The Indianapolis journal., 1890-11-19
COULD NOT BORROW MONEY
P. w. Galludet & Co. and w. F. Owens,
New York Brokers, Forced to Assign.
Liabilities of the Former Will Reach Million
Action of the Clearing House. Troubles
Of the Mount Carmel (Ill) Bank.
TWO MORE BROKERS ASSIGN.


Failure of Galludet q Co. and W. f. Owens,
the Former with Million Liabilities.
NEW YORK, Nov. 1S.-The failure of p w.
Galludet & Co., No. 2 Wall street, was an
nounced in the Stock Exchange to-day.
The firm made an assignment TO c. Elliot
Miner. The assignee states that the liabil-
tiles of the firm amount to about 81. 100000
The failure is due to the action of several
banks in calling In loans to the firm. The
preferences are $4,000 to Margaret E.
Galludet and $4,000 to Frazer & Miner,
their attorneys. The firm is composed of p.
w. Galludet and Henry Fitz.
To reporter Mr. Miner, the assignee.
said: THE suspension of the house is due
to the general depreciation In the values of
collaterals. which has gone SO far that
when loans to the firm were called they
could not be met although the firm have
what, in ordinary times, would be amply
sufficient resources for borrowing money.
From cursory examination of the firms
books it appears to me that their liabilities
will amount to about s9OO.OO0 or perhaps
more. They hold such good securities that.
if the market improves, they will be able
to pay all this Indebtedness and have a
handsome surplus left. Afull statement of
liabilities and assets will not be ready for
several days"
Mr.. Fitz, a member of the firm, said to
the reporter: I'VE have been compelled to
suspend on account Of the decline in val
ues and our inability to borrow money on
| our securities, which, under ordinary cir
cumstances, would he available. We owe
| our trouble, in part, also. to the discrimi-
| nation of the banks in the matter of ac-
cepting securities. The threatened fall of
| the Barings and the other financial diff
| culties have made them exceedingly care
| full. am not criticising them. as their ac-
| tion was natural and justitable under the
circumstances. and they have. on the whole,
treated us exceedingly we'll. Of course,
We hope to resume business shortly. Our
| being able to do SO, however, depends
| largely upon the banks and trust CON-
| panles. If they are lenisnt with uswe may
come out all right. If, on the other hand,
they press US. the termination of our sus-
pension is not so clearly foreseen.'
w. +: Owens also announced his suspen-
sion. He has no outstanding contracts on
the exchange.
| In the matter of the North River Bank
| OBrien, which vas signed. requiriGg cause
to be shown forthwith why receiver
should not 0e appointed pending suit
which the court has brought. 80 dissolve
the bank. temporary injunction was also
| secured restraining the bank officials from
| interfering with it's affairs. Decision on
the receivership was reserved. Bank Super
intendent Preston to-day made ap affidavit
relative to the amOnnt Of the assets and
liabilities of the North River Bank. 1t
showed the assets to be 81. 493, ,5S2; liabilities,
g.. 2.593, ,3S7; deficiency s99,eO4.
FOrger Smith, of Mills Robeson & Smith.
| was to-day committed for trial in default of
| $1,000 bail. w. A. Watson, the ASST gnee of
| the firm, says the liabilities and assets are
equai-S407, 600. The defalcatons upon the
firm amount to about 1852 ,0OO AS near AS he
70. nt IL xz aL..A l.
amount of Smiths individual stealings
will reach nearly $3.50. 900 i'm round numbers.
The counsel for the North American CON-
pany authorizes q statement, to-day. that
been paid of. and that none of the loans
now outstanding fall due until after the
end of this year. He denies the statement
that the milwaukee, car lines were bought
by Henry Willard personally, and says that
they were bought for and are now held by
the North American company. -
Action of the Associated Banks.
NEW YORK. Nov. 1S.-The chairman of
the loan committee of the clearing house
stated to-day that S40OOOO0 in loan certif-
Gates had been taken by the banks to-day,
and he expects larger issue tomorrow. A
movement is on foot to have the bank
| presidents offer to take from the Secretary
of the Treasury $4,000. 600 in small coin on
condition that he buys four-per.cent bonds
to that amount. and IT the bank presi-
dents succeed in this proposal they
will take the balance of the small
coin lheld ip the treasury. Frederick ID.
Tappan, chairman of the committee, sad
to a reporter: II cannot tell you what
banks have taken out loan certificates. All
can tell you Is that considerable amount
of certificates have been taken out to-day
by some of the banks. not from any inten-
tion of using them Immediately, but for
the purpose of easing the money market,
should it be necessary. The rate of inter-
est on the certificates has not been changed
that could only be done by vote of the
association. The clearings went through
all right this morning. The transactions
were very large to-day, aggregating S2lS,-
stock market. The general situation,
think, is much improved
Thomas Banning, member of the firm of
| Kidder, Peabody & Co., the American
agents of Barring Brothers. and a brother
of Lord RevelstOke, the head of the London
firm, said this morning to q reporter: II
wish to deny in the most emphatic terms
the statements that the house of Barring
to exist within few years. There is abso-
luteIy no other foundation for this state
ment than the possible reorganization of
the firm in consequences of the retirement
of Lord Revelst0ke from the head of the
house. In order to accomplish this there
may possibly be a nominal liquidation. but
the business of the bank would continue as
before in the hands of the reconstructed
firm. A liquidation in the sense that the
banks affairs will be wound up aud the
houses existence be discontinued is not i'm
the slightest degree probable or credible.
/ 1t is not even certain that Lord Revelstoke
is to retire, though as he is about sixty
years old it is not improbable. /, at least
| have not been informed of his retirement
and if the matter has been definitely set
tied |, being his brother, ought to have
heard of it."
Unlimited Certificates at PhiIadelphia.
PHILADELPHIA, Nov. 1S.--At meeting OF
the clearinghouse committee, to-day. the
advisability of issuing certificates was dis.
cussed, and all the presidents agreed that
such step would be wise one at this
time. A resolution providing for the un.
limited issue of the certificates was then
presented and adopted without a dissent
ing vote. The committee decided to meet
daily. at II o'clock. for the purpose of ex-
amining the collaterals presented by the
various banks, and to issue the certificates
The banks decided, after some discussion.
to issue loan certificates in unlimited
amounts. The Philadelphia banks have
not adopted this course since 1873, when
the Jay Cooke panic occurred.
MOUNT CARMEL'S BROKEN BANK.