, 1872-12-11
MONEY AND COMMERCE.
MONETARY.


TUESDAY EVENING, Dec. TO-
The favorable change in the condition OF the
local money market, noted during the last 1e"
days, continues. Deposits are steadily 1nc1eas-
ing, and obligations falling due ut the banks arc
being more promptly paid. Money Is very tleht
yet, but collections in the country are lmpro7-
ing, hogs and cattle are being marketed freely,
and on the whole the financial SITUATION Is mucn
better than it was week ago.
The supply Of New York exchange is large,
but the demand for it is also very large. There
xas considerable demand for currency to-day,
that weakened the price Of exchange, though
sales we're made between banks at Soc per ST 900
premium.
1Hn FAILURE OF TIE scASDNATAN NATIONAL
BANK,
of this city, is IN illustration Of the evasions Of
The law in regard to paying up National Bank
capital, to which pointed reference has been
made in this column Of TIE TRIBUNE several
Zines during the last few weeks. Tho causes Of
the failure are, however, of special nature, and
for that reason e detailed statement Of them are
Necessary to show that they are not Of any gen
eral character that might affect other banlza.
The Scandinavian Bank Was originally pri-
vate bank, With line Of about $100, 900 deposits
(nearly all savings deposita) Of Scandinavian
1aborers. The bank also did consid-
tickets to and from North Germany, Den
mark, and Sweden. Last spring, Winslow
being President, the bank was reorganized as
National Bank, and the majority of the stock,
S225, 600, taken BY Winslow. Afew small amounts
ct stock vere scattered around among reputa-
Bio people here, and their names temporarily
used as Directors just long enough to give the
Laaa respectable standing, the bank making its
E.'t statement as National Bank on Oct. 5.
L is not known how much Of the S225,o0o Of
stock was legitimately paid in ut the start, but
/: IS alleged that, AZ Winslow did not have tho
ca:.ital to pay in, the money to buy the $4,000
Il bonds to secure its sl35,000 Of circulation
ooz loaned to him by National Bank Of this
-: until the s135, 900 Of circulation on the bonds
aid be got from the Treasury Department
q: Washington. It is also intimated that the
President Of the National Bank that made this
l:..ance got 81 GOO OF stock in the Scandinavian
s,at;ccal Bank for the accommodation.
Winslow subsequently sold S75,o00 Of the
stock Of the bank to parties in Copenhagen, and
$4,000 to parties in Paris. who were an induced
to take it on the Recommendation Of o respecta-
tlo Danish banker, & friend Of Wins.ow'E, IN Co
pecLagen. The money for this stock was paid
to Hins1oT in person. and, it is alleged, was
never paid by him into the bank as capital, but
Dc1y partly, ana to'the credit Of his own account.
Meantime. the prestige Of being National Bank
attracted the deposits Of the Scandinavians Of
tie city, it's deposits increased, and, on these
and some small payments Of stock, probably
$4,000 all to;d the bank vas carried along.
About i've months ago WinsloT undertook to
fnencier the Alissisaippi Valley + Western Rail-
road, Which is in operation from Quincy to Keo-
Ruk7 40 niles, with 3 line in progress from
Keokuk to Brownsville, Nebraska, 352 miles.
In pursuance Of this plan, he sailed for Europe
nbout the 1st Of July, to negotiate tho bonds to
build the Ecail In expectation OF the sale Of
the bonds, lie bought considerable amount Of
<ailroad iron, at least one cargo CT which has
come forward. BET failing to negotiate tho
bonds as anticipated, further purchases Of iron
vera suspended. The lrbn that was bought Was
at 8 high figure, and the subsequent decline in
the price of iron made, as is claimed, a loss Of
GONE $4,000 or 1000. This is all the Ieg1ti-
mate losE OF which We can hear positively, and
it seems that the S26o,000 which Winslow Is said
to be indebted to the bank is almost entirely
an Illegal misappropriation Of its funds,
in the three following ways First,
fer money received from Copenhagen and
Paris stockholders, and not paid III;
second, for SIS, 500 OF stock still in his name
and third, for advances made by the bank on his
purchases Of iron and for other advances to the
1ailroad on his behalf. These circumstances
we're not wholly developed until within The last
week or ten days. Bu. four weeks ago. when
protested bills began to come back here from
london and rumors began to circulate freely,
the writer called On Mr.. Alexander Siller, tie
Cashier Of tie Scandinavian National Bank, and
asked him to refute them il possible, and at the
tea1ne time asked for statement Of the condition
iof the bank. 11r. Sller gave us the following,
(which wo have every reason to believe was
technically correct, showing the condition of the
bank On the evening OF Nov. 49,: