The sun., 1891-01-20
BIG BANK FAIlUREOu WEST
TIE AMERICAN NATIONAL BANK OF
KANSAS CITY GOES UNDER.

II is said to Owe Over SsOO,O 900 borrowed
Money-The Failure Cause. IA Run on ~
Dir savings Bank Other Banks willing
to Help Could Get No Good Security.
KANSAS CRY, Jan. 10.-The American National
Bank OF this city was taken charge Of this
morning by +. l.. Marshal. National Bank Ex-
aminer for the State Of Missouri The capital
stock OF tho bank is sl.250000. During tho
enrly part of last week 1t became known to the
members Of tho Kansas City Clearing House
Association that the American National Bank
was In need Of assistance. A meeting OF tho
association was called at which q resolution
was adopted assuring the American National
Bank that upon proper showing assistance
would be rendered to the amount OF sl,OOO.0OO
or moro But the collaterals offered by the
American National Bank were not such as the
banks OF the association would accept This
decision made the failure OF the bank inevita-
bio and the National Bank Examiner there
upon assumed charge.
The deposits OF the bank are about 81. 200 900.
Since Oct. last the deposits have decreased
from over $4,000,O00 to the present amount.
1t is ascertained that the bank owes over
100000 borrowed money. A gentleman who
is in q position to know the condition OF the
other national banks OF this city said this
morning that they are in an unusually good
condition and would not be materially affected
by the failure.
AS u result OF tho failure great deal Of un-
easiness was created to-day among the depos-
itors OF the Kansas City Safe and Savings De-
post Bank. which Is in the same building with
the American National Bank. and is supposed
BY many to be connected with 1t. and tre-
mendous run began on that institution. The
sidewalk was blocked, and the doors OF the
bank were crowded with depositors anxious 10
recover their hard-sarned savings. The bank
| is paying all depositors promptly. and tho Of
t!cials soy that they cum meet all obligations.
! The bank Is in no way connec ected with tho Amer
il the state. and It's officers are the most care
The run continued all day. At the hour Of
closing the crowd q depositors waiting their
to sS II h tie "e Il All
uearances the bank had plenty u money. and
It Is the general opinion OF fl tAose % In position
no occasion for the scare. .
| President Stimson late this afternoon sent
kny he psrnt @c to rep, brief,
dlate cause Of the, closing this morning oi the
was the President. The bank naturally ex.
perienced heavy shrinkage in business and
almost unprecedentei stringenoy. Our shrink
aye was, especially great on account
h1 Tsi snd this Of wss maao G
months ago we had several large temporary
esa Rue1S ovsf H. dyf sd
rosits amounting to nearly 81, 59OOoo. or about
6e per rsssbed 81 our bent
then steadily % recovered and last Thursday
months. with every PROSPECT oi continued i'm.
pr?vement In spite Of the fact that certuin ma
| licious rumors had been circulated for some
rOrfeSDOlu.
e@nts. @ 4 little later among other thines q
ses s osr wS ossd bans
tarily offered US assistance il needed. .Unfor-
tunntely ,hia meeting became publicly known.
shen l., ,%ppsSd III sSS eisSSiRS -, ne9se
ing az a cornorate ORR orsanisation M they failed to to
anen.y ws were obliged to close although IN
dition. TO close up such q business in these
but ,here is no doubt that deposits Will Be raid
IN full and 4 the assets assets are properly handled
OF their original investment. i cannot sum.
csntly express my regret at this most unfor-
tunate event. " but most OF all i depl1se it on
ested and the effect 1t may haye upon this city
| The New York correspondents Of the sus-
pended bank are the Chemical and the Sea-
| OF the Chemical thought that the troubles OF
, cy OF money The American had always kept
, a good account with the Chemical. Mr.. Quin-
| lan was surprised at the suspension. and 80
| were tho Seaboard people. who received In the
mornings mail the regular daily remittance
| from tie American.
The bank was well known in Wall street. 1t
| was started by William Rice. who was private
| secretary to Secretary OF War Proctor when
capital was sl.250o0o. and u good part Of it
was taken by New England people. Mr.. Rice
but not before no and his New England friends
had secured control Of number OF small
banks IN the SorthTest The American I, Bank.
| mortgages. and tho money troubles of the
| East have inst about now BECOME factors be-
| yonI the Mississippi Mr.. Rice Is now inter-
estsd In loating land enterprises In Alabama
mud othar Snutharn Sfutea