The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-21
THE BANKS.
HOW THE ACTION OF THE CLEARING.
HOUSE WAS RECEIVED.
Talk Of DenositOrs About the Southern
Bank.

1
| Bank.
Theaction OF the Clearing House In deeidin,
to allow no checks against deposits for great
er amount than 5000 for the next nine days wa
decidedly unexpected and created no Httl
CONSERVATION for short time, particularly
among q certain timid and excitable class o
depositors, who at the outset regarded tn,
move az preliminary to complete suspen
sion.
On sober second thought, however, it was
generally agreed that, though the action was
| somewhat, Ii not wholly, revolutionary In itf
character, and great temporary inconven
| lence would result from 1t, still 1t was tho
Dest and most proper thing which could be
done under the circumstances, as it will en-.
| able all the banks to call In their outstaDdin o
| credits and other resources, and be able to
meet any and all demands made upon them
at the expiration OF the time fixed, without
sacrificing any OF the assets, which they
would have been compelled to do to meet and
Withstand q rush.
As the matter came to be viewed In the
right light there was a noticeable decrease
In that feverish excitement which has pre-
vailed in business and financial circles fol
several days past, and people who had been
viewing the situation with considerable
anxiety breathed easier, satisfied that the
panicky feeling was dying out, and that as
soon as the banks resumed regular business
trade would travel smoothly and quietly on
In it's old channels.
The city banks have already called on the
banks In other portions of the country for
their balances, and 1t Is said that there is
between three and four million dollars on
their way to this city, which, with the
amount already on hand, will be sufficient for
all contingencies which may arise The cash,
it is expected, will be here within the next
ten days; just In time to permit all the banks
to resume payment on demand, and before
some enterpr1sing lawyer shall have time to
influence depositors to sue the bank, file the
petition, and overcome the legal delay of ten
days allowed to all defendants to make
answer to legal demand.
At all events, in case any legal demand
were made OF bank, the defendant would
would probably settle at the end of that time
rather than be placed in jeopardy, for the
amounts that might be sued upon during
even fortnight would be comparatively
small and easily provided for, although the
expected $3,OO0.0Oc might not have reached
here from New York within that time.
At the meeting of the bank officers on We'd
nesday night, 1t is said that the proposition
OF suspend1ng was not unanimously enter
tanned at first the president Of the Canal
Bank, particularly, obiecting to the adoption
OF such step by the meeting, saying that
his bank was perfectly able to meetsthe de-
smands OF all Its depositors, and yesterday 1t
was notoriOusly known that both the Canal
Bank and the Louisiana National Bank hon.
ored all checks presented to them for pay
ment
There was considerable talk among the de-
THE SOUTHERN BANK
yesterday about the difference between the
amount OF deposits on the day the statement
OF the institution was prepared and the
balance remaining when the bank closed it's
doors-the difference being about one half.
That is. the statement on March shows six
hundred and odd thousand dollars due de-
positors, and when further payment was
this amount had, 1t is said,
been reduced one half. What the depostOrs
want to know Is, who got all this money
which was drawn out In just eighteen days,
and in what manner 1t was drawn. And ON
these subjects there is considerable specula-
tion and many rumOrs.
There Is considerable complaint against the
three receivers appointed by the court, for
two reasons-one Is that they are the officers
OF the bank who have managed its affairs
until the cessation OF business, and the other
Is that their interest In the deposits are very
small, the largest balance Of a:.y OF the three
being, as stated, not over $400,T
There was meeting OF the iepositors yes
terday TO take measures to Protect their In
terests. Their proceedings Nere private, but
1t Is very probable that all the matters as
above set forth were considered, and that the
action in reference to them, il there was any.
will be made public at the proper time and
place.