The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-04-12
A FINANCIAL SQUEEZE.
THE "LoCK.UP" SENSATION IN NEW
YORK.
An Effort TO Get Up Another "BIack
friday Picnic.


the following particulars of the latest Wal
street sensation, of which mention has beer
already made by the telegraph:
The publicity given yesterday to the attempt
of Henry N. Smith and others to 'lock up
sensation in Wall street, the movement being
the principal theme of conversation In the lob
BIZ OF the Exchange, the banks and the brok
ers' offices. 1t was admitted. even by the
most sceptical, that Henry N. Smith, Jay
Gould, F.. A.. Lane, Osborn & Chaplin, and
their bankers, brokers and co-workers, had
undoubtedly united to diminish the
quantity of legal-tender notes in cir.
culation, and to that end had entrenched
National Bank. The crisis had been brought
about by geliing certified checks from several
banks for deposit to the amount of s4.10O 600.
These checks being on call at any moment
virtually compelled the bank to retain the
greenbacks In Its vaults, and thus the "a, LOO,
600, instead of being lent, as 1t would other.
wise lave been, was kept out of circulation
thereby, greatly enhancing the rates for loan.
ing money. These certified checks. being
deposited to the credit OF the Tenth National
Bank In the name of Henry N. Smith, were
passed at the clearing house, and became
good for "a. 100, 900 in greenbacks to the credi,
OF Mr.. Smith. On Friday last Mr.. Smith dc;
manded the whole amount, and The bank paid
it, though many bankers assert that the bank
should have refused payment on the ground
that 1t was aiding an attempt to create q slrln.
eency in money. Mr.. Palmer, the president
Of the bank, says, In Justification, "That me
sums were deposited In the. name Oh Mr;
Smith, and the bank had 10 pay the demand
or 20 into bankruptcy" ,,
Co.. upon Wall street was to make money
very scarce Yesterday, aud slightly to depress
the price Of stocks. The Clearing House AS
ISOLATION held a meeting In the afternoon, at
the Merchants Bank, to deliberate upon the
action of the Tenth National Bank. ID. Yer
mIlye presided, aud a report was presented by
Mr.. Tappan. chairman OF the committee from
the clearing house, which states the 1aots OF
the case as follows:
"On the morning Of April s, before 10 a.
NJ, Henry N. Smith deposited 10 the Tenth
National Bank 81, loo, 900, consisting of checks
on the following banks: Bank Of North
America, 81, 200, 900; Corn Exchange Bank,
81, 100, 900; Mechanics Banking Association,
$3.50. 900; Bank Of the Commonwealth. $500,
600; Continental National Bank, 0 $1,000. TO-
tai, "a, loo, 600. These checks were added 10
the exchanges of that day, which, 10 addition
to between $500, 900 and $500, 900 loans called
In on the day previous, carried the large
credit to 81, ITO, 900 on the 9Th instant. On
the same day checks drawn by Henry N.
Smith to the amount OF IS, lOO,OOU were pre-
sented By him, and paid 10 legsl-tender notes
over the counter, and $1,000, 900 was paid Into
the sub-treasury on account OF q large pur.
chase Of gold $3.50, 00O) made by Osborn d
Chaplin. This amount was also paid on the
check OF Henry N. Smith. An examination Of
the bank account of Mr.. Smith -hows that on
February "a, 1872, a deposit of $500, 900 was
made, and drawn for the same day In legal.
tender notes, and that on February rs. 1872,
$500, 900, and on February II, 1872, $780, 600,
in all $500. 900, were deposited and drawn 10
cast on the day of the last deposit"
A long and somewhat noisy discussion foi
lowed. Mr.. Palmer, president of the Tenth
National Bank, appeared and stated that the
bank had been Ignorant of the movement to
look up money, and that he regretted the Ell
feet which the action of a director might have
upon the bank. A resolution for the expul-
sion of the Tenth National Bank from the as.
ISOLATION created much discussion, and was
finally lost by vote OF about TWO to one. Mr..
Palmer then gave a pledge to the association
on behalf of his bank that all the moneys
withdrawn from circulation should oe lmme'
diately restored to commerce. 1t incidentally
appeared during the discussion that OF the
81, 100, 900 deposited by Henry N. Smith, Jay
Gould owned 5000, 600.