Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-11-20
BOSTON BANK TROUBLES.
The Central National Temporarily EN-
barrassed-The Pacific Turned Over to
the Examiner.

The Central National Temporarily EN-
barrassed-The Pacific Turned Over to
the Examiner.
BosroN, Mass, Nov. 19.--At 11:3O the Cen
trail National bank stopped paying checks.
The officers say it is a temporary stoppage,
for the purpose of consultation among direc-
tors as to the proper course to pursue. At
the clearing house to-day the Central bank
was compelled to paw 100000
Friends of the Central National bank have
decided to pay loans of that bank at the clear
ing house amounting to something,less than
o half million.
In the last statement of the Central Nation
al bank one item of its resources was $434 1855
due from other National banks. So far as
can be learned, it appears that a good portion
of this sum was money due On collateral re-
discounted for the Pacific bank. Undoubtedly
some of Weeks collateral is among the
rest. To that amount only is there
the least danger. It has been CON-
mon practice for Weeks to present
time certificates of deposits given him by the
Pacific tank in his collateral at the Central
bank, and for consideration obtain an ex-
change of Central bank certificates of deposit
payable the following day. With this and by
paving very high rate he would get on the
same day gold certificate, which he would
take to the Eliot bank and then deposit it to
meet check of the next day.
It is stated that five leading bank presidents
of this city voluntarily subscribed 100000
each towards the relief of the Central. Direc-
tors of the Central National were in secret
session until II o'clock tonight At the close
of the conference they agreed to issue the
following statement.
BOSTON, Nov. 19.-Arrangements are being
made by the directors of the Central National
bank looking to continuation of its business
on sound basis, and protecting it's present de
posts. They feel confident there should be
no further dstrust of its financial ability"
THE PACIFIC NATIONAL.
a meeting was held by the Pacific directors,
for the purpose of recognizing the concern.
Mr. Weeks said this morning that if the reor-
ganiZation offered time he would be able to
meet his liabilities. The directors in their
proceedings to-day, strongly condemned the
action of President Benyon, which caused the
disaster and turned the concern over to the
bank examiner. The directors maintain the
opinion, which is also endorsed by Col. Need
ham, that if Benyon had communicated with
them in relation to his transactions with
Weeks, when the matter irst started, the
whole trouble could have been averted. Ben
yon regrets the movements he made as deeply
as do the directors, but says he was gradually
drawn into it, little by little He did not
dare disclose his transactions to the directors
until Imperative circumstances of the case
demanded. His transactions with Weeks be-
gan about the middle of last August, when
the latter's notes were thrown out of the
Eliot bank.
Examiner Needham declares the presidents
action in reference to the banks business with
Weeks W pfoh1 T.,
to Weeks promises to the board of directors
this morning that if sufficient time were given
him he would pay the bank every dollar he
owed, Colonel Needham expressed the
opinion that his ability SO to do
would depend wholly upon the condition of
his margins. He also expressed himself as
satisfied that the banks affairs looked better
than last night.
The resumption Of payment by the Central
bank lnspireda marked feeling of confidence
and there is generally expressed opinion that
the worst is over.
The Evenimg Star, of which ex-Collector
Simmons is proprietor (Slmmons being also
a large depositor in the Pacific bank), states
that the directors were called together Thurs
day by President Benyon, who told them
Weeks owed the bank $25O,00O, and Weeks
must pay in $150,OOO before noon, or
the bank would fail. At the request of the
assurances that all his Indebtedness to the
bank would be met as soon as matured. As
soon as Weeks paid the money to the directors
it IS alleged by the Star that he went to the
bank and took $4,000 in!certificates.s (which
were already signed and awaiting his call. The
directors, knowing nothing of this, thought
the trouble obviated. At the directos meeting
IN the morning Weeks Indebtedness was dis
covered to be $1,26O,000. The Star further
SAYS the president had no particular excuse to
offer. Examiner Needham says it is impossi-
Die for any director or official of the bank to
have learned by any record or examination of
the books, that the bank had been placed
In a perilous condition, as the president
concealed his transactions from every one land
had ma made no record or entry of business with
Weeks, but carried it all in his head, and it
was only when the fact stared him in the face
that ne had exhausted every dollar of the de-
positors money and had none in hand to meet
the ordinary drafts of customers that he
made known to the trustees the ruined condi-
ton of their bank.
Needham says that depositors of The Pacific
National bank will certainly be paid in full.