Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1879-08-23
JOHNS PET BANK,
THE FIRST NATIONAL, OF NEW YORK,
Holding Thirty-FOur Millions Of the PeO-
pies Money, and Granted an Ex-
tension by Mr.. Sherman
Till October 1st

New YORK, August 22.-A great di-
versity OF opinion exists in Wall street
as to the position OF some of the De
pository National Banks in their rela-
tons to the Treasury Department. 1t
does not exist among those officers OF
the banks that are members OF the
Clearinghouse; for, by rule made by
that institution, when the National
Banks undertook their large bond trans
actions with John Sherman each de-
pository bank was compelled to file
with the Clearinghouse weekly
statement OF its account with
the Treasury Department. The
sheet containing these balances is not,
however, made public with the usual
weekly statement OF the Clearing house,
but is preserved as one of the secrets OF
the same. For several days prior to the
date August 2l) on which balances to
the Treasury Department ior four per
cent. bonds that had been subscribed for
due from tho several banks, and wheth-
er they would be promptly paid, were
frequently asked in financial circles. All
the information obtained from the banks,
the Sub-Treasury or from Washington
was unsatisfactory and. contradictory.
A day or two before the date OF pay
ment it was announced from Washing
ton that, in compliance with a request
from the banks OF this city, John Sher-
man had extended the time OF payment
TO October lst. The amount due the
Treasury was generally understood to
be about S45, 100000. 1t was also gen.
orally understood that all the banks
outside of this city had paid up, except
the First National and the Bank OF Com
merce. 1t was said in one OF the papers
that the amount outstanding, and on
account of which the extension was
granted, was So, 100000, of which S46,-
100000 was due from the First National
and u, 10000 from the Bank OF Com
merce, however, purported to cover the
case on August 10th. A Washington
dispatch dispatch, however, places the
presen amount at S37, 100000. Thirty
four millions OF this is supposed TO be
due from the First National Bank of this
city.
Vice-President Fahnestock, OF the
First National Bank, was asked to-day
for information on this subject, but he
declined to say any thing remarking
that the matter had already been thor
oughly canvassed, and that at present it
was not worth while to talk about it.
As 10 his banks obtaining an extension
until October lst on $40, 900, or any
other large sum, he said he wished such
was the case, as of course the bank
would make the interest on thatamount.
The officers OF the other banks thought
the extension unjust, and piece OF
favoritism. He understood that at first
John Sherman refused TO grant it, but
did so ultimately upon certain represen-
tations made by the interested parties.
1t was learned from a trustworthy
source that some very sharp talk has
Eassed between the officers OF the bank
and John Sherman. He characterized
the operations of the bank as OF the wild
est speculative nature, and cited in
proof the fact that it had been the pur-
chaser of bonds TO that extent that de-
cline of . per cent would have more
than consumed the capital of the bank.
What representations the bank made to
John Sherman to obtain the extern
sion are not known; but several
can be easily imagined, namely: The
aid it has been to him in his fun
ing operations; the threat that to press
payment would cause such a stringency
in the money market that serious re-
suits might ensue, for which, of course,
the head OF the Treasury would be
blamed; or the aid rendered for cam
paign purposes.
1t is generally understood that a per-
sonal friend OF John Sherman from
Ohio, who was in this city recently,
was here for the purpose Of obtaining
financial aid with which to conduct the
Gubernatorial contest in that State. OF
course no one would confess to sub
scription or acheCk. Yet it is easy to
surmise who would be likely to render
tho t,npat old