The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-05-09
Collapse Of the Spring Garden
Bank, Philadelphia
OTHERS DRAGGED DOWN wITHiT.
A Big South Dakota Farm Mortgage
Company Forced to Assign.
Liens on the Unproductive Soil OF the
Blizzard State Yield No Interest,"
General Business Condition Satisfae-
tory-Missouri Repudiation.

PHILADELPHIA, May S.-The Spring Gar
den National bank closed its doors at IL
O'Clock this morning. The bank was closed
by order of National Bank Examiner
Drew. The following notice was posted
on the door: "By order of the comptroller
of the currency this bank is closed until
further notice." and is signed W. p. Drew,
national bank examiner. The news of the
closing spread rapidly, and large crowd
soon collected. but admittance was denied
all. President Kennedy sent out the fol-
lowing note:
We this morning decided to place the bank in
the hands of the national bank examiner. This
drawal OF deposits during the financial strin-
gency last September and the continued dull
ness OF business since. To meet these demands
ize rapidly on assets. We hope the suspension
Will be only temporary. We have been below
our reserve for some weeks, and can see no inn
owe balance to the clearing house COMMITTEES
for outstanding loan certificates, payment of
which 10 being pressed. These facts, coupled
creased uneasiness on the part of some deposit
ors, and weakening OF our credit with other
banks.
The Pennsylvania Trust Company,
which is now state institution, but was
originally an outgrowth of the Spring Gar
den bank, made an assignment today,
with Joseph r. Adams as assignee. The
capital is $l25,00O The trust company
was formed by officers of the bank, and is
almost entirely controlled by them.
A bank president, after consultation
with Kennedy, said this evening that dur
ing the troubles of the Keystone bank ru-
mors circulated about the Spring Gardens
credit so injured that bank that it has
never fully recovered. The only way to
rehabilitate it is to reorganize and put in
additional capital. Another financial man
blames the whole trouble on the keystone,
saying the strain was too much and the
depositors too uneasy. The feeling among
officers of the bank seems to be that if the
clearinghouse had shown more leniency
the suspension would not have been neces-
sary.
Assignee Adams of the Pennsylvania
Trust Company. said he could give no idea
yet of the resources or liabilities of the
company. 1t had . line of deposits
amounting to about $l75, 600
According to the statement of the Spring
Garden bank to the clearinghouse Mon
day the assets exceeded the liabilities by
$1,S75,O00. Among the items was 81, 49,
600 worth Of loans nddiscounts. Much of
these are not off gilt-edged character. Pres
ident Kennedy, his brother. the cashier and
Director Ev1ns are said to b interestea IN.
. number of ventures of speculative char
acter that have not proven successful.
City Treasurer Bardsley has Sl44, 600 ON
deposit in the bank.
There was no foundation for the rumors
current today of the failure of the Girard
bank and the Pennsylvania Trust. The
Pennsylvania Trust is an altogether differ
ent organization from the Pennsylvania
Trust Company.
John J. McDuffee, an extensive builder,
is the first business man to be pulled down
by the Spring Garden bank failure. He
made an assignment today, judgments
aggregating $4,000 being entered against
him.