The morning call., 1891-05-09
CLOSED ITS DOORS.
Suspension of the Spring Gar
den National Bank.
The Late Financial StriDSenGy Caused
The Sudden Collapse.
RumOS Of instability Injured The Credit
Of the Institution and Alarmed
DepOSitOTS Others Fail.
Special to THE MORNING CALL.

PHILADELPHIA, May 8.-The Spring
Garden National Bank closed its door at II
o'clock this morning by order of National
Bank Examiner Drew.
The following notice was posted on the
door: "By order of the Comptroller of the
Currency this bank is closed until further
notice. w. p. Drew, National Bank Ex-
amiuer."
The news OF the closing spread rapidly.
and large crowd soon collected, but ad-
mittance was denied to all.
President Kennedy sent out the following
note "ThiS morning it was decided to place
the bank in the hands OF the National Bank
Examiner This was forced upon us prin-
cipally by the large withdrawal of deposits
during the financial stringency of last
September and the continued dullness Of
business since. To meet these demands on
our reserves it was found impossible to
realize rapidly ON our assets. We hope the
suspension will be only temporary.
" We had been below our reserve for some
weeks and can see no immediate prospect of
increasing it. We still owe a balance to the
clearinghouse committee for outstanding
loan certificates, the payment of which is
being pressed These facts, coupled with
the disturbances of last week, caused in
creased unessiness on the part of some de-
positors and the weakening Of our credit
with other banks"
The Penn Trust Company, which is now
State institution, but was originally an
outgrOwth of the Spring Garden Bank,
made QftQPnOnn
Josiah k. Adams as assignee. The capital
of the trust was 81, 250,000 The trust COM
pany was formed by the officers Of the
bank, and was almost entirely controlled
by that institution.
A bank President, after consultation with
President Kennedy, said this evening that
during the troubles of the Keystone Bank
the rumors circulated about the Spring Gar
den's credit so injured it that it has never
fully recovered. The only way to rehabili-
tate it is to reorganize and put in additional
capital.
Another financial man blames the whole
trouble on the Keystone Bank, saying the
strain was too much and the dep0sitors too
uneasy. The feeling among tfe officers of
the bank seems. TO be that If the Clearing
house had shown more leniency suspen-
sion would not have been necessary.
Assignee Adams OF the Pennsylvania
Trust Company said tonight that he could
give no idea yet of the resources or liabili-
ties Of the company. 1t had line Of de-
posits amounting to about S175,000
According to the statement OF the Spring
GaEden Bank to the Clearing house Mon
day last, its assets exceeded its liabilities
by S1,S75,0O0 Among the items was ST.
427, worth Of loans and discounts. Much
OF these are not of gilt-edged character.
President Kennedy, his brother, the cashier
and Director Evans are said TO be inter-
ested in number of ventures OF a specu-
Iafi oh q ha mt
cessful.
The report that City Treasurer Bardsley
has S144, 600 on deposit in the bank had no
foundation whatever
Rumors were current to-day Of the failure
of the Girard Bank and Pennsylvania Trust.
The Pennsylvania Trust is altogether diff
ferent organization from the Pennsylvania
Trust Company.