The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-05-13
The Spring Garden Bank
and Penn Trust.
A Speculative President the
Cause OF Disaster.
The City q Heavy Deposition in
the Broken Bank.
No Statements OF the Assets or Ida
bilities,

=
Philadelphia's national banks closed its
doors this morning by order of the comp
stroller of the currency. After doing bust
ness for one hour and half this morning
the Spring Garden national bank, at
Twelfth and Spring Garden-sts., closed its
doors and posted the following notice upon
ahe door:
By order of the comptroller of the currency
fhis bank 10 closed until further notice.
w. z. DREW, national bank examiner.
The news of the closing OF the bank
spread rapidly and large crowd soon col
lected but admittance was denied to all.
In answer to a request to President Ken
nedy asking for some information as to
the reason of the bank closing, the follow
ing note was sent out:
Wei have this morning decided to place this
bank in the hands of Mr.. Drew, the national
bank examiner. This step has been forced
upon principally by the large withdrawal OF
deposits during the financial emergency which
commenced last September and the continued
dulness Of business since. To meet these de-
rnands on our reserves 1t was found impossible
90 realize rapidly on the assets. We have been
below in our reserve some weeks past and can
see immediate prospects of increasing II.
We still owe a balance TO the clearing house
committee for outstanding loan certificates pay
ment of which Is being pressed. These facts,
coupled with the disturbances of the past week,
have caused increased uneasiness the part
of some of our depOsitors, together with weaken
ing our credit with the other banks. We hope
the suspension will be only temporary.
FRANCIS W. KENNEDY. President
But little information as to the banks
real condition could be learned as the
officials, directors and Examiner Drew
were in consultation and could not be
seen. Among the crowd of stockholders
and depositOrs who had gathered on the
street in front of the bank strong feeling
prevailed that the closing of the bank
would prove but temporary and they
would recover their money.
The Pennsylvania trust company, which
made an assignment this morning, is
really part of the bank, but it is said to
be solvent. the assignment being simply
for protection against a run. The capital
stock of the bank is $4,000 fully paid in,
and by the February statement the re-
serve fund amounted IN round figures
10 $4,000. On Tuesday last the
bank declared semi-annual dividend of
q per cent. and the stock sold at Sl21.
par being 500. The banks line of de-
posits amount to about &, 100000 and the
city of Philadelphia, which has $500 900
locked up in the broken keystone bank,
again suffers to the extent of S154, 000
The Spring Garden bank was organized in
1870 as a state bank, and in 1886 was
nearly driven into insolvency by a heavy
run upon it. AT that time the clearing
house came to its assistance, but with the
understanding that the bank should reor-
ganize as a national 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 a 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 cir
cles, but there were some bank officials
who declared that they were not surprised
at the suspension of the bank. They said
that it had been for some time IN a weak
condition and that in the inner financial
circles of the city it was known that IN
less the bank received aid from some in
f1uential quarter it would get into trouble.
The city treasurer has Sl44,000 on de-
post in the Spring Garden bank. The
officers are: President, Francis w. Ken
pedy; cashier, Henry H. Kennedy; as
eistant cashier, S. A. Mcclure.
Josiah r. Adams. the assignee of the
Penn trust company, said that he could
give no idea of the company's resources
or liabilities at this time, but that he
would probably have a statement Of its
ready ne salQ L0aL
the company had a line of deposits
amounting to about $4,000.
According to the statement of the bank
made to the clearing house on Monday
last its assets exceeded its liabilities by
g, s73, 900. Among the items credited to
its resources was 3. 427 600 worth of loans
and discounts. That these loans and dis
counts are not of gilt edge character is
practically admitted by President Ken
nedy in written statement to the re-
porters in which he cited as a reason
for closing the bank was the impossi-
bility TO realize upon its assets. Samuel
B. Hnri, counsel for the bank and the
trust company, said this afternoon that
the latter's deposits amounted to $3.50 900.
OF this sum $35, 900 in cash was locked up
in the vaults of the company and the
balance was out in loans and discounts,
how good he did not know.
President Kennedy, his brother, II. H.
Kennedy, cashier of the bank, and Nelson
r. Evans, a director, are said to be inter
ested together in a number OF ventures oil
more or less speculative character that
have not proven TO DO very successful.
When President Kennedy was asked
about these speculations he declined