The morning call., 1893-06-18
SHUT THEIR DOORS
Two Banks in San Ber-
nardino Suspend.
OTHER INSTITUTIONS SAFE.
Malicious Rumors Alarmed Depos-
itors, bat the Scare Is Now
Over and Money Plenty.
Special TO THE MORNING CALL

SAN BERNARDINo, June 17-Ths morn
ing the Farmers Exchange Bank failed to
open its doors, but instead hung up this
placard: Bank closed. Depositors will
be paid in full"
For the last three days there has been a
steady run, beginning on Wednesday and
closing on Friday night, when the amount
drawn out in cash reached S57,500. The
bank telegraphed yesterday to one of its
stock holders in San Francisco for $50, GOO,
but the money could not be obtained in time.
Yesterday local banks here advanced
$4,000, but the amount was too small to
meet the emergency.
At the time the bank closed Friday
night S157,4O0 remained on deposit secured
by baDkable paper on twice that amount.
The resources are about 50 for every
dollar of liability.
The run was caused by misrepresenta-
tion circulated by three irresponsible per-
sons that the bank was shaky, who were
lnstigated by spirit of malice.
The first to draw their accounts were
the employees of the Santa Fe Railroad.
who were paid off on the 14th. through
the cashing of warrants at the Farmers
Exchange Bank, and who hearing these
rumors OF the shaky condition of the bank
also drew their deposits. calling for about
$50, 600.
Others seeing so many at the bank
drawing money and being excited by the
recent failure of the Riverside Banking
Company of Riverside followed suit. aud
what was at first an ordinary business
transaction grew into something like
panic. resulting in compelling the bank to
close Its doors.
The Farmers Exchange Bank has a paid
up capital stock of $4,000 and a surplus
capital OF 100000 It's stock holders are
the wealthiest and most substantial citi-
zens of the city, together with several
milliOnaires of Southern California and
San Francisco. There is no doubt in the
minds of wel-infOrmed business men here
but that the bank will resume business at
IN early day.
Connected with the Farmers Exchange
Bank is the Savings Bank of San Bernar-
dtno, which closed its doora also. This
bank has paid-up capital of $4,000 and
has reserve fund of $1,000, and deposits
amounting to $4,000.
Those who are in a position to know
declare that depositors of this bank will
lose nothing.
There are three other banks in this city,
the Bank Of San Bernardino. San Bernar-
dino National and First National These
banks nave since the financial furry in the
East been fortifying themselves in every
direction and now have on hand ready cash
to withstand any kind of run. One of
them received 100000 in gold this week,
and another has recently been supplied
with about 100000, obtained from Eastern
sources.
The other bank has displayed behind its
rail pile of gold and greenbanks big
enough to shame the most craZy-headed old
woman that may present her handbook
to draw money to hide in her stocking
Certain men on the street who are well
known are circulating stories of a weak
ness in one of the other banks, but their
efforts to create panic will ultimately re-
| suit in damage to themselves. Whoever
presents his book for money gets it
promptly and without hesitation.
Of all mad craZes that ever beset this
community the one now on is most sense
less. Business men OF the city so view il,
and have not drawn one dollar out of any
OF the banks except in the regular course
OF buslneSs-Rot even out Of the Farmers
Exchange Bank.
There has been some excitement on the
street, caused by few loud-moutned men
who were bent on injuring other banks,
and for time this morning few deposi-
tors called for their money. By II o'clock,
however, the furry had subsided and only
ordinary business was done. Much indig-
nation is expressed against those parties
who started the run on the Farmers Ex-
change and who have since then famed
the excitement with their loud-mouthed
and ill-omened prophecies on the side
walks. In number of instances wholly
dsinterested parties squelched them with
welldeserved reprimands.
Outside of the Farmers Exchange Bank
aud Savings Bank of San Bernardno,
other banks have taken In more deposits
to-day than money drawn out. Those who
drew out deposits early in the morning
had replaced their money in the bank by
noon, and lOud-m0uthed bank-sma shers
had retired to their homes. disappointed in
not creating general panic. Owing to
stringency in the money markets else
where, and difficulty In realizing on secur-
tiles, 1t may be several weeks, If not
months, before the Farmers Exchange
and Savings Bank of San Bsrnardino re-
sumes; but it is, nevertheless, certain that
had not the run been made just at this
time the bank could and would have
continued to do successful business.
The Farmers Exchange Bank includes
among its stockholders some of the richest
men in the State, of whom NAV be men
toned w, W. stow of San Francisco,
Richard Gird of Chino. and The Byrne
estate, the Waters estate. n. S. Abee, II.
L. Drew, Richard Stewart. James Fleming
and John Anderson of this city, the
Spence estate of Los Angeles and
Clarence Stewart of Riverside, many of
whom are worth hundreds of thousands
each and some even millions. The
directors of the bank are Richard Grid,
John Anderson. Richard Stewart. Il. L.
Drew, James Fleming, n. S. McAbee and
s. F. ZOmbro.
The following circular letter was mailed
to the patrons of the bank this morning:
After continuous run on The bank for
three days, during which time every posi-
Die effort has been made by the directors
and officials 10 avert the result, we are
compelled to close our doors. This We do
with great regret, are we are sure that n