Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1891-05-13
CLOSED A BANKS DOORS.
The Government Takes Charge of a PhiIa-
de1pllia Depository.

The Government Takes Charge of "A PhiIa-
de1pllia Depository.
PHILADELPHIA, Pa, May 8.-AnOtheT
Of Philadephia's national repositories
closed it's doors to-day by order Of the
comptroller of the currency. After do
ing business for an hour and half this
morning the Spring Garden National
Bank, at Twelfth and Spring Garden
streets, suspended operation, and post
ed the following notice upon the doors:
By order Of the comptroller OF the cur
rency this bank is closed until further no
tice. W. 2. DREW,
National Bank Examiner.
The news of the closing of the bank
spread rapidly, and large crowd soon
collected, but admittance was denied to
all.
in answer to request sent to Presi-
dent Kennedy, asking for some infOr-
nation as to the reason OF the banks
closing, the following was sent out:
We have this morning decided to place
the bank in the hands OF Mr. Drew, the
national bank examiner. This step has
been forced upon us principally by the
large withdrawal of deposits during
menced last September and the con-
tinued dizziness OF business since.
To meet these demands on our
reserves it was found impossible to realize
rapidly on the assets. We have been be-
low in our reserve some weeks past, and
can see no immediate prospects OF lncreaS-
ing it. We still owe balance to the clear
ing house committee for outstanding loan
certificates, payment Of which IS being
pressed. These facts, coupled with the
disturbances of the past week, have caused
increased uneaSlneSS on the part OF some
of our dep0sitors together with the weak
ening Of our credit with the other banks.
We hope the suspension will be only tenn
pOrary. FRANCIS W. KENNEDY,
President
But little information as to the banks
real position could be learned, as
aminer Drew were in consul
tation and could not be seen.
Among the crowd Of stockholders and
depositors who had gathered on the
street in front Of the bank a strong feel
ing prevailed that the closing of the
bank would prove but temporary, and
that they would recover their money.
The Penn Trust Company, which
made an assignment this morning, is
really part of the bank, but is said to
be solvent, the assignment being simply
for protection against run. The CAPT
tai stock Of the bank is $7J0,O00, fully
paid in, and by the February statement
the reserve fund amounted in round
figures to S150,000. On Tuesday last
the bank declared a semi-annual divi-
dend Of p per cent, and the stock
sold at $121, par being 500. The banks
line of deposits being about $1,000, 900,
and the city Of Philadelphia, which has
100000 locked up in the broken Key
stone Bank, again suffers to the extent
Of $154 900.
The Spring Garden Bank was Or
ganized in 1870 as a state bank and in
1886 was nearly driven into insolvency
by heavy run upon it. At that time
the clearing house came to it's assist
ance, but with the understanding that
the bank should reorganize as a ma
tional bank After the run was over
and all danger had passed this was
done. When the run took place on the
keystone Bank last winter, small run
was also made on the Spring Garden
Bank but the bank met it without diff
Guilty.
The report of the closing of the
bank caused great surprise in
financial circles, but there were
some bank officials who declared
that they were not SUI prised at the sus-
pension of the bark. They said that it
had been for some time in a weak con-
dition. and that in the inner financial
circles of the city it was known that I'M
less the bank received aid from some
influential quarter it would get into
trouble.
The Pennsylvania Safe Deposit and
Trust Company, which has its office in
the Spring Garden National Bank build
mo poja on ocSiur ont tbic