Evening star., 1916-05-07


On the 4th Of May. 1855. the Mer-
chants National Bank, at the corner of
7th and D streets,
National Bank suspended. According
Sd to The Star of that
o"ePeAue' day large crowd
gathered during the morning at the
bank. the doors of which were opened,
though no business was being trans
acted. The Star said further:
There is due from the bank to the
Treasury Of the United States less than
$4,000. but there were several disburs-
ing officers and agents of the govern
ment who deposited the public funds
intrusted to them In the institution to
the amount, probably. of 100000. The
securities in the Treasury will be ap
piled. as far as they will go, to the
liquidation of all indebtedness to the
Treasury and the government officers
and agents. The immediate cause of the
suspension is said to have been the
failure of Baltimore concern. L. B.
Bayne of Baltimore. one Of the heaviest
stockholders. within a short time has
obtained $760.00o 'on CALL He first
got $150,000 to keep himself afloat be-
fore the directors knew of it, and. aft
erward calling for more. the directors.
to save themselves-as they thought he
would weather the storm-allowe him
to draw further and honored his drafts,
at the same time assuring the bank that
he would send down his collaterals. and
that they would be sufficient to secure
them. Yesterday check for something
over 100000. government funds. was
presented, which could not be met. Last
evening a committee Of the presidents of
the national banks here went to Balti-
more to examine Bayne's collaterals,
and this morning telegram was re-
ceived from them to the effect that the
collaterals- held by Bayne were not re-
garded as sufficient"
The Star the next day stated that the
affairs of the suspended bank were
turning out to be worse than at first
thought. The liabilities were estimat-
ed at over 100000. and the availa BILE
assets at less than 100000.
With reference to the suspension OF
the Merchants National Bank, consid
Grafton was given in the
Reforms local press to the subject
of the national banking
Neeueo. system. which was serious
ly brought under question by this fail
ure. The Star of May I. 1855, said:
while recent events show that there
are serious imperfections in the details
of the present system. yet 1t must be
acknowledged that the plan itself has
many and great advantages in equaliz-
ing the circulation. securing notehold-
ers. etc. No system. however perfect.
will afford protection against fraud.
Depositors must look to the character
and standing of the officers and agents
of national banks as they would in
other cases. Even the opponents of the
present system must grant that 1T is
much better than unrestricted banking,
without rule or limitation. the evils
of which have been felt heretofore. AS
it is. prompt and efficient legislation.
with a view to the remedy of existing
defects in the banking law. will he
necessary to restore puoiic commence.
and we presume that the government
in the meantime will take steps to
guard against the abuses which result
from allowing its officers and agents
to deposit public money to any con-
siderable amount in such institutions
as they may. for reasons satisfactory
to themselves, select for the purpose"
After the civil war had closed Wash
trial setback as Industries
Surplus of stimulated by and incl
dental to the conflict sus-
ooA' pended and negro refu-
gees continued to come here as to
mecca. Labor was consequently over
abundant and every possible oppor-
tunity for work was greedily seized.
An item in The Star of May 6. 1885, at
tests to this condition:
This morning the work OF excaVat-
ing the eastern section of the canal
was commenced. under the direction Of
the contractor, Mr.. P. FarQuhar. The
first thing done was to throw up
dam just south Of the mouth OF the
Tiber which enters the canal at Sd
street, and simultaneously number of
hands at other places along the line
commenced to work. The fact that
great numbers of people are out of em-
pIoyment at this time was shown by
the crowds of men, white and black, on
the ground in quest of work from the
contractor. A large number of contra
bands were present. and at one time
tot, tor od