The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-08-02
THREE FAIL AT LOUISVILLE.
Merchants National, Louisville De-
posit and Fourth National.


posit and Fourth National.
LOUISVILLE, July 25-This will prove
a memorable day in the financial history
of Louisville. At 10 O'Clock this morn
ing the Merchants national bank posted
a notice of suspension, and half an hour
later the failure of the Louisville deposit
bank was announced.
BY this time half dozen banks in the
city were being run by depositOrs. mostly
small ones. They all stood the pressure
except one, the Fourth national. which
closed it's doors in the Board of Trade
building at 10 o'clock. At that hour the
excitement was running high. and every
one of a half dozen banks was crowded
with depeSitOrs, who were in line await
ing their turn with the paying teller.
The first failure of the present crisis
was that of the Kentucky national bank
Saturday. Then came the Louisville city
national Monday. after the Intervention
Of Sunday holiday, and the Merchants
national, the Louisville deposit and the
Fourth national today.
The failure of the Merchants national
was caused by the Withdrawals of coun-
Try banks and country depOsitOrS. The
Louisville deposit was the only bank in
the city not a member of the Clearing
house association and in its time of need
none of the other banks would give il
any assistance whatever The sUspen-
sion of the Fourth national was a re-
suit of the panic.
There has been steady pulling out of
deposits. This changed into a run after
the suspension Of the Kentucky national
last Saturday. and the run continued
Monday and Tuesday and until all the
funds were exhausted today. None of
the failures are considered bad ones.
DepOSitors in the two national banks
will be paid in full and the loss to stock
holders will not be more than so per
cent. in either case. The Merchants
national bank is capitalized at S500.000
and J. II. Lindenberger is president. The
Fourth national has capital of 100000
a surplus of $4,000. George Davis is
president. The Louisville deposit bank
has a capital Of $500. 600 and a surplus of
$16,12S. Moses Schwartz is president.
The Deposit bank was not a member
of the clearing house. 1t was organ
lied just before the Barring failure and
naturally its career has been a stormy
one. 1t determined TO have business;
went for il. and in a little while it Sc
cured a handsome deposit. Cashier
Ohligschlager said to a Post reporter
that the bank was abundantly able TO
meet it's liabilities if it could realize
on it's assets. and he assures the de-
pOsitors that they viii lose nothing.
The Banks Solvent.
President Davis of the Fourth national
was seen just after the closing of the
doors. "Al the information we have to
give out al this time" he said, lis that
no one will lose a mill by our suspen-
sion.
President Lindenberger of the Mer-
chants national said: THE bank is
abundantly solvent and there is no sort
of doubt that the depositors will be paid
in full. II is my judgment, from a
calm view Of the prospect as now pre-
scented, that the stockholders will re-
ceive the face value Of their shares
Had the bank gone on without having
to close the realization would have
been greater, but even with the disad-
vantages under which we are now labor
ing / do not think they will lose any
thing
The Merchants national bank of
Louisville was organized as a national
bank on July 5, 1874, succeeding the
Merchants bank Of Kentucky, which
had been operating under a charter
from the state since Sept !, 1860. The
Fourth national was organized in 1888
Shortly after the assignment of his
bank, President Moses Schwartz filed
an individual assignment In the county
clerks Office To the same assignee the
Germania safety vault and trust COM
pany. All his personal assets are given
over into the hands Of the assignee
Inc oWeElW0ou QlSIliiefy company $50
made an assignment by its president.
Moses Schwartz. at 1915 o'clock this
afternoon, TO the Germania safety vault
and trust company. Mr.. Schwartz
could not say what the liabilities
amounted to. and felt too bad TO talk
about the matter
Jake Schwartz, the liquor dealer an
nounced today that he had suspended
He owes $4,000. three-fourths of which
ne says is secured, and with time he
claims he can pay off the rest and have
something for himself. Lately he did
business at Third and Main He is "A
brother Of Moses Schwartz, president Of
the assigned Louisville deposit bank.
At 1.15 o'clock this afternoon "A small
run was caused on the German bank b.
I'm old colOred woman, who had $50
deposited there. She did not have the
certificate with her and demanded that
she be given her money without identii-
ca ton. The noise she made attracted at
tentiOn, and in few moments hundred
people were about. The bank officials
sent for Police Lieut.. Jacobs and had a
strong box said to contain $500. 600.
brought over from the Louisville trust
company
The money was spread out on the
counter and the cashier announced that
he was ready to pay OF any and all