New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-09-21
BANK . FAILURES.


NEW YORK, September 20-The presi
dents of the National Banks held an in
formal meeting. and resolved to support
each other and disregard the reserve in.
structions in tOday's dealings.
Wall street was crowded at an early
hour. There is less solicitude, however
The resolution of the banks to support each
other, and the sale of $40. 100000 bonds by
the Treasury, nerved matters.
Two members of the firm of Jay Cooke &.
20. are coming on the Russia, which is ex-
pected Monday, when reliable statement
OF the affairs of the house will probably be
presented to the public.
The Stock Exchange has closed. subjec,
to the call of the president, to enable mem.
bers to settle their difficulties.
It's impossible to obtain quotations for
stocks.
President Chapman. of the Stock Ex.
change, forbids outside operations by mem
bers upon penalty of expulsion.
The Bank Of North America has sus.
pended.
No stocks today.
The Natioua! Trust Company has closed
its doors.
The certiications of the Mechanics Bank.
ing Association and the Continental Ban k
were thrown out from the clearing Office. -
g Loan Ger tificates 10 Issue. :
The bank presidents, at their meeting
this afternoon. passed resolution to iss ue
Immediately $4,000 900 in loan certificates.
Union Trust Company Affairs.
Carlton, the defaultiug secretary of the
Union Trust Company, had made loans to
friends and relations on securities which
are regarded as doubtful. One loan of $l2,.
600 is to his father, Rev. DR.. Carlton, of the
Methodist Book Concern notoriety. The
security Of one loan is good. Tho others
are Of no value. '-'-
Carlton has had almost entire manage.
inent Of this great financial institution.
! Opinion Of the Express.
Ailudi1g to the suspension of oper ations
by the members of the Stock Exchan ge the
evening Lapress says: TOO much praise
can not be awarded to the men who con-
ceived and carried out this master stroke of
policy. Bedlam was running loose and the
craze was rapidly communicating itself to
the outside multitude. Nothing remained
but to shut the door and try and bring back
the bulls and bears alike to their senses
-'1'' DefalcatIon and Failure. ~
! The defalcation in the Union Trust Com.
pany is $500,000. e.' p" . '-'a- ~fa
The Bank of North America has not s,is.
pended. p, ' 4' 'ss'' H ~
Western Union stock sold at 81. 'lt -
The Clearing House announces its inabit.
ity to make a general clearing, on account
of the inability of dealers TO obtain prop
erly certified checks.
The suspension of business was caused
by the refusal of certain banks to certify
one another's checks. The Bank of New
York declined to certify those of the Bank
of North America and the Mechanics
banking Association. The Exchange will
not reopen until the banks are in better
condition - f'.'" u. FF
Public confidence was returning this
morning, and the excitement would have
died away without further serious disaster
but for the suspension of the Union Trust
Company. ID 7 81 '.4 ..
This renewed the feeling of insecurity,
and the suspension of the Bank of the Com
monwealth with that of the Nation al Trust
Company caused the panic to reach its
height. The renewal Of the panic to-day
was caused by the suspension of the Union
Trust Company, and it appears that this
was precipitated by the refusal of Assistant
Treasurer Hillhouse to use discretion in
buying bonds. '
Mr.. Wesley, of the Union Trust Company,
before the opening of business, went to the
sub-treasury and tried to get the assistant
treasurer to take 81 900, 900 United States
bonds and give him legal tenders therefor.
would have had money with which to CON
tinue payments until it could have been
augmented by the calling in of loans. Mr.
Wesley offered to sell the bonds at the
lowest price at which any would be offered
at twelve o'clock, at which hour the assist
ant treasurer was to open proposals IN
accordance with the advertisement that
The treasury would buy al0,OO0.00O.
Assistant Treasurer Hillhouse, who is a
strict constructionist, determined, however,
10 follow the letter of his general instruc-
lions. As things have turned out, and as
he purchase of bonds was to prevent just |
such state of things as followed BY the |
of the Union Trust Company. it |
S to be regretted that he did not use a |
little discretion, which in no way could
nave impaired any interest of the govern
nent, to whom it would have made no diff !
erence whether the bonds were bought at |
en or twelve O'Clock.
latest Accounts Of the Condition Of Annirs. |
There is much difference in the amounts |
If the defalcatiOn OF Carlton, secretary of |
he Union Trust Company, the figures given |
.anging between $25o,60O and 35C0, 900.
The institution sold 81 ,00O, 900 bonds to the |
to-day, which places # IN funds
or next week. It has also over &, ,0o0, 900
'all loans which have been called and