The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-12-18
BANK FAILURES.
Two Prominent Institutions Compelled 10
Close Their Doors.

SPOKANE FALLS. Dec. 1.-THE doors of
the Spokane National Bank, one of the
largest institutions in the city. were closed
this morning. For nearly year it has been
known among bankers that the bank was
in financial straits, and more than once other
banks have helped it out Last Monday
evening Messrs. w. II. Taylor. the Presi-
dent,and Warren Hussey, the cashier, notified
various banking-houses of this city of their
distress and asked for assistance. The Off
GERS of the other banks called meeting
that evening, at which Messrs. Hussey aud
Taylor were invited to be present and make
a showing of the affairs of the bank. The
bankers adjourned with an understanding
that the bank could not open on Tuesday
morning without assistance; that such as
SlStance should be rendered for Tuesday or
until a fuil investigation of affairs could be
made; the showing made at that meeting
was not borne out by an investigation that
was made yesterday. At all events the sum
OF $4,000 was raised by the other banks to
tide over the affair of the Spokane National
until the books could be examined. Last
evening another conference was held, wheI.
it was developed that $4,000 of the $50, 600
was paid out yesterday; that immediate
obligations might be presented at any time
for $4,000 instead of 100000, as at first
understood. Ii then became apparent to the
pdbh bhcio toHlpUSIuB tHt CJultIeuct liidL lie
bank would have TO suspend. The confer
ence adjourned at late hour this morning.
The difficulty was precipitated by the fail
ure OF three branches in the Occur Alene
Mining District, viz: The Bank of Wal
lace, the Bank of Wardner and the Bank of
Murray, said to have been brought about by
failure to realize on securities held by the
bank Tor advances made for the develop
ment OF various mining properties. The
bank was formerly United States deposi-
tory, but the Government withdrew its de-
positS about two weeks ago. The cashier
claims that the assets exceed the liabilities
by about S140,000 The other banks are in
no way affected by the collapse.
AN OLD CHICAGO HOUSE.
CHICAGO, Dec. 1.-THE private banking
house of 5. A. Kean Il Co., one of the Oldest
in Chicago, will not open its doors to-mor-
row. MIR. kean made statement to the
press tonight announcing the suspension.
He declined to estimate the liabilities or
assets, but was of the opinion that every
claim would be paid in full. They had
been negotiating some time, he said, for q
a reorganization, either as State or national
bank, and expected 10 reorganize without
stopping business. 1t had been found, how
ever, that 1T would be impossible in a short
time to raise the necessary funds to continue
business with safety pending reorganization.
1t was thereupon determined to accept the
next wlsest tcoursr-suspensiou. Our busi-
neSs, coHlihueu hehD, mas grown 100 rap
idly the last year or TWO for our capital, and
the strlngency Of the money market made it
impossible for us to turn our securities
again at once, after we had loaned
money on them. Our nominal cap
ital was 100000, but in reorganization
which was formerly known as Preston,
kean u Co.. has done large business in
floating city, county and public improve
ment bonds issued in the West. These,
when not otherwise disposed of, would be
pledged to banks for call loans. AT New
YORK and other Eastern points these loans
have recently been called heavily and the
drain on the house apparently reached the
limit to-day. Another factor was the cir
cumstance that the demand for securities Of
comparatively newly settled districts, such
as were largely dealt in by Kcan & Co., had
fallen off to a considerable extent. The de-
posts IN the institution recently aggregated
between 5000, COO and 500, 900. Wioe celeb
rlty was given the house some years ago by
extraordinary incidents following the de-
falcation OF its cashier, Kerr, who was
traced to and BROUGHT back from Peru and,
after long legal fight, incarcerated in Joliet.
CAUSE OF RUN.
HURON Is. Dak.), Dec. lit transpires
to-day that business men and Others having
deposits with the Huron National Bank,
which suspended yesterday, received anony-
nous letters advising them TO withdraw
their deposits, as the bank would suspend
following the elections. This precipitated
run, resulting in suspension. kilograms
from Chicago and other points were re-
ceived to-day offering aid and advising the
resumption of business.
THE SILVER QUESTION.
New YORK, Dec. ia local broker in
silver is quoted as saying: Il don't believe
the price is going up at once. One Wall
street house has accumulated perhaps 700,0 600
ounces, but aside from that have not seen
any buying lately which looked like aceu-
mulatlDg by the authorities at Washington.
Unless those people have silver l don't
believe they will want to buy any 13, COO
ounces. think silver is in position to be
bought on slumps. but would not climb
for 1t until the congressman have more"
A Wall-street Washington special says:
Mcmillan, member of the Senate Finance
Caucus Committee, expresses an opinion
that about the only legislation in silver
providing for the purchase of surplus silver
bullion, probably about 12,000,000 ounces.
He thinks it would be better not TO take any
action. believing if left alone matters would
soon right themselves.
A London special says: 1t was reported
at the Sto OK Exchange at the closing that
there would be no change in the Bank of
England discount rate tomorrow.
The suspension of Erastus Z. Ford has
been announced in the Stock Exchange.
lie nad no outstanding contracts.
WASHINGTON, Dec 1.-THE amount Of
silver offered for sale to-day was 657,0 200
ounces, Of which 210O0O ounces were Dur-
chased at prices ranging from $1.1075 to
$1.0815.
Inc Director Of the Mint today announced
that having purchased the full amount OF
silver authorized by law for the current
month. no further purchases would be
made until January I'd next.
HELENA (M0nt.), Dec. 1.-THE Board of
Trade has unanimously adopted resolutions
favoring free and unlimited coinage of all
American silver.