Banker Charged in Fraud Scandal
The former cashier of the wrecked Merchants' National Bank is accused of selling worthless drafts to unsuspecting customers.
The story, cleaned up
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Ex-Cashier Samuel Colyer of the defunct Merchants' National Bank has been indicted by the county grand jury for obtaining money under false pretenses. The specific charge alleges that Colyer sold George Bott a worthless draft on the Chase National Bank of New York for $500.70, knowing that the draft would not be honored. Officials claim that the bank owed significant sums to Chase and was using incoming funds to cover its own debts rather than honoring customer requests. Colyer was released on $1,000 bond pending arraignment.
“The draft upon which ex-Cashier Colyer was indicted was sold in good faith, but the Chase National bank refused to honor it.”
The collapse of the Merchants' National Bank and the subsequent indictment of its officers provides a window into the financial fragility of the 1890s, when personal savings could evaporate overnight due to internal banking malfeasance. It mirrors modern public distrust in banking institutions during financial downturns.
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