The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-05-07
FINANCIAL CRISIS.
Failure of the Marine National
Bank of New York.
Suspension Of the Brokers' Firm o.
Grant g. Ward

Marine National Bank, Wall and Water
streets, was announced this morning. J.,D.
Fish is the president. About year ago the
bank purchased the Booths theatre property.
The clearing house was in session this morn
ing to consider the suspension. 1t is thought
that the failure is bad one. The eapital of
the bank is $4OO 600, and It's statement OF Sept.
22 1888, showed a surplus of $4,000, and un-
divided profits of S62,345.
A visit to the bank discovered some 30 dis.
consulate depositors standing in the pouring
rain around the closed DOORS No admittance
was given to reporters, and no notice was
posted on the door. The bank was opened at
the usual time this morning, but before noon
closed abruptly without assigning any cause.
The stock market was very active, and there
seemed to be some connection between the
fallufe and its condition of affairs on the stock
exchange. Depcsitors, judging from the ap-
pearance OF those about the building, are
well-to-do class. An explanation is promised
for this afternoon.
1t is said on the street that the Marine
Banks downfall is due to real estate transac-
bought the Booths theatre property, and is
now converting it into stores. He is also inter-
ested in apartment houses.
The Post says relative to the Marine Bank
failure that the immediate cause was the
bank inability to meet its debt of about S5O0 :
COO at the clearing house this morning. The
causes lying behind this are presumed to be the
real estate operations of the president, Mr.
Fish. On Friday last it is said Mr. Fish trans
ferred the building next to the bauk, rs Wall
street, to the bank for $81 900. This became
generally known, and the effect OF the failure
was virtually discounted. In the clearing
house this morning the bank was debtor to the
extent OF 100000, and Manager Camp refused
TO allow the clearing to proceed until security
Tor the amount had been provided. Thus the
clearing was delayed, and although it was fin
ally accomp shed, security having been given
for $500, 900, the Marine Bank officials decided
to suspend at 11.30 The doors of the bank
were closed. A large crowd assembled, but
order was maintained. Director Gales of the
Marine Bank says there has been DO defalca-
tion or dishonesty in the management OF the
bank. The principle trouble is that the bank
cannot realize on some of its collateral
Grant q Ward, an old banking fra, state
that the failure of the Marine Bank will affect
them seriously, and they cannot save them
selves. They will hold conference, issue
statement, and notify the stock exchange of
their inability to carry on the business for the
present.
The firm of Grant & Ward is composed of
General .. S. Grant, James D. Fish, q. S.
Grant, Jr., and Ferdinand Ward. Kernan's
Wall street agency rays: I'VE have investi-
gated the rumors of the defalcation aud got the
following statement: The embarrassment of
Grant q Ward is said on reliable authority to
be due to the absence of one of the firm who
mas not been at his place of business since
Saturday last. Various rumors are efioat in
financial circles, respecting which Mr.. Grant.
the senior member of the firm, says: l cannot
deny or corroborate the reports current We
are nearly S50O,000 short, our stocks are locked,
and until we can find Mr.. Ward I cannot say
how we stand.'
Lone ISLAND CITY, May 6.-Nearly all the
1unds this city possesses, about $150000 ara
deposited in the Marine Bank of New York,
should the suspension prove permanent, this
city will become bankrupt.
NEW YORK, May 6.-Immediately after the
announcement of the suspension of the Marine
Bank rumors were rife on Wall street that
other failures would follow, and it was report
ed that the Nassau, Metropolitan and Garfield
national banks and the Bank of the Republic
were embarrassed. Inquiry at the various
omces Jailed to give any verifcation of the
story. The executive committee OF the as
ISOLATED banks this afternoon decided to drop
the Marine Bank from the association and cut
1t of from all further privileges of the clearing
house.
Charles f. Elwell, vice president of the
bank, said: "The bank is solvent, and there
is no reason why it should rot go on. The
trouble was all brought about by the dealings
OF the bank with the firm of Grant & Ward
On Monday the cashier of the bank was au-
thorized to certify checks of Grant & Ward to
the amount of $4,000, it being understood
that the firm would deposit sufficient security
this morning to cover its Indebtedness. They
failed to make the deposit this morning, aud
In consequence when checks were presented at
the clearing house there was nothing to meet
them with in the bank Accounts showed that
the bank owed balance of $3.50 900 to the
clearing house, but this was reduced to $780,
OOO by discovery that there were among the
rhAnka tad GO00 q i
checks of Grant & Ward. The bank then
made payment 10 the clearing house of $2Ol,-
UOO IN cash aud the remainder in valuable So
curities, thus dischargpg the entire indebted
ness. The surplus of the bank is $3.50 OO0
Fish must have lost his head completely. He
is man who has been very successful in Wall
street operations, ard is reported TO have made
about 5000, 600 in this way. He is worth at
least 81 100000"
William Smith, broker, of the firm of Grant
o ward, said that he was authorized to state
that the losses of the firm would be something
between 100000 and 100000, and these la
bilities being unsecured, the firm was obliged
to suspend.
Each OF the four partners held quarter in
terest IN the firm to the extent of 100000
each and General Grant would be liable for
his share of the losses. which would probably
be about $25O,OO0. General Grant was in his
once during part of the day bat refused to
MAKE any statement whatever in regard to the
aHalrs Oh che firm. Ward, it is said, was out
OF town and could not be found. Fishs move
ments are also very mysterious and he has Sc
cluded himself carefully from public view.
BOSTON, May 6.-The Boston correspondent
OF the Marine Bank of New York whose
suspension was announced to-day is the
Everett National Bank to which less than
$4,000 is owed. AS the Marine has funds in
the Atlantic bank in this city the Everett
TINS afternoon brought suit for 100000 in the
United States Circuit Court and attached tba
funds in the Atlantic Bank.