Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-09-26
THE WRECK.
What Washington Suffers by the Late
Failures-S0me Interesting Facts
About the First National Bank.

| EAh&ufC8-00n8 1UGtE08A0& EACG8
About the First National Bank.
Special to the Cincinnati Gazette.
WASHINGTON, Sept. 23.-The failure of
Jay Cooke & CO., aud of the First Nation
al, are beginning to be seriously fit In Wash
ington. The panic In New York bad turn
ed pattention In that direction, and it has
not been until to-day, when matters had
been regarded as quieting down in Wall
street, that general attention has been fixed
on home affairs. II is found that even a
larger number of government officials than
was at first supposed, and a much larger
number of small depositors than were be-
lieved to have suffered, have lost, at least
temporarily, sll their ready money. But
while the embarrassment Of private individ-
uals is general and very geat, the saddest
features ofthese failures, so far as they af-
feet the Districts interests, is the loss of
funds belonging to the various benevolent
institutions. These occurred chiefly through
the First National, Henry ID. Cooke, its
President, being Treasurer Of several of
these institutions.
The reform school for boys had about
S23, 900 deposited. This is the fund appro-
priated by Congress, and covers expenses
of a new building, officers, teachers, fuel.
clothing, lights, etc. Upon this fund the
school depended for its daily expenses. A
meeting OF the Board of Managers will be
held tomorrow to see if means can be de.
vised TO continue the school. Congress
also appropriated $4,000 for the National
Soldiers and Sailors Orphans Home for the
support of destitute orphans Of soldiers
and sailors of the Union army. This sum
was paid to Henry D. Cooke, as Treasurer,
and the fund now loses S11 600 the entire
balance on hand at the time of the suspen-
| sion.
The Smithsonian Institute has all its
available funds in the First n ational, which
served for its current expenses. Its perma-
nent fund remains by law in the Treasury.
The amount is between $4,000 and
$4,000.
The Children's Hospital is reported as
losing $4,000. Just before adjournment
Congress appropriated SIS, 900 to aid in the
erection of hospital in the district, to be
under charge of an association of benevo-
lent ladies here, connected with one of the
most prominent Episcopal churches, and
called the Sisterhood of Saint John. This
was drawn from the Treasury as soon as
1t became available last July, and S20,-
900 deposited in Henry D. Cookies bank,
for which the society received q certificate
of deposit, bearing five per cent interest.
The loss of this sum may cause the closing
of the institution. 1t now furnishes home
to q considerable number of aged and infirm
women. There are several other funds of
similar character given by Congress to the
support OF other benevolent objects in the
district, which bavesuffered severely. These
will probably all be replaced by Congress, and
the matter Of their loss will undoubtedly
lead to a Congressional investigation. Were
it not for the personal losers, most of whom
are prominent private contributors to these
various charities, there would be no difficult
ty in providing for the current expenses of
each institution till CONGRESS met, but as
matters stand the prospects of all for the
autumn months are very gloomy.
The Treasury has also paid out to Henry
D. Cooke, SIS Governor of the District, the
100000 appropriated by Congress to buy
the interest of the district in the City Hall
Building, to be used in the erection of q
building for the district offices. In order TO
get the money few men and carts were
set at work excayating the foundations, so
It could be said work had actually begun.
When money was obtained the workmen
were taken off 1t is not now known wheth-
er the bank or the Board Of Public Works
has this sum.
OF the 5000 shares of the First National,
5000 shares are owned by Jay Cooke 81 Co.,
or by individual members of that firm, SO
that the protection to creditors from the
clause in ths national bank act, making
stockholders liable for double the sum of
their stock is largely impaired by the COM
phcations Of q majority of the stockholders
In the failure of Jay Cooke & Co. The
amount owing to other national banks
seems to be not far from 100000.
The arrangement with some six hundred
banks for redeeming their mutilated cur
rency is reported to have been, that in con-
sideration of q permanent deposit of 81 900,
the First National would attend to the re-
demption free of charge. These deposits
the banks have been attempting to have the
Controller Of Currency decide to be in the
nature of special deposits, and so at the
control Of the banks to withdraw at once.
Mr.. Knox, however, has decided that they
must be regarded and treated as ordinary
deposits.
1t is stated by those In the Treasury De-
partment in situation to know, that $780,
600 was drawn from the two banks 10 pro-
tect the New Y ork and Philadelphia houses.
It is also said that the New York house
was offered all the funds needed to carry it
through, mp to two millions, but could not
give sufficient securities for it, aside from
North Pacific bonds.
In spite of sll the apparent embarrass-
ments of the First National, and supposed
draining Of all its resources by Jay Cooke
g. Co., the Secretary of the Treasury, after
q talk with the receiver of the First
National to-day, expressed bis decided opin-
ion that it would eventually pay seventy
five cents on the dollar. There can be no
settlement for more than three months, as
q minimum period.
Special to the Louisville Courier-Journal.
WASHINGTON, Sept. "a. - Statements
hsve been circulated by the friends of the
Cookies, that the suspension of the First
National Bank in this city was unnecessa-
~; that it had on hand 100000 In currency
and $50, 900 in Government bonds and could
have gone on doing business. Some de-
positors secuted this assertion, and said that
this bank had about 100000 of private and
Government deposits on the 30th of June
last and probably as much when the sus-
pension occurred, and that they could not
have stood run of one single day, or even
an hour. These depositors seem to regard
their money gone forever. The story that
President Grants large dep-st with the
bank was returned is generally accepted as
true, and provokes severe reflection in con-
nection with bis appointment of E. l.. STAN
ton, creature Of the ring, to the lucrative
position of receiver of this bank, especially
as one of the first duties of the receiver
win be to look after any such attempt of
the bank officers to prefer and save favor
lite deposition at the expense of all the
others.