The morning call., 1893-06-20
Condition of Affairs at San
Bernardino.
OREGON BANKS IN TROUBLE
Two Financial Institutions There
Close Their Doors-Bad Fall
ure at Corvallis.
Special to TUE MORNING CALL

out of the Farmers Exchange Bank last
week. causing it to close its doors on Sat
urday, has to some extent infected the de-
p0sitors of other banks.
This morning numerous small depostors
were to be seen drawing their cash, to be
doubtless stored away in some old stock
ing.
But the banks are fully prepared to meet
every demand, and every weak-kneed de-
positor will get his money when called for
The First National Bank of San Ber-
nardino and the San Bernardino National
are we'll supplied with money. They
have been fortifying themselves for some
time past and to-day display an unusual
amount of gold and currency on their
counters.
Large depostors are not drawing their
money. and bankers wear a confident and
smiling appearance this morning.
In accounting for this unprecedented
run on the Farmers Exchange Bank, an
institution unquestionably sound finan-
cialy measured by the usual stan dards of
banking. followed as ii was by disastrous
results, attention has been called to the
fact that over 500, 900 has been Withdrawn
from circulation here by visitors to the
Worlds Fair within a few weeks.
The Farmers Exchange Bank and Say
ings Bank of San Bernardino were prac-
tically owned and conducted by the same
men.
The directors are now preparing a state
ment of their actual condition, which will
be made publ tomorrow.
One of the directors of the Farmers Ex-
change Bank when asked how soon the
bank would resume business stated this
morning that it was i'm possible to state the
time, owing 10 the difficulty in realizing on
securities in money centers.
That the bank will resume is generally
believed by those acquainted with its af-
fairs.
When the banks opened this morning
there was a small run of country deposit
ors on the First National Bank, but this
was counterbalanced by the opening of
accounts with new depositors. By -
o'clock the bank stood in as good or in
better condition than in the opening hour.
The run is now practically over, and con-
fdence IS renewed in the minds of the
public as to the stability of the local insti-
tutions.
The banks of this city are so well sup
piled to-day with cash that large sums
have been forwarded by them to smaller
institutions in the county.
One bank has actually on hand O.0oO
in excess of any amount that can possibly
be drawn out. This is shown by an actual
examination of the books.
A gentleman Of known financial stand
ing, who knows whereof he speaks, states
that there are no sounder institutions in
this country than the banks of this city,
and that the attacks of depostors upon
them are wholly senseless and without
reason.
the suspension continues to be the topic
of conversation on the street. Depositors
who failed to draw their money are con-
soled however by the statement of Bank
Examiner Gerberding, that the bank has
assets of nearly 50 to meet every 81 of
its liabilities.
This afternoon attachment proceedings
were Instituted before the Superior Court
against tie Farmers Exchange Bank by
james Fleming, the petitioner asking
that receiver be appointed. Judge
Campbell appointed George L. Hsom re-
ceiver, with bonds fixed at $3.50, 600. The
appointment is highly satisfactory to all
parties interested, as Hlsom is man OF
well-known business ability and integrity.
The day passed quietly at other banks
of the city. with the exception of the
slight furry at the First National in the
morning, and it is believed that affairs have
permanently resumed their normal condi-
tion.
The Lynn Comfy bank closed its doors
this morning. a notice on the door SAYS
Owing to the stringency in the money
Eat ho hop l.
ment by order of the directors. Depositors
will be paid dollar for dollar, with a large
surplus"
j. L. Cowan, president of the bank. says
tie deposits amount to about S15O,000, and
that the assets will exceed the liabilities
by from $4,000 to 100000. j. A. Craw-
ford, the wealthiest citizen of Albany and
one OF the directors. says he will person
ally guarantee every depositor. Among
the deposits is $4,000 of the county's
money. $1,000 of which had been appor-
toned to the public schools. No official
statement has been made.
The branch Of the Lynn County bank at
Lebanon, this county, also closed It's doors.
AT noon the Bank of Oregon of this city
also closed its doors. Cashier Blaine saws
the assets are so per cent more than the
haoIllIiee' He amount or deposits Is
small Both failures were caused by the
steady withdrawal of deposits for several
weeks.
ALBANY, Or, June 19.-No official state
ment will be made until the bank ex-
aminer arrives, but Cashier Archibald OF
the Linn County Bank says the liabilities
are about $4,000 and the assets s3ls. 600
and that the depositors will be paid in
full.
The immediate cause of the suspension
was the dishonoring of a draft for SIG. 900
presented by the county treasurer In paw
ment of State taxes. The State Treasurer
accepted the draft and gave his receipt
therefor, but the draft on being presented
to the Salem bank was not honored The
directors then held a meeting and disa-
greed as TO whether they should supply
the money required to tide the bank over
its present necessity. The majority finally
decided to suspend.
The assets of the Bank of Oregon are
S6S 600 and the liabilitiesIs 600. The de-
positors will be paid as soon as the bank
can realize on its securities. Merchants
offer to take the paper of both the
suspended banks at par. The other banks
were kept open until 6 o'clock, and paid
all demands. A bank at Lebanon owned
by Cowan, Ralston & Co. of this city closed
Mt 1880 1t had deposits of S27. .0OO IT.