St. Landry democrat., 1884-02-09
DOWN WITH THE TIDE.

The Merchants and Mechanics Bank o
Leadvii1e, Colorado, Unable to Stand tn
Pressure of a Determined Run, Closes it
DoOrs-OnIy One Bank Left-Serious Fail
Ures Anticipated.
LEADvTLLE, COL, Jan. so.
Another financial trouble engrosses the
city. AT two o'clock this afternoon the
Merchants and Mechanics Bank, hereto.
fore considered an exceptionally strong in.
stitution, closed its doors, being unable to
withstand run made upon it. The run
was started last evening just before the
bank closed The officials were wholly
taken by surprise, but paid all demands IN
I'll the close of banking hours. The Direc-
tors then held a meeting to decide upon
what course to follow. It was pretty posi-
tive that the run would be continued in the
morning, and the officials well knew that
the bank could not stand it. They endeav-
ored to effect a. loan of 1000 from the First
| National Bank in Denver. The money
was placed in the express office in Denver,
so it is said, but before the train
left the officials changed their minds
and had the gold returned to their
vaults. This morning when the
pank opened for business heavy run was
commenced, which continued until the last
dollar was paid out over the counter The
doors were then closed. The depositors,
who were then clamoring for their money
were informed thaS as soon as the South
Park train arrived from Denver the bank
would open again and pay off all claims.
AS the expected aid from Denver is not
forthcoming it is certain that the bank will
never open.
The bank was differed as follows: Presi-
Sdents L.. M. Smith; Vice-President, j.
Smith; Cashier, S. Ayres. The bank has
been in business four years, It's author.
lzed capital stock was $4,000, which was
subscribed and paid in when the bank
opened its doors. According to the last
annual statement, made a month ago, the
average deposits We're $250.0O0. TWAS said |
TO have surplus fund of $500; undivided |
profits, s., 900; real estate to the value of |
$4,000, and paid average dividends of eigh- |
teen per cent. annually. It is not thought |
that over 100000 were drawn out after the |
run began, and that the unpaid deposits |
now amount to $4,000. This amount the
officials claim the assets of the bank will
fully pay.
The failure of the Merchants and Ne
chanlcs' Bank will have more of a disas.
trous effect upon the business of Leadyi1Ie
than that produced by the collapse of the
49, 81 NdG!oual bank elghG days ago. With |
the Merchants and Mechanics Bank the
largest business institutions carried their
The failure of the First National
was not wholly unannounced, and many of
The business men having been forewarned
withdrew, their deposits and placed
Enem IN the Merchants and Me-
rhanics' before the collapse. They
they Were making GOOD
move, but it proves not to have benefited
mem much. The commercial agencies pre-
tlct a wholesale number of business fall
res IN the immediate future an account of
ne collapse of the Merchants and Mechan-
cs' Bank. 1t is not thought the depositors
n the bank will lose much money. The
oss will fall upon the stockholders, who
compose some of the best known business
nen in the State
There is now only one bank left in Lead.
.liIe, and its strength will be tested to the
INIT to-day, as disastrous run is ex.
,ec{ed 70 be made upon it. 1t is new
'ank, with great wealth at its back, and it !,
thought it will withstand the attacks
made on it by scared creditors, A great
zeal OF money was placed in its vaults this
Venlng and 100000 was started from Dem =
er last evening. !
The history of the banking business in |
,eadYille for the past few years has prob.
ply never before been equaled in any 1
10y In the country. Only two weeks ago
le, city had four banks, and all of them
ere considered in good standing. Two y
lonths previous the Bank of Leadville had :
iiled, but this was considered to be only
le result of bad management. not that the
1slness of. Leadville was in such a de- q
ressed state that any or all of the banks
ere liable to go under ON the slightest :
Iueeze: Two weeks ago the City Bank of
made an assignment. It
as found that the affairs Of this
INK We're perfectly straight and that the n
sposltors were paid dollar for dollar,
ae assignment was made, it is al.
ged, owing to the fact that the bank was
IT paying. Aweel ago came the announces
ent that the First National was in a shaky
ndltlon, and a run then made caused that
stltutlon to go under. The loss Of $40 600 :.
the depositors, the flight of Presidents
sWault, the reported stealings, etc.. are 8
III fresh in the minds of the public. Now
mes the collapse of the Merchants and
echanlcs' Bank. This institution, it was
10 at the time Of the other failures. was
an exceptionally good financial basis. b
q chat there need be no fears that If f
ou lld go under, and it was amply able to q
7eV any run or demands that might be
ade upon it, and SO it was generally con- :,
Tered. The first intimation of break
u on tuesday afternoon Just before the vi
ms closing hour, when a small horde oF III
EDITORS made their appearance at the
NIX and demanded their deposits.
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1 RNnY nN m1TT, D.Tr nj