The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-07-28
THE DOORS WERE CLOSED.
Inability TO Secure Currency Forces
the First and Montana National
10 Suspend.
Both Banks Have Good ASSETS
Far In Dxosss OF Their
Liabilities.
Run on the Merchants That Was soon
Over-All tile HAM Report Depos-
it, in Excess OF Withdrawals.

8VNAuo 49,
Oyer-An tile BANKS Report Depos-
it, in Excess Of Withdrawals.
II val very generally known In Helena
Wednesday night that unless remittanoes
Of currency expected BY the Frat National
and Montana National banks ar ivsd DO.
fore 10 O'Clock yesterday morning, that
neither of these banks would open. For
three weeks the First National had stood .
steady drain by small dspositors, paying
everything that was presented. whether II
was q time or demand certificate. During
that time they paid ont hundreds OF thou
sands Of dollars, and stood . strain that
fsw banks, in view Of tho strinasncy Of the
market, could have held up under for .
week. Having tho largest business of .ay
bank In Montana, naturally tho drain was
the greatest. Arrangements wore In pro-
grsss for the conve. sion OF securities Into
currency whom the failure Of the Mitchell
bonk al Milwaukee frightened up the cast
ern money centsrs, and there was no chance
TO get cash. Wednesday evening the board
of directors met, and adopted the following
resolution;
"HxnEx, Montana, July 26. 1893.
"At 1 called meeting OF ths bonrd Of d.
ssotors Of the First National bank OF Hell
enn. tho following directors being present:
John c. Curtin g. X. Wells, Granville
Stuart, A. M. Hotter. \. H. Kleinscbmidt.
u. w. knight, George II. Hill. o. H.. Allen.
wheni IL was unanimously resolved thse II
was the sense Of this board Of directors
stockholders Of this bank to support unan.
imously a voluntary liquidation Of said
bank, IN the interests Of the public and in
the interests OF all the doposito's and for
the time being under the. condition OF
affairs 10 1t now exists, viz. . continuous
drain OF the deposits in excess OF the ability
Of tho bank to realize upon Its lonns and
discounts, that the bank now temporarily
suspend until they can obtain such order.
and IL 10 hoped and believed that the bank
will DO able 10 resume business in q short
time.
"A meeting Of tho stockholders is hereby
called II the unanimous consent OF the
same cannot be sooner obtained"
Yesterday morning. In, conformity with
tho action Of tho board Of directors, the
following notice was posted on the bank
door:
Notios-First National bank-We are
compelled TO suspend business under the
stringency Of the money market n from
heavy drafts ON deposits without being able
to make a corresponding reduction Of our
loans. Our assets are ample but We cannot
command the currency to continue pay
ments.
BY order of the board Of directors.
E. w. KNIGHT, Cashier.
AZ 10 O'Clock, the time for opening for
business, there was quite a crowd in front
of the bank. Most Of those present were
simply there out of curiosity and there
was no excitement.
What has been said Of the First National
applies also TO the Montana National. The
latter has since IL FIRST opened it, doors
boon ranked among the big. financial insti-
tutions Of the state. Up TO ton days
ago while there was q considerable with
usually severe drain. But ten DAYS ago 1t
seemed a. though a sudden frenzy had
seizsd the holders OF certificates. and sach
day the Withdrawals became larger. No
depositor who applied for his money was
refused. and as in the case of the First,
whom the crisis came Wednesday it was
found impossible to get a sufficient guam
tity of currency to meet the demands.
At 10 O'Clock yesterday morning the fol-
lowing notice was posted on the front door
Of the bank;
The Montana National bank on account
of the s%tringency Of the money market and
owing to the heavy drafts on its deposits
and the inability to make a corresponding
reduction In outstanding loans, Is com
PEELED to suspend business. The assets of
the bank are amply sufficient to pay all
liabilities, but it is impossible to command
tho necessary funds to continue payments
at present.
by order of the board of directors.
"a. l.. SMITH, Cashier"
During the day tho officers Of both banks
were busy making mp q statement OF tho
nssets and Liabilities. That OF the First
National. completed in the afternoon.
showed assets OF So III. $50. SO; liabilities.
1850. 1852. l6; surplus of assets over liabil-
tiles, 81, 18O,91S. ~. In addition there 10
the capital stock of 100000.
Cashier Smith. OF the Montana National.
prepared a statement showing the assets
amounted TO 81. 750. 900. and the liabilities
20 5000. 600. go that whethsr the bank re-
Bumes or goes into voluntary liquidation
She depositors will be paid in full. A def
mite plan OF action had NOT born decided
upon yesterday. and kilograms were passing
between the banks and the comptroller of
the currency.
Comptroller Eckles was notified early of
the closing Of the two banks. and a dispatch
received from him yesterday afternoon
shows shat he ia willing to do all in his
power to aid the institution. His die. atch
was the most cheering feature OF tho stu
alton. and WIS in art us follows:
"You may be certain that ! will grant
every OPT ortunity possible for 10th banks
10 resume. l suppose the banks are per.
fectly solvent, but have been compelled TO
C!o6o on account OF the atrlngepcy OF t0e
o market. and In this view OF the case
] nm willing to facilitate their ption
in every proper wny."
Last night the comptroller teleGraphed
A. W.. Lyman requesting him TO act az
special examiner. In connection with Bank
Examiner Wilson. The latter will begin
the work of investigating the condition of
the First and Montana National a. soon az
he returna from Great Falls.
AT OTHER BANK.