The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-20

Mercantile National, Shank invoived
-Thc result OF IL series ga spccu-
IatIons.

Fortunately for the condition of the
stock market the rumor that serious de-
falcation, says the New York World, had
occurred in the Mercantile National Bank,
at the corner of Broadway and Dey street,
New York, was not generally put in circu-
lation in Wall street till after the close of
business hours. Even then the rumor was
of so vague character as to be classed
with those which are constantly manufac-
turcd at the daily sessions of the so-caled
"rumor committee" At the bank Offices
too, II general denial Of any serious trouble
was put in by the employees of the inslitu-
ton, though the existence of some irrcgu-
larities was admitted by those gentlemen.
The general character OF these irrcguari-
ties was said TO be the action of the late
President of the institution in lending large
sums Of money to certain persons. Suisse
quent inquiry into the actual condition of
the bank, however, evolved Il state of
things not even limited at by the gentlemen
mentioned and not generally suspected by
the public or even the depositors of the
bank in question. 1t appears that Mr. f.
]. Blake, the late President of the Mercan.
tile National, was almost implicitly trusted
by the directors of that institution. and was
permitted to carry on its affairs almost I'M
questioned by any other individuals connect
ed with its management. Tosuch an extent
was this blind confidence carried that for
the two years past no actual or minute ex-
animation by the directors into the
affairs of the bank has ever taken place.
and Mr.. Blake has been given his full
swing in the management of its finances
and investments. During this time the
late President has contriycd to involve the
affairs Of the bank to Tie extent of about
$500, 900 in the course of disastrous spccu-
lations entered into by him Among the
numerous enterprises engaged in by Mr..
Blake was one which involved the lending
OF large sum Of money to the Domestic
Sewing Machine Company upon the sccu-
rity of their building. property, and effects.
which have since, il is reported, been alb
sorbed by another scwing-machinc COM
pany. He also purchased piece Of
property situated upon the Hudson River.
and valued at about 100000, which was
for better security decided in the name of his
wife, and he is said to have been deeply in
volved in specuations connected with a
carpet mandatory in New Jersey The
discovery of these operations has brought
CONSERVATION upon the bank directors
but thorough examination Of the affair
and the prompt seizure of such securities
of any value as are in any way available
lead the directors to believe that the bank
may escape finally with no greater loss
than that of a large proportion of its
surplus capital, amounting to about
$3.50, 900. Many of the securities taken by
the late president, Mr. Blake. for loans
| made are yet thought to be valuable, and
WILL it Is hoped, go far towards reducing
the amount of his liability to the bank
| The stock of the Mercantile National bank
is chiefly owned by a few wealthy and re-
sponsbie gentlemen who assert their abli-
ty and intention to carry the bank itself
through any financial crises which may he
brought upon it by the irregular action of
its late president, and it is confidently be-
licved that no depositors will suffer loss III
consequence of the trouble in which the
institution finds itself involved. As an earn
nest of the intention of the directors to re-
pair the results of their oversight it is an
nounccd that Mr.. +. j, Blake, at the re-
quest of the board, resigned his Office and
that Mr.. Norman White was elected presi-
dent instead