The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-21
PRICE TWO CENTS.
CRESCENT CITY FINANCES.
WHY THERE WAS A GENERAL SUSPEN-
SION or NEW ORLEINS BANKS.
SERIOUS Panic Averted by Resortine TO tho
Method Adopted by the New York Banks
In Isl0-The E2ect there Rnd In IRIS CITY.

Serious Panic Averted by Re.ortine TO the
Method Adopted by the New York Bnnhs
In Is1o-The Eject there and In this city.
NEW ORLEANS, March 20.-The Clearing
House Association voted this morning that in
order to to protect the business public from tho
calamity OF any further suspensions OF banks
arising from whnt seems an entirely unneces.
sary panic In the withdrawal of dcposits from
banks known to be solvent and sound the
Clearing House banks should not pay ont on
checks more than 5000 to any one depositor on
any one day. and that all other payments should
be made by certincation Of checks which should
be received on deposit by banks members OF tho
Clearing House. tho arrangement to he tempo
rary. and TO expire on Saturday. the goth inst
The banks having accepted this proposal. a
despatch was sent TO New York by the Prcsi-
dent OF one Of the banks here, informing tho
New York banks thnt the banks here have sus-
pended until currency arrives from New York.
All Clearing House banks by resolution have
refused to pay out on checks more than 5000 to
any one depositor in any ono day until the Goth.
Exchange in New York is entirely nominal.
Correct quotations cannot be given.
The iollowingiis d list OF tho banks that have
temporarily suspended: Gcrmania National,
its New York correspondents being the Fourth
National and Importers and Traders Banks;
spondent Importers and Traders Bank; Lou
isiana National Bank. New York correspondent
Third National Bank New Orleans Mutual,
New YORK correspondents City and Mechupics'
Banks; New Orleans National. New York
correspondents American Exchange aud
Hanover banks State National Of New Orleans,
New York correspondents Bank Of New York
and Park Bank Union National Of New Orleans,
New York correspondent Park Bank Bank OF
Lafayette of New Orleans. New, York CORE:
New Orleans. New York correspondent Metro
Dolltan Bank; Louisiana National. New
Mscbo 9rE S9rssp9Gnd9nt sDG Fourth N@Sna BgN9k
York correspondents NJ Morgan's Sons: Metro
polit9n Of New Orleans, New York correspond
Orleans Canal and Banking Company Now
York c9rrespondents NJ Morgan \ Sons Of New
respondent Merchants Bank; Southern Bank
Chemica, Bank workinemens Bqnk Of New
orleans, New York correspondent Park Bank.
10 stop growing panic following the lSte
leans. the Mechanics and Traders Bank and
two savings banks. all the other banks, thirteen
IN number. composing the Clearing House As
sociation. agreed to make certifcaiOn OF checks
drawn against them on tho basis OF business be-
Collections, for distant customcrs now
currency checks on New York. In efroct tn Il nc
tion involves only local interests here. and has
checked the panic the preteXt for which Will bo
entirely removed in q day or two when cur
rency. arrives, which IL already ordered from
NOW 10fk. III" uhHkS nelu tulS IN lfnlnk HDnut
2.2OO.OOQ in legal tender notes. and SO 0O0 900
sight exchange on New York. exclusive of their
portfolios. with which to meet about $40 900 900
due dcpositOrs. Most OF the banks to-day ro-
ceived more currcncy from depositors than they
paid out.
MEMPHIS. Tenn. March 2O.-The New Or
leans bank troubles have had no effect on bank
ing or other business in this city.
All OF the banks included in the Now Orleans
Clearing House have correspondents in this
city but. so far as could be learned. none OF
them is affected by the temporary suspension.
Manager Camp OF the New York Clearing House
said that the action taken by the New Orleans
banks was exactly similar to that taken by tha
banks here during the panic OF 1873. II was
done to prevent dopositors from getting thelr
money out and putting 1t in their pockets.
where II would do no ono any good. and only
increase tho siringency OF the money market.
Business could he transn acted rs usual 10y the use
Of certified checks. settlement of which is made
through the Clearing House. so tnat but littla
money changes hands or leaves the banks.
Nearly every correspondent Of the New Orleans
hanks received dispatches from there yester-
day assuring them Of their sOlyoncy and that
all wis we'll
Demands for money were also received. As
far as could be learned, n round million of dol
lars was shipped To N"w Orleans yesterday.
The shippers said that the money belonged to
the banks Withdrawing il. II having lam here
on deposit The exaggerated reports OF trouble
caused no perceptblo effect on the stock OF
cotton market.