New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-11
MOTHER BANK GOES UNDER
.,,r MUTUAL NATIONAL OF NEw-OR-
LEANS CLOSES ITS DOORS.

.-s COLLAPSE PREC1PITATED BY THE TWO RE-
CENT NEUTRALITY-SUSPICIOUS. TAKEN By
THE CLEARING HOUSE To PRE-
VENT PANIC
x.r-Orleans Sept 1O.--The Mutual National
~ closed its doors this morning. The effect
,,s banks suspension has been discounted.
svas we'll known to be in a bad way Short
.ner the American National Bank failed a
ras made on the Mutual and the collapse OF
-, hank at that time appeared inevitable
lilly the run was started on Saturday. short
:, ,.tore noon and Saturday being legal half
,vasv IN New Orleans fortune was on the side
:, the sore pressed Institution. BY Monday
-o,r,ne II had a chance to recuperate. the
,,.,,ng House held a meeting and the other
,rs NJ the city. fearing q panic. came 10 the
,cre and advanced money enough to meet All
..nds on that day. Large sums OF money
,s here from various sources. and the 'hited
c,.,ss sub-Trcasury was paying out the sugar
,,,v &C fast as possible Before noon OF that
Az, the run ceased and sll looked favorable.
Tho president says that steady dra'h mas
,asn caused 10y depOsitors checking out 'hen
roonsv The unexpected failure OF the 'hioh
Xo,,onal on "Wednesday aroused the suspicious
=, danositors and another rush was maue Oh
,,o Nu,ual The Clearing House banks had on
NV oloosi,n advanced 100000 to the
~ ,,.,io ,nore than S11 .W0 Of which
49,, roraid Last night the Mutual ten
sorod 70 the Clearing House another lot OF col
,o,erals and asked fr further assistance to the
~x,oo, ~ Sa5 0n This the Clearing House re-
fused and the suspension of the Mutual foliowed
this morning
COO oo9 - which We have ample assets to pay
dollar for dollar
president BALDWIN, Of the Clearing House
.ovs. The officers ~ the bank foresaw what
was coming and. is customary in such cases
called OH the other banks to como once more to
their assistance. \ bank in distress is expected
a. bvnothccat. securities Of such a kind as will
,ustify other banks in lending the assistance
The security offered by the Mutual was not con-
sdered the proper quality Of paper to justify the
Clearing House in making the loan and the as
vstance was refused
The Mutual National was organized in lS'l
with p capital stock Of 100000. This was re-
huced in January. 1894. to S2O0o0O. In January.
1895 the Mutual absorbed the Traders Bank.
and most Of the stockholders of the Traders be-
came Interested in the Mutual.
At meeting Of the Clearing House held last
night. the IQdltldi SltudNlOli NdH toiHN'''S N''
cussed and the following resolution was adopted:
Resolved That for the present. the Clearing
Eonse aIiks should not pay out checks more
than 500 any one depositor in one day All other
rsyments shall be made by certihcation OF checkS.
which shall be received deposit by the Clearing
House banks.
This step was necessary as a precaution.
Money to meet their payrolls will be supplied
10 employers Of labor. 1t also agreed to
adopt system of Clearing House certificates
similar {, that utilized in New York and else
where during the crisis of 1SG The savings
banks also took steps to prevent a run by post
ing the sixty-day rule. This is allowed by their
charters depositor must give sixty days
notice Of his intention to withdraw his deposit
There are no new developments in the case Of
the Union National Bank President Chalaron is
bitterly criticised to-day for his Irecipitate
action in closing the bank without consulting
the directors He IS in seclusion and will see no
one
Bank Examiner johnson, temporarily in
charge Of the Union. was formerly confidential
bookkeeper and agent for A. & V. Meyer whose
failure seriously affected the bank. This fact
has caused comment. To-day another bank eX-
aminer has been ordered here to take his place
q protest having been sent to Controller Eckels
against Nj Johnson's remaining in charge.
Washington. Sept. 1O-Controller Eckels was
to-day Informed that the Mutual National Bank
Of New Orleans mad failed. AT the time OF It's
last report il Lad loans and discounts out
amounting to S447 80; owed to individual de-
positors. sos 7G9 had undivided profits Of
Sl999@ ard owed 70 other banks Sl5'59' 1he
banks capital was S2O0,Oo.
Bank Examiner Tucker, Of CiAcinnati has
been instructed 10 take charge of the bank
Controller Fckels has appointed r. J.. Rlchard-
son receiver Of the American National Bank Of
New-Orleans which failed recently.
The National civ Bank of NewYork reported
Yesterday that il amply protected on its
advances 20 the failed Mutual National Bank OF