The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-01
THE SAVINGS BANK.
THE Run UPON THIS INSTITUTION
AND ITS TEMPORARY SUSPENSION.

ings Institution, located on Canal street. be-
tween Carondeet and Baronne, which had
been quietly going on for over week. cuml-
mated In rush which caused the bank to sus-
pend payments.
During the entire day there was large
assemblage of people both In the bank and on
the sidewalk In front of 1t, seeking to obtain
their savings, together with number of
curious loungers endeavoring to learn the
cause Of the run. There was, however, no
| apparent excitement; indeed, the occurrence
was marked by surprising calm and COM
posure on the part Of the depositors, even
after the bank had ceased to pay In full
| The run began really about eleven days
ago, since which time, and up to the daily
closing hour Of the bank, between S4S0,O0O
and S500000 were paid out TO depositors. and Il
was only at II o'clock yesterday morning
that President David Urquhart resolved to
stop paying In full, and those depositors who
applied for their money after that hour were
given the option Of receiving Is per cent or
none With few IL any, exceptions all accep-
| ted the pro rata and withdrew with the same
| composure that they showed on entering the
bank.
About o'clock In the afternoon reporter
OF the DEMOCRAT presented himself at the
bank and endeavored to interview the presi-
dent, who. however, answered that hts time
was too much occupied just then, as the re-
porter might well see to answer any ques-
tons. but that In the morning he would pub
lish In all the daily papers statement of the
affairs of the bank. He added that the bank
would henceforth require ninety days notifica-
ton from Its depositors, in accordance with its
charter, before paying them. During the pres
ence OF our reporter at the bank he heard Mr..
Kilshaw, the treasurer OF the bank. say to
number Of depositors, In answer to their ques-
tions, that the run was q senseless one and
had no reason for existence, and he and Mr.
Urquhart both invited them to come inside of
the counter and examine the books II they
chose to do SO. Two or three gentlemen ac-
cepted the invitation, whilst others left with
out calling for their money and even express
ing themselves satisfied with the assurances
OF the bank officers.
Returning from the bank our reporter
sought the opinion OF several gentlemen on
the general impression concerning the condi-
ton of the bank. One of these a leading
banker, said that the impression was good
and that 1t was believed everything would
turn out all right II depositors did not keep
ing an interview with one OF the trustees Of
the bank, who had told him that he. the trus-
tee, had some $4,000 deposited In the bank
for the account OF minors, which he represent
its safety.
Another person, a director of the institu-
ton. told our informant that he had also
moneys on deposit in the bank for similar
account. any yet he did not apprehend any
LANCER.
Our informant then proceeded to say that
he run, In the opinion Of financial men, was
aused probably by a false impression arising |
rom the suit which is now pending between
he trustees OF the American Printing House
or the Blind, OF Kentucky. and those of sim
lar institutions for the States OF Mississippi |
md Louisiana, and during which, a few DAYS /
so an attempt was made in the United I
'tates District Court to obtain the appoint. [
aeat OF
RECEIVER g,
or the fund of these institutions, which hap Q
ened to be deposited In the New Orleans t
was supposed, had created the impression t
hat a motion HAD been made to have re- s
eiver appointed for the bank itself. h
Another version is, that several years ago b
gentleman Of this city deposited the sum of |
500 In this institution, the interest, or prin-
ipal, or both, Of which should be applied to
he establishment Of q prize fund for the
enefit of tie pupils Of the University of I
louisiana; that finding that no use o
ad been made OF the the
ank for the reimbursement of the v
mount, which had doubled itself, with the P
ccruing interest, but that he was answered /.
hat he could not draw it; that he had then Il
sked for the reimbursement of the original %
um with the same result, the bank officers u
aging that they did not feel authorized to
eturn to him money which he had himself 9
deposited there for the University of Louis
ana. The refusal, it Is believed by many =
vas msconstrued and.the rumor circulated !
hat the bank was in embarrassed circum- y y
fances.
Then Carondelet street came In FOR it's share :
II responsibility in the matter, for the deni- +
ems thereof are charged with having circu- :
ost heavily in State bonds transactions. The
eport, Ii 1t was really circulated, say our !
financial men, Is untrue, for, on the contrary, 7
hey believe that the bank has made money :
ecentiy on State bonds by selling short.
TO return to the first supposed cause of the :
In. Our reporter interviewed one of our :
most eminent lawyers, who Is engaged in the +
,ase, and obtained from him brief outline of
he blind fund and its relations to the Savings {
institution. =
Under the Sherrod plan of establishing in !
situations for the blind In several States, and :
providing for the printing of books with rails !
q letters for their use, the Legislatures OF +
kentucky, Mississippi and Louisiana provid- :
ID for such institutions respectively In the +
'ears 1857 1853 and 1859. The sum to begin
operations, $4,000, was actually raised. This ;
vas prior to the war. To cut long story :
hort, $4,000 of the amount was deposited !
n the New Orleans Savings Institution, on
which the accruing interest, although stop
,ed for time during the war, had swelled
he sum at a recent date to S302O0
Litigation in the chancery court aga inst
he Louisiana institution having been begun /
o attain the reimbursement of the amounts C
subscribed by innumerable contributors h
he solicitors of the latter sought to collect :
he money from the bank, which was, how q
yer, refused, the bank officers not recogniz- b
ng the claimants. Subsequently the attor- n
eys of the contributors notified the solicitors -
4 the trustees OF the Louisiana institution =
hat they would apply for the appointment
i receiver. this notification, according to \
he practice in chancery, being tantamount f;
0 motion made in open court. a
The receiver was however never appointed, a
ut the money was turned over by the bank v