The New York herald., 1872-10-28
BANK CRASH IN MEMPHIS.
Suspension Of the Memphis
Savings Bank.
What Dabbling in Shifting StOcks
Will Lead To.
Another FAILURE and Run on All
the Banks Expected.

MEMPHIS TEN, Oct. 2T 1879
II was announced last night toO1ate to telegraph
thst the savings bank OF Memphis. <pf which M H.
Wicks Is President and W. c. Mcclure cashier, haI
made assignment and would not open its doors on
Monday. The following card which appears In the
papers OF this morning, Is tbe only explanation
given TO the public, and It is understood les pabii-
cation was not agreed TO until after midnight last
night.
rUE PRESIDENTS CARD
MEMPHIS, Tenn. Oct. 20, t8TZ
To MY Friends AND THE PUBIIC:-
regret to announce that, by reason OF the strH-
gency OF the times and misfortuDes which hive
been unable to sarlnount the savings bank Of
signed all OF its assets to- w. Il. cunningham aIri
Il. A. Parker for the payment Of its creditors
assets Win DO faithfully devoted to the payment Of
the debts and that shall use my efforts 70 their
behalf. M. j. WlCKS. PrssidenS..
CAUSE or THE BREAK.
Inquiry this morning develops the fact
that the assignment was occasioned by draft,
made on Friday against sl15,oOO deposited to the
account OF the Memphis and Charleston RailrOad,
which, since July l, has been operated by Tom
Scott's Southern Railway Security Company, Cap
tain Jalues being superintendent or man
ager. Wicks was president Of the road be-
fore its operation BY the security tsSn com
an active part among stockholders in bringing
about the lease which Is for nnety-nine years, In
the road and equipment in good repair and to pay
dividend of three per cent annually for the hrss
five years and six per cent annually thereafter
On Friday Jaques became suspicious that the bank
was shaky and
| on deposit as above, when he was informed the
bank had not the funds necessary to meet the
ton followed in which President Lewis, OF the
! First National Bank was called In as adviser, amt
take $1,000 cash ' and the remainder in equal
monthly nstalnents, which, by the advice OF MS AZ
torneys Jaques declined to entertain, though ne
made proposition himself the substance OF
which was that the bank should give the railroad
credit tor $4,000 interest due on its bonded dcbt
venent. Unable to comply with this, the dircc-
tory OF the bank resolved on an assignment which
was carried into effect alter bank hours yesterday
THE ASsIGNEEs
are gentlemen of good standing in business circles.
Cunningham is a cotton merchant. and for
merly president Of the bank. Parker is secretary
0. the Merchants Insurance Company, What
THE CONDITION OF THE BANK
Is II is difficult to ascertain with reiability but
the best informed regard the prospect for creditors
as unpromisng, the concern having; IL
chnpos'' chnses of ''0 stock ' Of the Memphis ana
Charleston Railroad, which, in anticipation of the
to 20 its present value. The liabilities esti-
mated at s275.oo0, OF which 100000 Is capita.
is said that Wcks proposes to devote mis- personal
property and estate to the relief OF the small de-
positOrs. The announcement or WickS in ths
f"r''' TOOK THE PUBLIC BY SURPRISE,
the bank having always been regarded strong
and safe and, Notwithstanding 1t was sunday,
quite an excited crowd gathered ON Madison
street, and Indications are that there Will be Q
heavy run on the banks tomorrow, which, In
view OF the heavy discount and active employ
ment OF money in the removal OF cotton would
seriously embarrass business, Ii not cause other
suspensions. l am told by banker this evening
that there will be
ANOTHER FAILURE TOMORROW,
but il will be small affair, and as the concern has
been known to be In labOring circumstances for
some time It's suspension or assignment will take
nobody by surprise. 1t has Tor several weeks been
carried by two OF the leading banks, who must now
drop Ii in order 10 take care or themselves In
any emergency that may result from the failure or
yesterday It's capital stock Is $4,000. and its de-
pOsit line has not for time exceeded 6T5, 900.
AS for the leading banks, while they are likely
to be heavily run upon, inquiry and q knowledge
of financial matters convince me that they are in
solvent condition and will promptly meet all de-
mands that may be made upon them