The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-11
Fears of a General Panic Averted by
Prompt Action of Capitalists.
The Affairs of the Banking Company Still
Unsettled-The Newly-Organized Syndi-
cate, and What 1t Proposes to Do.

far-reachtng financial panic that ever impaired
the prosperity of this city and the State was
%averted, temporarily at least, yesterday by the
intercession of a few leading capitalists for the
purpose of relieving the embarrassment of the
First National Bank, and by the subsequent re-
newal of public confidence to a marked degree.
1t may possibly be u fact that the depressing
condition of financial affairs was the result of a
deep-laid scheme for personal profit which prom
Uses at this time to be eminently successful; but
however this may be, it is certain that business
the very gravest apprehensions. Late
on Thursday night 1t became evident
that unless speedy relief was afforded before
business hours yesterday the First National
Bank and the Indiana Banking Company wOuld
be compelled to suspend payment. The knowl-
edge of this fact created much alarm, for. with
the absolute suspension of these banks, heavy
runs and consequent failures on the part of
others might reasonably have been expected.
One thing alone prevented this alarm from de-
veloping into "a mad, unreasonable panic, and
that was that it was known that a syndicate of
heavy capitalists were considering various
plans for the relief of the First Ma
tional, and that in all probability some
decisive action would be speedily taken.
The meeting of the directors was looked forward
to with the greatest anxiety, for relief could
come through their action alone.
THE CROWD AND COMMENTS.
AS early as 7 o'clock in the morning a crowd
began to congreaate about the First National
Bank, and by 8 o'clock probably 1000 were
there. A large posse Of police we're present, and
kept the people in order, although there were no
indications of disorder or riotOus proceedings.
There was very great excitement, but it was
quiet. On the front door of the bank was the
simple announcement that the directors
were then i'll consultation over the
situation, aud there seemed to be con-
siderable comfort In this simple statement. The
doors of the banking company were locked, and
there was no announcement or indication of the
intentions of the officers, further than that they
were seen through the windows to be in close
consultation, and the clerks were very busy. In
the crowd were many anxious faces, and one or
two depositors who were badly stampeded
offered to sell their certificates at a discount-in
one case as much as 25 per cent. These offers
were eagerly accepted by cooler-headed people,
but If any sales of the kind we're made they
were private. The news that the two banks
had not opened for business soon became gener-
ally known about the city, and tho crowd
on Washington street received large accessions
OF people who were impelled by curiosity alone.
The presence of Mr.. English in and about the
bank was received as an indication that affairs
were more favorable. and there is lutte doubt
that it served to allay the excitement to a con.
siderable extent.
THE DIRECTORS MEETING.
The directors of the bank met in President
Lynch's office at s o'clock in the morning, and
continued in session throughout the day. A ma
jority of the stockholders were also present, to-
gether with Messrs. English, DePauw and Clay
pool. A resolution was adopted to
increase the capital stock from 100000 to
100000. provided q syndicate headed by
Messrs. English and DePauw would take the
management and a controlling interest in the
stock. A paper was drawn up to this effect and
signed by all the stockholders present, and a
committee was appointed to get the written
consent of the remainder. The stock is to be
raised in the following manner: Each stock
holder shall have the alternative Of either doub-
ling the amount of his investment or selling his
stock out at fifty cents on the dollar, the pur-
chaser to make tine required increase; and
said, will be the syndicate, who
will also put in enough more money
that the capital stock may be still further in
creased to 81 100000, and a leading banker yes
terday told a journal reporter that when the
First National was reOrganized, which will be in
n few days, Mr.. English was to be the president.
1t is also understood that but one thing standsi in
the way Of the perfection of this plan, and that
is that f. A. ". Davis, of the Banking Company.
who holds about $10O. 900 of the First National
stock, cannot double it and refuses to sell. 1t is
pTODdUltt AOW0ftft ludb bULut dkTaugtlDtub Will
be effected that will satisfy Mr.. Davis and his
bank.
OTHER OFFICIAL ACTION TAKEN.
A meeting of the clearinghouse Association
was also held, yesterday morning, at which it
was resolved to furnish the First National
enough money to relieve them OF their present
embarrassment, If the De Pauw-English syndi-
cate assumed the management, and until they
could receive other aid from the East and real
ize upon :heir assets. Mfr. Davis, of the Indiana
Banking Company, stated to the Association
that if he could dispose OF their stock in the
First National, and get what the
to resume business. The bank, he said,
had plenty of assets to pay all
their depositOrs, but could not stand a rush.
The association took no action regarding the
Banking Company, but the belief was quite
freely expressed that it would get through all
right.
An informal meeting of nearly all the other
bankers of the city was also held, at whichit was
agreed to furnish the First National as much
assistance as possible under the new manage
meut. When all these things became known on
the streets they greatly relieved the prevalent
anxiety and served TO restore public confidence.
Depositors no longer expressed Il desire to dis
pose of their certificates at a discount and bet
ter feeling prevailed generally.
FIRST NATIONAL OPENS IT'S DOORS.
By 2 o'clock the crowd about the banks had
partially dispersed, probably not more than two
or three hundred remaining. At 3:45 o'clock
Mr.. English appeared at the door of the First
National and announced that the bank was
ready to resume operations, and that if there
were any depositors in front needed their
money, they could have 1t. This announcement
was received with cheers. and the bank, for an
hour or more, did a thriving bust
ness. The small depositors were most
anxious, and fifty or more OF these
were paid in full, while q number received
enough money to satisfy their pressing needs.
The heavy depOsitors did not make any demands
whatever. and in fact a number of them made
their usual deposits. Captain WATSON, of Drew
e. WATSON, deposited 81 500, and several others
equally large amounts. But the mere fact chat
the bank had opened its doors and was paying
depOsitors, even partially, was sufficient for the
purpose ATTENDED, and almost everybody ap-
Iaarnd tn he aatisAad Mr. English- cir.