The farmer and mechanic. [volume] (Raleigh, N.C.) 1877-1885, 1885-04-15
The "BIack Friday at Norfolk
Four Banks Bursted-

Four Banks Bursted-
The crash at Norfolk is almost appail-
ing. 1t will retard for ten years the
progress of the only southern seaport
which bids fair to divide the ocean traffic
with New York and Boston; and IN
whose success North Carolina will profit.
Norfolk is in truth a North Carolina
town; not only largely peopled with North
| Carolinians, but also so connected by
railroads and rivers, cana and coast,
with the industrial affairs of our State as
to be virtually a part thereof. This III
| terlacing of business is illustrated by the
fact that the recent failures have affected
persons 10 nearly every Eastern Carolina
county: even as far south as New Han
over aud Brunswick. Had the crash
come in the cotton season, Raleigh might
have suffered heavily: as the bulk of our
! shipments go via Portsmouth, and much
money is sometimes deposited in Norfolk.
There are indeed several rumors of losses
by our citizens; but SO far as we can as
certain they are unfounded; though some
small amounts and exchanges would be
likely to be lost at any season. The
losses of our friends in North Eastern
Carolina are distressing. Berthe county
had individual deposits in the Exchange
National amounting to from SIS, 600 to
$50, 900; ChOwan county, estimated de-
posts, 500, 600, and Northampton
county, estimates $50, 900. The little
village of Newsom's, on the Seaboard
railroad, loses $50, 900.
Report says above $4,000 was lost by
Goldsboro but the Messenger says only
Sc. 900. 1t is reported that one Tyrrell
county man had S3I, 900 on deposit in
the Exchange National Bank; a lady
in Halifax suffered to the extent of
about 5000. The Pamlico Bank Of
Tarboro had on deposit between $40
600 and S25, 900. Merchants Of Halifax
areIbelieved to have had on deposit near
ly 500, 900. Those of Martin were also
caught. Mr.. Dennis Simmons, of Will
liamston, had there $40, 900. The Bank
Of New Berne had 100000.
CAUSE OF Fl CRASH.
The Balm family were wealthy and
J SDCcuidUlNcs iiCJ StdItCd u LStdtO
and Banking Business on a large scale,
and eventually acquired control Of three
Banks. The Exchange National Bank
was perhaps the strongest in the city;
being a Government Depository. One
of the Balm Brothers was its Nice-Presi-
dent; another brother was cashier; another
brother was a Director; one of their
brothe;s-in-la law was a Director; and one
/ 81 tho Rains y,orrIaI a GIStpr ut no As
sistant Cashier. SO the family had full
charge. President j. B. Whitehead was
engrossed with his large cotton firm IL
New York. r. II. Mcdonald the largest
stakeholder was in California. He loses
5000, 900.
The Balm Brothers established a Branch
Bank in Portsmouth, and one in Frank
lin, on the Blackwater. This last was to
catch the large trade from Eastern Caro-
lima which comes up by boat from the
Murfreesboro region to take the cars at
Franklin.
The Balm Brothers. like many another
firm, spread too much sail for a falling
wind, and finally grounded. Two weeks
ago, President Whitehead was notified
that the L. S. Bank Examiner had ar
rived to investigate the Exchange Bank.
He hurried to the hotel, and when told
by the Examiner that Balm & Brothers
had over-drawn their account by $l.2Sl,-
900, he fell back fainting, and has been
confined to bed ever since. OF course
the three Banks at once fell like card
board houses; and the city became fren
zied with alarm. The other Banks
sought to save themselves from a run
by refusing to pay more than $50 per
cheque, per day, except in business tran
s~actions of large amount However, no
Run" was attempted and in a few days
the town grew calmer. Unfortunately
last week the Farmers (State) Bank
also failed; not from connection with the
others, but By reason of the failure of
Hardy 4 Bro, cotton men, in New
York, who were largely interested in the
Farmers Bank.
The loss of so much money, the closing
Of four banks at the beginning of the dull
season: and the depreciation of Real Is
tate from the numerous enforced sales.-
will naturally cripple business in that
section to some extent: and there is great
depression.
The Exchange makes a very bad show
ing indeed. Why look at these figures.
The individual deposits amounted to
=, 423, 600 in round numbers. OF this
amount