Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1881-11-21
THE BANK TROUBLE IN BOSTON.
A Run on. the Central National !.
AFFAIRS MORE QUIET.
Effect in Wall Street.

BosroN, Nov. 10. There was great appre-
hension on State street this morning until
after the clearing hours. The announcement
was made that all loans between the banks
had been promptly paid, and that there had
been no material advance. Nothing me- was
made known in regard to the situation at the
Pacific, and business moved in its usual way
until after III o'clock, when a heavy run upon
the Central National was begun by the de-
positors When the doors opened this bank
promptly paid over S450,OOO of the amount
of the balance due other banks. The run
upon it, however, was steadily maintained,
and its roo ms were crowded all the morning.
After the stoppage of an hour the bank re-
sumed payment.
The EXCITEMENT SUBsIpIKG.
The excitement over the Pacific National
Bank suspension ard the reported embar-
rassment of the Central Bank has practically
subsidized. The publicity of the fact that no
loss will be entailed upon depositors of the
Pacific Bank was sufficient to quell the ankle
ty which prevailed on Friday, while the am
pie, though tardy aid, extended to the Cen
.ral by its friends has restored tranquility
among its patrons. The accounts of both
banks are undergoing careful scrutiny by the
bank examiners, who will probably report on
Monday.
The movement for a reorganization is still
going on, and every effort will he made to
have Mr.. Lewis Coleman accept the presi
dency. 1t is not definitely decided that re-
organization 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 that he will, reorganization
will take place and the bank will 60 on. 1t
is said that President Benyon favors the pro-
pOsa1 IN n,ako Mr. Coleman nrasidept
The EFFECT IN New YORK.
The report of the failure of the Central
Bank, right upon the announcement of the
crash of the Pacific Bank, created consider
able anxiety and apprehension that such
questionable methods of banking as prevail
in Boston, which include the bolstering of
certain spectators, and the lending of large
amounts of capital upon mining stocks and
railroad stocks of uncertain market value,
might not be confined to that city. There
was considerable disturbance of loans by
reason of the fright, and money on call rose
to l-64 and interest. The market was better
during the last hour, and, being sustained by
heavy purchases of leading operators, the
excitement was allayed Mr.. j. A. Garland,
the second vice president of the First Ma
tional Bank of this city, which is the cores
pondent of the Central National Bank of
Boston, said: "The latest we have heard is
that, by the advice of the bank examiner,
the Central National has suspended temper
arily until the bank accounts could be
thoroughly examined. 1t looked this morn
ing to us as if the efforts to tide it over
would be successful, but suppose the pres
sure became to great. The Central National
Banks balance in our bank is not yet ex-
hausted, but, as soon as is. of course we
shall stop paying out money on its account.
1t would not be ri ght for ME to state the
amount of its balance in our hands" Presi-
dent Tappen of the Gallatin Bank said he
did not regard the failure as a serious affair,
and that its effect would be transient.
BOsTON, Nov. 20. 1t has been learned to-
day that the entire capital and also heavy
assessment upon the stockholders of the Pa
cific Bank will be necessary to cover the liza
bilities. 1t further appears that,th banks
dealings with Weeks are not by any means
the extent of the transactions of the same
nature. They have, for instance, been sus-
tanning large piano manufacturing compa-
ny. The following is Weeks method of
transacting business: He would deposit to
the Pacific his own or another brokers'
check and receive a certificate of deposit for
the amount with the understanding that it
should not be returned for payment until a
certain numberof days. In this way Presi-
dent Benyon secured the free use of the mon
ey for specified period, Casually from ten to
thirty days.)
A CARD FROM THE Directors.
We, the directors of the Chntral National
Bank, Boston, have causeda examination of its
books and assets to be made, and not an er-
ror has been found therein, and with the sim
gle exception Of its claims against the Pacific
National Bank with collateral held
to secure the same, will ultimately result in
little if any loss to this bank. The bank
will be open for business Monday morning,
prepared to meet its obligations. Cashier
Young's resignation has been demanded, and
new cashier will be on duty Monday MORN
ing