Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-01-25
A FINANCIAL PANIC.
Binshamton, n. T., Banks, Stats and
National, InTolYed.
SOME UNNECESSARY RUNS.
There Is Plenty Of Money to Meet All
Demands-Aiieged Oniciai Attempt
at burglary.


assumed charge OF the National Broome
County Bank. This bank was voluntarily
closed by its officials this morning. They
feared a run, which the bank was to-
tally unprepared to meet.
1t is asserted that the Chenango Valley
Bank (State bank). which was also closed.
has securities deposited with the Bing-
hamton Savings Bank sufficient to meet
all obligations. The bank examiners have
been at work on the books Of the savings
bank for three days. They refuse to
divulge the results of their Investigations,
hut 1t is evident that the affairs OF the
bank are badly tangled.
The withdrawal OF deposits at the Bing-
hamton Savings Bank continued
throughout the day. There was run on
the Binghamton Trust Company. At
both banks the officials say them have
sufficient funds to pay every depostor
I'm full, and more currency on the way.
a meeting OF the directors OF the Che
mango Valley Bank was held at II O'clock.
and IL was decided to post the regular
sIxty-tays' notice for the withdrawal of
depositL Officers state that there are
sufficient yecurities In the hands OF the
bank examiner to pay every depositor
In full. and leave a good surplus. The
only trouble appears to be that the books
are badly mixed up, and need tho
rough Strengthening.
DEFALCATION.
ALBANY. n. Y. January A.-The fol-
lowing dispatch from State-Bank- -Exami-
ner Phllo II. Backus, at Bingham
ton. was received at the State Banking
Department this afternoon: Have closed
Chenango Valley Savings Bank; defalca-
ton by Treasurer Morgan; the cause and
full extent not known; books in bad con-
dition; not written or posted; defalcation
confessed: Broome County National Bank
In same room has suspended; Morgan Is
cashier. Have wired Superintendent Pres
ton in full to New York. and no
titled Comptroller OF the Currency. Re-
ceived replies from both. Burglary or
vault attempted abou, \. NJ. by Cashier
Morgan and President Brownson, Of Ma
tlonal Bank; prevented by detective whom
/ have engaged"
THE ATTEMPT AT BURGLARY.
BINGHAMTON, ". Y, January "a
Detective Stevenson, of the local police
force, was ordered by Bank-Examiner
Clark yesterday afternoon TO watch the
Chenango Valley Savings Bank, which
has its offices In the Phelps Bank-build-
ing. In company with Officer Heath, the
detective remained in the vicinity all
night. About o'clock this morning
Tracey r. Morgan, the treasurer OF the
bank, was seen to enter the bank. He
came out again in a few minutes and
went to the grocery-store Of t. ID. Brown
son. who Is the president of the bank. y
few minutes later he came out with
basket. followed by Mr.. Brownson. and
both OF them returned to the bank.
Half an hour later the two men came
out with the basket full of books ana
papers. They went UP ChenanSo street
followed by Detective Stevenson ana oi-
fcer Heath. Stevenson requested NOR
gan and Brownson to return the BOOKS
and papers to the bank. Morgan re-
fused Claiming that they were his pri-
yate property. The detective insisted.
and the bank officials returned to the
bank with the books and papers.
This morning the bank was closed by
Bank Examiner Clark on an order from
e-Superinten1ent-of Prestoni
CITIZENS PARALiZED.
Citizens had recovered from the shock
following the suspension OF the Mer-
chants and the Ross private bank, ana
affairs were assuming their normal
aspect. when the rumor was circulated
that the Chenango Valley Bank had
drawn its curtains. On the heels OF TINS
startling report came the announcement
that the National Broome County Bank
had also closed The citizens were fairly
paralyzed with astonshment. and the ap-
nrehension of small depositorS was magni-
fed by exaggerated stories wmcn were
circulated. to the injury Of other local
banking institutions.
The news regarding the failure spread
rapidly. and. as each messenger enlarged
upon the conditions, panic seized the popu-
lace and IL became apparent that run
upon the banks would be inevitable III
became evident that nothing couid pre-
vent the abnormal pressure.
Just such a movement had been ahtici-
pated. however, and the solid INSTITUTIONS
we're prepared for the rush. The run on
the Bnghamton Savings Bank was hea'y'
and the crowd OF anxious depositors IN
creased with the hours, but the bank was
prepared for the emergency. The oilcers'
male. but cool and composed. stood be-
hind the heavy plate-glass windows, sur
rounded by piles Of shining gold ana Sill
yer They had protected themselves win
n large amount of cash, and during 'he
day telegrams were received from metro
politan banking institutions to the eheet
that they would support the Blhshani'oH
banks for unlimited amounts
Runs were also made upon the other
banks of the city, but all depositors were
nromntly paid. and when the doors were
closed at 3 O'Clock IL was evident that
the rush and fright were over.
NEED NOT HAVE CLOSED.
The affairs OF the National Broome
County Bank were not I'm a condition TO
compel the suspension of the institution.
A national-bank examiner. who was IN
this city January 18th. investigated TINS
institution, and found the bank solvent.
A statement OF liabilities and assets
proves that all the affairs OF the BANK
are In first-class condition. The bank,
however did rot take the precaution 10
prepare for a run. Soon after opening
Yesterday morning three heavy demano'
were made upon its funds. This crippiea
the bank, and the doors were closed An
examination Of the affairs of the institu-
ton shows the bank 10 be perfectly SOL
vent. as the assets exceed the Liabilities.
The liabilities are $il5,5Ss; the assets,
$5ll 500.
The closed banks are located In the
basement OF the Phillips Bank Building.
Tracey r. Morgan was cashier OF both
banks, which were virtually one. except
that separate books were kept for eacn'
one being regulated by the national
banking laws and the other by the State
banking laws. David Brownson. son-in'
law of Mr.. Morgan. is president of the
national bank Benjamin n. Loomis is
yice-president of the savings bank. The
name of the president is not given on
the books.
THE ALLEGED BURGLARY.
Much excitement was caused by the an
nouncement that Morgan and Brownson
had been detected carrying papers from
the savings bank about 5 o'clock this
morning.
These documents. II Is claimed, are pri-
yate papers, 10 which they had right.
Recorder Roberts was interviewed to-
day, and he corroborated the statement
that the documents removed frors the
bank were private papers. but the action
OF the gentlemen has created suspicion.
Texas Desperadoes Caught.
SUGARLAND. TEN. January 2t-Yes-
terday morning a band of masked men
rode into town and robbed the railway
IA