The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1873-10-02
What the Bank Officers Told q
Times Reporter.
The Amount Of Currency in
LeayenwOrtb.
One Hundred and Fifty Thou.
sand Dollars Taken From
the Banks This Week.
Certified Cheeks for the Benefit
of Merchants.
"Ceme Again. Currency" is the
Cry.

/; tI
the financia! cris;. in New York. For
time il was thought that chr hanks would I
abunt! antiy able 10 meet all the demands {
depo.itors, ba. owing 10 the suspension
the
KANSAS CITY BANKS,
and the general feeling OF unessine-s pre-
ducei in consequence, the bankers though
it beat TO hold meeting and consider th
best pl1n OF action. When the meeting wa
in session, late night before last, dispatche
were received from New York, 81. Louis an
Chicago, saying tha. the banks in those cite
holding currency balances due Leavenwortl
bankers could not meet drafts for currency
In view, therefore, of the difficulties in tn
way Of obtaining funds-the impossibili,y il
fact, Of getting currency-the bankers agreed
as a measure Of protection to themselves ant
their depositors to decline the
PAYMENT OF CHECKS
until the banks of the East could make theil
settlements, and pay their Western CORE
sponden,s. An agreement was prepared and
all the banks of the city save the First Ma
tional ard Scott & Co., signed, and agreed
to publication Of the announcement.
CONTRARY TO EXPECTATION,
the First National did not open lis doors al
tie usual opening hours yesterday, and il
soon became known that Scott & Co. would
need its available currency TO meet their
demands, az the down town branch Of the
First National had resolved to keep "open
house." and pay checks to those who had
open accounts with the bank. Checks upon
other banking houses were not paid by
SCOTT & co.
during the day, and VIC understand tia, cur
rency was no: given in exchange for certifi
Gates of deposit. However, as convenience
to depositors OF the commercial classes,
they resolved I, "chance the crisis, and
Mr.. Cunningham, the teller OF the bank,
SAYS The institution is amply able to meet
all demands. Mr.. Lucien Scott ia now in
New York, and keeping his firms here adj
vised Of financial transactions in the great
money center. Ahou; noo0 our reporter
c,lied a: the
SECOND NATIONAL BANK,
and ate: exchanging the usual salula.ions,
made known the object of hi' mission to Mr..
". p. EorIand, cashier, and Mr.. Sam Stone,
teller.
NJ. z. stated, in response 10 inquiries,
that the action Of the banks in sn-pensiin2
payment vas rendered absolutely necessary.
b,cau-e of ii,e panic sni confusion in New
York.
Rcpo-ter--Hgw long vii! the banks re-
main cloaed ?
sMs. Borlsni-Tbai depends wholly upon
the time required by New York banks TO
make their settlements. i think We will be
able 10 resume payment within two weeks.
Reporter understand, Mr.. Eorland,
tina. the hanks take this action ss measure
of protection to their Gepositors?
Mr.. Borland-Yes, sir, as a precautionary
measure. There ia not currency enough to
meet the demands of depos:tors in the event
of run. We cannot obtain OR balspces
from Eastern banks, aud already we have the
information that New York houses have in
structed firms ia this city to remit currency
by express instead of bdying drafts. That is
draining the city Of currency. We would
only pay it ont 10 have it sent elsewhere.
Rsporter-Do the banks contemplate an
arrangement :or the payment of small checks
to prevent hardship among the poore. de-
posi.ors
Mr.. Borland-I believe srch az arrange
ment should be made. ana 49, - banks
generally would favor il.
Reporter-Your bank il government
is i, not ,
Mr.. Borland.-Ii is, but the deposits of
the government are amply secured ty [. S.
bonds.
HINES { EAvEs
Oar reporter called on Mr.. Hines, at the
Savings Bank, and made known
the object of his visit. Mr.. Hines said he
had been answering questions all day, and
had confidence in his ability TO Withstand
lew more interrogatories.
Rspor;er-Is there much alarm among
iepositors, Hr. Hines, in the consequence oil
the suspension?
Mr.. H.-Not mach alarm. You zee, We
keep our doors open according to agreement
in the meeting last night, and give TO our
creditors all the information. Our larger
lepositors exhibit the least apprehension, be-
cause they comprehend the necessity of our
action. Among them are many women, and
.hey seem to be most concerned. i suppose
have explained to sixty or seventy persons
o-day the cause of the action.
Reporter-Do yol think, Mr.. Hines, tie
German Savings Bank will be able to ,e-
open according TO the terms of the contrac:?
Mr.. HI do not see how they can re.
open until the banks of New York, St. Louis
md Chicago are able TO get currency. They
have been making collections since they
,lo.ed, and probably are now as well fixed
Tor currency NJ any bank in the city.
Repor,er-Mr. Hines, can you give me
.nyfhing like an estimate OF the currency
held in the aggregate by all the banks 81 the
,ity?
Mr.. HI can only gness. shnnli say
he. there is S2j0, GOO 10 bank vaults to-day.
There has probably been drawn out since
asst Tuesday shout $4,000.
Repor,er-What are tue aggregate depos-
Is?
Mr.. HI cannot tell. have no means
f knowing.
Reporter-If you we're to make a guess,
That vonlj you say?
Mr.. HI would cav that the deposits in |
he banks of the city, all told, amour, 10
ne million dollars.
Reporter-Are the securities held BY the /
iffsrent hanks equal in value to that
mount?
Mr.. H.-Yes, that amount IL amply se
ured. A bank thst hss on hand currency
quail to 25 per cent. Of its deposits, is
eckoned ss doing q healthfrl end
erfecily legitimate banking business.
Repor;er--whefe - the currency, Mr..
lines?
Mr.. HI, il held ~ New York, ST.
.ouis and C6icsso banks. Weannot get
Reporter-Have the country banks de.
ositing with you. applied for their currency
alauces e:nce the panic commenced? =
Mr. H-Some have applied. Their bal.
noes At this season Of the year are generally
ght.
Reporter Do you think the banks through.
ut the State will adopt the course the Leav-
nworth banka have adopted! -
Mr.. HI think they will Be obliged to.
his Temporary suspension i . maeore Of