The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-01-20
A BIG BANK IN TROUBLE.
IHE AMERICAN NATIONAL OF
KANSAS CITY CLOSED.

It's Asssts Estimated st $3,5oo,ooo,
and its Liabilities at S2,25o, o,ooo-Its
Deposits Reduced from S4,2oo,ooo in
October to 81. 400, 900 at the Time Of
Closing.
KANSAS Cry, Jan. 19.-The American
National Bank Of this city was taken charge
of to-day by F. E. Marshall, national bank
examiner for the state Of Missouri. The
capital stock Of the bark is 81, ,250, COO. No
statement of it's liabilities or assets eau be
obtained. During the early part Of the week
1t became known TO the members Of tsei
Kansas City Clearing Houss chat the
bank was in neel OF assistance. A,
meeting of tho association was called at
which resolution was adopted assuring tbs
bank that upon proper showing assistanc9I
would be rendered TO the amount Of g., 600,
900 or more. An investigation committees
reported 20 the meeting OF the association
last night that the eolleterals offered by the
bank were not such as the banks OF tbs
association would accept. This decision
made the failure OF the bank inevitable, /
and the national bank examiner thersupond
assumed charge OF the banks affairs.
A RUN ON ANOTHER BANK.
As q result Of the failure of the bank q,
great deal OF uneasiness has been created
among the depositors OF the Kansas City
Safe and Savings Deposit Bank, which ~
In the same building with the American.
National, and is supposed by many to BE-
connected with 1t, and there is a tremend- \
Gus run on that institution. The sidewalks /
was blocked aud the doors Of the bank were |
crowded with depositors anxious to reoovee
their savings. The bank Is paying all de-
poSitors promptly, and the officials claim
chat they can meet all obligations. The
bank is IN no way connected with the
American National. IL Is the largest saw
ings bank Ia the state and its officers are
the most careful and conservative business
men Of the city.
The run on the Kansas City Safe Deposit
and Savings Bank continued all day. To
all Appearances the bank had plenty Of
money, aud IL is the opinion OF those fn a
position TO know that the bank is all right.
EXPLANATION OF THE PRESIDENT.
KANSAS Cry, jan. 10, II p. M-Presi-
dent Stimson authorizes the following
statement: Tho cause CT the failure OF tbs
American National Bank seems to have
been the indefinite lack OF confidence
which has pervnded the business world
for the past few months. A runor
gained currency some three months ago that
the bank was not In the best condition. The
withdrawal of deposits followed immediS
ately, and with the growth Of the unfavor-
able reports the Withdrawals increased to
an alarming extent On Oct. l the
100000. Dec. 10 the deposits had
fallen off TO S2,500 600, and
Saturday night when the clearing house
committee made Its investigation they
we're found to aggregate only 81, 100000.
The cash available at that time was
100000. This decrease In deposits began
with the stringency Of the eastern money
.aI..A .a1 49, IL anlA
obliged to give as collateral their gilt-edged
securities.
CONFIDENCE FURTHER WEAKENED.
When these drains upon the banks re-
sources became generally known, conf
dence was more and more impaired, and
finally meeting Of the clearing house was
called without the knowledge or con-
sent OF the American National Bank,
and other banks voluntarily offered assist
ance, IL needed. Unfortunately this meeting
became publicly known. causing increased
rumors which resulted 10 run Friday and
Saturday, and the bank then applied to the
clearing house tor the aid which they mad
offered, but not being a corporate organixa-
tion they failed TO agree upoa a plan Of
assistance and consequently the bank was
obliged 20 close, although President Stimson
thought this never should have occurred,
as the bank has always been in a solvent
Cuu0ltiOn. ~ CtCo0 w huIh q OASAACnS -
these times will necessarily involve a great
sacrifice. but the president says there is no
doubt that the depositors will be paid in
full, and If the assets are properly handled,
the stockholders should get back large
part OF their original investment.
THE ASSETS AND LIABILITIES.
No statement of the amount of the liza.
bilities and assets Of the bank
has been made The liabilities are
estimated at $2, $50, 600, and the assets at
S3, 500, 900. The principal stockholders OF
tho bank reside ia the east. There seems
to be decided difference of opinion as to
the failure Of the clearing house to extend
its assistance to the embarrassed
bank. A prominent member Of the
association said tonight that when ths
committee met to examine the banks Sc
curities the chairman had in his pocket cer-
titled checks for 81 ,00O, 900. to be turned
over to President Stimson, should
the showing OF securities warrant the loan.
The examination, he said, proved the securi-
ties to be entirely insufficient, and assistance
was therefore withhald