The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-11
A NEW ORLEANS BANK FAILS.
The Mutual National In the Hands
of An Examiner.

or An Examiner.
New Orleans, Sept 1O.-The Mutual Ma
tional Bank closed it's doors this morning.
The effect of this banks suspension has
been discounted, as 1t was we'll known to
be in bad way. Shortly after the Amer
lean National Bank failed, a run was
made on the Mutual, and the collapse of
the bank at that time appeared inevitable.
Luckily the run was started on Satur-
day, shortly before noon, and Saturday
being a legal half holiday in New Or
leans, providence was on the side of the
sore pressed institution. BY Monday
morning it had a chance to recuperate.
The clearing house held a meeting, and
the other banks Of the city fearing a panic
came to the rescue and advanced money
enough to meet all demands on them
Monday. Large sums of money came here
from various sources of the United States
sub-treasury was paying out the sugar
bounty as fast as possible. Before noon
of that day the run ceased and all was
serene, The president states that a steady
drain has been maintained by depositors
checking out their money.
L
tional Bank Wednesday aroused the sus-
picions of depositors and another rush
was made on the Mutual. The clearing
house banks had on the first occasion ad-
vanced the Mutual 100000, a little more
than s17, 600 of which had been repaid. Last
night the Mutual rendered the clearing
house another lot of colaterals and asked
for further assistance to the extent of $685.
900. This the clearing house refused and
the suspension. of the Mutual followed this
morning. The president says: THE bank
owes depositors 1872. ~, which we have
ample assets to pay dollar for dollar"
President Baldwin of the clearing house
says: 1.-THE officers of the bank foresaw
what was coming and as is customary in
such cases, called on other banks
to come once more to their as
sistanee A bank in distress is
! expected to hypothecate securities of
such kind as will justify other banks in
! lending the assistance. The. securities Of
| fered by the Mutual was not considered
! the proper quality of paper to justify the
! clearing house in making the loan and
the assistance was refused"
! The Mutual National was organized in
1871 with a capital stock of 100000. This
| was reduced in January, 1894, to $20O,0O0. In
| January, 1895, the Mutual absorbed the
Traders bank. Most of the stockholders
| Of the Traders bank became interested in
the Mutual.
AT "a meeting of the celaring house held
| last night the financial situation was earn
estly discussed, and the following resolu-
| ton was adopted Resolved, for the pres
emit. That the clearing house banks should
| not pay on checks more than one hundred
| dollars to any one depositor in one day
| all other payments shall be made by GER
tificates of checks which shall be receiv-
ed on deposit by the clearing house
| banks This step was necessary as
precaution.
Employers of labor will be supplied with
| money to meet their pay roofs.
It was also agreed to adopt a system OF
| clearing house certificates similar to that
utilized in New York and elsewhere dur
ing the crisis of 1893.
The savings banks also took steps to
prevent a run by posting the 6O-day rule.
This is allowed by their charters. A de-
positor must give sixty days notice of
his intention to withdraw his deposit.
There are no new developments in the
case of the Union National. President
Chalaron is bitterly criticised to-day for
his precipitate action in closing the bank
without consulting the directors. He is in
seclusion and will see no one. There are
all sorts of rumors, one to the effect that
two sets OF books was kept by the Union
National-one for the directors and one
for the bank officers, and that there is a
discrepancy between these OF an amount
exceeding $bOO,Ou Bank Examiner Jonn-
son, temporarily in charge Of the Union,
was formerly confidential bookkeeper and
agent for A & V. Meyer, whose failure Sc
riously affected the bank. This fact has
caused much comment To-day another
bank examiner has been ordered here to
take his place, a protest having been wir-
ed TO Controller Eckels against Mr.. john
sons continuance in charge.
Washington, Sept 1o.-Controller Eckels
was to-day informed that the Mutual Ma
tional Bank of New Orleans had failed
At its last report 1t had loans and dis
counts out amounting to SAL, 735; owed in
dividual depositors sSOS 1859; had undivided
profits of $l9, $3.50, and owed other banks
$13. 1856 The banks capital was 100000
Bank Examiner Tucker of Cincinpati has
been ordered to take charge of the bank
HIGH WIND AT PARIS