The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-10
4 CRASH IN NEW ORLEANS.
THE UNION NATIONAL BANK CLOSES
ITS DOORS.

xTox one of the Oldest Banks in the
CITY and Did a Large Business
with Cotton Men-Rumored That
DefRIcatIOn Is at the bottom of
the TrOubIe--An Examiner in
Charge.
Washington Sept. 9.-Controller Eckels
was notified this morning that the Union
National Bank of New Orleans had closed
,ts doors. The first message contained no
fnrther information, and in reply to a
question as to the probable cause, Mr..
EckeIs said he supposed it was due to
uitbdrawal of deposits. He based this
oninion upon the fact that from Oct. 81,
1895, to July IA. 1896, the date of its last re-
mort TO the bureau, the banks liabilities
n depositors had decreased from $1,S71, SS5
IN SO4.O27 Aside from its capital stock
and deposits on July a. the bank had liza
b,lities of s147 900 to other banks and mis-
oeuaneous accounts of $S2S,955 It's total
assets were S1,SS9022, of which $S4 ,S69
were loans and discounts, $lS2OOO over
drafts and $45S,OO stock and securities.
controller Eclxels directed Bank Exam
iner Johnson to take charge OF the failed
institution, and in few minutes received
a telegram from him saying that the pres
ident of the bank explained that the sus-
nension was due to a defalcation. Neither
the amount involved, nor the name of the
guilty official was given.
New Orleans, Sept 9.-The Union Ma
tIonal Bank was founded in 1889, and is
one of the Oldest banks in the city. 1t had
a1Davs been a prosperous and paying in
stitution until some time ago it became
known in business circles that it was not
Thoroughly sound. This shakiness dates
hack to the huge failure of V. & N. Meyer,
cotton factors and general merchants.
The bank was badly crippled by their rail-
ure and has never recovered. Its depos-
itors were principally cotton men, lnsur-
ance and other corporations.
1t was almost strictly a commercial pa
per handler and made demand loans on
ordinary unsecured paper to the last. This
money generally went to the country to
buy cotton. Since the failure of the
American National, the distrust caused by
that event has accumulated matters Tor
the Union, and the associated banks OF
the clearing house decided to lend it as
sistance, and especially because of the
excitement and furry that then existed.
This got out and gave the depositors gem
orally a chance to protect themselves. A
quiet run has been made by drawing
checks through other banks, and these
went through the clearing house. The
suspension was inevitable, and was fore
seen by the other banks ten days ago.
The report telegraphed from Washing
ton about a defalcation in connection
with the failure cannot be substantiated.
A Southern Associated Press representa-
tive sent a note to President Chaleron in
forming him of the report and asking that
it be affirmed or denied. The note was
turned over to Bank Examiner johnson,
and that gentleman informed the reporter
he had nothing to say, as he was only
temporarily in charge of the bank.
rs that the only answer you can give?''
he was asked.
That's all I can say" said Mr.. john
son.
From gentleman who is close to the
affairs of the bank, it is learned that
while the individual deposit book on the
bank showed that there was so much
money in hand, the general ledger shows
that there was eight times as much
The vice president of the clearing house
association, E. Toby, of the Canal Bank,
says he has heard nothing of the reported
defalcation. The effect of the failure on
general business is rather depressing, and
other failures may follow shortly.