The record-union., 1891-01-20
IN FINANCIAL STRAITS.
AMERICAN NATIONAL BANK OF
KANSAS CITY SUSPENDED.
Lack of Confidence of Depositors
the Principal Cause of the
Trouble.
special to the REcoRp-UN1oN.

]
KANSAS CITY, Jan. 19.-The National
Bank Examiner for Missouri took charge
of the American National Bank of this
City this morning. The capital stock of
the bank is 81. $4,000
No statement of the liabilities or assets
can be obtained. During the early part
of last week it became known to mem
| bers of the Kansas City Clearing house
Association that the bank was in need of
assistance. A meeting of the association
was called and Il resolution adopted as
suring the American that upon q proper
showing assistance would be rendered to
the amount of 81 100000.
a committee was appointed to examine
| the collaterals, and on Saturday they re-
ported that the paper offered was not such
as the banks of the association would ac-
cept.
This decision made the failure of the
bank inevitable, and the Bank Examiner
| assumed charge of the concern.
AS a result of the failure great deal of
uneaSiness has been created among de-
positors in the Kansas City Safe and Say
ingS Deposit Bank and the other banks.
which are supposed by many to be con-
nected with the American National Bank.
There is a run on the first-named bank.
which is paying all depositors promptly,
obligations.
President Stimson, in public state
ment says: "The cause of the failure of
the American National Bank seems to
have been the indefinite lack of conf
dence which has pervaded the business
world the past few months A rumor
gained currency three months ago that
the bank was not in the best condition.
A withdrawal of deposits followed inn
mediately, and with the growth of the
unfavorable reports increased to an
alarming extent. On the lst of October
the banks statement showed deposits of
81, 200, 600. December 18th they had fallen
off to S2,500,000, and on Saturday night.
when the Clearinghouse Committee
made an investigation, they aggregated
only 81, 100000. The cash available at
that time was 100000. An increase be-
gan with the stringency of the Eastern
money markets, and when the bank
found itself obliged to negotiate a loan of
sS00,e00 in the East it was compelled to
give as collateral gilt-edged securities.
when these drains upon the banks re-
sources became generally known. confi-
dence was impaired. The members of
the clearinghouse could not agree upon
any plan of assistance, and the Bank Ex-
anliner was notified by President Slim
son. 4 clearinghouse meeting was first
called without our knowledge and other
banks voluntarily offered us assistance, if
needed. Unfortunately, the meeting be-
came publicly known, causing increased
rumors which resulted in !: run on Fri
day and Saturday, and we then applied
to the clearinghouse for aid, but they
failed to agree on plan of assistance,
and we were obliged to close, although
in my opinion, this ought never to have
occurred, as the bank had always been
solvent. Deposits viii be paid in full,
and if the assets are properly handled
the stockholders should get back a large
part a their original investment
The liabilities are estimated at s., ,25o,-
900, and the assets nominally at $780,
600. Other bankers do not anticipate any
bad effects on other houses.