Year: 1876

Mr. August Belmont, who is of the largest share
holders in the Bank of the State OF New York. in an
questions put him yesterday afternoon by the
representative of the ERAID said 1.-THE failure Of the
Bank of the state of New York is far can under
stand it, due TO losses that have been contracted dur
ing the past twelve months 1t has undoubtedly made
advances warehouse receipts, but cannot see that
any losses could accrue that account The def
cheney has occurred through advances made to ind-
viduas and by overdraits The Vice President, Mr..
Patrick, has, / understand, had iull control Of the
business the bank and has made advances 10 himself
and others with whom he was interested in business
transactions. always believed the bank TO be in n
perfectly solvent condition. and it was only few days
since that wanted TO buy more stock; but the price
asked was more than | cared to give so the bargain
closed, and am glad OF 1t now II seems that
the Bank Examiner, General Megs, investigated tho
affairs Of the bank last week and found that the pos
half the capital. about 81 900, 000 If had been
called upon to advise in the premises think should
have devised, furnished, means TO keep the bank
open, but knew nothing until the collapse cIme and
then 1t entirely too late TO take any steps. am
OF opinion that wrong move on the part OF the
authorities close up this bank The latest statement
and estimate so far can learn, show that the bank
not only pay It's Liabilities but has at least ore half
OF its capital intact The proper mode would have
been either have called upon the stockholders TO
make good the amount TO which the capital had been
impaired else to have caused the capital stock to be
reduced half; Tor II is clearly shown as under
stand the case that there is but loss Of oneha of
the capital stock which will fall alone upon the stock
holders This loss | am informed, has accrued dur
ing the past twelve months, and is way aribua-
Bile transactions arising out OF or results OF the panic
OF 1873.


THE VICE PRESIDENT RESPONSIBLE


have not had time TO make any investigation OF the
the bank, but led TO believe that the Vice
President Mr. Patrick. 10 some extent responsible for
the failure He has am led to believe, made loans to
himself of considerable sums OF money, and has,
besides made overdralts the bank a considerable
amount great deal, TOO has been locked up In the
OF advances to members Of tue grain trade who
have also been allowed to overdraw their accounts
The same is the case in regard to certain firms dealing
In hops With regard to the effect that Will be exercised
by this failure other banks can givo opinion;
but do anticipate any panic, for the reason tEat
be no fear of loss. Such Is the peculiar
condition OF things at the present time that
form any opinion IN regard 10 prospects in
future With an irredeemable currency there
be stability, aud all commercial transactions
simply matter OF guess work. think that until such
time come to resumption OF specie payments
shall still continue to remain in state OF unccr-
tanty there will be revival OF business there will
be confidence In the OF this bank when II is
clearly demonstrated that 1t is IN position to meet
every liability Its creditors, other than the stock
holders, fail any reason Tor the stoppage IL
last year worth So 600 600 and am now only worth
81, 600 600 that ones business but my own II
Is in the case Of the Bank Of the State OF
New York. II pay dollar Tor dollar
TO It's creditors and therefore should have been allowed
go There will be no loss TO other banking insti-
tutions for ali their liabilities up 10 this morning have
been cleared Oh In the Clearing House. 1t is difficult
10 carry any banking business now with profit,
and there is even among the most careful Il certain
amount OF risk be taken, and such is the condition
OF affairs the present time that there Is profit
to be made think the action of the Vice President
OF the Bank of the State of New YORK, Mr.. Patrick
requires explanation, and II is just possible that
the state OF affairs may turn out even worse than has
been shown on the first blush How loss OF a million
OF dollars could have been made In the last twelve
months cannot understand.