The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1893-06-23
THE EXCHANGE BANK FAILURE.

THE EXCHANGE BANK FAILURE.
The people Of Edwards county are
now feeling the effects Of the financial
panic that is sweeping over the coan-
try, and are able to understand the
insufficiency and insecurity Of our pres
ent banking system, and the advanta-
ges of the system Of government banks
that is in successful operation in other
countries
Last Saturday morning shortly after
the doors had been opened for BUSH
ness. the Kinsley Exchange Bank
closed its doors, and within few
hours Scott Yeatman was appointed
receiver by the district judge on the
application of one of the stockholders.
The receiver immedi ,tely took pos
session of the bo"ks, papers and assets
of the bank, and has been busy ever
since going over the books. preparatory
to making a statement Of the cOndi-
ton Of the bank for the benefit of all
parties interested. We are informed
that a statement will be prepared next
week in time for publication in our
next issue.
A number of the depositors desiring
that an examination of the affairs Of
the bank should be made by Bank Com
missioner Briedenthal, lie was tele-
graphed for Monday and arrived here
Wednesday noon. With the assist
ance of the receiver lie examined the
affairs of the bank during the after
noon, and afterwards made an inform
al statement of the condition Of the
bank as he found it, to number of
the depositors. From the information
obtained from him and from other
sources, we think that there is strong
that the depOsitors will
receive large per cent. if not all, of
their money in time, unless crop con-
ditiOns are such that u very great
occurs in the value of the
bank assets. The nominal assets are
about $54 900 and the liabilities about
S22. 900, s14, 900 of which are deposits.
The assets consist of notes secured by
first mortgages on real estate and
chattel mortgages, real estate owned
by the bank, tax certificates, and other
property.
OF course it will take some time for
the receiver to collect the notes due
the bank and to turn the other prop
erty into cash, and it is impossible for
any one, at this time, to determine
how much can be eventually
realized from the assets, rs the value
of the assets will materially depend on
the crops raised this season in this
county.
We believe that Mr.. Yeatman will
act honestly and diligently for the
benefit of the creditors, and that every
thing will he done by him that is pos
sible to realize the full value of the
bank assets. and to distribute the pro
ceeds among the creditors with as lit
tie delay as possible.
As near rs we can learn the failure
of the bank was caused by the unfore-
seen withdrawal. of deposits within the
last month, caused by reports of the
insecurity of the bank, and the inability
of the bank to collect its notes rapidly
enough to meet the demands of the de-
positors. Nothing has appeared to show
that the bank officers have been guilty of
any fraudulent acts, or that they have
been incompetent or careless in their
management.
The failure results from conditions
that could not we'll he fOreseen or
avoided. If the financial panic that
is wrecking banks all over the country
had not occurred, and this county had
raised a good crop Of wheat the bank
would have undoubtedly been in good
condition.
As far as oUr knowledge extends the
hank business has been conducted eau
tious!y and conservative:y. on sound
banking principles, and the failure
results wholly from unfavorable finan-
cial and crop conditions that could not
be guarded against, under our present
vicious banking system.