Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-27
A HEAVY FAILURE.
TWO BANKS IN THE CITY OF DULUTH
SUSPEND PAYMENT.

Stringency in the Money Market Causes ii.
III. Bell to Close Up With Liabilities
That Are Placed at Over 100000.
DULUTH, November 26.-The suspension
of the bank of H. II. Bell was announced
this morning by a bulletin placed on the
door stating that owing to the tightness of
the money market Mr.. Bell was at present
unable to meet the banks obligations,
although every dollar of liabilities would
be met in due time. An assignment of all
Mr.. Bells property to Clinton Markell was
filed early this morning with the Clerk of
Courts for the benefit of all creditors of the
concern. The bulletin further stated that a
full and exact account of the banks assets
and liabilities would be furnished to the
public at the earliest possible cate. W. W.
Bilson, the banks attorney, said:
1.-The failure was occasioned simply by
the fact that the line of discounts and re-
discounts which the bank was carrying
proved to be too large for times of such ex-
treme financial stringency. On account of
this stringency, aggravated perhaps by
misgiyings in moneyeG circles with reference
to the magnitude of his business as COM
pared with his capital, his rediscounts were
suddenly and generally called in and Mr..
Bell found himself unable to care for them.
Mr.. Bell has, 1 suppose, been justly con-
sidered to be worth $500, 900 and this entire
fortune will, so far as necessary, be applied
to cover the shrinkage in his assets that may
follow the fact of his failure. I have no
reason to doubt that all creditors will be
paid in full"
1t has been known among the bankers of
the city for some time that Mr.. Bell was in
financial difficulty on account of the pinch
in the money market, which was perhaps
made doubly stringent owing to the fact
that Mr.. Bell has to largely carry the For
restal Bros. contracts since their failure on
account of being their heaviest bondsman.
The associated banks of Duluth have ad-
vanced Mr.. Bell money several times and
tided him over during the worst pinch. A
considerable amount. OF his loans have been
called in also, but it was impossible, how
ever, for him to get in sufficient funds to
meet his obligations, for cash depositors were
obliged 20 draw heavily on account Of strin-
gency in their own obligations.
AS nearly as could be learned this fore
noon from semi-oficial sources, but not
from authoritative ones, the liabilities OF the
bank are about $715, 900 and assets 500, 900
on short loans. mostly for 90 days; $3.50, 900
rediscounts, $4,000 advanced tor the city
to carry Forrestal Bros, and private prop
erty OF Mr.. Bell, S3OO,OO0 making the total
assets 81, ,30O,O 900.
The West End Bank, of II. H. Bell &
Co., was also closed to-day and all the funds
removed from its vaults to those of the bank
up town early this morning. 1t is not be-
lieved that either the county or city will be
much affected by the assignment, as the
other banks have signifed their willingness
to honor all orders which may be given by
the city or county authorities. The Bell
& Fyster Bank was the only city depository
and also depository of 500, 900 of the St.
Louis county funds. At present the city
has S79, 1865 O6 of funds deposited in the
bank, and the county has $50, 900 to their
credit in their banking accounts with the
same depository. The bank gave bonds to
the county in the sum OF $4,000