The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1884-05-22
A Bank Fails.

VanlS hank, or this city, closed us doors
at 12.3J p. M, and posted the following
on the doors: "Owing to !ne continued
run for several DAYS, we have decided it
wise fo- our depositors and all c?nc armed
to suspend payment for the present"
There is great excitement and 8 large
crowd surrounds the bank. Officers
have ben placed at the doors.
VIM. n. Riddle, president of the
Pennsylvania bang, which was do
ing the largest business of any bank
10 Pittsburg. got up rom q sick bed
this morning having been FRUSTRATED
from hemorrhsge and is now at the
bank. Ths following statement vas
made for the Associated Press. L
have nothing to say in detail now,
but am here TO fscs the music and
do my duty. Owing to unfounded
reports made current by interested
and malicious per IONS, there has
been a run on us for several days,
and our deposits have been decreased
from 100000 to 100000 in five
days. We therefore deemed it vile
to take the action now done. Fur
ther, l have nothing to say except
that 1 am Individually the largest
loser, having the largest deposit
and the largest amount of stock in
the bank" 1t is said rumors were
set afoat by interested parties, that
the Pennsylvania bank and tive
other banks had been allowing oil
brokers to overdraw their accounts,
and the result was the run. One of
the directors of the Pennsylvania
bank says the bank Is entirely sol.
vent and will pay every dollar CT its
debt or deposits. The capital stock
is 100000. A full statement Is
promised this evening.
The Pennsylvania bank yesterday
succeeded in meeting its obligations
at the clearing house, by loan of
100000, made by the Farmers
Deposit National Bank, through
which it cleared. 1t was hoped
matters would be put in shape to-
days and that the bank would be
able to meet its paper when presen-
ted. The result was q disappoint~
ment, and checks OF the Psnnsyl-
vania bank were returned by the
Farmers bank. OF the aggregate
amount of checks thus returned,
the farmers bank oficislS refuse to
make any statement, but as the az
gregate exchanges at the clearing
house were 8 little below this yes>
terday. the total could not have |
been nearly as large as usual in or.
1insry tlmes. The Pennsylvania |
bank had out very large amount
n checks, but for some days past it |
had fallen off greatly.
A meeting of the associated banks
will be held this afternoon to take
measures to sustain all banks, similar
10 the action taken in New York.
VIM. E. Echmertz, president of the
Third National, says he had seen
he balance sheet of the Pennsyl.
7ania bank, and thought they would
)e able to pay al debts, and that it
Vss solvent. Other banks he re-
,arded as strong enough to stand
he crisis.
President Riddle, tonight, made
he following official statement to
he Associated Press: "The board
f directors met this afternoon and
egan an examination in the affairs
f the bank. Their examination
ustifies them and myself in the I
tatemenr that the bank can, as
matters now stand, pay dollar for
ollar on deposits" Mr.. Rid>
lie refused to give any state
nent of liabilities or assets. ]
rom an outside source 1t IVES
earned that the liabilities do not {
xceed S1,5O0.OO0, and that the as
cts will more than cover this. The
My question is time to realize. The
ank is credited with heavy specula-
on, but this is denied. The direct
ause is attributed to rumors grow
1g cut of clearauces on the !
etroleum exchange being taken !
way from the Pennsylvania bank, '
Thich up to a few days ago was the !
Tearing house of the exchange. The :
hange was made several days ago {
nd the business transferred to '
'srmer's Deposit National. This
ave rise to rumors that the bank !
Tas in trouble or likely to be, and a I
IN began. Feeling tonight is I'm. :
asy and it is feared that runs will /
g made on several banks tosmor. t
Nv. :