Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-03-25
THE NEW ORLEANS BANKS.

THE NEW ORLEANS BANKS.
Ve,y Rotten State of Adairs Developed.
New Orleans Special (March 2O) to Chicago
Times.l
Several days ago the attention of the Times
correspondent was attracted to the statement
of the Southern bank, wherein assets given
at $672, 1880 were found by the quotations
of That day to be worth but $273, 669.12, and
that tho bank was short 1929, 1855. The
Times man at once called the attention of
Mr.. Thomas Layton, admitting that the analy-
sis of statement was correct, and that it's
publication would
RUIN THE BANK,
asked for delay to straighten its affairs, at
the same time exhibiting letter from the
London Joint Stock bank which prompted
an early remittance of $50 share
Bradish johnson and John T. Moore,
two of the directors, both of whom were
made cognizant of the facts, and all three
pledged their faith that if public attention
was not attracted to the true condition of
affairs, the depositors, to whom $628,S69
was due, would be paid. These same par
ties, by an understanding with @. E. Girardy,
DECLARED THE BANK 1NsoLvENT
under act 166, of 1856. G. E. Girardy pre-
senting check, which was protested, the
sheriff who accompanied him seized the
bank and read an order from the Fourth dis
trict court declaring Thomas Layton, John
7. Moore and G. E. Girardy receivers. This
had the effect of placing the principal Of
fcers in possession and depriving the depos-
itors of all recourse. A deposit of $50 900
was received at the moment the bank closed
it's doors Monday evening, never to open
again for. business. It is estimated that
$500, 900 is the full loss involved, and it is
known that the bank has existed for years
upon nominal capital.
ANOTHER COLLAPSE.
The suspension of the Mechanics & Trad
ers' bank, which occurred on Tuesday, oc-
CURED by an identical process. Deposits
were received up to noon, when suddenly the
sheriff appeared with citation, answer
and order of court containing the ap-
pointments of G.. Lanaux, j. A.
Blaffer and A. Lehman receivers, all on the
same sheet of paper, and, with the exception
of the signatures, in the same handwriting
Here an generalization of $238, 1000 is ap-
parent in the statement as assets and the
actual deficit is probably double the amount
Another crash following in such quick sue
cession
CREATED A PANIC,
and there was heavy run on the Canal,
Louisiana State, Germania, Union and
1o3o ,Io t.,
100000 was drawn out on Tuesday. At q
meeting of the funding board s. 81. Ken
nedy presented q resolution of the board of
directors declining to any longer pay the
past due State coupons The board failed
to withdraw the $374,O0O of State funds he
has on deposit. During the evening
THE CLEARING HOUSE
passed resolution declaring that until
March Goth depositor can draw moro than
5000 in one day, and that all other drafts
are payable in certified checks 1t is asserted
that but for this resolution the Union, State
National and German banks would have
failed to-day. This morning certified checks
were selling at per cent. discount, and it is
apprehended that they will be lower, in con-
sequence of the number of sight drafts from
the west for much larger amounts than the
limit allowed. Among the more intelligent
tinanciers this is regarded as the forerunner
of crash, which will swallow up every bank
out of line.
MEETING DEPosTEoRs.
At a meeting of the depositors of the bro
ken New Orleans Savings bank tonight, the
committee of experts reported the total liza
bilities to be $1,4S2,OoO; assets, $817, 044,
with deficit of $614,955. The law incorpo-
rating this bank declares it felony fer any
trustee to use the means of the institution
for any purpose, but notwithstanding that
fact, David Urquhart, president of the board,
loaned 100000 to concern in which he is
partner, and nearly every trustee is heavily
indebted. No prosecution is even limited.
AN EXPLANATION
of the frightful rottenness and the great ap-
prehension which exists can only be made in
one way. During the spring of 1877, $22,-
100000 accumulated in the banks in conse-
quence of an utter lack Of confidence pro-
duced by the Presidential controversy. When
Nichols was installed this large sum was
used for specializing in State consols. The
banks carried the bonds on margins, and
when bonds reached SO New York and Am
sterdam unloaded to the extent of $1O,OOO,-
600. The margins by which these bonds
foated were swept out of existence when
STATE DEFAu1rED
upon her interest The bulk of the State
debt has, by the course Of depreciation, been
thrown back upon the banks and insurance
Offices of the city, and the threatened repu-
diation, which would deprive them of the
greater portion of their capital, has created
this feeling of uncertainty. The suspension
ordered last night may be prolonged, but it
is believed sufficient money can be raised for
the ordinary movement of tlade. The dises-
ter is attributed to the
1MBEC1LITY OF FRANCIS T. NICHOLS,
who was informed shortly after his inaugura-
ton of the exact status of the State debt,
and it is held he was urged to reanimate con-
fdence and restored the bonds to European
bondholders by vigorous financial policy,
but the gentleman who gave him the in
formation and made suggestion which
would have supplied to commerce ample
capital was politely told to mind his own
FAINT HIS Name Samuel But Not T9lde,,.
lSt. Charles (Minn.) Times-Dem.]
The Winona Herald raises at the head of
its editorial columns the following
For President in 1880, Samuel J. Tilden.
Subject to the decision of the National Demo-
cratic convention.
Our friend Whipple of the Herald is gen.
orally pretty clear headed, and in his politi-
cal predictions is always more than half
right. In the above he is about two thirds
right, the Samuel J. being correct, but the
Tilden he could better have written Randall.
We make no prediction, nor do not wish to
be understood as stating any preference for
Presidential candidate at THO aorlv 10,