Evening journal., 1891-01-20
a KANSAS CITY CRASH.
The American National Bank
Has Gone Under.
RUINED BY A CONTINUED RUN

Liabilities Very Large President slim
son Believes That the Bank Was in
Good Condition, but other Financie-s
say Is Was Ruined by Bad Management.
KANSAS CRY, Jan. 2O.-The run which
was started on the American National
bank Saturday was continued yesterday,
and in accordance with orders from Mr..
Lacey, comptroller of the currency at
Washington, F. 6. Marshall, national
bank examiner for the state of Missouri,
took charge Of the bank. IL is believed
that its liabilities will reach &, 25OO0o:
nominal assets, s., ,5Oa, coo It was rumorea
IN this city that Secretary Blaine is one Of
It's stockholders TO the extent of $4,000.
lie was interested in the bank when il
started, but drew out and loses nothing
All the stockholders are said to be eastern
men.
President stimson's Statement.
President II. p. Stimson, Of the bank,
authorized the following statement:
The cause Of the failure of the Ameri-
can National bank seems to have been the
lack Of confidence which has peryaded tile
business world for the past few months. A
rumor gained currency some three months
ago that the bank was not in the best con
dition, The withdrawal Of deposits fol
lowed Immediately, aud with the growth
unfayorable reports the Withdrawals in
creased 70 an alarming extent.
On Oct. ! the banks statement showed
deposits Of g, 10000. Dec. u the deposits
had fallen of to az, 5O0O00, and Saturday
night when the clearing house COMMITTEES
made It's investigations they were found to
aggregate only s1.400,00O
Cash available at that time was $780,
00c This decrease in deposits began with
the strngency Of the eastern money mar
kets, and when the bank found itself
obliged 70 negotiate loan Of $500 90 in
the east i was compelled to give as collat-
eral its gilt edge securities.
Confidence Was Impaired.
When these drafts upon the banks re-
sources became generally known conf
denee more and more was impaired, and
finnily a meeting OF the clearing house was
called. without the consent or the knowl-
edge Of the American National However
at this meeting a resolution was unani-
mously adopted extending an offer OF as
sistaDce. When il became known that the
meeting had been held run on the bank
began Then the bank called on the
clearing house to make good its offer.
The hanks securities were examined and
declared to be sufficient, but the members
OF the clearing house could not agree as to
the amount Of loan which each should pav.
The discussion OF the matter finally closed |
without any agreement having been reach |
cd, aud then the bank examiner was noti- |
fed by President Stimson.
win BE Paid In Fun.
"Our shinkage was especially great on |
account Of the large volume OF country |
business handled, aud this was made more I
by the fact that few months |
ago we had several large temporary depos- \
It's. During the ninety days we collected |
considerably over a million dollars aud |
paid OF deposits amounting to nearly two |
and a bali millions, or about 90 per cent !
Of our deposits
Last Thursday morning we had an ex I
cellent showing and were ia easier condi- |
tion than for nearly two mouths. with /
every prospect Of continued Improvement
IN spite Of malicious rumors industriously 4
circulated among our depostors aud cor.
respondents Ultimately we were Obliged
% close, although in my opinion this
ought never 10 have occurred, as the bank
has always been in a solvent condition.
10 close up such business in these times
will necessarily involve great sacrifice,
but there is no doubt that depositors will
be paid in full"
Bad Management Charged.
One OF the thirteen bank presidents VINO
met to devise means for saving the Amesi-
,an says that the bank had been run on
such risky principles that il would have
been ruined long ago had it not been for
'he fact that during the recent panicky
Zines the bankers OF the city could not AZ
ford to let it 20. The failure is complete.
and while the depositors will probably get
their money in time. the other creditors
will probably be left The bank was in
'orporated under the national banking
laws in August, 1856. It's capital was $l .g50.-
100, aud its shareholders are liable Tor as
much more IL necessary.
DARING TRAIN RORPrPc