Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1882-12-09
o States 1891 STA e55, ses s2a5, Gas, lao s1l,s7O, As

Three National banks have been placed in.
the hands of receivers during the year ended
National Bank of Newark, N. J.. on November
2, 1881; the Pacific National Bank of Boston.
on May q, 1sse, and the First National Bank of
the two first named banks was mentioned in
the report OF the Comptroller for the year end
ed November !, 1881. and the causes which led
to both of these failures were then fully dis
cussed. The Directors of the Pacific National
Bank of Boston undertook to make good the
impairment of its capital stock in the manner
authorized by section 5,2o5 of the Revised Stat
utes: but as they failed to do so within the :ilhe
fixed by law, a receiver was appointed to take
charge of its affairs. The failure of the First
the misrepresentation of funds by its Presi-
dent. Its condition was discovered by the
Bank when making his annual ex-
before stated. The affairs of ten National
banks have been finally closed within the
year. Since the commencement of the Ma
tonal-bank system 81 banks have been placed
In the hands of receivers and 40 banks have
Noluntar ly closed their business by the votes
of shareholders owning two-thirds of their
and SCI of the Revised Statutes. OF the
banks SO placed in voluntary liquidation by
their stockholders, ! failed to pay their de-
posItorS, and in these cases receivers were
appointed by the Comptroller to wind up
their affairs. OF the 81 banks placed in the
hands of receivers, 81 have been closed, leav-
ing 30 still in process of settlement. Thu loss
to creditors of National banks which have
been placed in the hands of receivers during
nearly twenty years that have elapsed since
the passage of the act of February p, 1853, as
near as can be estimated, including dividends
which will probably be hereafter paid, has
been about ST.CO0,tOo. The average annual
loss has been, therefore, about S4OO,OJO in the
business of corporations having an average
capital of about Si50.0y0,C Coz, and which have
been responsible for the safe-keeping OF de
posts in their hands averaging constantly over
SSOO.ON,O 900, or about one-twentieth of one per
cent. of annual less to- depcsitors.
The time required for liGuidating the affairs
OF lnsolvent banks depends chiefly upon the
amount of litigation which may arise in any
case it l. impossible to tell in advance wha,
questions it may become necessary 10 refer to
the courts for decision. In many of these
cases no conclusion can be reached until the
matter has been brought before the courts of
last resort. The dOcketS of the SuprameC Courts
OF most of the States. and that of the Supreme
Court of the United states. are owded and
when an appeal is made to these tribunals
years often elapse before the case can be
reached. Owing. however, to tn. decision al
ready made, the forms of procedure, under the
laws governing National banks, are better
understood. and in collecting assets, in
allowing offsets and enforcing the liability OF
Stockholders there is now no inducemenr tC
-protract litigation, either on the part Of The
ordinary debtors of the bank or of the stock
holders who become such debtors wher
assessed under their liability. as provided il
section 5,15l of the Revised Statutes. In al
cases of failure of National banks there arr
many claims presented to the receivers, which
for various reasons, do not appear to be prop
erly liabilities of the ASSOCIATION, and it il
the genuine creditors. that such claims mus
be rejected until their merits have bee,
properly adjudicatcd by a court of com
potent jurisdiction.