Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-17
MIR. JAMES EMBARRASSMENT.
RumOrs That the Failure is More Dis
astrOus Than Was First Supposed.

RumorS InaC the falluFe Is More Dis
astrous Than Was First Supposed.
ATLANTA, May 16.-Dhring the panic
of 1873 John. H. James, a private banker
of this city, was forced to suspend. He
at once offered for sale large quantity of
property, which, when sold, brought
enough money to pay off all his creditors.
AS soon as he got his foot loose he resumed
the banking business at the old stand, on
the corner of Whitehall and Alabama
streets. His class of patronage was
largely confined to small depositors. Since
1873 he has sPeculated largely in stocks
and bonds, principally those issued by
railroad corporations. Mr.. James was
supposed to be getting along successfully
rumOr of confidential character
found its way into the ear. of a confiden-
tial few that he was short, but bv no
means badly crippled. About IL O'Clock
an intimate friend of Mr.. James. who
besides being one of his tenants, was also
next door neighbOr. informed the NEWS
correspondent that a mornings paper
would contain an advertisement to the
effect that Mr.. James would at an early
day sell at auction some of his property
so as to increase his banking caDital
Il
in funds to run him until the property
could be sold, and that there was
no danger of his closing up. Pub
licatlOn of these facts, he said, would in
iure Mr.. James and violate his confidence
Later in the night leading bankers
of the city, who had an inkling of Mr..
James being crippled, held a meeting
with closed doors, and after talking over
the situation, sent for Mr.. James. When
he arrived he said, "GOod evening, gentfe-
men. What is it that you desire me to
sayW The subject matter under discus
sion was explained to the banker fully.
and he was told that the banks of the city
stood ready to lend him any amount that
he thought would be sufficient to carry
him through. This offer Mr.. James re-
jected, saying that he did not know how
much he needed. The bankers in
sisted on helping him out, but
every offer was promptly rejected.
The conference was kept from
the public until this mornings NEWS
published the suspension. This morning
at the usual hour the banks doors failed
to open. The suspension was received
with general surprise. The patrons of
the bank, the renters of the James Bark
block and Mr.. James next door neigh
bors all alike were in ignorance of his
position until to-day. About 10 O'Clock
this morning rumOr gained circulation
that MIR. James had assigned, and that the
assignees were w. J. Garrett and A. D.
Adair. A notice to this effect was soon
put on the door. An intimate friend of
the banker says that his liabilities are
$j00,000, with assets i'll property, loans
and discounts and railroad stocks
and bonds sufficient to pay dol
lar for dollar and have a balance
on hand. This friend says that Mr..
James has $270,000 out in loans and dis
counts, 100000 in property, besides 2,400
shares of Memphis and Charleston Rail-
road stock, worth little more than Con-
federate money, quantity of East Ten
nessee, Virginia and Georgia Railroad
stock, and other property of like charac-
ter. On the other hand it is stated that
Mr.. James has made over considerable of
his property to his wife, and that what is
offered for sale, which is One-half Of the
Whitehall street bank property, is all
that he has in his own name, The
assignment, it is said, makes the regular
depOsitOrs preferred creditors, and special
deposits bearing interest will then come
in, if anything is left. Common rumor
gives it out that for some time past Mr.
James has been receiving a large number
of small deposits from poor people who
put their earnings in his bank on the
promise Of interest. This is the class
that Will be hurt most, The failure caused
a run to be made ON the other banks by
small depositOrs. COker's bank is re-
ported to be the most popular with this
class of people. The pull was not heavy
and was met with apparent ease. The At
lanta National during the day rec eived
telegram from the Fourth National
Bank of New York Offering
to let it have 100000. The same en-
couraging offer was received at the Gate
City Bank from the Park National. Up-
on calling at these banks, the NEWS CORE
spOndent saw large quantities of their
notes being signed up ready for use, if the
occasion offered. Each of these banks
had heavy reserve fund to draw on, sig
natures being all that was necessary to
make them as good as gold. 1t is publicly
stated here that Eugene Kelly, of New
York, and John Ryan, dry goods mer-
chant of this city, will open a bank here
in the fall.
The bank men held a caucus tonight,
compared notes and agreed that the
trouble was over. The organization of a
clearing house was discussed favOrably,
and the chances are that an association
will be organized at an early day in this
city.
Tonight Hoke Smith and j. B. Redwine,
attorneys, drew up and presented to Judge
Hammond an application for an order to
set aside the assignment made to-day by
banker James, and asked that a receiver
be appointed so that all the assets can be
divided irrespective of any class of de-
pOsitors. Smith and Redwine represent
a number of dep0sitors who hold interest
bearing certificates amounting to about
$4,000. Mr.. James, in making the as
signment, makes the regular depositors
preferred creditors. Judge Hammond
stated that he was disqualified, and Judge
Stewart, upon being asked to grant the
order, said that he was similarly situated.
One Of the attorneys then took the train
for Newman in snnrnh nE Il1drrn unl...i-