The New York herald., 1877-07-06
THE SUSPENDED BANK


WHAT THE SECRETARY OF THE CLINTON Saw
GEsTIoN TO APPOINT ONE OF THE OFFICERS
AZ RECEIVER.
The Clinton Savings BANK at No 244 Eighth avenue.
announced yesterday, has suspended payment,
and n receiver Is shortly 10 be appointed TO wind up
It's affairs The suspension was entirely unlocked tor
not only by the depostors but by the trustees OF the
bank themselves Whom II was formally announced
yesterday certainly created little surprise. The
depositors to have the mos; implicit conn
deuos in the integrity of tho officers, who maintain
Encouragement, but rather the immense shrlnkage
In values OF certain securities held by the bank
When interviewed last evening by reporter OF the
HERALD several OF the trustees affirmed that should
the superintendent OF Banks appoint some one OF tho
officers as receiver the dspositors would receive every
dollar OF their money They denied most cmphatcally
that the bank iIsolvent. and maintained that IL
perfectly soid stll, account OF the serious
depression In business the falling of in the
number Of thor depos,ors, and the gloomy outlook for
the future. they fell unwilling to continue the bust
OF Tho bank longer since IL might jeopardze the
interests OF their present eposors Their decrmina
ton reached last Monday evcning at meeting
OF the Board OF Trustees Up TO thai tino the rrus
tees had never for moment doooted the ability Of
period, and when they were informed by
The Chairman of the Financial Committee
Mr.. George II. Robinson, that they could rot, IN Nil
justice and equity continue the business longer they
ordered an immediate investigation iato the affairs OF
tnc bank for the purpose OF ascertaining how much
tue depositors would likely to recover Of their
money. This investigntion showed the assets
OF the bank be ST3, 720 SS, with abili-
tes aggregating about Ss2 Z9S "a, leaving balance
IN favor oil the dcpositors OF l432 a. AS far tho
securities OF the bank are concerned II 10 very i'm
probable that they would now bring in the market
the amounts At which they valued by The officers
OF tho nank The ofncers feel Confident that the
In the rate oil tnesc securities viii not be
as great as Is imagined. Some OF these se-
curites are notes which wcro given by prominent
them being Mr. Louis j. Philips iur dealer No.
y: Crosby street, who became bankrupt ast fall for
fully u 00O 000 The other securities mostly stock
Of the National Trust Company the Real Estate Trust
Company and the Twenty third Street Railroad Com
pany and Is expected that all these securities will
bring their par value
SECRETARY sMITH's OPINION.
81 have not the slightest doubt, said Mr. Orlando
r Smith, Secretary OF tho bank last evening, ''that
VIC will be able TO return our depostors all their
money. Our ability TO do SO, however, will depend
upon the appointments OF receiver Ii the Super.n-
ceiver II VIII not entail cent OF expense,
whereas tho appointment Of outside
party would cost immense sum. IN
tend to make such application to Mr..
Smyth, but hardly think he Will accede to my 70.
quest for although any officer is perfectly willing to
devote all his time to the duties OF receiver they
ana all avorse to giving the necessary bonds The
dcpostors, however, might not care to Of tho
officers acting as receiver Tor they might suppose that
the trustees in iavOring his appointment mad somo
sinister object In view. They need not have the
slightest fear this score, however, for
mined to them