New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-15
BANK FAILURE IN BUFFALO.
THE FIRST NATIONAL sCsPENDs-TRYfNG TO DO
LARGE BUSINESS ON A SMALL CAPITAL
lBY TELEGRAPH TO THE TRIBUNB.l

lBY TELEGRAPH TO THE TRIBUNEl
BUFFALO, April 14.-The First Natlonal
Bank closed s doors and suspended payment TINS morn
ing The caused considerable excitement III DUST
and financial circles number OF depositors and
others called at the bank TO make inquiries, but te
definite information could be obtained Last "Wednesday
drafts amounting to $4,000 thrown out by tho
New.York correspondent. the Fourth National Bank.
The president OF the Buffalo bank T. Porter Lee, went
to NewYor to endeayOr to tide over the disaster,
but returned early this morning unsuccessful lie
says that the bank will pay hundred cents
the dollar but whether ii viii resume business ne
could say He attributes the failure to an attempt
to do large business on small capital, anu lnA7 10
doubtless
The capital was only 100000 and the loans are said
to have exceeded $lO00OOO. According to the
last quarterly Of the bank the deposits were
S566,0OO The general feeling is that the crash Is Dad
one and the affairs Of the institution are In far moro
shalty condition than represented. E1st Buffalo stock
dealers were patrons of tho bank, and some OF the
heaviest dealers are said TO be seriously affected The
United States District Court has about $4,000 on de-
post in the bank the City Buffalo. 265OO the County
Treasurer, $4,000. II was generally known Yesterday
mat thr frs were in critical condition, but the gen
eral belief was that satisfactory arrangement could
and would be made The checkS PAID Yesterday now
ever aggregated about 100000. United states Bank
Examiner Hugh Young arrived IN Buffalo last night on
his regular tour OF Inspection and TINS inofhg ton
possession Of the bank and began an examination WHICH
hc expects 10 conclude tomorrow o..,.
II appears from the reports OF The bank made October
l. 1881 aud March II, lSs2 tha during that period She
deposits fell OF $2i6 S36 81 whereas the amount OF s
loans ard discounts increased $2372 2l3 r. ON harch
II there was due from other banks $}37iO - less than
on October l. and due to banks $2l6S69 O3 more
than on that date.
President Baldwin, OF the Fourth National Bank,
which has been for more than eighteen years the New
York correspondent of the Buffalo bank said that the fail
ure was entirely to efforts to do too large business
The Buffalo bank he said, had capital Of only 100000
but ts deposits nearly Sl0OOOOO He deprecated
fraud In the failure. Checks Of the Buffalo bank were
thrown out ON Wednesday for the first time. but the
amount of thcm Mr.. Baldwin said he did not know. on
Thurday he had ordered paid than thirty checks
dId not amount to 81 300, because ne tOuSh
be less trouble them t1an to setiu
them back. lie said that the president OF the BuHalO
bank called on him Thursday, bur proposed no plan
for relieving the bank of it emharrassments No addl-
t0nal securities to protect its checks were offered
The cashier of prominent Wall street bank SAID that
the taire would have apprecaDe elect ON the Ote
buffalo banks "You see ne said that this bank had
800 900 capital, its officers thought that they had
several millions, and managed their business accord
| ingly."