Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-09-26


appaar to be nOreI and sensational |
expression in business circular, GER
tainly shows that they are terribly an
earnest and ask middle men no odds
w. K. NJ
L1LEsvILLE, N. c., Sept. 21st, 1873.
From the Petersburg Index aud Appeal
THE PANIC IN PETERSBURG. VA.
No day since the memorable 9th OF
June 1864, has witnessed in this com
munity n sensation SO profound ana
appalling as that occasioned by the
financial collapse which developed
itself on yesterday as the elimination
of a course on the part OF depositOrs
in the banks of this city 1nlustifiable
and suicidal in the extreme. For
several days past, in consequence OF
the disasters III New York,
PANIcKY FEELING
took possession of many, the result OF
which was withdrawal of the funds
from the banks in excess of deposits.
Every effort within the range of hu-
man power was made by the officials OF
the various moneyed institutions to
effect loans in Northern cities through
the regular channels to. meet and
satisfy this
SLOW BUT FATAL DEMAND,
and to restore by prompt compliance
public confidence in the solvency of
the banks of the city. These efforts,
in many instances, were based upon
balances due our banks by those upon
whom the demands were made, but
~, ~, of bn ~
at the North was such as to render
impossible. In the meantime the run
of depositors, particularly upon the
Merchants National Bank. became
more vigorous and alarming, until on
last Monday, after every resource had
been exploded and every appeal to
depositors had been made in vain, this
bank was forced to decline payment.
The effect was electrical and infectious,
and before dark ON Monday evening
shrewd observers discerned the
shadows of yesterdays event.
Yesterday morning when the banks
threw open their doors, large crowds
of depositors had collected, and made
an eager and
PRECIPITATE RUSH
for the counters, demanning cash for
their certificates. The Merchants
National. the First National, and the
Planters and Mechanics Banks
yielded to the first sweep of the storm.
THE PLANTERS AND MECHANICS BANK
had the following placarded before its
counters:
''In consequence of the scarcity of
currency and the impossibility of
making negotiations in New York, we
find it necessary to suspend payment
for the present. We feel assured that
our depositors will be paid in full.
We only require little time for dis
counted paper"
by order Directors.
Mr.. S. A. PIummer, the President
of this bank, states that the immedi-
ate cause of the suspension was the
failure to realize in New York on
assets such as the bank had been in
the habit of checking upon without
trouble. He says the assets of the
bank exceed its liabilities by more
than ond hundred to one, and that no
doubt exists as to the paying of all
depositors in full, and hopes are enter
tanned of an early resumption of bust
ness. He further asserts that the
public justifies the suspension, because
by SO doing all dpositors are placed
upon an equal basis.
MIR. Plummer, at meeting of the
Board of Directors, rendered his res
ignation as President of the Planters
and Mechanics Bank, but it was
rejected, the Board expressing their
entire confidence in his probity and
capacity.
THE FIRST NATIONAL BANK
had appended to its counter the fol-
lowing notice
''10:15 o'clock-This bank has sus-
pended from this time, owing to the
unprecedented run on the institution.
We hope to resume i'll a few DAYS
'By order Directors.
This bank has paid up capital of
5000, 900.
Ii was no card posted at the
AiERcHANT's NATIONAL BANK.
but simply verbal announcement of
the suspension for the same cause in
Dictated in the other Instances. In the
present anomalous and unsatisfactory
condition of affairs, the officers of the
two last mentioned institutions decline
expressing any opinion in relation to
the matter, but it is safe to assert that
the interests of depositors are secure
III view of the fact that stockholders
III National Banks are, by law, respon-
sible for deposits, and the stockholders
IN these two banks compose some of
the wealthiest men of the country.
The Merchants National Bank was in
tlmately identified with the commercial
Interests of the city, and was one of
the places of deposit of the city funds,
having at the time Of suspension de-
post on account of the city of between
$50, 900 and $75, 900.
As consequence of the failure of
the Merchants National Bank, came
the collapse of the
PEOPLES BANK,
but to what extent or with what pros
pect of recovery cannot be definitely
stated. This bank is the Youngest of
those that participated in the disaster.
and had heretofore been SO well and
economically conducted that it was
generally regarded as a paying institu-
ton. Hon. James Ell. Platt was its
first President and Mr.. James NJ.
Donnan its cashier. Recently changes
were effected in the ownership of its
stock. bywhich the Merchan s National
oDldileu an 1nnnence IN Its affairs
with the nature of which we are not
sufficiently familiar to speak definitely.
MIR. George S. Richards, we believe,
is at present its President.
THE CITIZENS SAVINGS BANK.
heretofore one of the strongest institu-
tions in the South, made a desperate
effort to bridge the crisis, hoping to
receive by the 2:30 Northern train large
remittances by which it would be able
to present such front that confidence
on the part of depositors might be re-
stored. Awaiting these remittances
this bank continued to pay checks of
small amounts, but refused to cash
certificates of deposits or checks for
large sums. The evening train came
but brought not the relief, and as the
advertisement elsewhere published
ii