New-York tribune., 1872-04-09


Ea5l q The nor, f5 5 SSScS
IT., .........,.. 100000
These cbeeSs we're added to the exchanges OF that day,
which in addition TO between 10000 ana sSOCOO I GaS rs
o IN On inc me Sby PeVTS n Se Ie day checs drawn
iy Henry y Smith TO the amount of s3lO2OOJ were pre-
sutCd by him. aud paid in legalender notes over the
counter and SlOCO0OO paid into the snb-Ireasury
on account ot large purchase OF gold (SgoG0W mace @
eeck Of Henry y smith An examination Of the bank
account Of MIR smith shows that on teDruIy - lolZ,
d,,o<t of s5o0OO0 made and drawn Tor the same
day legatender notes, ana that on ftpri -, i6oa
5000 and February ~ 1872, S5OOGO, IN all siCoOp
deposited ana drawn IN casA on the G1y oI Tue 'S'
degcslt ,,o 1.os,,o,,t sto,os that he had no know
ledc OF the disposition by Mr. Smith Of the amount
drawn from the bank and that neither he personally,
nor rs President Of the bank, the bank III any way
had become the custodans OF any portion OF sad iuds
Mr. Palmer further stated that be had had no lnlmali3n
drswing legatender notes from USE; but III this con
Deposit Of lo0OoO by Mr.. smith, the bank called in
kans to the extent Of S5OOOOo when by its statement
tre pps&red TO be no necessity for such contraction
Henry \. smith is a director in tho institution.
Tie President and o. II. p. Archer, who is director
SxrTcssI great icerct that tie bank through the op
Grafton OF ITS directors had furnished cause Tor any
house and assured that transactions OF n similar
nature would il the future take place through It.
A long and somewhat noisy discussion followed. Mr..
Palmer. President OF the Tenth National Bank, ap'
pcared a stated that bank had been ignorant Of
tlic llCAt-ilt 10 och ul 04i~' ~"
the eject which the action OF director might have
uon the bank resolution for the expulsion of the
Tenth MAI Bank from the Association created much
scusson md finally lost by vote of about two TO
one Mr. Palmer then gave pledge TO the Association
On behalf Of his bank that all the money withdrawn
from circulation should be Immediately restored to com
nolcc 40 incidentally appeared during the discussion
that the s4l00O00 deposited by Henry " Smith, Jay
Gould owned 500 coo. The following resolution offered
by M Tappan Of tho Gaatin National Bank, was then
Gaop.cd:
res, ,'red. That the Clearinghouse Committee he and
hereby ted whenever appears in Its judgment
fat el slender notes have been withdrawn from use
through the agency OF any Ddhh, neIOef Ot thIs $50
,.iYn. 10 make Immediate examination Of the bank
Do question and should there appear TO be completely on
tc part OF The bank or ITS Oihcet 10 suspend sd Dahk
Ir0i the q Gringhouse until action OF the Association
eAa lc taken thereon.
TIE Committee then adjourned reporter of TIE
THUSE af,crwdrd called upon the VcePresident OF the
T.,tL National Bank who said 81 have only TO state
thai knew nothing Of the affair until IL a m on Fri
day when received Our balanceshee from the Clear
inc-house, and that s47O0OoO was placed TO our
credit This amount was at once drawn against 10y
checks and the accounts We're almost squared by the
next morning. The AFFIDAVIT OF MI Purdy Is only upon
information and Delef"
THE BANK IN THE UNITED STATES COURT.
The legal proceedings instituted against the Tenth
National Bank excited much interest yesterday and
large numbers of business men and deposors in the
bank were early in attendance at the United States
Court building eagerly questioning the Commissioners
as to when the expected TO be made About
a. H. subpenas issued and served upon all the
officers Of the bank, requiring them 10 attend before
Commissioner Davenport at IL O'Clock, as witnesses.
The counsel for President OF the bank appeared,
however before the United States DsricAttorney, and
that it impossible for his client to be ex
smned until the afternoon. Jay Gould was also absent
and the only witness examined in the morning was Ed
ward X Willard Of Willard, Martin Co., brokers, who
was questioned for the Government by Assistant Dis
tr.etAttorney Purdy, and testified:
Henry n. Smith is a special partner in the 0rn or
Which am a member have not done any business for
Mir Smith and not OF his draw ing any money
on house; Jay Gould is also special partner in our
firm have conyerscd but little with Mr. smith for the
last DAYS, and he has directed procure any
deposits or draw checks on his account within that
TINE Mr.. Smith and jay Gould have talked with me on
the strngency Of the money market but have said moth
ing that remember in relation to the alleged conspiracy
In the Tenth National Bank neither Mr.. Gould nor MI
smith have ever told that they Intended to withdraw
large amount Of money from the Tenth National
several questions asked witness by Mr.. Purdy
10 which Mr. Field OF counsel for the banks objected
tho ground that they were irrelevant and improper
Sr Purdy said that he wished to show by the witness
that Henry " Smith and Jay Gould had wilfuy with
drawn certain funds from the bank in question, and
coufpired with others to produce panic In the money
market.
nrt,ly to question in regard TO certain conversa-
lions With Gould and Smith, the witness testified:
II have cOnversed with Mr. Gould and Mr. Smith ON
ms subject, but they have stated nothing damaging
Mr. Smith said that he thought was rather hard that
man couH not Withdraw his own money from q bank
itogt se'ting into trouble he said tits on saturday;
Mr. Gould cid not express himself ip regard the mat
fcI on mat fay not negotiated with any for
fhe Joan money above the legal rates and have not
a4d money without irst collecting II from the persons
4 yun whom IL was borrowed
Ar. Purdy-yIaye you seen any check drawn on your
iouse jn favor Df Mr. biDh within the last ten daysf
THIS question objected 10. and an argument en-
jed which resulted in the postpOnement OF the exam
u, III D. ~ when the counsel for the bank said
they would produce the President. Walter b. Palmer,
gL0 would give some important testimony concerning
IL Affairs when o'clock came, the President had not
ssyed and Commissioner Davenport after waiting IN
~ S required Field and Edmonds, counsel for the bank,
explain the sbsence OF their witness MI FIeid said
lo ."Iesdent was compeed TO attend an examination
at>lne Clearing house at D. H., and hesuppOsed he
,ould Mt be through early enough 10 60 on with Inc
,arlna,io before the Commissioner that afternoon.
ur Purdy sait lie would like very much 10 proceed |
i'm the case for .ho longer IL was put on the more
m would be cyen 10 the alleged ceDspirators TO al.
~ TIC accounts aud artiay conceal Ae real state oI
;i.4ss , =. 4. Al ,