The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-07-23
RICHM0ND'S BANK SUSPENSION.
The Organization of the Bank Character
Of Its Deposits and Causes of Suspension.
pecial to the Indianapolis Journal.

Special to the indianapolis Journal.
RICHMOND July % Naturally the suspen-
sion of the Richmond National Bank has been
the one theme of interest here to-day Groups
of men assembled in the streets to discuss it
early this morning, and, though they have no
doubt wearied of the subject, they still are
not quite ready to lay it aside Yet,
after all, the suspension has occas-
ioned no great excitement Though the
Richmond National was the oldest bank here,
and its president, Charles F. Coffin, the Oldest
and best known banker, still the concern had
smaller and less vital connection with the gem
eral busineas interests of the town than either
the First or the Second National The few
interests with which it had connection, however,
are large, and the connection was peculiarly
close; and consequently may prove far reaching
in.its disastrous effects
Charles F. Cofins prominence in the society
of Friends, and acquaintance and relationship
with moneyed men in Cincinnati and New York,
gave the bank prestige and. credit that few
other banks have enjoyed. It outstripped It's
competitors almost always in the race for public
funds, and held at the suspension $102 900 of
county money, SIG 900 of city school board money,
and $2l, 900 of Wayne township money 1t held
also considerable sum Of money belonging to
Earlham College, Of which Mr.. Coffin is trus-
Indiana Yearly Meeting of which he was clerk.
Then it held the deposits of good many Friends
and old citizens who thought that Charles F.
Coffin was the only honest and trustworthy
banker that ever lived. With business
men in general, however, the bank has long been
rather out Of favor, and they have, for the most
part kept their accounts elsewhere The banks
with which they do keep accounts they still re-
gard as perfectly safe; and so, while the suspen-
sion of the Richmond National adds nothing to
their comfort or composure, it has not much
alarmed them.
It became known to-day that 100000 of the
$3.50, 600 of loans and discounts with which the
officers of the bank were credited yesterday, is ow-
ing by the manufacturing company of Haynes,
Spencer & Co. This is church and school furn-
iture factory, and one of the largest concerns
here. It owns five shops, and does very ex-
tensive business, but 1t has always
been pressed for capital A year
or two ago Charles H. Coffin,
cashier Of the Richmond National, became a
stockholder in this company and since then
whatever discounts the company has required
the bank provided for it. This was a safe
enough arrangement SO long as the bank re-
ceived no large and sudden demands from its own
creditors. But let such demands come, and there
must at once be trouble; forthe company, though
perfectly solvent, could not return to the bank
on short notice the large sums loaned it. This
is evident from the fact that yesterday, when
the bank encountered crisis it shaped up it's
transactions with Haynes, Spencer & Co. for
$l00, 900 by taking notes payable in fifteen TWEEN
ty-seven and thirty-nine months, and secured by
mortgage on the company's property
It is thought that with this extension the
not seriously suffer for want of further aid from
the bank.
The bank got into further trouble in its deal
ings with the Chase Piano Company. The Off
GERS of the bank held stock in the company and
extended it large credit Last winter it fell
into embarassments, and now such of its paper
as the bank holds-a considerable amount, but
how much it is not known--is not con-
yertible, though most, if not all of it,
bears an Endorsement that will probably make it
perfectly good, sooneror later.
A. G.. Hay the bank examiner, is now in
charge of the bank, and is seeking to ascertain
its true condition. Some of the efforts to square
accounts Of depositors by transfer Of notes
were unavailing. Peter KIM the county treas
urer, declined proposition to receive $75, 900
in notes and depend on the future for
the other $4,000 Of his deposit The trustee of