The New York herald., 1872-12-10
RUN on THE MUTUAL BANK.
The Chatham National Bank the Cause Of the.
Dificulty-It Refuses to Redeem the
Checks Of the Mutual and Ceases to
Have Any Dealing with It-Ex-
citement Of the Depositors.

The Mutual Bank 1s an institution doing business,
on Broadway, between Ast0r place and Ninth
street. passer-by on yesterday might have OBJ :
served an unusual cOmmotion around the building,
and II he had entered he would easily have perceived
what was the difficulty. A number OF excited.
individuals, with bank BOOKS In their hands, were,
pressing forward to the cashiers window to re-
ceve cash for their checks draw their deposits.
The paying teller had his hands full The receiving.
teller had nothing to do The clerks wrote on with
their usual imperturbability, but their unc0ncern-.
was not shared in by the President or directors,
who were seated in an inner apartment ear
nestly consulting. The cashier was engaged in re-
ceving angry applicants, who were rushing IN :
every moment to ascertain what their losses were,
II any. At no time, however, were there more than
thirty people In the Office. and these were pYnci.
pally small depositors. The small depostors were
paid instantly, but with the larger ones there
more trouble, as their accounts could not be easily
settled The cashier, in response to their sOcita-
tiOns. would say, Not for day or twO Dut 1t win
be all right" and, making virtue OF necessity the
anxious depOsitOr was forced to depart. One young
man with q menacing attitude presented check
for SIS to the cashier saying, "Is that any good Y'
"As good as g0ld," said the cashier. '"lhen give
me SIS on it." said the young man. The money
was instantly paid, and he went on his way re-
A HERALD reporter sought out Mr.. Samuel A.
Hills to get statement OF the dfflculty and the,
following is the story that MI Hills told He said
is strong and solvent, and we have ample security
for the amount OF our deposits. The cause OF the
temporary trouble is the action that has been
taken by the Chatham National Bank, with which
we did business. We had an account Of S76,oo0s
with them, and on Friday they very unexpectedly
issued notices saying th.t after that day they
REDEEM OUR NOTES AND CHECKS
We always kept an account open with them, ana
at no time were Overdrawn more than $1,000.
The reason that impelled them to close accoantss
was paid this morning."
REPoRrER-What is your capital and what is~
<1,o Ofxy
nominally $500, 900, and we have been doing o.
n d M
ties and stocks deposited In the Chatham National
ce s1fures rue ANA We bod N o
hands. On Saturday run commenced upon the
bank, and before we 1 closed s2s 600 was withdrawn
REPORTER-Do you expect to pay as much TO-
Mr.. HTLLs-No, don't think we shall. 1t is
matter OF some difficulty to convert securities
into money at SO short notice. We have not,
borrowed anything yet, but we expect to do SO ins
a day or two. II we don't succeed suppose We
shall
BE FORCED TO SUSPEND
for a short time. We will continue to pay as long
AS we have any money left. When the money fails.
oo % we a ne 70 cs h
ensue; II we had we could have been better pre-
pared to meet it.
At this point the conversation was interrupted
by the entrance OF blonde young gentleman with
a long memorandum in one hand and number OF
attention, so Mr.. Hills with the explanation given
above. was forced to leave the reporter. In the
oice the people who were interested continued to-
busily draw their money. The paying teller took
as long possible to hand over the amounts. Hc~:
counted the money OF each person several times
over with great deberatiOn, but he probably
wanted to be very correct In his payments. One
old gentlemen presented check for $3.50
with fear and trembling depicted IN his
earnestly at the figures on its face. Then he
PASSED 1T OVER TO THE TELLER
who the old gentleman five 800 bills and A.
number OF smaller ones. He looked as happy when
he received the bills II some disaster had be-
fallen his mOthernaw, and clutching the bills .
tightly he trOtted OIL. The bank continued to pay
all small amounts up to closing hours.
visit was subsequently paid to the Chatham
National Bank, and an interview was sought with
inquiries made the following statement. He said -:
1--WE have for the past year been dissatisfied with
the manner in which the Mutual Bank has trans
acted its business with us, and for more than a.
year we have been trying to get rid OF account
but did not succeed in doing So other
bank would take 1t or our hands. They.
have been frequently Overdrawn as much as
$4,000. We thought this rather hazardous; but,
as said BEFORE we had no opportunity to get rid
Of the account until last Friday when we deter
mined to take strong measures, and the following
circular was issued-
The CHATHAM NATIONAL BANKl
NEW YORK, -, 1871
After this date this bank will cease to redeem the notes.
checks, &C., OF the Mutual Bank.
l have no doubt, sail Mr.. Hard in conclusion,
that the Mutual Bank Is solvent, but we are glad1
to get rid OF their account.
crisis may be expected in the affairs Of the