The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-09
BANKS CAPITAL IMPAIRED.
THE MADISON SQUIRE ANNOUNCES 4
TEMPORARY SUSPENSION.

| A"h "fDtoON DNcAfh AN'OCNtbS n
TEMPORARY SUSPENSION.
Its Clearing. House Agent Refuses to Act
for 1t Ionger-The $500, 900 Capital Said
TO 30 Impaired ssO.OOO-Arranrement
| Contemplated to Make II Good and 60 on
| with Busincss-The hank Has Many
| Small Customers. Including Women and
Theatrical People, and Carries Much
Mercantile Pnpcr-Exnn,Ined Inst Friday.
After banking hours yesterday W. J. Gardi-
ner. cashier OF the st. Nicholas Bank. mem
Der of the Clearing House Association. sent
| this notice to the Associated Banks:
From this date this bank will cease TO redeem cheeks
drfets. or other instruments drawn made at the
| Madison Square bank OF New York,
| Upon receipt OF this notice from the St
| Nicholas Bank the Clearing House Committee
| went up to make an examination Of the condi-
tion OF the Madison Square Bank. This COM
mittec is composed Of T. d. Happen. President
Of the Gallatn National Bank. Chairman:
Henry W. Cannon. President Of the Chase Ma
tional Bank: ]. Edward Simmons President OF
the Fourth National Bank: William A. Nash.
President of the Corn Exchange Bank.
and Edward II. Perkins. Jr., President
Of the Importers and Traders Bank.
| The committee arrived at the bank
at about half-past 3 o'clock and spent
four hours In thorough examination Of the
accounts and assets OF the bank. The latter wero
found to be largely Of n character that could
not at present be realized upon, and the COM
| mttee advised that the bank should suspend
business at onco for the present There were
| among the assets bonds and securities and
large amount OF mercantile paper Of tho
| retail stores In the neighborhood. The COM
mittee found that the capital stock had suf-
ferod an impairment OF about $50 900. 1t was
| reported that tho banks capital had been
found intact at an examination made on July
"a by Bank Examiner Judson. and that the
| shrinkage has occurred since ther 1t Is re-
| ported that the deposits had fallen from ST.
100000 a month ago to 81. 100000 ct the close
OF business yesterday.
The officials Of the bank refused absolutely
to give any Information as to the condition of
the bank. and would not say whether or not
| the doors would open this morning.
Chairman Tappen Of the Clearing House
after tho ommittee had concluded its exam
nation and he made the following statement:
After a thorough examination Of the Madi..
to suspend. and it will not open Its doorS, to:
morrow morning. We found that there had
IL "a SsD s and e xs n
il iust what shape the loans Of the
%ss S%'tfs Sn sSs. e. e.
as soon r as the impairment Of capital Is made
| good. The amount necessary for this is to be
@en 81 The st.
amply secured for It's slearances. and cannot
p Will the se C 1 House Committee was In
the bank representatives OF several news
papers stood in the doorway Of the Broadway
people along the street seemed to get wind of
the, fact that there was trouble IN the bank.
got no Information, but their stoppine ~
traeted others; and from time to time the
wSs
body said that the bank was ali right. These
the So"ss
Parently, there We're Jepositors in the bank, for
and down in front Of the building.
The directors and the officers Of the bank
to mics with ' tfen were sn iuts
up after taking ieW min Sas
IN the doorway one went inside. He prom
Fee ohsr sae down bs
and talked about the weather Finally he was
switched arGn ii to the subject Of bapks and
-" Bank superintonaent Preston is not in
there; the bank may not be IN POSITION 10
stand a run. but it has got plenty Of money,
70 hs ST. NICHOLAS an aGu0f
that bank hdd given them n0tiee Of day or
S ad wihou a G nods
4 caught them hard, That's neither here nSr
there. however: the bank is solid"
This man would not say who he WAS but he
ment before ocIoek the Broadwa sy door oo
back on his head came out, He viewed the
crowd moment. and then said
formation We shall DO inside there Tor some me
ESos ~ waiting AK Io1E;s Ns~ III ray all
The reporters had crowded about him. The
four or i've depositors came Just behind them.
block on either side crowded in on the outside.
The round little man looked u little surprised
when one OF the reporters asked him who he
II am W. A. Jenner of As William street." he
""9fhcer 81 the bank"
DIRECTORY"
gentlemen. i have no connection whatever
with the bank. lam here IN tle interest Of
make Tor thelbapk is this: Ths st. Nicholas
Bank, which has been the representative OF |
House. having REUSED to cleaa for o this s banf
any longer and not having given notice OF
t 81 sn v he oS aSm
mttee TO come To tho bank and make per- |
so !! investigation Of It's affairs.
The committee accept cd the invitation. They |
spent considerable time here examining the |
banks securities. The result Of their eXami- |
nation lis not yet known. This much we can |,
assure everybody, that the bank Is solvent; |
that the stockholders are all OF them wealthy
they are In accord with the managemen and
will come forward Every. deposition will be
h a ulhar Action h al bsn there vii fssf %
matter will be decided to- morrow.
VIII the bank open to- N orrow?"
IL don't know. That will DO decided later"
What are the nature OF tho securities the
bank holdsp"
They are such securities as all banks take.
OF course. they can. be realized on to better
advantage In good times"