The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-12
1T PREVENTED SUSPENSION.
Fourth National Bank at Nashville Has {
ORIGINAL Scneme


Fourth National Bank at Nashville Has an
Original Scheme.
NASHVILLE, Tenn. Aug. I1.-This morn
ing when the Fourth National Bank opened
line of depositors was already formed In
the street waiting. Some of these were
heavy depositors. Payment was made un.
til 11:30 o'clock. and while the mum.
ber of demands was diminishing,
the drain was q severe one and was
beng fels. Checks for sums as large as
$1,000 were being presented. At this
juncture the directors held meeting and
decided to refuee ell demands over $780,
This rule was followed until the hour of
closing at p. VI. Checks for over 500 were
paid 800 in currency and the remainder IN
certified checks. This plan OF paying q
portion in checks and portion in
each was the plan suggested by the
First National Bank before it suspended.
bat oil the banks would not agree Co IL
Had this course been followed three days
ago none of the banks would have sus-
pended. There was no spscial excitement
but n general feeling of distrust pervades
the community.
Certified Checks for Small Change.
BUFFALO, Aug. 1L-Controller of the
Currency Eckels. to whom dispatch wss
sent by Vice President w. B. Baird. of the
Buffalo Furnace Company. asking If it waf
against the law TO Issue checks certified 70
by national banks to be used the same as
currency In making up pay rolls. has sent
the following reply:
Section 51s3 prohibits national banks from
issuing post notes or any other notes 10 circulate
money except such as are used by the national
bank act. Your proposition appears TO suggest
the drawing or checks containing certain condi-
tions of payment by depositors on banks where
rhQuh hay IN gheif
to be used by the depositors and not by the bank
upon which they are drawn 10 other parties TO
which depositors are indebted. As understood,
the proposition appears 20 involve business con-
tract between depositors and their creditors.
and in my opinion such transaction would not
constitute a violation of section 81 81. as the
checks viii be issued by the depositors. and not
by the bank. AS TO certiheati0n OF such checks
by national banks when drawn against deposit
90 creditor for order can see legal objection.
See decision in Merchants National Bank VS..
State National Bank. Wallace county. etc.
The reply Is received with the greatest
satisfaction by the Buffalo bankers and the
method of using certified checks IN IS and
$40 amounts and currency Tor suins lesa
than g is expected 10 furnish Immediate
relief. In an interview Mr.. Baird sand: 1T
will enable manufacturers 20 ind currency
TO meet the pay rolls and will keep thou
sands of men in employment who would
otherwise be discharged. Tne scheme is TO
use certified checks OF the above denomi-
nations made payable TO bearer. A large
nnmber of the biggest manufacturers in
the country have been interested In the
decision which is given out by the Con-
troiler"
Chicago Beach Hotel Assigns.
CHICAGO. Aug. 1.-THE Chicago Beach
Hotel. of which James II. Walker. the dry
goods merchant who recently failed. was
prominent stockholder went pto the hands
OF receiver to-day. The hotel was
erected last year and. with its
furnishings cost Sos. 200. Warren
Fs Leland, who has managed the hotel,
will be retained, with full authority 20 cone
troll its affairs. The cause OF ths assign