The New York herald., 1873-11-01
A. & w. SPRAGUE.
The Committee of Investigation
Defer Their Report.
RELIEF STILL HOPED FOR.
William Sprague Announces the Protest
Of Notes in New York.

PROVIDENCE, II. l., Oct. 81, 1879.
Another day OF painful suspense has been expe-
rienced by our community. Bright hopes, like the
rays OF the moon on swampy marsh, have appar-
entity only led US deeper into the mire. whole
State-th0ugh ours Is but small One-with all its
industrial interests depends upon the resources OF
two banking houses, both or which have left their
legitimate business to enter the fields OF manufac-
ture and general production. Ten thousand oper-
atives and mechanics await the result OF an inves
tgation into the affairs OF firm with much anx-
iety, but nothing definite has yet been ascertained
Yesterday reiefwas promised for to-day; but now
the relief is delayed till tomorrow A. 4 w. Sprague
are declared to be perfectly solvent, yet two Of
their monetary institutions have been suspended,
and their own paper has, it Is stated, been pro-
tested to-day in the city OF New York. At first the
reports concerning the difficulties OF this great
financial house OF A. a W. Sprague were treated
with suspicion, many declaring the rumors to have
been started by political and financial rivals; but
the unpleasant and alarming evidence of weakness
OF the Institutions investigated by order OF Gov
ernOr Howard, as published, tend to prove that the
firm was really embarrassed, and the unpalatabe
developments OF to-day still further corroborate
the first announcements
The local journals, after maintaining silence for
two days, are forced at last to comment on the
situation.
THE REPEATED POsTPoNEMENT
by the committees in reporting the official figures
and actual state OF affairs, the continued silence OF
the firm itself and the apparently coored reports
In the local papers, all look decidedly ominous and
suspicious, and have only had the effect OF largely
increasing the existing doubts in The minds OF the
people, distrust in financial circles generally and
precipitating the threatened crisis. Knowing full
well, as the bankers and merchants here did, to
what very great extent the business interests OF
Rhode Island particularly depended upon the
house OF Sprague Co., 1t was extremely unwise
and injudicious to keep from aiding the house in
this trying and threatening emergency and to-day
the failure in New York can only be attributed to
this lack OF confidence manifested by our mer-
chants, to the tardiness OF their movements and
the questionable policy of allowing local anmos
ties to govern them in their business relations
These are substantially the views OF some
OF our leading and shrewdest business
men, and 1 but reflect their opinion.
The house OF Brown 4 Ives alone could lift the
6pragues out OF their difficulty II they had the will
to help sorely stricken neighbor and encourage by
such high h-minded example the rest OF the busi
ness community to lend its confidence and assist
ance. But there is, 1t is feared, too selfish and
narrow-minded policy among our capitalists AMI
traders and they appear to realize these lamenta-
BILE truths now when ii is too late / was informed
from the most trustworthy source that such was
the near-sghtedness of the bankers here regard
ing their home interests that great reason for
refusing to promptly lend the desired amount was
because the money was asked to
MEET THE LIABILITIES IN NEW YORK
to pay out standing debts, and not for circulation
Mt home unmindful as they thus show themselves
OF the TACT that by enabling the firm to meet its
outstanding obligations they would thereby be
protecting it at home, with its immense bus-
ness interests, and at the same time protecting
themselves. The policy pursued being such as
have described, 1t Is not surprising that failure
should ensue, and no threats or excuses will now
answer for the failure to realize the great respon
sibility.
THE CRANsToN SAVINGS BANK.
The first development OF to-day was another
blow to all confidence in the Sprague house
and its Institutions and furnishes fresh
proof OF the statement OF your correspondent that
there is every reason for alarm. what allude to
In the report or the Commissioners appointed by
Governor Howard to examine into the affairs of
the Cranston Savings Bank one OF the largest and
heaviest OF the Sprague banks which l obtained
from the Commissioners this afternoon. The re-
port Is as folows:-
LIABILITIES
To depostors book account. 50, 143, sos
To deposltors' certificates OF deposit...... 37301
Overdraits on First National Bank. 54lSs
Advanced by First National Bank on de-
posts. s........................ -. 100000
IN new l0rk city bonds, currency SKIES. 80 600
Total. 81 500, ,935
ASSETS.
Loans secured by mortgage on real estate $685. 1856
Loans secured by mortgage on personal
estates. ........................ 1000
Loans on personal security including
$495,000, In acceptances ofHoyt, Sprague
Co. and $4,000 in notes of A. Il w.
Sprague Manufacturing Company ..... 97l 300
Loans on collaterals. including $360000
in notes Of A. 4 W. Sprague. ............ $4,000
!zaoS snares National Bank oi Commerce. $1,000
oSi snares FIRST National Bank. 61l00
10 snares second National Bank...... 1000
ZoS snares clone National Bank. 1850
1vo Az. snares hhode island safe Deposit Co.. 10000
Dlstrict OF Columbia certificates of indebt-
edness cost ........................... 10000