The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-01-20
A GREAT BANK FAILS.
The American National, of Kan
sas City, a Wreck.
RUmoRs CAUSED A BIG RUN.
The Clearing House Would Have
Helped, but Matters Were Hopeless
Allied Institution Besieged.

hAesAs lily. Jan. 1.-THE national
bank examiner for Missouri took charge of
the American National Bank, of this city,
this morning. The capital stock of the
bank is $4,000. No statement of the
liabilities or assets can be obtained. Dur
ing the carly part OF last week it became
known 10 members of the Kansas City
Clearinghouse Association that the bank
was in need Of assistance meeting of
the association was called and a resolution
adopted assuring the American that upon
proper showing assistance would be rem
dered to the amount of 100000.
A committee was appointed to ex-
anime the collaterals, and Saturday
they reported that the paper offered
was not such as the banks of the associa-
ton would accept. This decision made
the failure of the bank inevitable, and the
bank examiner assumed charge of the
concern. As a result of the failure great
deal OF uneasiness was created among the
depositors of the Kansas City Safe and
Savings Deposit bank, which was sup
posed by many to be connected with the
American National bank. There was a
run on the first-named bank all day To
all appearances the bank has plenty of
money, and it is the general opinion of
those in a position to know that the
bank will be all right and there is no occa-
sion for the scare. The deposits of the
American National bank are about 81 ,200,-
600, having fallen to that amount from
600 since last October. 1t has been
ascertained that the bank owes over $780,
600 OF borrowed money. A gentleman in
a position to know the condition of the
other national banks in the city says they
are in good condition, and will not be
affected by the failure.
PRESIDENT Stimson, IN a public state
ment, says the cause of the failure of the
American National bank seems to have
been the definite lack of confidence which
has peryaded the business world in the
last few months. 4 rumor gained cur
Tency three months ago that the bank was
not in the best condition. Withdrawal of
deposits followed Immediately, and with
the growth of the unfavorable reports, in
creased to an alarming extent. On the
LIST day of October the bank statement
showed deposits of 100000; on Deem
Der 10 they had fallen off to 81. 500 900. and
Saturday night, when the clearinghouse
committee made an investigation, they ag-
gregated only 81, 10000. The cash avail
able at that time was 100000. The de-
crease began with the stringency in the
Eastern money market, and when the bank
found itself obliged to negotiate loan of
$500, 900 in the East, it was compelled to
give, as collateral, gilt-edged securities.
When these drains upon the banks re-
sources became generally known and con-
fdence was impaired. the clearinghouse
could not agree upon any plan of assist
~ ina Cd
by President Stimson.
1.-The clearing house meeting was first called
without our knowledge" said President Slim
son. "and other banks voluntarily offered
sistance, If needed Unfortunately, the meet
ing became publicly known, causing increased
rumors, which resulted in run Friday and
Saturday, and we then applied to the clearing
house for aid, but they failed 10 agree on a plan
OF assistance aud We were Obliged to close,
although in my opinion, this ought never
10 have occurred. as the bank always has been
solvent Deposits have been paid in full and If
the assets are carefully handled the stockholders
should get back a large pant of their original
investment
The liabilities are estimated at ESQ.,
600; assets nominally $3,500o00. Other
bankers do not anticipate any bad effects
on other houses.
There seems TO be decided difference of
views as to the failure of the clearing
house to extend assistance to the embar-
raised bank. A prominent member of the
association tonight said, when the COM
mittee met, the chairman certified checks
for $17. 00O, 900 to be turned over to Stimson,
should the showing warrant the loan.
The examination, he said, proved the
securities entirely insufficient, and assist
ance therefore was withheld.
CHICAGO, Jan. 19.-The Merchants Ma
tional bank of this city, correspondent of
the bank at Kansas City that failed today,
will not feel the suspension.
NEW YORK, Jan. l9-The Chemical bank,
the Seaboard National and the United
States National banks of this city, cores
pondents of the American National bank
of Kansas City, viii not be affected by the
failure.
WASHINGTON CITY, Jan. 19-Lacey,
comptroller of currency. received kilograms
this morning from Bank Examiner Mar
shall as TO the suspension of the American
National hank of Kansas City. He said
there had been very heavy run on the
bank and the situation looked bad. He
added, however, that he did not think the
banks liabilities exceeded 81 ,0O0,O0 The
comptroller said he thought the bank was
suffering from its efforts to assist its cor
respondents in Kansas, four of which
failed recently.