Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1891-01-22
SERIOUS FAILURE.
The American National Of Kansas
City Goes to the Wall.
CLEARING HOUSE AID REFUSED.
The Failure of the American Causes a Run
on the Kansas City Savings Bank-A MIL
lion Dollars Required to Pay DePOs-
itors of the American.

KANSAS lily, MO-. Jan IS.-4nS
doors of the American National Bank
did not open for business to-day. Tho
bank is in charge of National Bank Elk
aminer Z. Z. Marshall.
a run is in progress on the Kan
sas City Safe Deposit Saving Bank,
which is located in the same building.
There is no excitement aside from the
interest of the depositors in securing
their money. Money is being paid out
as rapidly as called for, though the
savings bank could, if it wished ,sde-
mand thirty days notice of withdraw
al for all the deposits upon which it
pays interest.
For excellent reasons the closing OF
the American National Bank is in no
way Indicative of the financial condi-
tons prevailing in Kansas City.
The other banks Of the city are not
only in sound condition, but were ready
and willing to advance all the cash
needed to sustain the American, could
that concern have made proper show
ing of securities. The Americans bust
ness methods have, in some particulars,
varied from those countenanced by the
other financial institutions, and its fall
ure has no significance beyond its own
affairs.
1t is generally considered certain that
the depOsitors of the American will be
paid in full and that the stockholders
will lose a part of their investment
juat what proportion can not now be
estimated.
The officers of the Kansas City Safe
Deposit Savings Bank assured vari-
Gus banks this morning that they were
in no need of assistance. They have,
they declare, ample cash to meet the
run, however long it may continue.
For three months o more theAmerican
National Bank has been regarded with
growing distrust in financial circles.
Since the 1st day of last October the
amount of its deposits has decreased
nearly $4,000, OOO When the bank
closed Saturday night it was response
bic for S1,2OO,OOO in deposits and had
about 500, 600 in cash and in exchange
not Immediately available. 1t owed
$500, 600 of borrowed money.
About the middle of last week the
Kansas City Clearing House Association
decided to take formal action in the
case of the American, the affairs of
which were apparently rapidly nearing
a crisis.
The embarrassed bank had made no
request for assistance, but the aSsOcia-
ton on Friday met and unanimously
passed resolution offering to furnish
81, 900, 900, or as much more as was nee
esSary to sustain the bank, provided
that the American could produce sufi-
cient of securities to protect the loan
Mr.. ii. p. Stimson, the president of the
American Bank, was notified of this
action, but declared that his bank need
ed no assistance. On Saturday he de-
cided to accept the proffered loan, if it
could be made, and a committee consist
ing of Witten Mcdonald, president of
the Midland National Bank, DIR. w. 5.
Wood. president of the Bank of Com
merce, and f. p. Neal, president of the
Union National Bank, was appointed to
meet upon call of Mr.. Stimson and in
vestigate the banks affairs and exam
inc the securities which it could offer.
F. Z. Wallace. National Bank exam
liner. who had been drawn to the city by
| requested to accompany the committee
and to act with it in the investigation.
This committee found that million
dollars would be required to pay the de-
pOsitors and that securities which the
! bank could offer were inadequate. The
best securities which had been in the
possession of the bank were hypoth-
ecated to secure the 100000 borrowed
in the East. The secnreties thus tied
up were worth largely in excess of the
amount of the loan.
The committee began its work yes
terday morning at o'clock and con-
| cluded it at ) o'clock last evening.
A call was Immediately issued for
meeting of the Clearing House Associa-
ton. That meeting began at $50
o'clock last night and lasted until 4
o'clock this morning. 1t resulted in
decision to withhold the loan and per-
NIT the bank to close.
The case of the Safe Deposit & Saw
| ings Bank did not go before the meet
ing because that institution is not a
member of the Clearing House AssOcia-
ton. However, the officers of the saw
assuring the individual members of the
association that the bank had made
ample arrangements in anticipation of
a run and that they would have no diff
Guilty in meeting all demands.
The officers of the American National
Bank were: II. ?. Stimson, president;
J. Z. Mckee, vice-president; w. J. Hal
lack, second vice-president: NJ c.
Curtis, cashier; F. w. Black, assistant
cashier; w. p. MOores, ii. 7. Churchill,
J. G. Stowe, w. Ii. Grimes, II. 2. Slim
son, Z. E. Parker, Andrew Drumm, ].
l. Reynolds, c. A. Brockett, i. Z.
Davidson, Z. L. Martin and William
Huttig, Jr., directors.
The bank was incorporated under the
National banking laws in August, 1886.
Its capital stock was S1,25O, 600, and its
shareholders are liable for S1,25O, 900
more if necessary. Among the first
stockholders of the bank was James G.
Blaine.
d. V. Rieger was cashier of the bank
from its organization until the early
part of the present winter, when he re-
signed and became president of the Mis-
souri, National Bank NJ. c. Curtis, for
merly assistant cashier, succeeded Mr..
Rieger as cashier.
The bank was organized by w. P.
Rice, but he has not been connected
with it recently.
The banks resources less than a
month ago We're certified to by NJ. c.
l. -, - "A