The New York herald., 1877-02-08
Loss OF HALF A MILLION.
the FARMERS AND MECHANICS NATIONAL
BANK or HARTFORD IN rIoUBLE-pIs-
AsrEous cHEDIrs-rHE SURPLUS CAPITAL
SWEPT AWAY.

BANK or HARTFORD IN rRoUBLE-DIs-
AsrEoUs cHEDIrs-rHE SURPLUS CAPITAL
SWEPT AWAY.
lBr TELEGRAPH TO THE HERALD.
HARTFORD, Conn. Feb I, 1877.
kumors that have been quiet circulation for sew
cral days past affecting the condition OF the Farmers
and Mechanics National Bank OF this city illuminated
to-day In public announcement, OF deficiency es,i-
mated AT from S40o 900 to $500 00o In tho Brokers'
Board yesterday the sales of its stock made at
l2s about the usual rate but this morning the stock
suddenly dropped TO 10 bid. TO 92 asked. and after
tho Board met the stock further dropped the
20 sales at 20 and So host OF holders being panic
stricken from the circulated were ANXIOUS
sell at any price. The OF the trouble
sive loans on insufficient securities, together with
ovcrdrafts Of a considerable amount.
WHERE THE GONE
These loans were made by President John c. Tracy
and Include, according to information igh from an
officer OF the bank, loans OF $780, 600 to Elisha j.
smith; Hartford distiIlcry $50. .0oo; to George H.
Penneld real est To broker, $4,000; TO the Sharp
Rne Company, Of bridgeport $50. 900; to the pres.
dent OF the Hartford Pump Company. OF which Mr.
Tracy Is treasurer. ana various smaller loans ag.rc-
gazing 900. making total OF $4,000. 1t is I'M
possible to givc tho exact figures Mt this writing as
tuc otcctoTs VINO were IN session yesterday aud
to-day, have not yet lnIshcd their examination Bank
Commissioner Myga,t has boon summoned ard will
probably begin Official investigation to- morrow II
may be stated that tho loans arc wholly valuccss
ana further than this that securities 70 a
amount have been received from the borrowers since
yesterday so that II Is estimated that the losses viii no
more than sweep away tho surplus
OVER co>FipxNcE OF
The difficulty into which the bank has been led Is
attributed 10 the over confidence OF President Trncy
granting discounts TO personal friends whom he be-
,ievca financially good and without submitting tho
paper 10 the INSPECTION OF the directors VINO had no
knowledge whatever OF the loans. In justice hun
II should bc sa,d that wrong intent Is suggested.
rHE HANK WILL oS.
In un interview with the HERALD correspondent this
afternoon Cashier cnapm,n stated that could not
givc tho precise hsurcs until the examination con-
Guided He admitted that the bank VIII sustain a
heavy ioss probably not less than $500 900 but that
It's ssabihty viii not be endangered. Tor tho reason
that last statement daicd January 20 showed capital
OF ~ 100 QUO and surplus OF 5000 00O and $4S 900
undivided pron's This surplus viii be swept away,
bni the stockholders are OF large wealth. will
make up any deficiency that may be discovered
oihcial examination. The sensation created by tns
affair heightened by the TACT that the First National
Bank had similar experience only last month. re-
suting IN the election OF new president who moro
cxacting win borrowers, aud that the ConnectIcu
River banking Company, within few weeks, had au
overhauiing oy ITS directors, @ho struck oil lot OF
worthless paper and madc fresh start