New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-19
BANK FAILURE IN BOSTON,
CARRIED DOWN BY A sPECULAToR

| CARRlED DOWN BY A SPECULATOR.
| THE PACIFIC NATIONAL BANK COMPELLED TO CLOSE
ITS rooRs NEUTRALITY-SUSPICIOUS. c. WEEKS
ALLOWED TO ovERDRAw HIS ACCOUNTS LARGELY
| COMMENTS OF BOSTON BANKERS AND BROKERS.
| BOSTON, Nov. 1S.-At 1:30 o'clock this afternoon
the doors of the Pacific National Bank. on Devon
shre-st, were closed and the following note posted
there:
Owing to failures in which the bank is in
volved, payment is temporarily suspended"
This was read by some 200 or 800 men, who had
been standing in and about the banking rooms for
an hour or more awaiting the decision of tho
directors, which came in the form of the notice
above quoted.
The Pacific National Bank has from its inception
iabored under disadvantages. II has never been %
member of the Clearing House. A. j. BenyOu, It's
president, was unfortunate, when connected with
the Exchange National Bank in his transactions
with the Rev. L. d. Winslow As q consequence It
is sad Of those transactions the bank, when or
ganizcd, was not admitted TO the Clearing House.
For that reason it has been accustomed to meet
drafts ETC., through the Eliot National Bank which
ls a member of the Clearing House. On Thursday
the Merchants Bank received from a country cor
respondent for collection draft on the Pacific Ma
tiJnal Bank for 81 300. The check was presented
at the Eliot Bank for payment as usual, but pay
ANAe0SN
drawn upon had no funds there The check
was then taken to the Pacific Bank, where it
was stated that it cOnd not be paid there,
but would be paid before the close of ban king hours
his promise was fulfilled. This morning, however,
other drafts coming in under similar circumstances
a similar promise made but unlike that of yea
terday. the promise was not kept
The immediate cause of the suspension was tbs
failure of Theodore c. Weeks, who had been allowed
to oyerdraw his account After the trouble OF yes
terday a meeting of the directors was called.
1t held last evening, and arrangements
were made which, it is thought, would
tide the bank over ITS difficulties The occur
rences of the morning Overthrew all ths
arrangements. 1t is stated that large number Of
checks was given ont this morning on the Eliot
Bank, which merchants, instead of depositng went
Immediately to the bank to draw; but tho
president Of that institution stopped pay
ment on such checks. He said that
he took the course he did because the Pacific Bank
had no funds there, and he was satisfied that it
would be unwise to cash the checks. Concerning
the general standing and the stability of the Pacific
Bank, he did not wish to express an opinion. Tho
payment of the checks having been refused at tho
Eliot Bank, those holding them presented them at
the Pacific, and thereupOn a small run began. As
nearly as can be estimated, the amount paid ont
81, 900. mostly small checks, up to 1:10 p. M.
when payment was stopped altogether. Just pre-
vous TO that hour gentleman walked up and, ex-
pressing the belief that everything was right, de-
posted checks 10 the amount of $4,000, and his
example was followed by Others with smaller
amounts.
This morning Prescott 81 Hcrsey placst
an attachment for $1,000 on the funds
of the Pacific Bank, whatever they might
be, in the hands of the Eliot. The cap
ital of the bank is $1,OO0.OOO, and the following
is the statement of its condition made October IL
m. nrrrnr.r