The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-01-25
BANKS GOING TO THE DOGS.
TWO BINGHAMTON CONCERNS
CLOSE THEIR DOORS.

Claim Made That the Cashier OF
the Two Is n Defaulter-He and
the President BurEIarize the
Vaults. hut Are Compelled 10 Re-
turn Their PIunder-Runs Made
ON Two other Banks.
Binghamton. y. y. Jan. 2i-At noon
the controller OF the currency assumed
charge Of the National Broome County
Bank. This bank was voluntarily closed
by its officials this morning They feared
run, which the bank was totally unpre-
pared to meet
1t is asserted that the Chenango Valley
Bank. state bank. which was also closed.
has securities deposited with the Bnc-
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 20 divulge
the result Of their Investigations. but il
Is evident that the affairs of the bank
are badly tangled
The withdrawal OF deposits at the Biug-
hamton Savings Bank continued through
out the day
There was a run on the Binghamton
Trust Company. At both banks the ofil-
cials say they have sufficient funds TO pay
every deposit in fun, 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 demand the regular
60-day notice for the withdrawal of de.
posits. The officers Of the bank state
that there are sufficient securities I'm the
hands Of the bank examiner to pay every
depositor i'm fun and leave "a good surplus
Detective stephenson OF the local police
force was ordered by Bank Examiner
Clarke yesterday afternoon TO watch tine
ChenangO Valley Savings bank. which
has its Office i'm the Phelps Bank building
In company with Officer Heath the de-
tective remained I'm the vicinity an night
About 4 o'clock this morning Tracy r.
Morgan, the treasurer Of the bank. was
seen To enter the bank. lie came out
again in few minutes and went to the
grocery store Of D. l.. BrOwnson, who is
the president of the bank few minutes
later he came out with a bushel basket
followed by Mr.. Brownsou and both of
them returning to the bank. Half an hour
later the two men came out with the baa-
ket fun Of books and papers They went
up ChenangO street, followed by Detcc-
tive Stephenson and officer Heath De
tective Stephenson requested Morgan ana
Brownson to return the books and papers
to the bank. Morgan refused, claiming
that they were his private property. The
detective insisted and the bank officials
returned TO the bank with the books and
papers.
The citizens had recovered from the
shock following the suspension of the
Merchants and the Ross private bank and
affairs were assuming their normal aspect
when the rumor was circulated that the
Chenango Valley Bank had drawn its cur
tains.
On the heels of this startling report came
the announcement that the National
Broome County bank had also discontinued
business. The citizens were fairly par
alyzed with astonishment - the appre
hension of small depository was magni-
fed by exaggerated stories which were cir
culated to the injury of other local bank
ing institutions.
The news regarding the failure spread
rapidly and as each messenger enlarged
upon the real condition Of affairs, panic
seized the populace and it became appar-
ent that run upon the banks would be
inevitable. The smaller depositors We're
thoroughly frightened and it became evil
dent that nothing could prevent the alb
normal pressure.
Just such a movement had been antici-
pated, however, and the solid institutions
were prepared for the rush. The run upon
the Binghamton Savings Bank was heavy
and the crowd of anxious depositors in
creased with the hours, but the bank was
prepared for the emergency. The officers
the heavy plate glass windows, surrounded
by piles of shining gold and silver They
had protected themselves with a large
amount of cash, and during the day tele-
grams were received from metropolitan
banking institutions, to the effect that
they would support the Binghamton banks
for unlimited amounts
Runs were also made upon the other
banks of the city but all depositors were
promptly paid, and when the doors were
closed. at 3 o'clock it was evident that
the rush and fright We're over.
The books of the Chenango Valley Bank
which closed FIRST were being examined
by Bank Examiner Backus, who came
here several days ago. lie claims that
the books We're in bad condition, and II
was at his instance that the bank was
closed.
The affairs Of the National Broome
County Bank were not in a condition TO |
compel the suspension Of the institution.
The national bank examiner, who was in
this city Jan. u, investigated the affairs
of this institution and found the bank
solvent. A statement of the liabilities
and assets proves that all the affairs of
the bank are in irst-class condition.
The bank, however did not take the
pre3aution to prepare for a run. Soon
after opening yesterday morning three
heavy demands were made upon its funds
lnlS cFIppleQ the Ddhhs anu tilt OODfH
were closed. An examination of the af-
fairs of the institution shows the bank
to be perfectly solvent, as the assets ex-
eeed the liabilities. The liabilities are
s4l5 5ss, and the assets $511, 500.
The closed banks are located in the
basement of the Philips Bank building
Tracy r. Morgan was cashier Of both
banks, which va virtually in one. eX-
cept that separatS books were kept for
EACH one being regulated by the national
banking laws and the other was regulated
by the state banking department David
Brownson, son-in-law Of Mr.. Morgan, is
president Of the National Bank. Benjamin
" Loomis IS vice president of the Saw
ings Bank Tho name Of the president is /
not given on the books.
Much excitement was caused by the an
nouncement that Tracy X. Morgan and
David Brownson had been detected car
rying papers from the Chenango Valley
Savings Bank, at 8 o'clock this morn
ing. These documents, II is claimed, are /
private papers to which the parties had a /
perfect right.
Recorder Roberts was interviewed to- /
day ar@e corroborated the statement |
that documents removed from the /