Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1885-04-03
Failure of the Exchange Bank of Norfolk,

The closing of the doors of the Exchange
National Bank, of Norfolk, yesterday morn
ing was the severest financial shock that
city has ever experienced. The bank was
regarded as sound, and not breath OF sus-
picion had been heard as to its stability.
It did the largest business of any bank in
the State, and practically built up the cot.
ton trade of that port. Its officers are:
John B. Whitehead, president; James G.
Balm, vice-president; George nj. Balm, jr.,
cashier, and James H. Toomer, assistant
cashier. report of the condition of the
bank made on March Goth puts the
capital stock at 100000; surplus fund
and undivided profits, IS,319; loans
and discounts, 50 755 ,9O3; deposits, 50, 1922
GIL; and total resources, So 97S 674 2S. The
cause of the suspension was the inability of
Balm & Bro, bankers of Portsmouth, to
meet their indebtedness to the bank amount
ing to SSO0,OO9 This amount was reduced
to about $3.50, 900, but the $500, 900 necessary
to put the bank upon proper footing un
der the law, as required by the comptroller
of the currency, could not be obtained. A
bank examiner in March stated that the
mix was largely exceeding the legal limits
in the line of discounts, and was deficient
in it's reserve fund. The comptroller of the
currency wrote to the bank officers, stating
that unless this was rectitied by April %,
when the charter of the bank expires, the
charter would BIO Cancelled. Efforts were
made BY Balm s. Bro. to reimburse the
bank, but the shrinkage in value of their
real estate and general securities, and
q threatened run upon them, forced
them to suspend Their liabilities are
roughly estimated at 81 600, 900, and their
assets at 81 100000. Vice President Orson
Adams. of the National Bank of the Repub-
lie of New York city, was telegraphed to for
consultation by the officers of the Exchange
bank, and is said 70 have given as his opin-
ion that with $500, 900 the bank would be on
good basis in three years, and would pay
dividends. Mr.. Balm, the cashier, is quoted
as saying that with careful management and
indulgence the bank would pay all it's liza
bilities and have surplus. Balm B6Thers.
bankers, at PQrtSaen.tt5 Il, and the Franklin
SaVg5s Bank of Norfolk, have closed their
doors.
When the comptroller of the currency in
Washington, was informed of the suspen-
sion of the bank, he detailed Mr.. James c.
Brown, to take charge of the bank and ex-
anime its affairs, and directed bank exam
iner, B. u. Keyser, to assist the examination.
The bank was organized Immediately af-
ter the war with capital of 500, 900 which
was increased to 100000, and few years
ago again increased TO 100000 by the TAX.
ing of 500 900 Of stock by r. H. Mcdonald,
of California, of Vinegar Bitters" fame.
There was manifested, during the day, con-
bitterness among depositors with
one or another of the three concerns Ia
number Of them being people poor or in
circumstances, truck farmers, &C..
together with criticism, because, it is stated,
deposits were received after the insolvency
Of the bank was knowo. The other banks
speak confidently of the ability of all of
hem to meet every demand, and there is,
together with some unavoidable feeling of
depression, general belief among the cool
Or headed and more conservative of the bus
ness men, that little fear need be felt for
The future, the worst being now over.
The bank had about $500 of the funds of
he Commonwealth. There is also due the
State from this bank 81 $50 on account of
axes. This covers period of nearly five
FEARS. The delinquency, however, was
;aused by the failure of the auditors Office
% make the annual assessment. The depos.
IS of the State are believed to be fully pro
ected by security. It is understood that
he bank is also indebted to banks in Rich
nond between $4,000 and $4,000 on &C.
count of collections.