New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-20
FAILING FOR MILLIONS
THE AMERICAN NATIONAL BANK OF KANSAS
CITY CLOSED.
IN THE HANDS OF UNITED STATES BANK EX-
AMINER-TIIE SMASH DUE TO BAD BUSINESS
METHODIST CAUSES BIG run
ON A SAVINGS RANK


Kansas, City, Mo, JAN 19.-The American
National Bank of this city taken charge
of this morning by f. F. Marshal, National Bank
Examiner for The State of Missouri. The capital
stock of the bank is 81 ,25OC0O. No statement
q, the liabilities assets can he obtained. En-
amlner Marshal said this morning; There is
absolutely nothing to say except that the bank is
in my charge.
During the early part of last week il became
known 10 the members of the Kansas City Clear
ing House Association that the American National
Bank in need of assistance. A meeting of the as
sociation called, at which a resolution was
adopted ASSURING the American National Bank that
,pon proper showing assistance would be rcnderc
n the amount of 81 900, 600 or more \ com
mittee, consisting of Witten Mcdonald, president
of the Midland National Bank; DR.. w. S. Woods,
president of the National Bank of Commerce. and
+. p Neal vice-prcsidcnt of the Union National
Bank. was appointed to be in readiness 10 ac, for
the association. On Friday evening II. F. Stimson,
president of the American National Bank, re-
Quested conference with this committee The
conference resulted in a recommendation that the
association render the American National Bank
assistance.
AT meeting of the Clearing House Association
Saturday evening the committee was instructed
10 examine the security offered by the American
National Bank and ascertain the amount of money
needed. Yesterday the committee called To its
assistance National Bank Examiner Marshal, and
examined the collatcrals oifc.cd security for
S1,000,000 or more, which the association agreed
TO loan. The committee reported TO a meeting
of the association last night that the collateral
offered by the American National Bank was not
such as the banks of the association would accept
This decision of the association made the failure
of the bank inevitable, and the National Bank
Examiner thercupon assumed charge Of the banks
affairs
The closing of the bank is tho result of a risky
method of banking. The bank las been in trouble
for long tuc, hut has been kept ahoat by the
other banks in the city, which could not risk hav-
ing big failure among them. The officers of the
bank have been going to great lengths to get
business, and in doing so have not been able 10
make any money out of their deals In addition
TO this the bank has been taking risks in loan
ing out money which have been seriously CON
demned by the conservative bankers of the city II
was discovered tnat the bank had utilized all OF
its best securities and collateral for loans amount
ing to 100000 and it needed ~ ,OO0oo0 more.
President Stimson authorizes the following state
ment:
The cause OF the failure OF the American National
Bank seems TO have been the indefinite lack # IN
last few months. y rnmor gained cu:rency some
three months ago that the bank was not in Tic best
condition. The withdrawal Of deposits followed inn
mediately. and with the growth OF unfdvorsble re
ports the Withdrawals increased 70 al alarming cA-
Showed show deposits Of $4,000 DeccmLcr 70. the de-
posts had fallen of to S2;2OOOOO aud on saturday
nvesiieation they were found to aggregate ony
81 100000 The cash available at Pat time was
staiascncv Of The Eastern money ma rkci~ and Wien
me & hank found Itself Obliged 70 nee0jae loan OF
CO lateral their gilt edged securities. Wien theS drains
upon the banks resources became generally known con
. meeting of the Clearing House was called without
the consent or the knowledge of the American National
monsly adopted extending an oaer Of a>,>tance
Wien it became known that the meeting had been
Trdav and saturday. Then the bank called on the
Clearing House to make good il, offer mectine
examined and declared 70 be sufficient. but the
berN Of the Clearing House could not 10 the
cussion Of the matter finally closed without any
agreement having been reached and then the bank
examiner was notified 10y President Stim~on.
President Stimson late this afternoon sent the
following 10 the newspaper offices:
VIII you kindly permit me- through the columns ot
your paper, 10 reply briefly the many inquiries made
as 10 the immediate cause of the closing this morning
was the president The bank naturally cN pcricnccd
heavy srnkacc i'm business and deposits during the
account Of the large volume of country business
fact that months ago we had several larc, TEN
porary deposits. During the ninety days We Elected
considerably over II 100000. and paid deposits
amounting to nearly -. 500 600. or about sixty per
cent Of our deposits. About two weeks We reached
lowest point and then steadily recovered, and
last Thursday morning we had an excellent showing
and in easier condition than for nearly two
months. with every prospect Of continued improve
Iumors had been indg,trioaSly circulated for some
Clearinz House meeting called without our
and the othee banks voluntarily offered
assistance II needed. INF rtunatcy. this meeting be
which r,snltei in p run Friday and saturday and We
then applied 20 the Clearing House for the aid which
they had offered but not being cOrpO ate Or@anza-
ton. they failed TO agree upon plan oi aN'tanr ano
consequently obliged to close, although in
opinion this ought never "a have occurred d the bank
has always been I'm solvent condition. 70 close mp
great sacrifice but there IS no doubt that deposits will
ss pad II % shoSS 6s act ct lack are ape9 aT % & an@
original investment. ] cannot sufficiently express my
regret at this most unfortunate event but most Of ALL
feporc II on account Of the large nunbc" Of people in
crcStel and the effect IL may have upon ths city and
vicinity. II. J. sIlNSON
No statement of the amount Of liabilities and
assets Of the bank has been made. Liabilities
arc estimated at $4,000 nominal assets
$500. 900 The principal stockholders of The
bank live in the East.
As Il result of tine failure of the American
National Bank this morning. a great deal of I'M
easiness has been created among the dcpOsitors
Of the Kansas City Safe and Savings Deposit
Bank which is in the same but lding with the
American National Bank, and is supposed by many
10 he connected with it, and there was tTc
mendous run all day on the savings bank. The
bank paid all depostors promptly, and the officials
claim that they meet al obligations. The
bank is in no way connected with the American
National II is the largest savings bank IN the
State and il, officers arc rcckoncd among the
most careful and conservative business men OF the
city. At a meeting Of the bank presidents To-
day the officials of the Kansas City Savings BANK
tame before the presidents and told them 'ha'
they were sound and had enough money Ill the
,.o,,I. =. ,. e,.o.,. Io,o.;tor in full They had