Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-04-10
MORE TROUBLE IN NORFOLK.
THE FARMERS BANK CLOSES.

correspondence Of the fsicbmond Dispatch.l
NORFOLK, VA, April 0. 1855.
The suspension of the Farmers
Bank has caused another black Thurs
day. though there is little excitement
and no runs on other banks.
The Farmers Bank is owned by the
Hardys. an old family Of this city.
The officers are es follows: G. Hardy,
president; b. A. harsden, cashier;
Horace Hardy, assistant cashier II.
C. Hardy New York;, G. Hardy, +.
Hardy, i. A. Marsden, and Horace
Hardy, directors.
Last fall, when II. @. Hardy &
Sons, of New York, failed, . run was
made on the Farmers Bank, but by
means Of help received from the Ex-
change Bank the officers were able to
meet all demands and pulled through
all right. Some fears were entertained
that they would 60 under on Thursday
last when the Exchange closed its doors,
as the Hardys had deposits in that
bank; but the directors reported to
the clearinghouse that the bank was
al right and confidence was restored.
They went on very well until yester-
day, but the drafts from their country
iepositors came in on them to such q
large extent that they decided it best
to close their doors, and this morning
the following notice was posted on the
door:
I'm the interest Of its depositors
this bank is closed. An assignment is
made to Walter F. Irvine, trustee, to
whom all claims must be presented,
and with whom the settlement Of debts
due the bank must be made. Deposits
made (by persons not indebted to the
bank) yesterday will be returned.
April 0, 1885"
About ii o'clock the deed was re-
corded in the clerks Office, and the
terms Of the conveyance are as follows:
LIST. expenses Of the deed; I'd, all de-
positors who have deposited since April
LIST, then all other depositors and all
certified checks and all drafts on corre-
spondents Sd, all other creditors.
The assets Of the bank are between
900, 900 and 100000; liabilities I'M
known at present, but the officers are
at work and will prepare a statement
soon. Mr.. Irvine, trustee, assures the
depositors that the bank will pay dollar
for dollar, and since this announcement
was made the feeling is much better.
The other banks are protecting them
selves against runs" by sheltering
themselves behind the sirty-day priv
lege for all checks in excess Of $50.
There is no disputing the fact that the
effect is still further to depress busi-
ness, and the outlook is gloomy in the
extreme.
A meeting OF the dcpositors Of the
Exchange Bank was held to-day at
O'Clock to hear the report OF the COM
nittee appointed TO wait on Messrs.
Whitehead and Balm, late president and
cashier, respectively, OF that institu-
ton.
The substance Of this communication
was published in your paper of yester-
day. Mr.. Whitehead says he was a
depositor in the bank to the amount of
100000 las a fiduciary), and that the
true condition of the affairs Of the bank
was as much Of surprise to him as to
the general public. Indeed, Dir. White
head was first advised of the large
overdraft of Balm 4 Brother by Dir.
Orson Adams, the bank examiner, and
when Mr. Balm confirmed Mr. Adams's
statement Mr.. Whitehead came near
fainting in his chair. He took his bed
soon after tho bank closed.
The meeting to-day heard the report
Of the committee appointed to visit
Mr.. Whitehead, and also the report Of
the committee who had visited Wash
ington. This committee reported that
they had seen the Comptroller and
recommended Messrs. w. III. Pc
ters and Theodore s. Garnett A. re-
ceivers. Tho Comptroller said the law
allowed him to appoint one receiver
only. He did not intimate whom he
would appoint, but wished first to con-
fer with Hr. J. C. Brown, the bank ex-
aminer. The report was received with
thanks.
Mr. Brown will leave to-day for
Washington, and a committee was APP
pointed to wait on him and urge the
appointment Of Mr. Peters as receiver.
THE SITUATION SUMMED UP.
The situation may be summed up as
follows The Farmers Bank suspended
with assets of $3.50, 900 (about), but the
officers claim that they will pay dollar
for dollar. The Bank had heavy losses
in the Exchange Bank, and suspension
was not unexpected. The officers acted
in most honorable manner. They
could easily have secured money with
which to continue, but closed in the in
terest Of depositors.
Mr.. Whitehead assigns property
worth about 100000. This makes
the depositors in the Franklin Savings
Bank safe, as he prefers that bank. a
run Of small depositors was made on the
Merchants and Mechanics Bank, but
claims amounting to $4,000 were paid
without trouble. There were no runs
on the other banks and they are all
safe. The Farmers Bank was the only
bank involved in the Exchange failure
Except the Franklin Savings.
Whitehead's and BANS assignments
preferring ether creditors before the
Exchange Bank leave that institution in
a bad way, and the bank examiner, J.
G. Brown, takes gloomy view.
The causes Of the Exchange failure
will be fully investigated by lawyers to
be employed for that purpose.
ELLA.
Fire In ysrfoIk Cssnu-A Man and q We
man Meet a Horrible Death.
- M 49,