Year: 1873

Mur,ors I'm Regard to the Domestic sew
. ynx Machine Company and she Mcs-


camille Bank-lmportant Statements.


A rumor was current yesterday in Wan street
that there mad been defacation IN tue Mercantile
Bank but investigation 1t appeared that the
rumor was without foundation, although the bank
had been oaning large amounts OF money TO the
Domestic Sewing Machine Company, whose paper
has gone to protest.


reporter OF the HERALD called upon gentle
man last night who has made oficial examination
INTO the afairs OF the Domestic Sewing Machine
Company and who requested that his name might
not be mentioned He said his examination yes
terday showed that the company had
surplus OF $l,000,000 over and above their
liabilities and that their present embarrass-
ment was merely owing 10 the extraordinary
stringency OF the money market They would ask
their creditors for an extension OF time. Negota-
tions were also pending for the amalgamation OF
the Domestic Sewing Machine Company with an
other prominent sewing machine company anu
this, it was generally believed, would place the
Domestic in an excellent condition. The amount
of the paper which has gone to protest was not
over ss, 600 or $4,000, and the creditors were so
confident OF the solvency Of the Domestic that
none OF them had instituted proceedings against
the company. The creditors were all willing 10
\ grant an extension OF time and a meeting would
soon be called to receive the statement of the
directors OF the Domestic. The company mad no
operatives, as their machines were manufactured
Tor them by other companies, and their SUSPENSION
WILL therefore, not AFFECT any large BODY OF work
men.


The building OF the Domestic cost $4,000 and
was paid Tor, and the ground rent was something
like $50, 600 year. IL may be Well TO add tnat the
President OF the Domestic, MIR. David Blake, and
the President OF the Mercanule Bank, L. j. Bake,
are brothers.


WHAT TnE MERCANTILE BANK CASHIER SAYS


The reporter OF the HERALD last evening saw
also the cashier OF the Mercantile National Bank IN
which there was reported To be a deacation. This
gentleman was at hrsr reluctant 70 tell anything
concerning theJnatter, but upon The reporter rep
resentiug to HIM that 70 allow the re-
BANK he said tnat there was no truth
whatever in the reports OF the dealcatlon
but that the thing probably originated in the fact
that rhe bank had been affected not in its sovency,
but IN money, by the difficulties OF certain sewing
machine company which had iaied, and which
owed the bank considerable sum OF money The
cashier. after some persuasion said that 5s conf
pany was that OF the Domestic Sewing Machine,
ana that Tor the past three days the notes o. the
company had been allowed TO be protested, so that
literally the company, being unaole 10 meet It's
Obligations, had suspended. In lacf, Z meeting OF
the creditors OF the Domestic sewing Machine
Company had been called, and would be held
in lew days. The manner which the bank
was affected was that they had lent the company
large sum OF money winch fortunately, in the pres
enc iuncture OF AFFAIRS was mainly on good secur-
ity, that when accounts were made out clear the
loss would not be near rs great upon the bank as
would suppose from the sum borrowed. In





would be the loss OF the bank, he said he would not
like 10 make any positive answer, as he could
not tell. The securities given by the Domestic Sew
ing Machine Company consisted in part
of It's own STOCK, but i'll the main of
mercantile paper, which Was supposed 10
be perfectly good, but upon which no certain fig
ures could DC based, as some part OF ii might pos
siby be bad In these uncertain times The stock
would probably not realize much, but the meTcan-
tile paper was as good as ever it was. However
much OF the whole might be lost, the bank was
perfectly solvent, as the surplus OF over 100000
much more than sufficient TO cover any possi-
bic loss.


one OF the directors OF the bank attributed the
fact OF the money having been loaned at
all 70 the over confidence which the President OF
the bank had IN the transactions OF rhe Domestic
Sewing Machine Company. Too much money had
been lent them altogether and upon insufficient
security. Whatever loss had been sustained, he
SAID, could not AFFECT for one moment the financial
solidity OF the bank but more precaution ought to
have been used in the manner that money was
lent TO mercantile firms or companies. He did not
understand how any report OF deialcation should
have got abroad as whatever loss the bank might
sustain partOok in no manner OF the nature Of
a delalcation There was no doubt that the Do
mestic sewing Machine Company, he said
quite lnsolyent.