The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1878-08-08
A BUSTED BANK.
That BEING the Condition in Winch
IWas!in's institution is at
Present.
A 100000 Pun Proves too Much,
and a Closure of the Doors
is TIE Consequence.
A ParaIyz;ng Blow to the Best Inter
ests of Kansas City-The
Other Sufferers.


The announcement, by telegraph, yester- |
day morning, that the Mastin Bank, at |
X ansas City, had suspended, created more |
than an ordinary ripple oil excitement, be- !
ing received with unfeigned surprise by the |
great majority OF the community, as the
general impression was that this Us tuition
was, Ii. G Caesar's wife, above suspicion. 1t
has been for years regarded as an e1cep-
tionally strong bank, and the fact that
smaller institutions throughout the State Of
kansa,. as also hundreds Of individual
firms
THROUGHOUT THIS STATE,
did business there, was a
sufficient guarantee TO prove that IT
was looked upon with confidence. Since the
failure OF the Kansas City First National
Bank. the Nas;in has been looked upon as
the first and best bank in that city, and, in
fact. stood above the First National in the
opinion OF the people, as regarded solidity.
A small amount of the banks paper is held
here in this city, by some few OF our mer-
chants, or rather, drafts Tor small amounts,
in the aggregate not exceeding II 900, ii it
should, possibly, reach that figure.
THE FAILURE OF THIS BANK,
regarded as it was as the strongest in the
western country, and the preceding failure,
but few months sgo, of the First National
Of Kansas City, will have a tendency to
creite feeling of insecurity in the minds
Of the people throughout this State and the
banking institutions of Kansas which have
been dcpositlng and corresponding with
these paper concerns, and the natural con-
sequence will te that LeavenwoIth will be-
come the banking headquarters for the
Western and Southwestern portions OF the
State. as il is now for the Northwest Leav-
enworth is the natural center Tor Kansas
and is now beng recognized As such.
THE CAUSE OF THE FAILURE
The immediate cause oil the failure WIS
the withdra avail OF 5000, 900 from The bank
| by the Stale Treasurer, which, becoming
known created 4 panic, and in two days
some 300, 900 was Withdrawn by depositors
which. altogether, took 500, 900 clear cash
out # The vaults Up TO the very last mo-
ment the bank expected TO arrival OF $3.50
900 from the house Of Donnell, Lawson n
| Co, New York, but it did not arrive, nor
any intimation that they could reasonably
expec. it, and they went under
STATE DEPOSITORY.
The bank was in certain sense State
| depository the State Treasurer usually hav-
all the time. Gates w.s elected with Gov
Phelps, James y. Burnes, formerly Of St
Joseph, now Of Kansas City, Mastin Of
Kansas City, and Britton and SENATOR ID
| ii. Armstrong, Of St. Louis going his bond
Mastin, therefore, had the Use Of 100000
and sometimes more than that, of the
States money. all the time for his bank
The State Treasurer must have had soms
idea the bank was not safe when he with
drew the 100000 of State money, which
withdrawal was the cause Of the panic and
OF the great run.
IT WAS KNOWN.
Some parties belonging most likely to
the class of I-told-you-sos, after the bank
had closed its doors, made known the start.
ling intelligence that they had been pos.
sessed Of the information all along that the
bank was in shaky condition, and If they
had wanted TO they could have told the
whole story week before the bank failed
There is little probability in this, As men
who were heavy depositors in the concern
knew nothing OF ii until the run began, sue.
ceeding the Withdrawal of the State mon
ey.
1T WILL CAUSE TROUBLE.
The failure of the Mastin Bank will be
the cause OF great deal of embarrassment
not only among business men and Others
in Kansas City, but in scores Of towns and
villages in the State Of Kansas, where
smaller banks and private individuals kept
accounts. As an instance of the peculiar
ly bad manner in which such failures as
these affect some depositors, it is necessary
only TO cite one instance, that of a hard
ware merchant in Northwestern Kansas
who sold out some time ago tor $4,000
one half of which he deposited in the Firs,
National of Kansas City and the other
half in the Mastin. When the former in.
stitution closed its doors he very naturally
congratulated himself upon the fact Of
having been wise enough TO deposit $4,000
where it would he safe, and where it rar
no risk of being swallowed up by q
failure. He succeeded in recovering So SOC
from the debris of the First National
which he at once deposited in the Mastin :
all OF which, sll 500, was in at the time o.
the closing of the banks doors, leaving hin
without a dollar. This is only one instanc,
out of 4 thousand. Kansas City will learr
something after while, il disaster car
prove a good preceptor; the people O
Kansas, suffering as they have from sucl
repeated experiences as these, should also
take heed.
The German Bank, OF this city, loses So,
200, having had that amount deposited
there.