The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-07-17
THE FINANCIAL OUTLOOK.
Public Confidence Restored and the
Run on the Banks Stopped.
Further Details of Fletcher & Sharpe's Sus-
pension What the Partners Say
Feeling in Business Circles.

GCGllIlH III OuO1lOpo OlIOlOos II
The failure of the banking house of Fletcher
& Sharpe has not caused that general demorali-
cation of financial matters that was apprehended
on Tuesday morning, and the developments of
yesterday show that public confidence has been
restored to an unexpected degree, and that no
widespread disaster may be expected. The run
which commenced on Fletcher 6 Churchman's
and Ritzengers' banks after the announce
ment Of the suspension, was renewed
at the opening Of business yesterday morning
but it was not long continued All demands
were met promptly, and all depositors were paid
in full As on the preceding day, it was mostly
the creditors for small amounts, principally
women, who caused the trouble but the crowd
was not so great and the excitement much less.
By IL o'clock the run was over, and after that
the business resumed its usual aspect. Both Of
the banks had secured large accessions
morning, but they were not needed.
Indeed, balancing Of the books showed
that at Ritzingers' the deposits of Tuesday
ceeded the Withdrawals 81, 400. Messrs Fletcher
& Churchman expected large demands from
country banks who were their correspondents,
and even in this they were agreeably disappoint-
ed, as only one bank asked for settlement of
their account, which was promptly given them.
Yesterday afternoon, after the excitement had
died out, many of the creditors of both these
concerns who had drawn out their
money, came back and re-deposit
ed it At the Indianapolis National
4bnJ
President Haughey was in receipt of numerous
offers of assistance from Eastern financiers and
many heavy deposits were made with him by
local capitalists In response to circular letters
sent out to his country correspondents on Tues
day morning, favorable responses were received
to the effect that they would draw out nothing
at present. and few saying that they wanted
only what was needed for the transaction of their
routine business The managementof this bank
has always been conservative to the extreme of
caution and to-day stands, as it always has de-
servedly Stood second to none, and sound as
gold dollar. No contingency can affect its
credit. At all the other banks In the
city there was not a murner of discomfort or
anxiety among depositors, and their deposits
and Withdrawals varied but slightly from those
of ordinary days.
THE FLETCHER SHARPE SUSPENSION.
From the best information that can be OBJ
tanned the causes that led to the suspension of
Fletcher & Sharpe seem to be about as follows;
The bank had been embarrassed, to a greater
or less extent since the panic of 1873,
on account of being compelled to take
real estate for money loaned out.
BY judicious management the necessity for sus-
pension was avoided, with the hope that ulti-
mately they would be able to get their affairs on
a sound basis. The eloseness of the money
market caused many unexpected demands to be
made upon them. For week or ten days from
$50 900 to $50 900 has been drawn out daily with
out a corresponding increase in the deposits.
AS a temporary expedient it was suggested
that they increase their indebted
ness to WinsIow, Lanier & Co., whom they
already owed. Mr. W. H, Jones, of that
firm, came here on Sunday, and not only declined
to make the additional loan but insisted upon
further security for that already made. This
Fletcher & Sharpe were unable to give. A con.
ference of the partners was called and the mat
ter discussed at length. It was finally decided
that it was injudicious and dishonorable to in
crease their indebtedness further, without any
promised, and that the interests of
all the creditors demanded that an
immediate suspension of the business should
be made This decision was arrived at
definitely announced that the $75, 900
loan would not be continued without
additional security, and the doors we're closed.
No aid was asked from the other banks As Mr..
Ingram Fletcher expressed it, They could not
have afforded to loan us money at this time, and
even if they had advanced us even large
amount, it would only have postponed the crisis,
which seemed to us to be inevitable"
WHAT THE PARTNERS SAY
In interviews, yesterday, Mr.. Fletcher denied
the current rumors that the bank had invested
largely in either margins or grain transactions,
or mining stock. He said that the indebted
ness on the bank building had been generally
overestimated Itreally was $135, 900, and the
interest had always been promptly met, and not
defaulted, as reported. The gross receipts of the
building were over $25, 900, and it yielded net
income of about $4,000 He expressed the ut
most confidence that the assets would be more
than enough to pay all obligations in full
Mr.. Albert E. Fletcher said that the whole
matter had been carefully considered before a.
suspension was decided upon. The firm had not
asked for aid from the other capitalists Of the
city for the reason that their experience had
tuught them that every bank in this city must
rely upon its own resources He said that he
and his partners had turned over all their prop
erty, both personal ana real Tor the benefit Of
their creditors, and on this there was not one
cent of incumbrance Their respective wives had
Joined with them in this, even in turning over
property which rightfully belonged to them
alone The bank had met all its obligations
promptly up to Tuesday, and had not defaulted in
the interest on the mortgage on the building.
For himself and the others, he said they would
be amply satisfied if the depositors were paid in
full, even if they were left paupers
WHAT RECEIVER WALLACE SAYS
Mr.. William Wallace, the receiver of
the bank, was busy all day yester-
day in Strengthening out its affairs.
He said that definite statement Of the assets
and liabilities could not be given before Satur-
day, and probably not this week. APPROX
mately, they were as reported on Tuesday. AS