Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1891-11-05
The Maverick Bank.

The more that ia heard from the Nav
erick bank failure, the more reason there
Ia to believe that the losses resulting
from 1t will not be nearly "a large a.
were at first anticipated. IL IS well
known that the clearing house commit
tee In getting together their report, left
out OF consideration entirely, and count
ed rs nothing, all paper concerning
which they entertained any doubt what |
ever. Having done this they proceeded
TO discount the uDquestl0ued assets OF
the bank twenty per cent. 1t will be
seen, therefore. that the report Of this
committee put the affairs Of the bank in
the worst possible light Their discount
Of twenty per cent, was made according
to their own statement upon assets
which were "A good ~ gold. Now
we do not believe that there are
many firms doing business in New
England. where. IL an outside com
mittee OF rivals should suddenly |
take an account OF stock count out
the book concerning whose value they |
eutertained-or affected to entertain
the slightest doubt. and then discount |
the amount of assets still left by twenty |
per cent.--s condition Of solveney could |
still be shown. There IA no reason to
believe but what very many OF
the stocks Of which no account
whatever was made In lnvestl-
eating the Mavericks condition, repre-
sent today large cash value. and If
properly handled viii realize handsome
returns. There ia reason to doubt that
President Potter knew what he was talk
ing about when he declared that if he
were permitted to close up The affairs OF
the bank he could pay every depositor
aud every stakeholder dollar for dollar
This recalls the case of failure of
tirm OF bankers In Philadelphia year or
two ago They owned large num-
her OF different stocks but got
pinched BY slump in the market and
failed for two million dollars. They
made an assignment to a prominent law
yer, who went to work In a business like
WAY to settle up their affairs. Had he
'hoeA'oie" W
stocks at that time ne "onia nave
made bad WORK OF H' on' lie
waited for better time. In few
weeks there was great chahge III '"e
h |
market Inc stocks advanced 50 mueh
that he was able TO sell them' pay aoiisr
for dollar on all the ilao'ileies Oh ehe
hrm and turn over 10 the PARTNERS MI
lion dollars 1t Is not surprising 'hst
under such circumstances t''e' gave III"
St.'o,ooo Tor MS services anu "ss uiu
cent silver service as 1est'moaial vi
their personal esteem
Vow IL the STOCKS counter ~ no'u'ns
by the committee whleh in'ess'ga'eo t''e
affairs OF the maverick oshh were l" "e
forced upon the market at the present
time, they would prooaoly oflng very
little out X they are Wisely heio io' All Ao-
vance, there Is reason 10 oei'e'e 'hs' 'n-
SIDE OF year large part vi 1''e'h Noaiu
be sold at good prices anu tue "a'N
be able to pay very nesr'E' II NOT
quite dollar Tor dotiar on All us 'noeot
ednees'
The only Maine bank tnat seems 10
have been Inconvenience ey 'he WAY
eries failure is the FIRST NATIONAL Bank
OF bamariseotta whieh' owing 10 an uh
expected run, was oonged To suspend
payment NOTWITHSTANDING th's '"e
bank is entirely solvent IL mas assets
over aud above IT'S deposits I" tue
amount OF ss3 5A' 81 or $4,000 81 more
than the total amount OF its deposit AT
the Maverick. 1t had however over
sIs dsa in loans 1t is NOT probable that
1t bad lying idle in its vaults ready
money TO ANYWHERE near the smount Of
Its deposits. II could have raised At