Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1893-07-14
A PANICKY DAY.
The First National Bank Closes
Its Doors.
Financial Strlngency of the Times.
and Want Of Confidence by De-
pastors the Cause.
Will Doubtless be Reopened in IL
Short Time and Dep0sitOrs
Paid in Full.
q rH,NsuNNys, n,ppv,
A PANICKY DAY.
STATEMENT FROM THE CASHIER.

STATEMENT FROM THE CASHIER
Nothing has ever stirred the city
of Hot Springs from center to circum
ference like the closing of the doors OF
the First National bank last Friday
The news of the event cast gloom
over the town that was ominous.
While the reports coming daily
from points throughout the country
of the failures of banks gave matters
a serious aspect here. it was hoped
that the confidence Of the people in
our local institutions would forestall
a run being made by depositors. But
the hope was vain and the First Ma.
tional was forced to suspend payment
The recent statement of the bank
shows that its resources are ample to
cover all liabilities. but inability to
procure ready cash upon collateral
that at any other time would be re-
garded as gilt edge" has brought
about this unpleasant state of affairs.
The following statement from Cashier
Parks explains the situation very
fully:
To THE CITIZENS OF Hor SPRINGs:=
This issue of the STAR will contain
the somewhat startling announcement
of the closing of the doors of the First
National Back of this city, and having
acted in the capacity of cashier since
its orgination beg to submit IL few
facts to our people touching upon the
causes leading TO his unfortunate con-
dition. Briefly stated, the direct cause
of the closing of our doors is due to IL
systematic and persistent withdrawal
of deposits since the LIST of May. The
bank having lost on deposit account
over $4,000, and we We're compcllstl
to pay TO our eastern correspondents
from whom we had borrowed money,
$1,000. making the total reduction in
our liabilities up to date (in about two
months) of $4,000, more than so per
cent of our deposits during this short
period. This we could have withstood
had it not been that financial matter
have been and are now in the most
deplorable condition that this country
has witnessed since '73. if not worse
than at that time. We as a bank, and
our president especially so, have used
every effort within our power to raise
money with which to tide us over un.
til times get better, but without sue.
cess as we have by actual experience
learned that today it is practically
impossible TO borrow single dollar on
any kind of security. and just as i'm.
possible to collect dollar from those
who are owing the bank, regardless Of
the security we hold against such loan
therefore after we had made the best
efforts within our power, to raise
money outside of our own vicinity
where it was, as l have said before, an
immpossible thing to do, and seeing
our cash resources fast gong out
without semblance of let-up in its
course, and the further endurance OF
alarm yesterday afternoon, in some Of
our most trusted friends in withdraw.
ing their deposits. which assumed, be.
fore we closed at o'clock, good sized
healthy run. there then seemed nothing
else for us to do hut close our doors, fcl
the present at least, until we can rea.
lize on cur paper. No depositor will
lose cent by our closing, and trust
they will not be inconvenienced but a
short time by reason of the suspension.
1t has ever been the policy ef this
bank to promote the interests of our
beautiful little city, and 1t is a source
of much qualification to me to have
seen evidences of the appreciation Of
some of our citizens who have come to
me personally to speak to me in this
spirit since our doors were closed this
morning.
4 We hope our friends will support IL:
in our efforts to re-instate this bank in
the confidence of the people, and fee
quite sure that the result will Justify
their patience.
j. F. PARKS, Cashier.
i, Depositors generally take the matter
very philosophically, and express the
greatest confidence in the banks re.
suming business in very short time
County Treasurer Bradley had a
balance of $12, 2,64OO2 in the bank, Of
which s5,0O6 was upon the court house
fund, the warrant for which is held by
the Union Trust Co. of Sioux city
The city Hall fund amounts to $685..
IS, and the Hot Springs school dis.
'ath House. The