The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-10
A Heavy Demand by Depositors Upon 1t AS
Well As the Indiana Banking
Company.
Statement of President Lynch and the
. Other Bank Officials.
Report that a Wealthy Syndicate Will Buy
the Bank and Continue Its Business
Views of Other Bankers.

VA WV VI a Guy o ohbhSp
the First National and the Indiana Banking
Company, and SO exaggerated did these become
that for a time very serious results were appre-
hended. 1t became known during the afternoon
that a very heavy demand was being made by
depositors upon these institutions, particularly
tie First National, and sensational stories were
soon ahoat-that IL was about to close it's doors
and suspend payment. But neither did anything
VI Uhe klnu, ana up to the close
OF business hours all demands were
promptly met without question OF demurrer.
This fact restored public confidence somewhat,
and although there was Il steady withdrawal OF
deposits during the day, there was nothing like
an excited "run' as sometimes occurs. The
apparently Northumberland report that a
syndicate of wealthy men, notably W. C. De-
PAW, of New Albany, John Reynolds, of St.
Joseph county, and W. H. English and E. G.
Claypool. of this city, had determined to buy a
controlling interest in the bank aud assume the
management of its affairs, also seemed to allay
the excitement to a marked degree. 1t is known
that for several days past such
negotiations have been pending, and
they may yet result in the sale
indicated, but they are not yet concluded.
The Indiana Barking Company was also in
cluded in the common report, and it, too, was
called upon to pay out a large amount, which it
promptly did.
MR.. LYNcH's STATEMENT.
During the afternoon Mr.. A. d. Lynch, presi-
dent of the First National, stated to a Journal
reporter that there was no reason for such an
excited state of affairs, as the bank was paying
all demands, and did not propose TO be forced
into a voluntary suspension unless compelled to
by a combination of circumstances, which he
did not anticipate. He said that for two OF
three months past there had been
a very unusual and unprecedented demand upon
the banks deposits. This did not come alone
from the city, but the country banks, who kept
their reserve funds at the First National, and
whose depositOrs had urgent need for their
money. The withdrawal Of about $500, 600 of
the States funds by State Treasurer Cooper had
also greatly decreased the balance on hand. and
should there continue a steady demand without
relief, the bank would be compelled to go into
voluntary liquidation until it's assets could be
converted into cash. These, Mr.. Lynch said,
were ample to pay every creditor dollar for dol
lar. There was no doubt of that, but 1t would
take time. The bank had not been
losing money by speculation or
bad Investments. and it was not insolvent
by any means. He stated, further, that a move
ment was on foot to sell a controlling interest
to a syndicate, but he could not consistently give
the terms or conditions of the proposed sale
until IL was contaminated. During the day
several of the heaviest depOsItors had come to
him and stated that they would not withdraw
their deposits, and would afford whatever aid
they could, afact that gave him considerable
encouragement.
WHAT MESsRs. DEPAUw N ENGLISH SAY.
Messrs. English, DePauw, ClaypoOl, and the
officers and several of the stockholders of the
bank held a lengthy consultation in Mr.. Lynch's
office last evening. At It's conclusion, a
Journal reporter sent a card up to Mr..
DePauw, at the Denison House, and was invited
up to his room. Mr., English was there at the
time, and both gentlemen talked freely about
the banks affairs, but were reticent regarding
their own actions and intentions. MIR. DePauw
said there was absolutely no cause for the present
alarm. He was a stakeholder in the bank, and
he knew that 1t was perfectly solvent and could
meet its liabilities, even if it's assets were dis
posed of at a sueriice. OF course the First Ma
tional-or probably no other bank-could stand
a protracted run without some preparation for
it, but depositors need not fear that they
would lose their savings, for they would not.
Mr.. English conceded In these views generally,
but said further that he did not own any bank
stock. When questioned regarding the syndj-
cate, of which it was rumored they were lead
ing members, both gentlemen declined to make
any statements further than they thought some
decisive action would be taken at a meeting
which will be held at the bank at 8 o'clock this
morning. Mr.. DePauw said that at the meeting
last night several plans were suggested. either
of which, II adopted, would relieve
the bank or its present embarrassment,
and allow it to continue its business without in
terruption. Great excitement, he said, would
likely result disastrously, and there was no rea-
son for II in the present eXigency. He was not
prepared to state whether or not any effort was
being made to purchase the bank.
THE INDIANA BANKING COMPANY.
The common rumor in the street yesterday
was that the Indiana Banking Company was so
intimately connected with the First National
that il would he vitality affected by
anything that Influenced the affairs of
the latter. The officials of both banks
deny this. Messrs. Duy and Davis, of
the banking company, stated their bank had
nothing to do with the business of the First
National, but was an entirely separate concern.
They had met all demands on yesterday, and
they we're heavy, and anticipated no trouble in
continuing to 40 so. Their affairs were in pretty
much the same shape as those of all the other
banks in the city, and If they were pressed their
wealthy stockholders wOnld gladly com to their
aid. In this connection Mr.. Lynch also stated
that the banking company had no connection
with his bank further than that il owned some of
the capital stock. The banking company have
not asked any favors of them, aud the only
transactions between them had been through
the clearinghouse
TREASURER ~cooPER's STATEMENT.
1t was currently reported on the streets that
State Treasurer Cooper had Withdrawn over
100000 of the States fund from the First Ma
tiODal some weeks ago and had loaned the mon
ey to personal friends who were in
need. MIR. Cooper authorized the Jour-
nal to say that there was not one
word of truth in this story. He also said that
the large amount in question was a special de-
posit, for safe-keeping only, of a portion of the
school fund, for which there wonld be an imme-
date demand. The money was not subject 20
the banks order at all, but was simply in the
vaults for safe Keeping. When Mr.. Cooper's
statement was made known to Mr.. Lynch, he
said it was substantially correct, but that in adj
ditiOn to il, the usual State balance. OF several
bundrad tbnusaud dollars which gtata