The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1890-11-12
TROUBLE AT MONEY CENTRES.
Banks Have Tight Call, and
Firms Suspend.
The New York clearinghouse Association
Hold Special Mccting--Thc Bank of
North America, the North River Bank,
and the Merchants and Traders Have
Trouble.

New IoRh. Nov. ll.-ISpcciall-
Rum0rs of trouble among the banking
institutions were current all day. but
no one paid much heed to them. think
ing that they were the usual emanitions
of bear minds. After the close how
ever, it was learned that three banks.
which were members of the New York
Clearing House Association. were I'M
able TO settle the claims OF other banks
against them. There was balance
against the l'anll of North America OF
- 400. 900 which il was unable TO settle
The other banks were the North River
and Mechanics and Traders.
How heavy balance was created
against the Bank Of North America was
Il puzzle.
1t was thought that tho firm of Decker
Howell Il Co., have ovcrdrawn their ac-
count to that extent. but this cannot he
definitely ascertaincd. During tho day
the Mechanics and Traders bank made
its settlements with the clearing house.
anu the other two banks received assis-
lance from the other banks in the as
ISOLATION and pulled through.
At the Bank Of North America it was
otdIto lllstb llit lTOlDlc WIS directly Tue
to tho account of Decker. Howell K Co..
and that now that the account of that
firm was closed the bank was in
stronger position than ever.
The most important factor in the de-
velopmcnts was the scarcity Of money.
Right up to the close it was in urgent
demand and = per cent. and legal in
tercSt was charged on loans equal to
lS9 per cent. per annum This fact and
troubles Of the banks caused Il special
meeting Of the Clearing House AssCcia-
ton to be called. and after a long scs-
sion ii was decided to appoint = commit
tee OF presidents with authority Ia issue
Clearing House loan eel tiiicatcs in order
to enable banks 10 settle differences be-
tween themselves.
These certificates will he based OH
bills receivable. collateral securities
cash assets and united credit Of banks
This action is intended to distribute
the reserves OF banks moro evenly be-
tween the institutions Whore one
bank is unable to settle its differences
i'll cash it will deliver securities and
assets TO the certificate committee anil
II that committee accepts securities il
| Will authorize the issue of certificates
on them. a united action of banks is
! expected to restore complete confidence
Decker. Howell u Co. Vail.
NEW York. Nov. H.! Special lust
after 3:iJ p. M. the failure of Decker.
Howell X Co.. OF A l;roa,lway. was an
nounced on the Stock kMhangc
They made an assignment To William
| Ncle, ON Cromwell. The li,m WAS one
Of the largest on the Exchange. and
/ Was considered very wealthy.
has hrcn Identified for wears with
movements OF Willard stocks. and were.
generally considered Nillard'S special
! brokers. The failure was considered :.
/ cloud that had been hanging over the
market, and after - WAS announced :.
rally OF To per cont occurred.
The failure OF David Ricimord was
also announced on the Stock Exchange.
The failure of John Y. Walker & Son,
importers OF silks and teas. at - Pine
street. was announced to-day. The
cause was thc inability of Ni.':2 tinralc
Bros. x Knight, OF Patterson. \. j.. silk
manufacturers. u liGudatc their liabil-
| iuv to the firm.
According to Assignee r. Eylrs the.
Patterson firm owes the estate of John
Il. Walker y Sons SilO.OO0. OF which
$500. 600 is overdue. The active capital
OF Walker ~ SoSi. for the past Two years.
has been about S30O.GOO, SO that they
were unable te.g:ithstand the loss arts
li.SS from the non-paymcnt Of Nighting-
ale Bros. ~ Knight. The Gs.n has been
carrying this heavy load for the past
fonr years. and whenever the Patterson
firm was unal1c To meet its obligations.
1T was taken c2rc OF.
Owing to the tight money alarkct and
suspicion concerning silk paper. caused
by several recent failures. ,he firm was
unable To gel is usual Recommendations
! and suspended payment.
disabilities arc about Sl.!0O. 600 and
nominal assets about Sl.3cO, 600 com.
! posed OF S5On.o00 in mere ln ndisr. and
S"GO,00O worth'of accounts arid bills re-
'ceivable. OF which over Si0S 600 is due
from Nightingale Bros. II knight.
The firm 1T composed oil John r.
I Walker, John Combs. AMI Joseph
Walker. William n. Rylc, is assignee.
Assignee Cromwell made the follow
! ing statcmcnt'concernin its affairs late
! in the afternoon: THE liabilities are
about ten millioa dollars and assets at
| present market price largely exceed
! that.sum. The liabilities are due al
most entirely 10 'Ghc banks ana bankers
on loans made in,ooursc of buSsness and
are well secured. The cause OF the sus-
pension was the Inability OF the firm to
horro" the necessary amount of cash
required in days business. 1Hc firm S
transactions were very large. IL being
necessary To borrow several rilions
daily. The firm had abundant cola
tcral to-day. and ii WIS not for Il lick of
security, but inability TO make il avail
able that caused the crash. Il was
SIMPLY matter of absolute inability to
get money on best securities owing To
extraordinary money Stringency now