The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1882-12-08
States aalI sII4s5 ,sas ssa5 0es lsO sll.s7O.7l5

Three National banks have been placed in
the hands of receivers during the year ended
November ], lsss-nameiy; the Mechanics
National Bank of Newark N. j., on November
2, 1851; the Pacific National Bank of Boston.
on May -, 1852, and the First National Bank of
Buffalo. on April g, 1882. The suspension of
the two first named banks was mentioned In
the report of the Comptroller for the year end
ed November ], 1881. and the causes which led
to both of these failures were then fully dis
cussed. The Directors of the Pacific National
Bank of Boston undertook to make good the
impairment of its capital stock in the manner
authorize1 by section 5,20j of the Revised Stat
utes. but rs they failed to do so within the time
fixed by law, a receiver was appointed to take
charge of its affairs. The failure of the First
National Bank of Buffalo was the result of
d dhe U hs oy rs nv ts
Bank Examiner when making his annual eX-
animation. and q receiver was appointed, as
before stated; The affairs OF ten National
year. Since the commencement of the Ma
tiona-bank system ~ banks have been placed
in the hands of receivers and 40 banks have
voluntarily closed their business by the votes
of shareholders owning twO-thirds Of their
stock, under the provisions of sections $40
and 5,22l of the Revised Statutes. OF the
banks so placed in voluntary liquidation by
their stockholders. failed to pay their de
positOrs, and in these cases receivers were
appointed by the Comptroller TO wind up
hands of receivers, 81 have been closed, leav-
Ing 81 still in process of settlement. The loss
to creditors Of National banks which have
been placed I'm the hands of receivers during
nearly twenty years that have elapsed since
the passage of the act of February p, 1863, as
near as can be estimated, including dividends
which will probably be hereafter paid, has
been about $7.O0o,I0l The average annual
loss has been, therefore, about $40, 200 i'm the
business of corporations having an average
capital Of about $450,00000, and which have
been responsible for the safe-keeping of de-
posts in their hands averaging constantly over
300 ,0O0 or about One-twentieth of one per
cent OF annual loss to depositorS.
The time required for liuuidating the affairs
of insoivent banks depends chiefly upon the
case il l. impossible to tell in adyanc, what
questions il may become necessary to refer to
the courts for decision. In many of these
cases no conclusion can be reached until the
matter has been brought before the courts of
last resort. The dockets of the Supreme Courts
of most Of the States. and that of the Supreme
Court of the United States, are crowded, and
when an appeal Is made to these tribunals,
years often eapse before the case can be
reached. Owing, however, to the decision al
ready made, the forms of procedure, under the
laws governing National banks, are better
understood, and in collecting assets, in
allowing offsets and enforcing the liability of
stockholders there Is now no inducement to
protrac. litigat on, either on the part of the
ordinary debtors of the bank or Of the stock
assessed under their liability, as provided in
section 5.15l of the Revised Statutes. In all
cases of failure of National banks there are
many claims prese nted to the receivers, which,
for various reasons, do not appear to be prop
eriy liabilities of the association, and 1t Is
the genuine creditors. that such claims must
be rejected until their merits have been
properly adjudicated by q court of COM
petent jurisdiction.