, 1881-03-13
from Tuesday to register voters, and Will then
be kept busy to catch up.
TuE INTERN BANK.
COLLECTOR HARVEY 70 INVESTIGATE ITS DE-
AEEn1IST.

rorrrcroR HARVEY 70 INVESTIGATE ITS DE-
rOSlT ACCOUNT.
A LITTLE stir was created 1n financial circles
Yesterday By the announcement that the Inter-
national Bunk had withdrawn from the Clear
ing House. Inquiry proved that such was the
fact and that the institution will hereafter do
its clearing through tho Commercial National
Tho officers Of the bank, when questioned about
their reasons for this action, stated that 1t was
a conclusion which they had arrived at
after due cousidoru ton. and the believed 1t 10
be step taken for the best interests OF tue
bank. The institution was perfectly solvent.
and was able to pay 101 cents OH the dolln at
any moment to depusitors anl to stockholders.
Mr. Eanes, of tho Commercial National Bank,
also expressed the same belief in the excellent
condition Of the bank, tho cnpltai OF ,Shtcn IL Is
proposed to increase to 81 100 0o0
1t having been reported thut me w Whnusawa1 M "
GERS of tho Internal Revenue, reporter called
COLLECTOR HARVEY
for the purpose Of ascertainng what truth 1t
any there wu. in this statement. Mr.. Hnrrey
said that he had noticed the statement OF tho
sR 1arf suoaav. % H. sank made
III connection with Its then dilNcnlty ~ith
the Cleurlng- House That statenent showed
that the deposits ut that d'.le we're $lsVoUo. hnt
by the sworn stntement nnde to him for the six
deposits wcre s;56a,oo5. Mr. Harvey stated that
be Ssss 70 sse f. s qa ID ise Revd @
sumtqs that the report report to ii the G!eass ag,.;s
statenent stu ] appeared too low He sent for hir:
LosenthAl. briefly stated tho facts to htul, 0nd
said that he would have to make Aa exnm,nnt1on;
TOR the present for reasons given below. and tho
Collector nssentcd. The examination, however,
will begin Monday r. or TUESDAY; S!,: ,oon ,raforroa
agait,st the bunk, and nonc will bo n1t-
iess tho examination should warrant
H. h,,f " daat the Is a on al aopost IL
National and other banks, and scmt-nnnualy
the bank olicers are>rvqhlred 70 uake,sA: sworn
Of tho monthly average Of their deposits In case
these statements, which are required to DC sworn
to- are false, the offenders are finole to punish
ment by fine mud Imprisonment
Collector Harvey stnlod lhnt II tho De posits IN
November we're incorrectly reported. anu were
as large us those reported for 70 tho = % u March
had been defrauded was quite large-$..ooo or go;
The case w1s very serious me, nnd demanded
prompt and thorough Investigation.
MR.. Lo'vESriiM4
was Informed Of tho statements made by the
Collector OF 1uterna1 Revenue, and asked whit,
IL anything, he desired to say IN the subject.
He stated that Collector Harvey % aad sposen ni to
flying anythns-bad expressed desire to have
an examination, and that be or; ,; h1wenshaD .M
was being bothered about its relations
with the Clearing House, aud really had not the
time ut that moment to devote to tie matter.
Thir the discrepancy between the sWOrn state
1ncnt ,nuuo to the Collector for the six months
ending November 1884, and the Clearing House
return for the I'D Of March WIS PROOF TINT tho
November statement WAS incorrect, NJ.
Lowenthal denied. In the first place their bus~
ness had Increased enormously since November
In the next plnce, those items which appear In.
Clearing !iuuse account, hut which ii bank is
authorized to deduct when 1t makes is rs report
to the Government, were very lurre- These nre
certified checks. Cashiers checks, mnr-
gin dcpos1ts-wbich arc In tho nature of
Special deposits, and which. during nm
exciting wheat or pork deaf. arc very
urge. - collections, and Cienr1ng.. House
checks- If, for instance, the bank buys foreign
exchange for q 1urge amount 1t gives its check
on its own Cashier. This figures in the Cleurtng-
House account. but not TT tho ACCOUNT with the
collections amounting to SJo0,oo0 or $4Do,00o,
they ure collected one day and. remitted the
House nccnunt. but nre not returned L,
the General Government. So MIR. 1owenthn
believed that these items and the increase Of
business between November aud March fully
forithe' apparent difference between
the of $5i.U0J, tho average deposits Of No
vcmber and OF SlS9o.O,W, the deposits ou the Sd
of March. 1t was barely possible that thera !!
might he c!ericnl crrnr III the statemeIlt unde
ments, though sworn to by the President. Cash
ier aud three of the Directors being prepared OF
course by clerk. who simply tooK the duly
averages, divided them by tho number Of busi-
ness days in tho month. and thus arrived ut the
monthly Arcruge. -