Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1891-05-14
CLOSED A BANKS DOORS.
The Government Takes Charge of ~ Phila
~ delphia Depository.

The Government Takes Charge of ~ Phila-
n delphia Depository.
FHILADELPH1A, Pa, May S.-AnotheT
of Philadephia's national repositories
closed its doors to-day by order of the
comptroller of the currency. Alter do
ing business for an hour and half this
morning the Spring Garden National
Bank, at Twelfth and Spring Garden
streets, suspended operation, and post
ed the following notice upon the doors:
BY order of the comptroller of the cur
rency this bank is closed until further no
tlce. W. L. DREW,
National Bank Examiner.
The news of the closing of the bank
spread rapidly, and a large crowd soon
collected, but admittance was denied to
all
In answer to request sent to Presl-
dent Kennedy, asking for some Infor-
nation as TO the reason of the banks
closing, the following was sent out;
We 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 the
large withdrawal of deposits during
the financial StrinGency which com
menced last September and the con-
tinucd dullneSS Of business since.
TO meet these demands on our
reserves it was found impossible to realize
rapidly ON the assets. We have been be-
low Ill our reserve some weeks past, ana
can see no Immediate prospects OF lncrcaS-
ing 1t. We SIiti owe Il balance to the clear
ing house committee for outstanding loan
certificates, payment of which is beng
pressed. These facts, coupled with inc
disturbances of the past week, have caused
increased uneaSlneSS on the part OF some
of our depoSitors, together with the weak
n,,in Of Will banks.
We hope the suspension will be only tenn
porary. FRANCIS W. KENNEDY,
President.
But little information as to the banks
real position could be learned, rs
the officials, directors, and EX'
aminer Drew were IN consul
tation and could not be seen.
Among the crowd of stockholders aud
depositors who had gathered on the
street in front of the bank strong feel
ing prevailed that the closing of the
bank would prove but temporary, and
that they would recover their money.
The Penn Trust Company, which
made an assignment this morning, Ia
really part of the bank, but is said to
be solvent, the assignment being simply
for protection against run. The capl-
tai stock of the bank is S100,OOO, fully
paid in, and by the February statement
the reserve 1unu amounted III Toullu
figures to Sl50,0O0. On Tuesday last
the bank declared Il semi-annual divi-
dend of p per cent, and the stock
sold at $l2l, par being 500. The banks
line of deposits being about $2,O00,0O0
and the city of Philadelphia, which has
$4,000 locked up in the broken Key
stone Bank, again suffers to the extent
of $l54,0 600.
The Spring Garden Bank was or
ganiZed in 1870 as a state bank and In
1886 was nearly driven into insolvency
by heavy run upon it. At that time
the clearing house came to its assist
ance, but with the understanding that
the bank should reorganize AS a ma
tional bank After the run was over
and all danger had passed this was
done. When the run took place on the
keystone Bank last winter, small run
was also made on the Spring Garden
Bank, but the bank met it without diff
Guilty.
The report of the closing of the
bank caused great surprise in
financial circles, but there were
some bank officials who declared
that they were not surprised at the sus-
pension of the bank. They said that it
had been for some time in weak con-
dition, and that in the inner financial
circles of the city it wn3 known that I'M
less.the bank received aid from some
influential quarter it would get into
trouble.
The Pennsylvania Safe Deposit and
Trust Company, which has its Office in
the Spring Garden National Bank build
ing, made an assignment this afternoon.