St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-05-15

The officers say they are not at the slightest
troubled, and no fear of a run.
President Baldwin, of the Fourth National
bank, says his bank is all right.
STANDING BY EACH OTHER.
2:30 p. NAT the clearing house the bank
presidents are in session. 1t is stated on the
best authority that the banks will stand by
each other as they did in 1873 Resumption
of the Metropolitan is likely.
AT the stock exchange delivery hour is
awaited with great anxiety.
Mr.. Simpson of Simpson, Lamson & Co.,
being asked whether it was true his firm had
$4,000, 900 in the Metropolitan bank refused
either to confirm or deny the report.
Entrance to the Metropolitan block is
blocked by depositors, collectors and others.
The First National of Santa Fe have posted
notice that drafts drawn by the bank of Lam
son & Co. will be paid by the First National.
AN INCIDENTAL FAILURE.
Atlantic state bank of Brooklyn, closed
doors this afternoon. This bank is Brooklyn
correspondent of Metropolitan bank. Capt.
tai $500, 900, surplus 500, 600; president S.
Pfiffer
3p. m.-The clearing house association
has just adjourned after adopting the follow
ing.
Resohyed, That in view of the present crisis
in the banks of this association, for the pur-
pose OF sustaining each other and the busi-
ness community have resolved that COM
mittee of five be appointed to receive bank
members of the association bills receivable
or other securities to be approved by said
committee who are authorized therefor to
such ddpositing banks, to loan certificates
bearing interest at six per cent. not in ex-
cess of Is per cent. of the securities or bills
receivable so deposited except in the case of
United States banks, and said certificates
shall be received in settlement of balances
at the clearing house.
Following is the committee: T. D. Tappen,
Geo. S. Coe, J. d. Vermilye, Geo. G. Will
iams, w. A. Wall and Edward H. Perkins.
DEPosIToRs WILL BE PAID.
A represen tative of the Associated press
has just interviewed a prominent director of
the Metropolitan hank, who says emphatical-
ly, the depositors will be paid in full. The
directors have gone through all the securi-
ties and throwing out all classed as doubtful
they have more than sufficient to pay the de-
posltors. The suspension is solely due to
the depositors throughout the country having
become scared through the attacks on the
president of the bank, Mr.. Seney, and they
had inaugurated a general withdrawal of
their deposits This fact, coupled with the
general distrust engendered from the criti-
cal situation in speculative circles, caused
the bank to suspend. It is stated the BAN k
is not likely to resume.
Solon Humphreys, director, states that
had the president laid before the clearing
house a full statement of the affairs, there
hppn M Of
the associated banks would undoubtedly
have come to its assistance, and help it to
tide over the crisis.
NOTES OF THE DAY.
Settlements for the day have all been
made. Hotchkiss & Burnham suspended.
Hatch & Foote made an assignment to
Henry W. Reighley, without preferences.
The rumor that the Metropolitan bank was
indebted to Bonnell, Lawson 81 Simpson is
untrue. The fact is the firm owes the bank
500, 900 but has securities pledged for more
than that 1t was reported Drexell, Morgan
u Co. had 81, 900, 900 in the Metropolitan
bank. A member of the firm denied this
saying they had withdrawn their large ac-
count from that bank two years ago.
Another report was that the Atlantic Mu-
tuai Insurance company deposited 81, 900, ,OO0
in the Phoenix National bank this morning
Grant d Wards statement was not ready
to-day.
The failure of Bogen & Co. is considered
| important, as they were large dealers in COM
mercial paper, and dealt somewhat in privi-
leges. They were considered solid.
The failure of Hatch q Foote will likely
involve many country firms, as they held ac-
counts with many private bankers outside of
New York, as well as individuals in the
| south.
! Hatch q Foote state that their suspension
is not caused by the refusal of the Phoenix
bank to certify their checks, but caused wholly
| by exhaustion OF margins and refusal of Gus
toners to renew them, and their inability to
| sell stecks without undue sacrifice.
Secretary Folger says the break is due to
reckless speculation by a few men. The
situation is not inherently weak. He willdo
everything in his power to prevent strin-
gency. He stated that there is plenty of
| money in the country.
1t is stated that one of the largest dealers
in privileges on the street had been obliged
to receive $780, 900 shares on puts. This
| large block must have called for heavy
| drain even on his immense resources.
| DreXell, Morgan d Co. received word from
! their Philadelphia house that they have all
| the money wanted.
| Additional notices posted on the Metropol
itan bank say: ''The drafts of Holmes 81
| Son, of Pttsburg will be paid by the Bank of
| America; drafts of the Flour City bank, of
Rochester, and Marshall Field 81 Co., of Chi
cago, by the Bank of Commerce; drafts of
| the banks of Utica and Buffalo, by the Han
| over bank"
| Hotchkiss of Hotchkiss & Burnham, said :
I. NHT,t frron
consequence of calling number of loans of per-
sons whom we thonght were responsible, and
who failed to respond, and in the present of
| the market, we thought it best to close up at
| once, before matters got any worse, and see
where we stood. 1t is probable the suspension
will be only temporary. That is, we hope so.
| Our assets exceed our liabilities by large
amount and if we can find any markets for our
| securities, and able to collect money due the
firm, there will be no trouble about resumng.
| To-day we have sold large blocks of stocks at
| great sacrifice, and have about cleared up out
side contracts, and contracts with the board
will be we'll taken off. Our liabilities at the pres
ent time will exceed S250,OOO, and how much
more they will be L cannot tell
1t is impossible now to give any
estimates, or any definite or even approximate
| figures. Our failure was due to the sudden de-
cline of stocks to-day. We had nothing what
! ever to do with the metropolitan bank and had
| no deposits there. 1t the announcement of
| the failure of the bank which precipitated the
panic on the street, and caused most of the sus-
PENSIONS
Joseph C. Williams e Co. stated that their
failure was due to the decline in the market.
| They could make statement in regard to
| their liabilities.
At the Office of Donnall, Lawson g. Simpson a
notice posted on the door, stating that all
drafts of the First National bank, Sante Fe, on
the firm will be paid at First National bank A
member of the firm said they were depositors to