The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-09-12
A PANIC IN NEW ORLEANS.
Three Heavy Bank Failures in as Many
Days.

New Orleans, La, Sept. 1.-THE
Bank of Commerce, which everybody
thought would be able to weather the
wave of distrust and suspension which
the recent wreck of the American Ma
tional Bank caused, was compelled to
close it's doors this morning.
There was large crowd outside
the bank, but everybody was orderly
and all the blue coats had to do was
to clear a passage way for pedestrians
to pass by. Surmises and opinions
were being freely exchanged by the
crowd, but the sum and substance
seemed to be that the Bank of Com
merce had adopted the only course
left to it.
President Nichols gives the following
explanations:
''Unprecedented run on the bank
for the past six weeks and the inn
poSs lity or realizing with sufficient
rapiduy on the assets, and after con-
sulting with the vice-presidents of the
Clearing HCuss and submitting a state
ment to them, We deemed it advisable,
in order to protect the interests of
depositOrs so that they might be paid
in full in a short while, as well as the
stock holders, to take this step of
liquidating-a step which none feel
more than we do"
The bank owes depositors between
100000 and 100000, while the assets
of the bank are about 100000. The
bank had quite a long list of small
depositors.
The Bank of Commerce was founded
in 1887, with capital of 100000. The
plan of the institution was to do a
general banking business in such a
way as to furnish accommodation to
all classes of patrons from men of
millions to a wage-earner, and also to
do a collecting business. 1T found a
fruitful field before it and its success
up to this morning had been such as
to Justify the highest hope Of it's
founders.
RUN ON THE PEOPLES BANK.
At 1880 this afternoon there was a
lively run on the Peoples Bank De
positors hocked to the institution and
formed into line before the paying tel
ler's windov. So many people were i'm
line that tit extended clear into the
street. There is considerable excite
ment but no trouble of any kind. The
officials of the Peoples Bank do not
seem to be worried over the run, and
all checks for 500 and under, are be-
ing rapidly cashed.
TWO BOOK KEEPERS ARRESTED.
New Orleans, La, Sept. 11.-Frank
L. Ieefe and Louis Colombo, book
keepers of the Union National Bank
have been arrested by United States
Deputy Marshal. Colombo was not
taken into custody as he was too sick
to leave his home. He is under arrest
at his house Leefe was arraigned and
held in a $4,000 bond for a hearing.
His bond was Immediately signed. He
declined to make statement. The
charge is classifying accounts. Two
sets of books were kept. The defalca-
ton purported to be in the neignbor-
hood of half a million dollars.
THE GOVERNMENT LENDS AID.
Washington, Sept. 11.-The Treasu-
nv department continues to transfer
money to the sub-Treasury at New
Orleans to aid the banks there and in
the neighboring cities in meeting the
extraordinary demands incident to
the recent bank failures. A large pro-
portion of these transfers have been
made by wire, although several large
amounts have been shipped by express.
The aggregate of transfers yesterday
and to-day is approximately S1,500,000.