National Republican. (Washington City (D.C.)) 1872-1888, 1884-06-09
ANOTHER BANK CLOSED.
J. H. Squier & Co. Mako an Assignment to
Their Young Clerk
Nature OF the Busincss-Nothing TO he
Discovered About the Failure.

Discovered About the Failure.
"six per cent. interest paid on deposits"
was the announcement made for several
years on tho front of J. II. Squicr & Co. s
banking house, on Pennsylvania avenue,
opposite Willard's hotel. The announcement
was made on a big black sign board in large
gold lottcrs which illustrated an eventual
failure. Another announcement was posted
on the door of the bank yesterday. It was
on a small piece of whito paper in very small
letters, and informed the reader that owing
to ohcuvy demands OF late the firm considered 1t
best fot all concerned TO mako an assignment
TO Jay +. Smith" The sign of gold and the
small piece Of paper told the whole story--thc
bank had failed. The court record of Satur-
day showed that j. II. Squor d Co., bankers
and brokers, had made record Of an assign
mont TO Jay B. smith, for the benefit Of their
creditors The assignee was directed TO col
leGt all moneys due the firm, and pay the same
to the creditors. If there should not be sut-
ticient to pay them in full, then they are to
be paid pro rata.
The news of tho failure did not cause as
much excitement on tho streets as tho failure
of Middletons bank, It was discussed in
banking circles, and many people remarked
Il Thought 30, u per cent DhNk cannot
stand tho pressure in this city,
The business done by the house was prinCi-
pally discouuting notes and loaning money to
army officers Tho unsettled condition of the
money market ana tho fact that pay ac-
counts arc not considered very negotiable, are
urged rs the cause of the failure.
one Of the largest depositors called at Mr..
squier's house, 1914 K street, yesterday
afternoon.
Tho servant informed him that Mr. Squier
was too i'll to see anybody, but that MIR.
Smith, the assignee would be at the bank
this morning. The same depositOr went to
the bank last Monday during the run" on
the Savings bank, ana asked Mr.. Squier if his
bank was all right. The reply was. II assure
you on my personal honor that my bank is
all right and as solid as granite
A reporter of THE REPUBLICAN and several
depositors visited Mr. Squier's residence last
night number of times and rang the door
bell repeatedly, but received no response.
There was no light in the house nor any other
evidence that it was inhabited.
A depositor, upon hearing that tho house
was closed said al thought he would leave
town. The fact that Smith, u clerk in his
office, was made the assignee, looked bad to
me-"
Up to lato hour last night it was impose
sible to find out the amount Of either the as
sets or liabilities
1t is a matter of much wonder to those who
were familiar with the character of the busi-
ness carried on by Mr.. SQuier that IL was
necessary for an assignment to DO made. For
number OF years past the bulk Of the bus-
ness, 1t is well understood, was the cashing in
advance Of pay accounts of army officers,
whom he charged heavy discount of from
to per cent per month.
Squier fret appeared in Washington dur
ing the rebellion, and was made clerk in
the treasury department where he remained
n hf tNr,tu gNr.Ih hsr
the secretar' of the treasury for charging
eXoTbitant interest to his fellow clerks for
d.scOunting their pay in advance. After his
dismissal from public office he opened loan
or discount Office on + street, near the
treasury, and did considerable busi-
ness in advancing money to clerks at
10 per cent. discount, taking as security pay
receipts bearing the initials of the pay clerk
of the bureau to which the borrowed be-
longed. Later he began loaning money oa
army officers pay accounts, and his business
increasing, lie removed about 1873 to the
place on Pennsylvania avenue. His business
among army officers was very extensive and
must have amounted to many thousands of
dollars each month. The rate OF discount
charged officers was nominally per cent.
per month, but IL is understood that
10 old customers but per cent. was charged.
The system OF paying navy officers is such
that he would rarely advance money TO
them, and then only on "allotments" which
We're paid at the treasury here through the
fourth auditor
1t was his custom when needing moro
money in his business 10 procure monthly
loans by depo5iting his army pay vouchers
rs security, borrowing about half their face
value.
The voucher cashing business had almost
entirely fallen into the hands of Squior, and
numbers Of officers crippled by unexpected
changes OF station and other causes, have
been compelled to cash their pay several
months in advance, and being unable to get
ahead, have been forced to roy month by
month on obtaining further advances on new
accounts for months still further in advance.
So largo was the business that il
is known that his monthly collections from
the pay ments Mt this point alone averaged
nearly S2OOOO month. 1t is believed by
army officers familiar with his business that
his entire collections from army officers
amounted to from $4,000 to 100000 u
month.
1t is difficult TO understand how II could
be necessary 20 make an assignment, as tho
losses from detaultng officers have not
averaged probably more than one-tonth OF
pr cent.
A number of army officers, who were for.
tunately beyond the need Of Squior's accom-
modating loans, had taken what thoy sup
posed was advantage o! his quite liberal per
cent interest and arc now losers. Less than
Il year ago one army OlnCer had no less than
$4,000 Invested with Sguier. Whether ho
had drawn out any OF it before the failure il
not known.
Mr.. Squier is tall slender man, with full
blonde beard, slightly STOPPING figure, aud
with something the appearance of . student.
H5 is about 80 wears old, aud has q family to
whom ho has always appeared to bo partieu-
larly devoted.
Dr. Rankin WuI Resign.
AT the conclusion Of the childron's day ox-
crciRes YpsterdnY mnrnlnr at the Ilirst lnn-