National Republican., 1883-08-11
T0TTERING BANKS.
The Directors Of the First National Of Indian
apOlis Trying to Double Their Capital.
The Bank Closed and "a Large Crowd
Awaiting Rcsults-Iistory OF the Bank.
Spscidl Dispdich.


NEW YORK, Aug. 10.-Vce President Muir
ray, oc the United States National bank here,
says: 1--WE have not been advised of the clos
ing of the First National bank of Indian-
apolis Tho demand upon them yesterday
must have been sudden, as they have not In
timatgd to us the want of funds. Their bal.
anccs are fairly good with us, and they have
not called upon us for currency This bank
will not be involved in any of their troubles.
Their embarrassment was probably caused by
the sudden withdrawal of the state treas
urGr's funds"
BV Assoctaicd Pros
INDIANAPOLIS, IND, Aug. 10.-Large
crowds gathered around the First National
bank and the Indiana Banking cOmpany's
office an hour before the opening time this
morning. At 9:l5 an announcement was
made that the directors, who had met ut
o'clock were in session, and that the banks
would not open for two or three hours at least.
Several prominent and influential capitalists
were known to be in consultation with the
directors, and this fact did much to allay
anxiety and excitement though nothing was
made public rs to what their plans or hopes,
if they had any, might be. Later n notice
was posted on tho door of the FIRST Ma
tional saying, Tho board of directors
is in session considering what is best to bo
done, but have not yet reached q conclusion"
Late in the afternoon il was announced that
the directors of the First National had adopted
resolution to double the stock of the bank
to $S00,000 instead of 100000 provided the
syndicate headed by Mr.. Depauw and Mr.
English was formed to take tho management
and controlling amount of the stock. A
paper was drawn UP to this effect, which was
signed by all tho directors and stockholders
present, and n committee was appointed to get
the consent of the stockholders not present
As soon as this consent is completed it is un-
derstOod that new and strong parties will
come into the concern who will make 1t one
of the strongest financial institutions in the
country. 1t may take few days to do this
and gather in the required amount of cur
rency, but IL may be done in q few hours.
Other banks also held meetings this morning
and agreed that If the proposed syndicate
was formed they would afford all the assist
ance to the First National that might be re-
quired. IL may be said, therefore, that
while it is unfortunate that the trouble oc-
CURED, there is really no reason for alarm,
and that ultimate good may result from it in
giving the bank increased strength. Very
little information has been obtained as to
what the Indiana Banking company may do,
but it is probable they will be able to reSu me
also in very short time. There has been no
extraordinary demand on any of the other
banks for funds to-day.
The conference between the directors of the
First National bank and the English
Depauw syndicate ended at between and 3
o'clock this afternoon. At 2:50 the
doors Of the bank were thrown open and
W. II. English appeared and invited
the depositors to draw their money. The
crowd outside rushed in but were checked
by policemen, and ladies wero given the
preference. The bank remained open fol. an
hour or more after the closing hour, and all
checks presented were promptly cashed. But
few of the larger depositors drew their,fnoney.
The Indiana Banking company has not re-
sumed.
TIE First National bank of indianapolis,
whose suspension is announced in the
dispatches, was owned by VIM. III. English
and John c. New for many years. About
six years ago Mr.. New bought the English
stock, paying layge premium for it, This
gave him controE of the bank in person
some two years later rumors got out affecting
the iinancigl standing of VIM. II. Morrison
president and principal owner of tho Indiana
Banking company The talk became general
and My Morrison found it necessary to STOP
the tSngue Of gossip. This he did most
ooG6.SSSkrally for the time by buying
1H Mr.. News interest in the First National
paying that gentleman $ls5,000 in cash f,l
his stock, the price paid being $1.65. Thit
coup d'etat enabled him to pull through, and
arrange his affairs to face any storm that
might arise 1t was inside talk at the time
OF the transfer OF Mr., New STOCK that Nor
rison obtained the $4S500O by rcsorting L
extraordinary measures, and predictions were
nude then--tour years age--that both banks
would go under. There was furry in First
National stock, aud several small holder
threw their stock on the market. Itwas picked
up by two or three nervy men and pani
was averted.
Mr.. Morrison, who was reputed to be a tw
millionaire, but whose property was scattere
about in real estate and the like, died about
year ago, and Indiana people in Washington
assume that the failure of the bank is due {
the discovery that the Morrison estate wa
found to be practically insolvent when
came to be wound up