The New York herald., 1870-08-03
A FINANCIAL SluASH-UP.
Suspension of the Central Bank,
Brooklyn.
Speculation a. to the Cause OF Cola pss-No
Money Paid Out but Deposits Accepted
How the Matter Nov Stsnda

ihero was considerable exoitement caused in
business circles OF Brooklyn yesterday by the start
ling announcement that the Central Bank OF that city
had failed, Inquiry elected tho fact that the bank
In question: which In situated ut No. 34S Fulton
street. had suspended payment In compliance with
an injunction OF the Supreme Court granted upon
the motion Of the counsel for the stockholders to
restrain the officers OF the Central Bank from paying
out any more money until the financial condition OF
Its Affairs could be investigated For some time past
this Institution has not borne the best reputation for
its management In well-pnsted banking circles The
bank
VAS ESTABLISHED IN 1856
under State charter. It's capital was $500, ,ooO IN
1000 shares a. nifty dollars each. par value In 1857
IL suspended payments, duridg the panic. tempo.
rarly. hut after few days resumed business again.
and has since continued TO meet lJs liabilities The
directors have been careless. it liz said In tnelr
supervision OF the affairs OF the bank ana the con-
sequence was that q lack OF confidence was engen
dered IN the minds Of those who had an opportunity
or knowing the real condaon OF the bank.
PRESIDENT
oi the Central bank, Mr.. II. L.. Pruyn, IA an exten
s'se speculator In real estate. who has within the
past three or four erected several costly build
ings on washington street ana Vicinity lie owns
the largest proportion OF the capital stock OF the in
quarter ending July 4. WAS sas2 oOo and the profits
$4,000. This statement was considered sound
enou IN provided the securities proved good The
later however. is believed by many are made IN
OF coaterals involved in the Presidents real es-
tate transactions.
THE ACpIOS THE MARINE BANK
OF New fork recently tent the deathbOw To the Cen
tra Institution, by noying all other banks tn ut It
would no longer continue honor the checks Of the
latter bank Thus the Central was cut or from The
banking institutions OF ,he district and hurried on
to the damaging uiLInatum OF suspension It ia
claimed, Notwithstanding. that the depositors ac-
counts can 30 settled IN iul the Ut the bank
being ample Tor that purpose.
THE DISCOVERY or TUE DfFFICuITY
was made yesterday morning shortly alter the open
Ing OF the Centra, Bank, when u depositor who had
siZooo 20 ms credit presented cheek Ior 420J The
paying teller candIdly' Informed the gent eAn tnar
there was only oae dollar remaining III the drawer
ana tat ne had but Just paid 81 900 TO another
ueIDslt0r, wnCn ieL them short. This was not con-
sidered as q satisfactory explanation, and further
inquiry eicited Lhe fact that they were unable TO
meet their liabilities, but would probably be all right
again in u few days.
WINDING THE MAIN CHANGE.
Whle thus conversation was taking place ,t was
remarked that the uninitiateo were allowed to
make deposits, and that mSney was being taken "A
usual, though none was paid out on checks. Mr.
John Ia Spader, cashier, has been appointed re-
ceVer Dy the court, 8nd uni the settlement OF The
affairs OF the Central Bank no money can be paid
out.
AN ANGRY CROWD
OF depOsit0rs were assembled on the sidewalk in
front Of tile unhealthy financial institution IN ques-
tOn yesterday afternoon. who were engaged in
enptying the viais Of Their rath in language loud
anu deep upon the devoted heads OF the bank OH.
ciala Tho stockholders have determined TO take
steps TO have the affairs OF the bank wound up and
thereby meet tue liabilities.