New-York tribune., 1881-11-21
THE BOSTON BANK Troubles.
FURTHER DIsCLo-UEEs-THE CENTRAL NArIoNAL
PROVIDED WIN MEANS.

EIElllEK DlN' lD-l lst.N AIsNli~NL s'Aii'. ~
PROVIDED WIN MEANS
BosToS, Nov. 2O.-It is learned to-day that
the entire capital aud also heavy assessment upon the
stockholders OF the Pacific Bank, will De necessary TO
cover the liabilities further appears that the banks
dealings with Weeks not by any the extent of
its transactions Of the nature The bank has for
instance sustaining large pianoforte manufdctur.
ing company.
The following Wcekss method Of ransacting bust
lie would deposit In the Pacific Bank his own or
another brokers' check, and receive certificate OF de-
pOsit for the amount with the understanding that Il
should be returned for payment within a
certain number Of days In this way President
Bcuyon secured the free OF the money for IA
specified period usually ten to thirty days. Weeks
would then sell upon the street TO another bank the
certificate for what It would bring For instance,
certificate for $4,000 went begging at $3.50 discount
and was finally bought by the bank itself at that rate
in the fear that the hawking OF the certificate
at this price the street would injure the credit
Of the banl W. Young, cashier Of
the Central National Bank, is former associate Of Ben
yon IN the Exchange Bank. Along In September BenyOn
who could get market for his certificates, which were
circulated to the extent Of many thousands OF
dollars went to Young for aid Young gave him
cashiers checks the Central Bank paper Of the same
nature. This done without the knowledge OF the
president or directors OF the Central Bank and the
practice continued until the amount became very
large.
President Bishop, OF the Central, discovered
his cashiers action few weeks ago, aud
severely rcbukng him for his conduct endeayOred to
reduce the amount and, he supposed, succeeded IN
redeeming nearly all Of his Pacific Bank paper He was
astounded to Thursday that Young had been
sure e2tousy continuing the practice, and that his bank
held claims against the Pacific TO the amount o. SsO00Oo
including a single check for 100000 accepted
by Young from Benyon few hours before. President
Bishop Immediately applied TO Benyon for cOllatcfall
BcnyOn seized what he could get hold or AT the tne ana
turned over a quantity OF miscellaneous securities
which to-day found TO have face value Oi
$250O0O. This Is the only security the CeniTa
Pacific Bank The Central has, however,
raised 100000 outside and has called III
its short loans, that, with the cash on
hand aud Immediately available. the DdhA
deposors other creditors. Business will be continued
II usual tomorrow.
The directors have published a card In which they
say: We, the directors OF the Central NatlOnal
OF It's books and assets 10 be made ana not an
error discrepancy has been found therein, and
with the single exception OF Its claim against the
Pacific National Bank, OF this city, ts assets are good
beyond doubt We believe Its claim against lne
Pacific National Bank, with collateral held 10 secure
loss To this bank. the bank will open for business as
usual this morning, prepared 10 meet is obligations
Cashier 1Oungs resignation has been demanded
and cashier will be on duty Monday
will be several failures among tradesmen account 0I
their funds being locked up in the Pacific Bank C00nel
Needham VINO Is examining the affairs of the racine
Bank, IL OF the opinion that the capital OF SlOOOOOO
be drawn upon viii pay the depositors aud other
creditors III tull.