The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-12-13
ANOTHER BANK SUSPENSION.
Failure OF the Ocean Ma
- tiOnal Bank.
stoppage Of Payment at Noon Yesterday-Ap-
pointment Of Receiver-Prospech Of tho
stockholders and the Dspositors-
The United States Examiners
Checks ON tho Bank.

The United States Examiners
Checks ON tho Bank.
tional Bank caused considerable excitement yester-
day morning througnout the city. Though the bank
has not for some time had very first class reputa
tion, the report was not generally credited, anu II
was not until noon tnat the fact Of its actual suspen
sion was fully believed Early In the morning the
Following circular appeared on 'Change:-
s., H.. NEW new Yoak CIEARIse HOUSE,. Dec. H. 1871.
o.. a House aOa y the Joint Of The
' ms sa
on a. The Msrchans National Bank his ruesisy at
Sly Chairman Clearing House Committee.
MEETING OF THE STOCKHOLDERS
| At the hour named for the meeting about seventy
gentlemen were present. but the reporters were ex-
PEELED, Mr., Vermllyea, OF the Merchants Bank,
1ntmating that representatives OF the press could
see him and learn all particulars after the meeting
adjourned. The meeting adjourned within al
hour. but Mr.. vermilyea referred the reporters
to Mr.. Leverich and other gentlemen or the
Clearing House. These gentlemen, ON being
approached. declined 10 say anything, but
later In the day reporter OF the HERALD
conversed with an officer OF the Clearing House,
who would say nothing except that under the rules
OF the Clearing House any bank OF the association
which failed TO observe the rules subject to an
| examination by the Joint committees. He stated
very explicitly that when this action looking to an
investigation OF the affairs OF the Ocean Bank
| taken the bank only owed the Clearing House
$4,000; that there were some ten or fifteen banks
not in the association who exchange among them
selves and accommodate each other, and carry on
| financial world OF their own.
AT this point of the interview q weldresscd gen.
tleman forced himself into The presence OF the re-
| porter and the Official and imperiously demanded
| Information as To the status OF the Union Square
National Bank. Fortunately the Manager OF the
| Clearing House, Mr. Camp, came to the rescue OF
the interviewed ana the interviewer ana gave him
| the information sought. The conversation ran
| somewhat thus
| DEPosIToR-How's the Union Square2
! OFTICIAL-I don't know; they don't belong to our
| ASSOCIATION.
| DEPOsTOR-But are they soundp / understand
| they are affected by the ocean Bank smash.
OFFICIAL-That is something | have nothing to
do with. The Union Square don't belong TO our as
ISOLATION. may say this much: the Union Square
Bank deposits its paper In tho Ocean Bank, and
they send 1t 10 the Clearing House. know nothing
OF its condition.
Similar information was given the reporter.
| Later in the afternoon the representative OF the
| HERALD was introduced TO a member OF the com.
mttee who, on Monday examined the affairs OF
| the Ocean Bank, ana hs statement Is substantially
| aS follOws--
the Clearing House Committee had meeting
| on Monday, ana resolved 10 examine the
| Ocean Bank. 1hey proceeded there yesterday at
three O'Clock. After an examination lasting from
| three to seven r. M. the committee found The
! Bank in such a condition that II was deemed de-
I sirable to close IT, meeting OF the conference
| committee was had, and at meeting OF the Joint
committees this morning at eleven O'clock the
| Ocean National Bank was suspended from the ope.
ratlons Of the Clearing House until the pleasure Of
/ Here the committeeman hesltated, excused him.
sell, and held a conference with gentlemen OF the
Returning suddenly he asked, 'You belong to q
| morning paperY'
"We.l, may say that in our examination OF the
cash OF the bank checks OF Charles Calender TO
the amount OF $4,000 were found and counted as
= the reporter ye1uFea to ASK
National Bank Examiner for this district Recently
he reported the bank as all rigntn
| the smashp II seems that the United States oncer
| is the man. That puts new light upon tue matter.
| the trouble"
mo, SIR. We found large amount OF protested
paper and loans upon insufficient securlties but as
lar as Tweed Is connected with it, we only found
that loans haa been made to the New YORK Printing
Company"
At the Ocean Bank yesterday there was compare
lively little excitement. Deposltors came nurriedly
| In, sought prominent official, and after q short
conversation lett, apparently satisfied with the
PLANTATION they had received. UP to haf-past eleven
bank were honored and ali deposits paid
into the bank were received, but put aside with the
name OF The owner attached Alter halfp past eleven
! O'Clock all checks presented were dlshonored. and
| no further deposits were received. The deposits
received previously during the day were returned to
| the respective deposltors
AT half.past eleven O'Clock the bank had actually
X hbnrbur comproer Of se currency who hap
pened to be In the CITY, appointed Mr. Theodore NJ.
Dawes receiver. Mr: Dawes Is the senior partner
pff hn firm nj Dav ~ lnw M
80 Wall street. He IS known as a practical business
man, as well as an eminent member OF the Bar.
for information IN the morning were told that If
they would call at two O'Clock one OF the bank
officials would supply tncm with all the particulars
| OF the suspension that it desirable the public
! should know. At Two O'Clock HERALD reporter had
conversation In private room OF the bank With Mr..
Dawes the newly appointed receiver. In the course
OF this conversation Mr.. Davies SAID that the failure
Of the bank naa been aceelerated by me action Of
| pended the Ocean Bank from their operations.
| Alter that action there was, OF course, no
salvation for the bank, inasmuch as all the other
banks had been notified, and the results conse-
quent thereon followed. 1t was, therefore in tic
interest OF all the depostors that Mr. nurDurd had
appointed a receiver. MIR. Davies was OF an opinion
that the depositors will be paid in full. rhe crcu-
lation OF the bank was secured by the government
and the remaining assets OF the bank, with the
liability OF the stockholders II needed would be
opinion may he formed to the probability OF the
deposltors being paid n run oy perasa OF the fo!
issued previous to It's suspension-
IN SATURDAYS BANK STATEMENT
the averages OF the bank were reported as foows:-
Loans &o0s 4UO
specie. lvsO0o
Legal tenders. $4,000
DcpOSS lUU
fNb,ouU
This shows reserve only OF 1856 per cent, being
104 per cent less than the required legal reserve or
twenty-five per cent.
MIR. Davies SAID that the capital OF the bank was
$1,000 000 that the bulk OF It's securities IN real
estate, which they had found IL difficult to realize
upon. A good portion OF these real
estate securities had been taken for bad
debts. There was no truth In the reports that the
bank was In alliance with any Wall street cliquc;
neither mad the bank anything to do with ramnany.
Mr. Tweed had been director, but resigned
ABOUT year ago. He had not attended directors
meeting, and had practically nothing to do with
bank.