The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1881-11-19
by TELEGRAPH.
SUSPENDED.

The Pacific National of Boston Stops
Payment.
BOSTON, Nov. IS.
Checks of the Pacific Bank to-day were
thrown out by the Eliot Bank through whom
they were cleared not being members of the
clearing house.
All 80 the doors of the Pacific National
Bank, on Devonshire street, were closed and
the following notice posted thereon:
sowing to failures in which the bank is in
volved, payment is temporarily suspended"
This was read by some two or three hundred
men who had been standing in and about the
banking rooms for an hour or more, waiting
the decision of the directors which came il
the above. 1t is understood that the suspen-
sion was caused by the failure of Theodore G.
Weeks, a large operator, whom the bank was
sustaining and who was carrying some 21,000
shares of Eastern Railroad and large amounts
of silver islet both of which have fallen but
still have intrinsic value.
1t was found last evening that the bank had
out about $500 900 overdue paper all of which
amount was held by single concern. Most of
this paper consisted of Weeks notes, and,
when Intercepted, the Pacific Bank people
admitted they had no money with which to
meet them. An effort tn save the bank from
disaster was made this morning when an offer
of support was made by other bank presi-
dents TO the amount of 100000 provided sat
isfactory collateral could be offered Certain
collateral was offered by the Pacific National
but on examination it was not considered sat
isfactory by the other bank presidents referred
to. Consequently aid was not forthcoming
from this or any other quarter and the Pacific
was obliged to suspend The excitement has
given rise to variety of wild rumoIs regard
ing the effect Of this suspension upon other
banks. There is the best authority, however,
for believing that none of the other banking
institutions of this city will suffer to an extent
sufficient TO impair their seandness
The directors of the bank were in session to-
night till late hour Bark Examiner Need
ham began an examination of the banks af-
fairs and had a consultation with the directors
through tho evening but no positive concu-
sion has been reached. Mr.. Needham says
means may be furnished to enable the bank to
continue business but the matter will be de-
cided tomorrow when the directors will de-
termiue whether to surrender the bank or
raise money necessary to Garry it through.
Mr.. Wee ks entire hope is based upon his
margins. If he is right the bank is right. If
time is allowed for the market to rally and
take securities his margins will carry him
over. Mr.. n edham further said that Weeks
did not barrow of the bank directly. His in
debtedness was through other banks and the
acceptance of these checks for which this
bank made itself liable. / don't believe the
total of such Indebtedness reach million
We have got 10 bridge Weeks and then we
have to meet an excited army of depositors
who make demands upon the bank. 1 believe
one and one-quarter millions would bridge the
bank over. There has been no fraud aud
there has been no man trusted to an amount
of half a million. When | examined the bank
in January Weeks was not here at all, the
transactions having occurred since that date.
While expressing the opinion that there had
been no fraud, Mr.. Needham said there had
been great lack of Judgment on the part of
the bank officials. He stated that the other
banks in the city are not sufficiently involved
to impair their capital. The investigation will
be continued to. morrow.