The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-09
A BANK SHUTSITS DOORS.
TIE SPRING GARDEN NATIONAL
OF PHILADELPHIA FAILS

The Crssh followed by the Suspeu-
Trust Company-The Failures a Sur
prise to the Publ c-Fair Rep rts
at the LAST Showing.
PHILADELPHIA, May S.-Under an order
received from Controller Of the Treasury
Lacey the doors of the Spring Garden Ma
tionsl Bank we're cl sed at IL o'clock this
morning. News of the suspension spread
through the city like wildfre, and
it was not long before the fright
ened depositors began to gather around the
bank building at Twelfth and Spring Gar
den streets. Scarcely had the announce
ment Of the failure of the Spring Garden
bank been made before there was a rumor
a1oat that the Penn Safe Deposit and Trust
Company, also located at Twelfth and
Spring Garden streets, had also suspended
payment.
A SURPRISE.
To the general public the crash was a
great surprise, for at the last sale Of Spring
Garden bank stock On April Is, 1891 the
price obtained was 1921 So which is exactly
S2l so above par. The capital stock of the
institution was quoted at $3.50, 900 and there
was supposed to be a surplus of $780, 900.
A dividend of 21a per cent. was paid upon
the capital stock at the last annual meeting
and the bank was therefore generally sup
posed to be sound.
THE CITY CAUGHT.
The bank is a large depository Of the
city's money. According to the statement
of City Treasurer Bardsley he has S144, 600
on deposit in the institution
IA e u
Francis W. Kennedy; cashier, Henry H.
Mcclure. The board of directors
were Francis W. Kennedy, Nathan
Middleton, Ephraim Turland ,slNelson F.
Evans, Ephralm Young, Robert C. Thomas
and John B. Stetson. At II 80 the follow
ing notice was placed upon the door:
This bank is closed by order Of the controller
OF the currency until further notice.
W. B. DREW,
National Bank Examiner.
A STATEMENT BY THE PRESIDENT.
When the people gathered immediately
at er the doors had closed, President Ken>
nedy looked out o. side door and called
out that he had no statement TO m Ike AS
soon as he had finished speakin, ne disap-
peared inside, amid the snou ard jeers Of
Q disappointed crowd. Later he gave out
the following statement:
We have this morning decided to place the
bauk in the hands of Mr. Drew. the national
bank examiner. This step has been forced upon
us rircipally by reason of the large withdrawal
OF deposits during the financial stringency
which commenced last September, and the con
tinued dullness OF general business since. To
meet these demands and maintain our reserve
IL was found impossible to realize rapidly
enough upon the assets. We have been below
our reserve for some weeks past and can see no
immediate prospects of increasing it. We still
owe a balance to the clearing house committee
for outstanding loan certificates, the payment
of which is being pressed These facts, coupled
with the disturbances Of the past week, have
caused increased weakness on the part OF some
of our depositors, together with weakening OF
our credit with other banks We trust that the
suspension will be only temporary.
Francis w. KENNEDY, President.
THE TRUST COMPANY.
The Penn Trust Company is now a state
institution, but it was originally an out
growth of the bank in this city. The stock
holders Of the bank are also largely stock
holders OF the trust company. Samuel B.
Huey was consulted by persons interested
and connected with the trust
company as to the difficulties
they were in. and he advised that
The company should make an assignment.
For this reason Josiah r. Adams was
selected assignee and an assignment drawn
up. The capital of the trust was $l25, 900.
Francis w. Kennedy, president Of the
Spring Garden Bank, is president of the
trust company, s. A. Mcclure is treasurer.
Its suspension is due to the banks troubles.