Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1882-12-15
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Three National hanks have been placed in
the hands OF rece W rs during the year ended
November L, 1SS2-namely. the Mechanics
National Bank of >Gwark, n. j., on November
=, ISL; the Pacific N lti0nal Bank OF Boston,
on May - 1882, and the First National Bank of
Buffalo, on April -, 1881. The suspension of
the two first named banks WIS mentioned i'm
the rep IT of the Comptroller for tn wear end.
ed November j, 1881 and tn causes which led
To both OF these failures were then fully. dis.
cussed. The Directors of the Pac fic National
Bank OF Boston undertook to make good the
impairment of its cap t al stock in the manner
authon e by section 5,,0j f tn e Revised Stat
utes. but as they failed to do SO within the lime
hxed by law, receiv r was apo nted to take
charge of its Affairs The failure of the First
National Bank of Buffalo was the result Of
the misappropriatiOn of fun by it's Presi-
dent It's condition was discovered by the
Bank Examiner when making hi annual ex-
animation. and receiver was appointed as
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 p,areJ
in the hands of receivers and 40 banks have
VoIuntlr " closed the busin IS by the votes
or shareholders own ng two-thiris of their
stock, under the provisions of sections h2 a
and h,:2l of the Revised Statutes. Of the
banks so PLACID in voluntary liquidation by
their Stockholders, failed to pay their de-
pastors and in these cases receivers were
appointed ~ the Comptroller 10 wind ur
their Affairs OF the ~ banks p aced in the
nands or receivers. 81 have been closed, leav
ing 30 still in process of settlement The loss
TO creditors OF Nationai banks which yp
Occt PIN ca IN the hands OF recefv dur
nearly twenty years that have elapsed sin e
the passage of the net of February 25 IS43 as
nesr as csn be estimated including dividends
which Will probably be b sreafter paid has
been about $iO0L o.. The average annual
loss mas been. therefore. about $4,000 in the
business OF corp irations having an avsrare
capital OF about S500J0,Q0J, and which have
been responsible for the safe-keepTnp O de-
posts In their han is ayerag ny constantly over
SSU.vO,0u or about one-twent eth OF one per
cent ot annual ICsS to depCsitOrs.
The time required for lou dating the affairs
OF lnsolvent b nks depends chiefly upon the
aihount OF litig on which may arise in any
csse :! imp ssialc to tell in advance what
questions 1t m become nee ssary TO refer To
the courts for decis on In many OF these
cases no 'onclusion can be reached until the
matter has been brought before the courts of
iast resort The docketS of the Supreme Courts
u most or the States, and that of the preme
court OF the I'm ted States are crowded. anc
WnHn an appeal is made to these tribunals,
years OFTEN elapse b fore the case can be
rencneo- OWN, however, to IN decision al.
ready mad the forms of rocedure, undo the
laws governing National banks. are better
unuer tood, and In collecting assets, in
anoWIng otfsets aud enforcing thu liability Of
etock-noiders there Is now no inducement to
Protrac litiRar on, either on the part Of the
ordinary debtors of the bank or of the stock
assessed under their liability, as provided I'm
section , l5l Of the Revised Statutes. In all
ca<es OF failure Of National banks there are
many cta' ms pres uted to the rece vers. which,
Iof var Gus reasons, do not appear to be prop
eIlV IL d hties OF the Assoc: elton, and il q
necess ny, IN order to protect the interests OF
me gsnuine cred tors. that such claims must
proper al udicated NJ q court OF com
pettnt 1uriSd .cfsOn