New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-21
THE KEYSTONE BANK CLOSED.
SEQUEL TO THE RUN MADE ON 1T IN THE
wINTER-NoT A SURPRISE IN
PHILADELPHIA.

SEQUEL TO THE RUN MADE ON 1T IN THE
wINTER-NoT SURPRISE IN
PHILADELPHIA.
Philadelphia March 2O-Shortly after the Keystone
National Bank opened for business this morning inc
heavy iron doors were lowered and the following notice
was placed upon them:
Philadelphia, March 20.
This bank is closed by the order Of the Cohtroier
n. p. DREW. National Bank Examiner
After the closing Of the banks doors admission was
denied to all persons During tine nnahcai s'rinbo'
the part of last year. there were rumors aue
ing the banks sOlvency, and heavy run was ii'"o
upon IT, but the institution tided over the run ana was
thought TO be in good financial condition. The largest
deposition OF the bank is the city Of Philadelphia
which has a deposit there Of about SiO0,OOo 1ho
authorized capita OF the bank is 100000. ana sur
plus Of 100000 claimed. NO stitehlen, vi 'ii0
banks liabilities and assets could be obtained IL
said that the bank closed by the Cohtrohor W
reason of it's reserve fund having fallen below the
amount required by the National Banking law nv
bank has line OF deposits amounting TO ABOUT qifoo
600 and il Is said that it has assets sufficient 10 meet
this amount.
II is said that the bank owes the Clearing House
Association about 100000. At the Cieailhe ho"''
Manager Boyd declined to be seen and H. B' 'oces
the president also refused to see any one foo"i"s
is the letter issued by President Marsh: me Dahh
has been closed by the Controller OF Currency wash
ngton The bank has been suffering from the enecVS
Of the run on IL last December, and the payment u
the Clearing House OF large amount OF INC loa'
certificates has kept the legal reserve OF cash pco"
the average OF cash required by law since thaO ""o
An earnest effort to fully restore the bahR VIII W n'u
Immediately"
In banking and financial circles the ACTON Oh 'iio
Controller Of the Currency in closing the bahh
occaslOned little surprise. IL had been ho"h ior ooo
time that the institution had been investing iVS uo
fund far In excess OF the amount allowed by law io
president and directors said to have Deeh lreque
Informed by the Treasury Department, "i'ihh 'i0 ~
three months that the reserve deficit fund was less ta
tho % per cent required, but the management oi inc
bank is said to have been unable to remedy ts ieed
condition az affairs The investments OF deposited
moneys exceeded 20 per cent, ana the totns Vi i"'o
deposits arc believed to have been lnsllhoeht ~ so
inc reserve fund 10 the required - per CENT i0''
facts were reported to the Controller of the CURRENCY
by Bank Examiner Drew yesterday, anu uio io'"''
promptly ordered that the bank should close
1he nr,sident of a prominent National bank SAID
to-day. IL think the bank examiner has doho
the right thing in closing the keystone baih' TIC
ought TO have done some time ago. Inc circuit "a
the bank was impaired during the pahle' anu "
was impossible to keep il aloat Inc coSlhs Vi ''i'
door, saves the bank from further EMBARRASSMENT
II seems to me that the dcposlt0Is ought 10 ee' '0
money without trouble, and that the to'hhoiue'S
np,ht not to lose anything. | know something
obout the condition OF the bank and Know lhae
if is in better shape than most people DeheNe'
,robor hank president said The depostor' VIII get
their money in full There Is no qon1, vi viii Iose
iIi lose "A dollar except tine StOckh0lucl', "hV Mh ''
nuiy i'm the depreciation In the value OF the s,och
i man familiar with the affairs OF ue JAN innrnIn1
National hank president himself, SAID upon eaInns
of the suspension, that upon It's deposits VI aDos
~ 400 600 the Keystone Bank was required !" & 10
crvc fnd Of over $500 900. Ever since te run ldo'
nccemher the reserve fund had been GRADUALLY uc
rres.sng until last week it vas down as 10" d. 'oo"'
TSc central sayings Fund Trust and safe ,h DeP Ee9
stone. Bank and transact, lis business IN nc :,
uijdng was not apparently affected by the Closing Vi
the bank. ~, bonn, -, directors said
This ,fternoon: You can say that the depOeioiS VIII
not lose Il single penny OF thef depOslts. MN r
j. not in a bad condition Gy any i'e'"' anu WIN
When Bank Examiner Drew left tie bank TINS alter
noon he said that the closing wa; as mut Do was TO
10 him as to any one else Al he mld u 40 va I'm
obey the orders Of the Controller lie OeicN'u I'm
what he knew Of the affairs OF the bahh' 'ha' ~ WIS
in a good condition for recovery
The announcement Of the failure Of the Keystone
National Bank had little effect in wall street, on
cent t add another item which the bears coh use ioi
.nsculotive purposcs The New York correspondents
~ the concern are the Tradesmens and the ohase VA
tonal banks but at both institutions IL was s'a'eu
,,t M indebtedness existed the part OF the Key
Stone which was not amply protected. IL was gen
orally admitted that the failure was the result ., ho
RIM sustained by the bank in December Wheh rhii'
delpbia finances were being adjusted Win uimoui'S
l. p Dich NJ Dick Lawrence Il Co., who have mt
mate connections with Philadelphia said that the ia
urc was probably the result Of dry rot following INV
crisis last autumn. \ dispatch to Gilbert &" iarr sSu
~rh. KEYSTONE Bank makes the following statement
The hank has been closed by the Controller Oh the OI
roncy II Ia, been suffering from me eure'S VI tS
,,n last December and the payment at me oearlns
,u-e Of "A Large amount OF the loan cctthSa,os . ma.
kent the LEGAL reserve OF cash since tha tr Deio '
~ re,,ured by law. An earnest c1ort VIII ne
made +, resume Another di-patch declared 'hd' '"0
depo,itors would probably be paid IN iuIi'