St. Paul daily globe., 1891-05-09
The BANK is BUSTED,
The Spring Garden National
Bank, Of Philadelphia, Is
Closed Up.
Withdrawal Of Deposits Dur
ing the Financial Strin-
gency the Cause.
The Penn Trust Company
Goes Down With the
Wreck.
The City Treasurer Is Made a
Heavy Loser by the
Failure.

Heavy Loser by the
Failure.
PHILADELPHIA, May 8.-Under an
order received from Comptroller of the
Treasury Lacey, the doors of the Spring
Garden National bank were closed at II
o'clock to-day. The news of the sus-
pension spread like wild fire, and it was
not long before the frightened depot
ors began to gather around the bank
building at Twelfth and Spring Garden
streets. On the stock exchange the
brokers were very much excited, and
While many of them were prepared for
the crash, they did not expect the
comptroller to act Immediately.
Scarcely had the announcement of the
failure of the Spring Garden bank been
made before there was a rumor afloat
that the Penn Safe and Trust Deposit
company, also located at Twelfth and
Spring Garden streets, had also sus-
pended payment. To the general pub
lie the crash was great surprise, for
the last sale of Spring Garden bank
stock. on April 2S, 1891. the price OBJ
tanned was $12l.50. which is exactly
S21.50 above par. The capital stock of
the institution was quoted at $3.50, 900,
and there was a supposed surplus
of $4,000. A dividend of 2% per
cent was PAID upon the capital stock at
the last annual meeting, and the bank
was therefore generally supposed to be
sound. This bank is large depository
OF the city's money. According to the
statement of City Treasurer Bardsley
he has S144,000 on deposit in the institu-
ton. The officers of the institution are :
President, Francis W. Kennedy; cash.
ier, S. A. Mcclure. The board of di-
rectors was Francis w. Kennedy,
Nathan Middleton. Ephraim Turland,
Nelson f. Evans. Ephraim Young, Rob
ert Z. Thomas and John B. Stetson. At
II 80 O'Clock the following notice was
placed upon the door:
The Sign of Grief.
Spring Garden National Bank, Philadel.
phla. May 8, 1S9l-This bank is closed by
order of the comptroller of the currency
until further uotice. W. B DREW,
National Bank Examiner.
When the people gathered immedi-
ately after the doors had closed, PreSi-
dent Kennedy looked out of the side
statement to make. AS soon as he had
finished speaking he disappeared inside
amid the shouts and jeerS of the disap-
pointed crowd. Later he gave out the
following statement:
I'VE 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 reason of the large
withdrawal of deposits during the financial
StrlnppncV which mmpnand "a har
and the continued dullnesS of general bust
ness since. To meet these demands and
maintain our reserve II was found impossible
to realize rapidly enough upon the assets We
have been below our reserve for some weeks
and can see no immediate prospect of In
creasing it. We still owe a balance to the
clearing house committee for outstanding
loan certificates, the payment Of which is be-
ing pressed. These facts, coupled with the
disturbances of the past week. have caused
increased uneasiness on the part of some of
our depos1tOrs, together with weakening of
our credit with other banks. We trust the
suspension will be only temporary Francis
w. Kennedy, president.
The law requires that national banks
shall have reserve fund of at least %
per cent of their capital stock. The
last reserve reported to the comptroller
was that reserve fund of $13O,O0O was
on hand. The
Latest statement
filed at the clearing house was as fol-
lows: Capital, $4,000 loans and dis
counts. S2,427, 900; lawful money re-
serve, S403,OO0; due from banks.
$4,000; due to banks, $1,000; de-
poSits, $1,719.000; circulation, $4,000.
The full statement of the bank, as made
to the auditors Feb. 26 last, was as fol-
lows:
Resources-Loans and discount, So
170,02S.1S; Overdrafts, secured and unse-
cured, S3,31S.99; United States bonds to
secure circulation. $4,000; stocks, Sc
curities, claims, etc., SIS, ,295.79; due
from approved reserve agents, S227.-
0S7.30; due from other national banks,
500, 220. 40; banking house, furniture and
fixtures, S93, 900: current expenses and
taxes paid, s11. 1896. Premiums on u S.
bonds, S1,750; checks and other cash
items, S25, ,223.22; exchanges for clearing
house, S2O,659.93; bills of other banks.
S1.O75; fractional paper currency, nick
els and cents, S614.91; specie, S98, ,9S5: (:
legal-tender notes. S127, $50; redemption
fund with United States treasurer Is
per cent or circulatiOn), S2,250. Total,
g, ,974, ,21S.2S.
LiabilitieS-Capita stock paid in,
S750,000: surplus fund, Sl30OO0: un-
divided profits, S41, ,725.O4; national bank
notes outstanding, $4,000; dividends
unpaid, $50: individual deposits subject
to check. 81, ,995, ,S30.34; demand certifi-
Gates of deposit, $1,000; certified checks,
$3, 6S3: total. 81. .974. .21S.3S.
The Penn Trust company is now a
state institution, but it was originally
an outgrowth of the bank in this, that
the stockholders of the bank were also
largely stockholders of the trust COM
paDy. Samuel B. Huey was consulted
by persons interested and connected
with
The Trust Company
as to difficulties they were in and he
advised that the company should make
an assignment. For this reason Josiah
R. Adams was selected as the assignee
and the assignment drawn up. The
capital of the trust company was $685.
600. Francis w. Kennedy, president of
the Spring Garden bank, is president of
the treasurer. Its suspension is due to
the banks troubles. The articles
of assignment were entered in
the prothonotary's Office by Samuel B.
Huey, who made this statement later:
"Yes, it is true the Penn Trust COM
pany has failed, and the Spring Garden
National bank has also been closed by
the comptroller of the treasury and. Mr..
Drew and an assignment was made
This was agreed to, and | was placed in
charge. Yesterday had to take charge
of some interests connected with the
trust company, and, learning of their
condition, | refused to have anything
to do with their interests unless permit
ted to name the assigned, naming Josiah
r. Adams. | drew lin the assignment,
and this morning 1t was filed with the
prOthonotary. The trust company was
formed by officers Of the bank, and was
almost entirely controlled nv that in