The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-18
I'LL MVNLl LUUAUI.
The Little Four Million Freak
OF Ursus Major.
Smith, the Individual, VS.. Smith,
the Bank Director.
What a Bear Does when Short of
Stock.
The Tenth National Bank as a Tight
ening Medium.
VERY CURIOUS CONDOLENCES.
President Palmer, the City Departments and
Albany Commercial Bank Tightening Also.
BUT He SAID NOTHING TO ANYBODY.
Carrying Off Millions in Els
Pockets.
Evidence Of Henry N. Smith Before the Bank
ing and Currency Committee.
President Palmer, the City Departments and
Albany Commercial Bank Tightening Also.
BUT He SAID NOTHING TO ANYBODY
Carrying Off Millions in Els
Pockets.
Evidence Of Henry N. Smith Before the Bank
ing and Currency Committee.
WASHINGTON, April II, 1872.

WASHINGTON, April IT, 1872
Henry N. Smith, of SAT Fifth avenue, in his ex-
animation before the Banking and Currency Com
,mittee, yesterday, testified at great length in
gard to the recent lookup of greenbacks by the
Tenth National Bank.
HE BEGAN HIS TESTIMONY
by saying, in answer to a question by Mr.. Hooper,
that he not in active business that on the 9Th
OF April he
DEPOSITED $4l0o,0oO
in the Tenth National Bank, In checks signed by
Osborn a Chaplin and Willard, Martin & Co. He
kept no memorandum but thought these were the
parties from whom he got the checks, and thought,
besides, he had from DE Forrest, and Marston,
and Joycel, In Bates Co.
Nj. Merriam asked him il he had this money loaned
out, and his answer to this was the beginning of
his testimony detailing the Whole transaction in
which he
PLAYED so REMARKABLE A PART.
What follows is the examination entire.
In answer to Mr. Merriams question he said
had left my balance at the brokers', and they had
loaned it,
@. What was the object in calling it in9 A. did
not know whether would let it out again or leave
1t in the bank; did not know what would ulti-
mately do with it,
q. Was IT for the purpose of locking up the cur
rency A. OF course held it.
BY Mr. Monroe-what was your motive for that y
A. considered it my own money and had right
to do what liked with it; the probability was that
O stringency in money would
BRING DOWN THE PRICE IN STOCKS;
had some short and some long.
BY Mr.. Hooper-Was 1t your object to create
stringency and bring the price OF stocks down A.
i suppose that was the object, II there any OBJ
ect at all; 1t was not the only object though; did
not feel very safe; we considered the banks not in
very good condition, and might want my money.
BY Mr. Farwell-What was your reason for con-
sidering them soY A. Because <sne Of the banks
felt so. There was considerable feeling on the
street. l was even nsulted on Friday night, be-
cause l
SAW FIT TO TAKE MY OWN MONEY.
Ordinarily difference OF tree four million dol
lars would not make any trouble in Wall street.
BY Mr. Merriam-Do you say they felt this
alarm, and that you were afraid OF the banks be-
fore you drew out the money? A. say that when
l first collected this money together had made up
my mind that would call 1t in placed it in bank
without really knowing what would do; on FRI
day the brokers saw large credit in the Clearing
House, and some OF them were very much excited.
BY Mr.. Monroe-You say you were fearful of the
solvency of the banks, and being asked why, you
say because they made much talk and because
your bank had so much credit at the Clearing
House that morning, and this after you had
called it in. A. said had not made up my mind
what would do with the money. The next day
the banks
GOT uP RuMPus ON THE STREET,
and there was n rumor that some one would att ach
Jay Gould's balances.
BY Mr.. Farwell-Was this after the large credit
to the Tenth National Bank or befores A. Before.
,t,fu tb,,
large call in collecting your money! A. Yes sir;
one reason was it was rumored they were going to
attach Jay Gould's balances in the bank and
feared that it might tie my money up, which it was
necessary should have.
Q. Who do you mean9 A. feared that the Erie
Railway or some one in New York might do it.
BY Mr. Mcrram-How large a credit had he in
the bankY A. could not say.
q. Did it exceed $l00,o0oY A. do not know.
BY Mr.. Hooper-Can you tell anything about
CHECK OF JAY GOULD
given for 100000, which was certified to as being
good on the ID April, but was not presented for
payment until the 10th AprilY a. | never heard
anything about that.
q. Can you tell the committee anything about a
deposit made by you of 100000 on the oath Febru-
airy 7 A. cannot remember anything about it.
do not keep any bank account, except with the
bank uptown.
by Mr.. Monroe-You spoke Of being short in some
z. Were they Erie stocks A. III they were II was
n trining amount
% What stocks were they the price OF which you
wished to bring DOWN A.
THEY WERE ACTIVE RAILWAY STOCKS;
the Genital and those active stocks and Rock Island
and Ohio and Mississippi.
BY Mr.. Hooper-Can you specify at all what
checks were deposited on the 4th OF April2 A.
said they must have been drawn by tile house OF
Osborn n Chaplin, willard, Martin N Co. and DE For
est g. Marsten, perhaps; whether by Joyclin and
Bach Il Co. l could not say; there were not any
others.
O. Was there more than one check Of Osborn Il
Chaplin A. There might have BEEN could not
say positively.
q. What was the amount Of the check of Osborn
& Chaplin A.
SOMETHING OVER TwO MILLION DOLLARS.
q. When did you receive these checks from them |?
A. The day deposited them In the bank; do not
usually receive checks from brokers until late in the
day: they have to finish their business before they
can give their checks; they have to draw their
balances and get them certified before they can
pay me.
q. II they paid in that way after they had got
through with their business would they give more
than one check A. IL might have been so; | am
inclined to believe there were two checks Of Osborn
and Chaplin; could not say certainly
with the Tenth National Bank A. | had usually
kept small one with the Continental Bank OF a
few thousand dollars.
q. You said you were not engaged in busncss7
A. No active business.
ARE YOU A SPECIAL PARTNER IN ANY FIRM2
A. Yes, sir. With willard Martin Il Co., Osborn a
Chaplin and Joycn, Bach & Co.
z. What time did you make this depositS A. A
little after bank hours, as have occasionally done
before IL Is seldom that do any amount OF bust
ness In n bank, and have sent up word to Mr..
Palmer that / would like TO make q deposit, and
then have II taken up: In, this instance ! sent
make a deposit.
BY MI Farwen-It seems that you notified M,