The Superior times. [volume] (Superior, Wis.) 1870-1912, 1890-12-06
PASSED IN ITS kisT CHECKS.


The Bank o: Comsner Succumbs.
Tuesday morning the following no.
| tica WAS found tackled to the outer
door of the Bank of Commerce.:
This bank Will not open today, ow-
| ing to the continued stringency in the
money market. viii continue bust
ness as soon as We can realize on
securities
That this notice took the people by
surprise does not half express it. The
run Gil the bank the "Wednesday pre-
vious had been met and overcome,
public confidence had been established,
and the bank had been extensively adj
vArtlsed rs not only solvent but among
the strongest institutions of the city.
1t is not strange, then, that the PEG
pie generally should be greatly sur
priscd when sucl, notice stared them
in the face Tuesday morning. Several
excuses were offered for the failure,
but it VIII now be very hard to make
the people believe any of them. The
morning Leader of Wednesday, re-
viewing the case has this to say:
The run which the bank experienced
last Wednesday, while it did not see m
to materially affect It, WIS in reality
| more serious than it seemed to be. A
| large number of accounts We're check
ed ont through other banks-about
bank, however, had hoped to tide over
/ this safely, IN would have done so
| had not their New YORK co3respon-
| dent, the Bank of North America, dis
| appointed them. That bank had
/ agreed to rediscount for Il n to the
amount OF $4,000. They received a
! telegram during the afternoon con-
| firming this. Comptroller Larson tad
in the meantime telegraphed S. \.
/ Kean & Co, to p'ac, Sl50,0i) coming
/ to the city for bonds in the Bank of
/ North America to the credit of tie
/ Bank Of Commerce. Later on Mr.
| Larson sent another telegram ordering
| the proceeds of the bonIs to be dis
| tributed among the banks of Superior
who were entitled to receive city
money, according to the capital stock
of each. The Bank of Com nerce re-
celved during the latter part of the
afternoon another telegram from the
| Bank of North America announcing
that they had reconsidered their agree
ment to rediscount and would not do
SO, it being necessary for them TO close
in on their loans. This was serious
matter and placed the bank in pre-
carlouS position. \ meeting of the
I bankers OF the city was held Monday
of Commerce was discussed. 1hi
| bank asked that another telegram be
sent to the Bank of North America
explaining that the one sent by NJ
/ Larson WAS not sent because Of any
fear of the safety of the bank. This
was done Tie Bank of Commerce
! then asked to be allowed 70 receive
| the $50, 900 for time but this was
not agreed to.
| This left the bank in very light
/ condition. Their cash was low and
/ their accounts III other banks almost
drawn out owing to the steady with
! drawal of funds which had prevailei
| for the past several days. They had
an abundance of valuable securities
but could not realize on them and WAS
/ forced to close. Yesterday afternoon
a meeting of the board OF direct ,rs
j was held and an assignment was made
! 10 W. III. Slack, cashier Of the First
/ National bank. lie will enter upon
/ his duties 1T once and has given a
proper bond
| The city of Superior has about $3.50
! coo on deposit, al of which is secured
/ hy bond OF the amount of 800, 900.
/ According to the recent resolution of
! the city council these bonds were to
1 he distributed among five banks of the
city in proportion to the amount OF
their capital stock. \ portion of the
funds had been so distributed, but the
other banks allowed the Bank of Com
merce to retain large part of it for
the present, knowing that in its un.
fortunate condition; to withdraw this
large sum would be to ruin the bank.
The cause of failure lies undoubt
edly with the failure of Bell & Evster's
bank at Duluth. The close attitiation
OF the two institutions, until recently,
was we'll known, and certainly created
considerable uncaS,ness as to the
Bank OF Commerce
Cashier W C. Brooks would not say
very much. He thinks that the I'M
mediate cause of the failure was H.
telegram sent by Mr.. Larson He
would not furnish complete state
ment at present Int estimates the as
sets at S649 900 ana liabilities at 500
00D.
l. There More Trouble Ahead.