The New York herald., 1879-03-21
2 A PANIC PREVENTED


THE FAILURE OF TWO NEW ORLEANS BANKS
FOLLOWED by GENERAL SUSPENSION IN
THAT CITY OF CASH PAYMENTS ON CHECKS
EXCEEDING TWO HUNDRED DOLLARS.
New ORLEANS. La. March 20. 1872
The Clearing House Association this morning pub
ished the following. which ~ being enforced by the
banks;- f1' ttntri t4r
MI That in order to proses. the business somu
ase s ~ 10 Ss in rs a
known 20 solvent sound Is hereby resolved That
hS S sSso shall not pay ont shssks more
shall be made by cersncation Of checks WHICH shall
House This Arrangement g DO temporary aud shall
All the banks composing the Clearing House
Association have agreed to make certihcation
OF checks drawn against them on the basis Of
business between themselves and with depositors.
Collections for distant customers however will be
remittcd. for as hesetofore in currency checks on
interests here aud has checked the panic the pretext
for which will be entirely removed in a day or
orro wS when Sr currency r arrives which is already
morning about So 900 in legal tender notes and
s3oo0.o00 sight exchange on New York. exclusive Of
their portfolios with which to meet about S1O,.
0OO0OO due depositors. Many of the banks to-day
received moro currency from depositors than they
paid ont.
ST. LOUIS SLIGHTLY AFFECTED BIZ THE sUs-
PENSIONS
ST.. LOUIS. No., March 40, 1879.
News OF the suspension Of banks at New Orleans
had comparatively little effect on Change hero to-day
other than in the southern provision jobbing trade
which was somewhat depressed owing to the belief
towns whc thsr e. new ana adjacent
banks would be at least temporarily disturbed. The
general business of this city and the banks here will
not Do anccted TO any apprectable extent
e..
THE EFFECT IN NEW YoRK-vIEws OF PROM
INENr bankers.
Two dispatches were received in Wall street from
Now Orleans yesterday, one of which announced the
intention Of the banks there to refuse payment on
checks for moro than $500 TO one deposition on any
one day. The other stated that exchange ON New
York was entirely nominal. and that correct quota
tions could not be givon On inquiry it was learned
that the cause of this temporary suspension was the
failure of two banks-the Southern. with q capital
of 1884 500. and the Mechanics and Traders, whose
capital stock was s30O.OO0--and that the Clearing
House Association, fearing panic. had tskon action
to protect the weaker members of that body.
Mr.. William A. Camp Manager of the New York
Clearing House. said that the New Orleans Clearing
House was simply following the example of the
institution which he represented. which refusedi in
1873 to pay large amounts OF currency over the
counter but did not interfere with ordinary bust.
transactions. which could be carried on by cor
tilted checks through the Clearing House. He
ened panic In New Orleans would affect the banks
here very little. and said that it had caused hardly
He claimed that the total capital stock Of the banks
in the New Orleans Clearing House Association
thep sa1 70 on anu ne had seas1 @ that
which smount, no thought was about oil they had
right to call on the city for. HM
the New Orleans Canal and Banking Company. did
not expect that the suspension wopld cause any
panic. The bank which he represented and the
Louisiana National Bank of New Orleans. had not
suspended, and the stoppsgc OF the other banks
simply to prevent the rswing out OF large Suanti
29th inst enough money will have been received
from this city to Ineot all demands. His Arm sent
yesterday $175.000 to the New Orleans bank which
1t represents. t. - -trT
The Park Bank. of this city, Ia correspondent Of
banks Of New Orleans. and its President. Mr.. j. L.
w. Welsh said that he had received . despatch
a .So
would be very little afected by the temporary sus
pension His bank had sent 500 900 to New Orleans
President Lanier, Of the Third National Bank, the
correspondent of the 1Duisiana National Bank said
that hc had already sent to the relief OF the
New Orleans Bank and was ready to send another
D0000 IL necessary, the Louisiana National Bank
having that amount on deposit with his institution
DEPRECIArED BONDS.
A prominent banker said that, although the sction
OF tho New Orleans Clearing house Association was
chiefly TO prevent run on the banks still there was
Of the city Of New Orleans and Louisiana consoli
dated bonds. which were largely held by the banks
and which have fallen on account of thdhon-pay.
nlcnt Of interest. Many Of the New Orleans banks.
he said. have specustcd in these bonds and have be-
come forced owners OF them on account OF the in.
ability OF parties from whom they had taken them
as collateral for loans to keep their margins good
The opinion OF bankers In general was that this
suspension st New Orleans ut . particularly
hard time OF the year. as from March 10 to April
Is the general settling time with tho banks Of New
York. and thus they are compelled to settle with all
the banks OF Pennsylvania, portion OF the New
England banks. and also among themselves 1t took
$4.000000 to e1cct these settlements last year,
aganst $15,0O0,OOO tho previous year, and it is
pccted that the amount to go out of this city this
year for settling purposes will not exceed $50O0O00
four per cent bonds. But bankers do not regard
this . serious matter claiming that in case of any
trouble. they could readily call upon London for
assistance. II Is said by bankers that Secretary
cannot afford to have stringent money market,
because IL will hurt his funding business and IL
money on call Ia higher than four pcr cent people
will not buy government bonds. 1t is claimed that
York. and thereby throw $4.O00.OO0 this market.
and also that he should anticipate the April interest
AT THE PnopucE AND COTTON EXCHANGES.
There was little or no excitement at the Produce
trcst the matter very lightly and said that the news
had no effect whatcver on the market horo.
As far could bo lesrncd SS05. 900 was sent from
this city yesterday Of which 900 forwarded
Sons. $1o00O0 BY the National Bank Of Commerce,
100000 by tho Park National 100000 by the Third
National Bank and $120OO0 by two cotton brokers.
who did not wish their namos mentioned.
LOVES DESPAIR.
A YOUNG GERMAN SHOOTS HIMSELF ON ACCOUNT