The Red Cloud chief., 1884-02-08
DOWN WITH THE TIDE.

DOWN WITH THE TIDE.
Ths Merchants and Mechanics' Bank O.
Pressure of . Determined Run, Closes n,
DoOrSOnly One Bank eft-Serious Fail >,
urea Anticipated.
L~EADvTLLE, Col, Jan. 80.
Another financial trouble engrosses n.
city. At two o'clock this afternoon tbs
Merchants and Mechanics Bank. beretn !
fore considered an exceptionally strong in.
stitution, closed its doors, being unable r.
withstand q run made upon it. The IN,
was started last evening Just before tbs
bank closed. The officials were whole
taken by surprise, 0ut paid all demands m.
til the close of banking hours. The Direc,
tors then held q meeting to decide upot
what course to follow. 1t was pretty posi-.
tive that the run would be continued in tbe
morning, and the officials well knew thai
the bank could not stand it. They endeav.
ored to effect aloan of $50. 600 FRONT the FRS,
National Bank in Denver. The monev
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 10 thea
vaults. This morning when the
bank opened for business a heavy run was
commenced, which continued until the las,
dollar was paid put over the counter. The
doors were then closed. The depos:tors.
who were then clamoring for their money
were informed that 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 MOI
forthcoming it is certain that the bank will
never open.
The bank was differed as follows: Presi.
dent, l.. NJ. Smith; Vice-President. !
Smith; Cashier, $. Ayres. The bank has
been in business four years. Its author.
lied capital stock was $4,000, which WIS
subscribed and paid in when the bank
opened its DOORS. According To the last
annual statement, made a month ago, thu.
average deposits weIe 250.0OO TWAS saiA
to rave a surplus u N of 800; undivided
profits, 5000; real estate to the value OF
81 1000, and paid average dividends OF eiSh.
teen per cent. annually. IL Is not thought
that over SlO0, 900 were drawn out after the
run began, and that the unpaid deposits >
now amount to $l50,0OJ. This amount the
officials claim the assets of the bank will
fully pay.
The failure of the Merchants and Me-
chanics' Bank will have more of a disas4
trous effect upon the business OF Leadville
than that produced by the collapse of the
First National Bank eight days ago. With
the Merchants and Mechanics Bank the
largest business institutions carried their
deposits. The failure OF the First National
was not wholly -unannounced, and many of
the business men having been forewarned
withdrew, their deposits and placed
them in the Merchants and Ma~,
before the collapse. They
supposed they were making a good
but it proves not to have benefited
them much. The commercial agencies pre-
dict q Wholesale number of business fail
ures in the immediate future an account of
the collapse of the Merchants and Mechan-
ics' Bank. 1t is not thought the depositors
IN the bank will lose much money. The
loss will fall upon the stockholders, who ,
compose some Of the hest known business
men in the State.
There is now only one bank left in Lead.
Vile, and its strength will be tested to the
limit to-day, as a disastrous run is ex-
pected to be made upon it. 1t is a new
bank, with great wealth at its back, and it
is thought it will Withstand the attacks
made on it by scared creditors. A great
deal of money was placed in its vaults this
evening and $1,000 was started from Dem
yer last evening.
The history Of the banking business in
Leadville for the past few years has prob
ably never before been equaled in any
city in the country. Only two weeks ago
The city q four banks, and all of them
were considered in good standing. Two
months previous the m of Leadville had
failed, but this was considered to be only
the result OF bad management, not that the
of Leadville was in such a de-
state that any or all of the banks
were liable to go under on the slightest
Two weeks ago the City Bank Of
Leadville made an assignment. 1t
found that the affairs of this |
bank were perfectly straight and that the
1epositors were paid dollar for dollar
The assignment was made, it is al
owing to the fact that the bank was
not paying. Aweek ago came the announce
ment that the First National was in a shaky
condition, and q run then made caused that
to go under. The loss of $4,000
% the depositors, the fight of President
the reported stealings, ETC., are
till fresh in the minds of the public. Now
.omes the collapse of the Merchants and
Mechanics Bank. This ins sitution, it was
aid at the time Of the other failures, was
IN an exceptionally good financial basis.
that there need be no fears that it l
would go under, and it was amply able to !
meet any run or demands that might be
upon it, and so it was generally con-
'idered. b first intimation of q break
vas on Tuesday afternoon Just before the
banks closing hour, when a small horde OF
made their appearance at tho |
oank and demanded their deposits.