The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-11-02
THOMAS p. BEAL,
FRANKLIN HAVEN. Jr..
ALBERT L. NEWMAN.
PHisEAs PIEncK,


The immediate cause Of the banks suspen-
sion was the suicide OF Irving A E Evans and
the talk which followed It The losses OF the
bank by its dealings with Evans was not large
enough TO seriously injure 1t.
1t was said that the creditors OF Mr.. Evans
would not lose moro than 100000. That is
true. and 1t Is also true that not more than
100000 Of that amount falls upon the Ma
verick Bank. But the talk Of the street made
the banks loss far greater.
The stories included rumors Of the ugliest
description about Mr.. Potter and his relations
with the dead broker. Most Of these stories
were entirely false.
The facts in the matter are in the possession
OF The Sun. and. while the present situation
does not Justify their publication. it can be
said uheQuivocally that they are In no sense
discreditable to Mr.. Potter
The gossip about the bank. instead Of sub
siding. increased to flood tide. and became OF
the most damaging character. The inevitable
effect began to be felt more than a month ago.
Some OF the principal depositors one after
another withdrew their accounts The depos-
its in the bank ten days ago amounted to more
than S1O.OOO.0OO
During last week more than $1.7OO.OO0 was
withdrawn. State Treasurer Marden with
drew some $9OOO0 OF the commemorative
funds which were on deposit there. Other
trust moneys were also taken out.
The situation was fully realized BY Mr.. Potter
and his associates. They met 1t manfully and
with all the resourceful energy ut their COM
mand. but the pressure became too great
The situation was one which any bank doing
large business would be forced to the wall. no
matter how Inherently solvent 1t might BIZ.
No bunk having s10.OOO.OOO or more out on
loans could suddenly convert large portion
OF them into cash.
1t is not meant to DO implied that the
Maverick Bank was sound when this pressure
was brought to bear. On the contrary. the in
dications arc that it was and is insolvent.
An official crisis. II it may DO so expressed.
was reached several days ago when the Presi-
dent OF another national bank in Boston
refused to accept q certified check on the
Maverick from one OF it's depostors.
The motive OF tho refusal is said to have been
partly personal and partly financial one.
At all evens. tho matter was imme-
diatoly brought to the attention OF
member OF the Clearing House Committee.
not In an official capacity. however. and he
felt It to DO his duty to consult the other men,
bers OF that body.
They did not, 1t Is said. approve OF the action
OF the President. who refused the certified
check. but they did think the situation justi-
fed their interference.
The first action OF the Committee was taken
on Thursday. Oct. %. From that time ON the
Clearing House Committee kept very close
watch OF Maverick Bank affairs.
They actually went into the bnnk on
Wednesday for the purpoce Of ascertaining It's
exact condition. The examination. made
partly by the members OF the committee and
partly by Assistant National Bank Examiner
Emer. occupied three days.
IA the meantime it is said that banks
In the Clearing house had advanced about
100000 to supply the temporary
needs OF the Maverick Bank. and care
was taken to make the Mavericks account at
the Clearing House to come out the right side
OF the ledger. In fact 1t was a gamer to tho
amount of $4,000 on Friday and Of $4OO.OOO
on Saturday
But the drafts over the counters Of the bank
were extremely heavy. Nevertheless 1t was
confidently expected by the bank officers and
their friends that the crisis would be tidei
over.
They believed that the banks assets would
fully meet the liabilities II not forced upon the
market
Mr.. Potter had called upon several Of his