The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-22
A new YORK BANK CLOSED.
The Capital Stock Of the ST. Nicholas
Impaired.

Depositors to be Paid in FuIl-Ths
Banks ofhoers Surprised at the
Action of the State Superintendent
and Declare It Unjust-The Banks
Total Losses Estimated at About
Sss6, 900.
New York, Dec. 2l.-State Bank Super
intendent Preston has taken charge of
the st. Nicholas bank, and pending an ex-
amination' the bank will be closed. There
has been suspicion of the condition of the
bank for some time, and it mas been
closely watched. Bank Superintendent
Preston, summoned yesterday Messrs.
Tappen, of the Gallatin bank, and Nash,
of the Corn Exchange bank, as members
of the clearing house committee TO con-
fer with him, and an examination by these
gentlemen of the banks books revealed
that the capital Is largely impaired, and
| it was deemed advisable TO close the doors
of the bank pending an examination.
PRESIDENT GRAVES SURPRISED.
The notice closing the bank was posted
before the bank officers reached the bank
this morning President Graves said: ~
am astonished to see the notice. | sup
posed this bank was solvent and do not
know why the superintendent should have
posted the notice"
When the superintendent arrived Presi-
dent Graves said to him: "This is high
handed proceeding of yours. What does
it meanl"
Then the state official and the bank
officer walked into an inner office.
AN AFTER CLAP.
In financial circles the closing of the
bank is considered an after clap of the
u l.
cleared for the Madison Square and until
a few days ago for the Empire bank
To-day's development had little effect on
the stock exchange. There has been so
much talk for some time of reorganizing
the st. Nicholas that to-day's action of
Supt Preston was not much of surprise.
DEPosrToRs TO BE PAID IN FULL.
Shortly after l o'clock, Vice President
Lathrop, of the ST. Nicholas bank, ad-
dressed the members of the cotton ex-
change, from the rostrum, on the subject
Of the closing of the bank He de-
nounced the action Of the bank examiner
as arbitrary, and gave his assurance to
the members that there is no scandal or
irregularity connected with the bank and
that all depositors will be paid in full.
Checks certified by the st. Nicholas
bank yesterday were thrown out of the
clearing house this morning.
PRESIDENT TAPPEN TALKS
President Tappen, of the clearing house
committee, says. owe find that the
banks capital viii be impaired to the ex-
tent of Sl50, 600 TO 5000, 900, not counting
any loss from the Madison Square bank,
but the bank has enough good assets TO
insure the payment of depositors in full.
These deposits amount to 81, ,000, 600. The
fact that checks certified by the bank
were thrown out at the clearing house
this morning has produced some unex-
pected results, For instance, a house
which received check which was certi-
fed finds that the certification has re-
leased the original maker of the check,
and the bank becomes responsible.
SURPLUS LOST.
''The surplus of the ST. Nicholas of
Sl05, 900 is lost, and the capital impaired
SlS0,00O By order Of the clearing house
committee, the checks presented by the
st. Nicholas bank at the clearing house
to-day, amounting to 100000, were re-
turned TO the bank, and the checks pre-
sented by other banks on the st. Nicho-
las bank, were returned to the respective
banks The S400, 600 in claims will be held
as special trust fund by the state bank
ing department, but will not be counted
as a part of the assets of the bank"
A member of the clearing house COM
mittee is authority for the statement that
even If the St. Nicholas bank should re-
ceive every dollar 1t claims from the
Madison Square bank, the capital would
still be impaired.