The Portland daily press., 1881-11-21
THE PACIFIC BANK.
another Bank Badly Crippled by
the Failure.
THoMAsToN FUNDS LOCKED UP IN
THE BROKEN INSTITUTION.
A Cashier who Deserves Severe Pun.
ishment.

Boston, Nov 19--There was great appre-
hension on State street this morning until after
the clearing house meeting. The announce
menu that all loans between the banks had
been promptly paid, and the rate not materially
advanced, greatly allayed the general anxiety.
Nothing new was made known In regard to the
situation at the Pacific bank, and business
moved in the usual way until after II o'clock.
A heavy run upon the Central National bank
was begun by depositors when the doors OPEN
ed This bank promptly paid over $3.50 O0O
the amount of balance 10 other banks. The run
upon it, however, was steadily maintained and
its rooms were crowded all the morning.
The officers announced that the bank would
pay every dollar in full, and checks were CASH
ed as fast as presented up to 10. AT that
hour the paying teller stopped casning checks
and the directors went into consultation as to
the course of action. 1t was simply stated that
they were considering the situation and look
ing over the balances, and that business would
probablv be resumed in the ordinary way in
very brief period. Based upon these grounds
reports of the suspension flew over the city
quickly, swelling the crowd of depostors with
many anxious inquiries. After stoppage of
an hour the Central resumed payment
The directors of the Central were in secret
session until IL O'Clock tonight. At the close
of their conference they had agreed to issue the
following statements: Arrangements are
being made BY the directors of the Central
National Bank, looking to a continuation of its
business on sound basis and protecting its
present depositors; and they feel confident
there should be no further distrust of its finan-
cial ability"
The indefinite wording of the statement was
explained by director who stated that sutd-
cient help had been promised, OF which they
were perfectly sure by Monday but which they
did not yet actually possess. Bank Examiner
Magruder who was present at the meeting,
stated that the Central Bank would undoubt-
eddy proceed smoothly with its business. and
that there was nothing the matter with the
institution.
After the meeting above noted, director
stated that they had sent message to Col.
Needham, who was examining the affairs of
the Pacific Bank inquiring to the result OF
his work SO far. In reply he stated that all
depositors certainly would be paid in full.
This statement was understood to include the
check holders.
movement for the reorganization of the
Pacific Bank is still going on, and every effort
will be made to have Mr.. Lewis Coleman &C
cept the Presidency. 1t is not definitely de-
cided that a reorganization will take place, nor
will it be until the examiner has completed his
work. If he finds matters as favorable as there
is reason to hope, a reorganization will take
place and the bank will go on. 1t is said
President Benyon favorS the proposal to make
Mr.. Coleman President.
The feeling in moneyed circles in the city is
thoroughly that bottom is reached in these
financial difficulties. AS regards general bust
ness, the effect has already been discounted
anu no ulSturpduGo ID dppIbuouuCQ lIOL1 III III
the future
THoMAsroN, Me-, Nov 19.-This town had
funds deposited in the Pacific Bank for current
expenses These funds are not lost; there is
no doubt that depositors will ultimately be
paid in full; but some temporary embarrass-
ment might occur, but for the public spirit of
the Hon. Edward O'Brien of Thomaston, who
will raise means for all current liabilities on
his personal credit. Mr.. O'Brien backed the
town in the same way during the panic Of
1857.
BOSTON, Nov. 20.-It has been learned to-day
that the entire capital and also heavy assess
ment upon the stockholders OF the Pacific
bank will be necessary to cover the liabilities.
1t further appears that the banks dealings
with Weeks are not by any means the extent
of transactions of the same nature They have
for instance been sustaining large piano
forte manufacturing company.
The following is Weeks method OF transact
ing business He would deposit at the Pacific
his own or another brokers' check and receive
certificate of deposit for the amount, with the
understanding it should not be returned for
payment in a certain number of days. In this
way President Benyoa secured the free use of
the money for a specified period Casually ten to
thirty days) Weeks then sold upon the street
or to another bank the certificate for what it
would bring. For instance, one certificate for
$4,000 went begging at 750 discount, and was
finally bought by the bank itself at that rate,
they fearing the hawking of certificate at this
price on the street would iniure the credit of
the bank.
Louis w. Young cashier of the Central Ma
tional Bank, is former associate of Benyons
in the Exchange bank. Along in September
Benyon could get no market for his certificates
which circulated to the extent of many thous-
and dollars, and went to Young for aid. Young
gave him cashiers check on the Central
bank in exchange for Pacific bank paper of the
same nature. This was done without the
knowledge of the president or directors OF the
Central, and the practice continued until the
amount became very large.
President Bishop of the Central discovered
his cashiers actions few weeks ago and
severely rebuking him for his conduct. he en-
deavored to reduce the amount, and as he sup
poseded succeeded in redeeming nearly all his
Pacific bank paper. He was aStounded to dis
cover Thursday that Young had been surrepti-
iiously continuing the practice and that his
bank held claims against the Pacific to the
amount of 100000, including single check Of
$400,0 1000, accepted by Young from Benyon
few hours before.
President Bishop Immediately applied to
Benyon for collateral Benyon seized what he
could get hold of at the time and turned over
a quantity of miscellaneous securities which
to-day were found to have face value OF
$250OO0. This is the only security the Gen.
trail Bank has for its claim of 100000 against
the Pacific Bank. The Central has However
raised $4,000 outside, has called its quick
loans in, so that with the cash on hand and i'm
Immediately 8Vdlldpl0 LILO Uduk now @AVVsouu
above what can be demanded by its depositors
or other creditors. Business will be continued
as usual tomorrow and the directors publish
the following card:
we the directors of the Central National Bank,
of Bosten, have caused an examination of its books
and asserts to be made and not error or discrep
ancy has been found therein, and with the single
exception of its claims against e Pacific National
Bank, of this city, its accounts are good beyond
doubt. We believe its claim against the Pacific Ma
tional Bank with the eellateras held TO secure the
same will ultimately result in Iistle if any loss to
this bank The bank will be open for business
usual this morning prepared to meet its obligations
Cashier Youngs resignation mas been demanded
and new cashier will be on duty Monday morning.
This is highly probable that there will be
several failures among tradsmen on account of
their being looked up in the Pacific banN
Col. Needham who is examining the affairs
of the Pacific boDk is of the opinion that the
capital is 100000 and an additional million
for which the stockholders can be drawn upon
will pay the deposits and other creditors in full.
MINOR KILOGRAMS.
At Durand. Wis, Saturday, Ed Maxwell
while being examined in the court room was
seized by masked men and hanged.
Father Sheehy and T. M. Healy, M. P
spoke at Providence last night.
Judge Chas. Andrews, has been appointed
chief justice of the New York case of appeals
to succeed Judge Foger.
The custom house of Valparaiso has been
destroyed by fire. Loss $1,0O0.0O0.
A rumor was circulated in Boston Saturday,
that the American print works were financially
embarrassed. 1t was promptly contradicted.
Portions of the schooner e. P. Dorr of Buff
falo on coming ashore at Port Colborne, Ont
1t is supposed she went down with all on
board in Wednesdays storm.
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METEOROLOGICAL
IsrIoArIoNs FOB THE NEXT TwENTY-Toua
HOUKs.