The sun., 1901-06-29
BANK FAILURE A BAD ONE.
THINGS NOT LOOKING ANY BETTE1
FOR THE SEVENTH NATIONAL.
Question Of Preferred Creditor Mar
haitian Hospital Money lavolvsd-rws
Banks Msks Overtuyes to Take Business
and wind II Vp-Outlook for DSpesitoru.


haitian Hospital Money lavolvsd-rws
Banks Msks Overtuyes to Take Business
and wind II Up-Outiook for Dspssiters.
Very little information was obtainabls
yesterday In regard TO the actual condition
Of the Seventh National Bank. Bank Ex-
aminer Raynor continued at work on the
books. but he had nothing to say as to the
result OF his investigation Former Presi-
dent Kimball was at the bank in the morning.
but left at noon and did not again return.
Ne opportunity was had to ask him
concerning the 100000 check transac-
ton with Marauand Il Go. through the Ma
tlonal Park Bank. which refused to accept
the Seventh Nationals certlhcation without
good collateral
Concerning this same transaction William
Nelson Cromwell. special counsel for the
Seventh National. had nothing to say. He
was engaged by the Thomas interests and
he Is not trying to explain any OF the acts
Of the former management. He and Presi-
dent Thomas had conference In Mr. Crom-
wells ofYice at, noon. When Mr.. Thomas
came out he said that he might make a state
ment later in the day. but he didn't. MI.
Cromwell said that no statement would be
issued by the bank until the investiRation
Of its anairs had been completed.
Before We say anything more. he added.
we want to know exactly where we are.
In Wall street that another bank had made
overturss to the seventh National. with
view to taking over its business ana w'hding
Two banks have made overturss Of that
kind but that Ii All can say.
AZ wasno, generally Yehey.d II wall Street
undertaking this job. The opinion among
mon whose Judgment 10 worthy OF considera.
ton In such matters L. that tho failure will
prove q bad one when all the kinks have been
untangled, and that any bank which starts
IN to carry the Seventies burdens will get
w Wall Street dbout convinced itself yester-
day that no more pational banks would be
involved by the present crisis The Ninth
National. which had been looked upon With
some suspicion because two Of its directors
wero also directors OF the Seventh National.
showed up 90 we'll at the Clearing House that
doubts as 10 It's condition vanished Frede-
rick d Tappen. President Of the Galiatin
ieuss eone comm,,ss S "%o said ssterdsy that the
corhition Of the Ninth National wns excellent
'Thev had n credit balance at the Clearing
House this morning he said. and they WIZ
have a bigger one tomorrow. There Is
absolutely no occasion for apprehension
"" Has tho Clearing House committee made
an examination N the bank" he was asked
1T has not" he replied There was no
reason for 80 doing We learned. however.
that the bank had made but one loan OF
soO.0oJ TO Marquand Co.. and that TINS
The Post ONCE cleared yesterday through
the Sub-Troasury. No INSTRUCTIONS have
been received there from Wasn.n a s'2n },ra a. 10
the future depositorv OF Post once iunus
One Of the depostors In the seventh Ma
tional &as the Manhattan state Hospital
OF which former President kimball = ne
attorney for the hospital said YESTERDAY
that the hospital had about $40 900 on deposit.
but that it was protected by the deposit Win
the State Comptroller Of bonds In tnitt
Federal regulations were the same Mr;
Austin also said thnt tho Seventh Nqtlonal
balls election As President. -,
Whether the depositors in the bank VIII
get their money ont dollar for dollar may
depend upon whether tho loan OF seSa 600
made by Edward X. Thomas l'7t Tuesday
will be permitted TO stand as preferred
| credit On this point bank oihc'al said
The National Bank Inv say. that when
| a bank fails there shall b" no preferred crodi-
tors. and yet when this Institution ion. was ISL, IN
mittes refused to come TO Its assistance.
+. r. Thomas advanced nearly $1,000 600.
taking his pick Of the banks collateral {,
well be asked il Mr.. Thomas will be- paid
in fun for this loan and then the depositor.
paid pro rata or, whether the whole amount
| with all creditors alike
| STATE Bank EIaplner Albert & Judson
| on, stcd yesterday his statement that he was
| sntisned that the North American Trust Com
| many was all right. IL was intimntcd In some
| Nall Street quarters that talk adverse e. this
| trust company might have been "fathered
| nv certain banks which do not approve OF the
| methods adopted by the company to draw
| away from them The deposits OF out-of-town
| banking correspondents. The trust com
| rnny about n month ago sent out circulars
| 10 country banks asking for their deposits
| and. a. an inducement, stating that interest
| would be credited upon such deposits az the
| average market rate for call money less
| per cent This circular IA said 70 have drawn
avav n good many country bank deposits
from the local banks ard correspondingly
1 Increased the deposits OF the North American
T,ist Company Many Of the banks allow
IA, or per cent. interest upon their country
bank balances. hut they criticise severely
the plan Of the trust company asserting that
| At tho trust companys onice Yesterday
Col, Hcman Dowd. Nice-Presdcnt. said that u
I was true such a circular had been scnt out,
| and thnt Il had resulted very satisfactorily
| II was merely adopting In this country, he
stated, a method followed in Europe where
| interest il allowed at per cont below ".
| bank rate, lie thought that the interest
| 20 be allowed would average all tho year
| round about per cent. .,
| II was reported ll't night that George II
| johnson would he appointed receiver OF the
| Seventh National Tlcrc was also rumoI
! in the hotels uptown tlat TIC toyernmcn
| funds In the bank Amounted 70 $4,000 IN
! stead OF si75.ooo "a tirst reported Ihe.bond
I which the bank deposited IN was nm ton t'
secure tho Governments deposit OF posta
| funds only amount to s25oOn