The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1884-02-07

The Merchants and Mechanics Bank or
Leadviile, Colorado, Unable to stand the
Pressure of a Determined Run, Closes its
DOOrs-OnIy One Bank Left-Serlous Fail
ures Anticipated.
LEADvILLE, Col, Jan. 30.
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 a run made upon it. The run
was started last evening just before the
bank closed. The officials wholly
taken by surprise, but paid all demands UNI
til the close of banking hours. The Direc-
tors then held a meeting to decide upon
what course to follow. 1t 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 S5O. 900 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
bank opened for business a 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 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 not
forthcoming it is certain that the bank will
never open.
The bank was officered as follows: Presi-
dent, l.. NJ. Smith; Vice-President, j.
Smith, Cashier, s. AYTes. The bank has
been in business four years. Its author
vnA tai OF MN ysrh1 =
subscribed and paid in when the bank
opened its doors. According to the last
annual statement, made a month ago, the
average deposits wei e $3.50, 900. twas said
to have a surplus fund Of 81 800; undivided
profits, $1,000; real estate TO the value of
| $1,000, and paid average dividends OF eigh-
| teen per cent. annually. 1t Is not Thought
! that over $780, 600 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 Me
! chancs' Bank will have more of a disa s.
! trOus effect upon the business OF Leadville
! than that produced by the collapse of tue
| 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 Me
chanics' before the collapse. They
! supposed they were making a good
move, but it proves not to have benefited
| them much. The commercial agencies pre-
| dict a 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 best known business
| men in the State.
/ iG M 1ty laf n
! 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 new
] bank, with great wealth at its back, and 1t
! 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 100000 was started from Den
The history Of the banking business in
! Leadville for the past few years has prob
| ably never before been equaled in any
! city III the country. Only two weeks ago
/ the city had four banks, and all of them
were considered in good standing. Two
! months previous the Bank of Leadville had
! failed, but this was considered to he only
! the result Of bad management, not thatthe
! business of Leadville was in such a de
| pressed state that any or all of the banks
were liable to 60 under on the slightest
! squeeze. Two weeks ago the City Bank Of
| Leadville made an assignment. 1t
was found that the affairs of this
| bank were perfectly straight and that the
depositors were paid dollar for dollar.
| The assignment was made, it is al
! legged, owing to the fact that the bank was
not paying. A week ago came the announce
ment that the First National was in a shaky
! condition, and run then made caused that
| institution to go under. The loss of $4,000
to the depositOrs, the flight Of President
Dewault, the reported stealings, ETC., are
| still fresh in the minds Of the public. Now
| comes the collapse of the Merchants and
| Mechanics Bank. This institution, IL was
said at the time of the other failures, was
| on exceptionally good financial basis,
! and that there need be no fears that il
would go under, and it was amply able TO
| meet any run or demands that might be
| made upon it, and so it was generally CON
| sideFed. The first intimation of a break
was on Tuesday afternoon just before the
| banks closing hour, when a small horde OF
| creditors made their appearance at the
/ bank and demanded their deposits.