Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-07
TWO BIG BANKS FAIL.
New York Financial Circles Shaken to
the Core.

the Core.
NEW YORK, May 6.-The Marine Bank
of this city has closed it's doors. The sus-
pension of the bank weakened and de-
moralized share speculation. Large
blocks of long stock were thrown OH the
market, and it is thought that several
firms will have to go under. Prices have
broken = to 31s per cent, with Missouri
Pacific, Union Pacific, Northern
Pacific preferred and Erie as the
weakest shares. Messrs. Grant tE
Ward, an old banking firm, state that the
failure of the Marine Bank will affect
them seriously, and they cannot see how
they can secure themselves. They will
hold conference, issue a statement and
notify the Stock Exchange of their ina
bility to carry on business for the pres
ent. The capital Of the bank is $400. 900,
and its statement of September %, 1888,
showed a surplus of $3.50. 900, and undi-
vided profits of S62, ,345. John d. Fish is
cashier.
A bank examiner is in charge of the
suspended Marine Bank, and it is antici-
pated that the Washington authorities
VIII appoint receiver. The bank settled
upon its debit balance of $3.50. 600 at the
clearing house by the payment of some
cash and the depost of commercial paper
and securities of various kinds for bal
ance.
The Marine Bank is the designated de-
pository of the city of New York. Comp
troller Grant visited the bank to-day after
Its suspension, and is credited with the
statement that the city has balance of
S1,OO0,00 with the bank to-day, and that
yesterday the city drew a draft on the
bank for 100000, for which there was
part Of the debit balance in the clearing
lOHGn nd IL oh
precipitate the failure. James d. Fish is
President, his nephew, John D. Fish, is
cashier, and among street gOssipers il is
asserted that several other relatives hold
positions in the bank.
Kiernan's Wall street News Agency
issues the following: 'Rumors of a de-
falcatiOn of 100000 have accompanied
the suspension of the Marine Bank. The
party in question is said to have had close
relations with the bank. We have in
vestigated and get the following state
ment: The embarrassment of Grant a.
Ward is said, on reliable authority, to be
due to the absence of one of
the firm, who has not been at his place
of business since Saturday last. Various
rumors are afiOat in financial circles, re-
specting which Mr.. Grant, senior men,
Der of the firm, says: II cannot deny or
cOrroborate the reports current. We are
nearly $1,000 short, our safes are locked,
and until we can find Mr.. Ward l cannot
say now how we stand"
Jas. d. Fish, President of the Marine
Bank. has been heavy investor in real
estate during the past year, having pur-
chased Booths Theatre, at Sixth avenue
and Twenty-third street, which he is re-
modelling into stores. He has built a
large French fiat house, and owns other
real property. He yesterday transferred
to the bank a building on Wall street
valued at $4,000. One of the street sur
misses is that the trouble of the bank is due
to the Presidents real estate transac-
tions, but prominent real estate brokers
say that his purchases have all been sound
investments. Immediately after the an
nouncement of the suspension, rumor, as
usual, ran wild in Wall street that other
failures would follow. 1t is reported that
the Nassau, Metropolitan and Garfield
National Banks, and the Bank of the Re-
public were embarrassed. Inquiry at
their offices failed to give any Yeriication
of these stories.
The Executive Committee of the As
sOciated Banks held a meeting at the
clearing house, and remained for several
hours in session. At the close of the
meeting it was announced that it had
been decided to drop the Marine Bank
from the association and to cut it off from
all further privileges at the clearing
house. Manager Camp said that the bal
ance due to the clearing house Yesterday
from the Marine Bank was S555, 600. and
this sum had been all paid up by the bank
before the rumOr of Its suspension had
reached the street. 1t was decided also
to call a special meeting of the whole
association tomorrow to further consider
the matter of the relations of the Marine
Bank to the clearing house.
The bank examiners are in charge of
the books of the Marine Bank, and moth
ing could be learned in regard to the pro-
gress of their work. The directors of the
bank remained in session at the bank
building all the afternoon with closed
doors.
President Fish, it is understood, was
not present. The members of the board
claimed that the bank itself was in per-
fectly solvent condition; that the rumored
suspension would not amount to more
than temporary embarrassment, and
that business would be resumed in a few
days.
Charles f. Ewell, Vice President of the
bank, said: "The bank is solvent, and
there is no reason why it should not 90
on. The trouble was all brought about by
dealings of the bank with the firm of
Grant & Ward. On Monday the cashier
Of the bank was authorized to GER
tify checks of Grant 81 Ward to
ing understood that that the firm m
would deposit sufficient security this
morning to cover the Indebtedness. They
failed to make the deposit this morning.
and in consequence when the checks were
presented at the clearing house there was
nothing to meet them with in the bank
The account showed that the bank owed
balance of $555,000 to the clearing house,
but this was reduced to $4,000 by the dis
coVery that there was among the checks
presented over 100000 in uncertified
checks of Grant & Ward. The bank then.
made payment to the clearing house of
$4,000 in cash and the remainder in
valuable securities, thus discharging its
Indebtedness. The surplus of the bank
over and above its real estate is $3.50. 900.
and there are no other outstanding liabjli-
ties.
Mr.. Fish must have lost his head CON-
pletely. He is man who has been very