposits Withdrawn
= NNy VI tHO l'ISflVdsty were Teturneu.
Still better, package Of $4,000 would
be due, by express, Saturday morning; all
would be right after all, and about the
close of bank hours Friday the officials of
the bank we're in state of the most
ecstatic enthusiasm over their rejuvenated
prospects. ~ 'r
But all was not destined to be as lovely
as the officers fondly expected. General 1
Wilson, the bank examiner referred 10
above, had become satisfied that the affairs
Of the bank were rotten, and that the ma
tionsl banking law had been disregarded Ia
nearly every particular. He sought an in
terYieW with the Directors soon after their
meeting, and in a few minutes effected A
wonderful change in theirideas withsregard
to the institution. Practical demonslra-
tions of facts and figures convinced these
gentlemen that they had viewed the man.
agement and operations of the bank through |
a glass darkly. The result was another |
draw on the bank yesterday morning, this |
time from the Directors. By ten or eleven |
O'Clock, so persistent was the demand il was |
found necessary to suspend payment. In a
little longer, by request of the Directors, |
General Wilson was in possession of the /
keys, books, etc, belonging to the inslitu. /
tion, and had made an order of liquidation. /
Our reporter called upon the officers
about this time for information. and was
assured that the bank was all right; that
ihsre was money enough to pay depositors,
and that even stockholders would be all 1
right that in fact there was no necessity
TOR closing the bank. Furthermore, salts
factory statement would be furnished the
press during the day. The statement, az
promised, did not come to hand, SO our re-
porter was compelled to seek other sources
ot information, with results as detailed
above, and as follows:
Gen. Wilson found no cash on hand on |
.aking possession, and nothing to the credit
of the concern with other banks or corre-
lpoEdents. Paper amounting to about
o3OOO had been sent to New York banks |
1t different times to raise money on, all |
credited aud discounted TO the Merchants
National Bank, and now maturing. This.
II course, will return protested and be
liability of the collapsed institution, which,
added to the amount due depositors-say
$3.50, 900 to 5000, 900, as variously estimated |
will make the gross liabilities of the |
bank about $500, 600. As for assets, in ad- |
iition 10 the paper in New York, the bank
las here about 100000 in paper, at least
lalf which is under protest or past due,
has the assets are apparently 100000 10
'aper, good, bad and Indifferent, of which,
L fair estimate, about twenty five per |
ent. is all that can be collected in these
lisiointed times From this statement the
eader may ia re of the chances of de-
,ositors and stockholders. The depositors |
aught by the failure we're mostly heavy
mes and few in number, the small ones,
Vho generally make most noise, having !
'een paid, with few if any exceptions.
The heaviest sufferer by the collapse will
'e the Metropolitan Bank of New York.
q fact the weight of the failure is very
argely in New York, and will be felt here
nly as affects our credit and the depositors
o whom He have made reference. Such
5 general outline of the affairs and pros
'ects of the Merchants National Bank,
leaned from semi.oficial sources since
writing the paragraph which appears at the
ead Of our commercial columns