The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-06-07

WHEELING, JUNE 7. 1903.
BANK RUNS wl.hout neason.

Bank Runs Without Reason.
It must be very Encouraging to
croakers when a run Is nude on bank
and the bank, instead OF closing its
doors, keeps open late and opens earlier
than usual TO give the frightened a
chance to draw their money. The
chief idea if run is that the money is
wanted Of it cannot be had; and II it is
ready on demand it is not wanted.
With one exception the Chicago saw.
inge benks on which runs have been
started have waived their right to
thirty, sixty or ninety days notice as
the case may DO, and paid on demand
as fast as the money could be handed
out The one bank which insisted on
the notice, and probably wisely, has the
money ready for its depositors but did
not think il necessary to waive ita right
for the mere sake Of being rushed.
For an instance Of the other kind We
have the sandusky Savings Bank,
perfectly solvent concern, which has
been obliged to suspend because OF a
persistent run without reason. This
banks liabilities are about two-thirds
OF its available assets, but of course tho
assets could not at once be converted
into cash to pay over the counter.
It would seem waste Of time to OK.
plain that bank cannot keep all OF its
deposita in ita vaults and pay interest
on them. Before It can pay interest
the interest must be earned, and this is
done by lending the money on sufTici-
emit security and becoming responsible
to the depositor.
Experience tells tho bank about how
much cash it must keep on hand to
satisfy checks. When the demand for
cash goes beyond this normal level the
bank must borrow on its securities or
sell them tn realize Immediately. If
this cannot be done because Of strin-
gency in the money market, or for any
other reason, the bank must close its
doors.
Every bank in Wheeling is known to
be solvent and solid. There is not one
Of them that is not good for very much
more than its total liabilities. II there
were to bs run on one beyond its
ability to take care Of itself on the in
slant all the others would go to its
rescue. Yet il all the depositors in oil
the banks were to want all their money
atthe same time, giving the banks no
chance to withdraw their balances in
New York, or to realize on their securi-
ties, the banks would have to close in
spite Of their decided strength and ab.
solute solvency
Depositors have a right to demand
that the banks shall be conducted with
great conservation, as the banks Of
Wheeling are known TO be conducted;
but depositors should be conservative
and thoughtful, always careful not to
demand unreasonable things and not to
put on unnecessary pressure.
People who know their money Is safe
should DO careful not to place the bust.
ness OF whole community in jeopardy
by putting on unnecessary strain; for
in tho end 1t Is not the solvent banks.
but the manifold business interests
that depend on them, that suffer.
When the general business interests
suffer, every private interest big or
little, suffcrs with them.
Wheeling has passed unframed
through many furries, largely because
tho banks are accorded the confidence
to which they arc entitled, because the
business Of tho city is on o Oolld basis
and conducted go consOrvativoly as to
give our busineIs mon almost excOp'
tional standing in tho great markets,
and because the people have a very
liberal endowment Of common sense
fortified by reassuring experience.
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