The morning call., 1893-07-19
PANIC AT DENVER,
Four Banks Compelled to
Suspend.
ALL THE OTHERS SUFFERED.
Stocks Flurried and Weak at New
York on Account of Disqui-
eting Rumors.
Special to THE MORNING CALL

DENVER. July 1S.-No scene was ever
witnessed here like that of this morning,
shortly after the hour when the banks
were opened for business The failure of
three savings banks yesterday had excited
the masses. and at the hour of opening the
streets in front OF the remaining banks
were crowded with anxious depositors.
Eleven Clearinghouse banks, located
within four blocks of each other. were sur
rounded, and far into the street crowds
gathered until the police were called to
clear the way for traffic.
At 10 o'clock the Union National, with
a capital of S1.oO0,OOO. posted notice that
they would not open their doors. The
notice explained that the bank had paid
100000 to depositors in the last few
weeks and had realized on its securities as
rapidly as possible. but not fast enough.
This started the panic and few min
utes later, when it became apparent from
the size of the crowd gathering on the
sidewalk that a run was about TO be in
augurated the Commercial National closed
its doors and posted this notice: "Closed
for liquidation by order of the board of
900. There is only $1,000 cash ON hand.
Almost simultaneously the National
Bank of Commerce suspended payment.
"'rhis bank is closed by order OF the board
of directors" is the notice posted at every
entrance to the Bank of Commerce. The
officers inside refused admission to out
siders. The condition of this bank is not
known, as it did not print statement yes
terday, as was done by almost all other
banks.
Up to the hour Of noon these were the
only failures, and though all the banks
were suffering it was hoped that no more
would be forced to suspend. AT that hour,
however, the Mercantile Bank, private
institution with capital of S1Oo.00O failed.
Ths failure was called by that Of the
Union National, through which it cleared.
The excitement and demand upon the
banks after money continued unabated
until about O'Clock. when it subsided al
all the banks except the Utah State
National and the German National. where
depositors seemed to increase instead of
diminishing.
Late this afternoon two more banks as
signed-the North Denver Savings Bank
and the private bank Of Stephens &
Hanchett, known as the Capital Savings
Bank. No statement Of the assets or lia-
biities has beer fled The deposits are
not thought to have been heavy.
President j. A. ThacEer Of the Clearing
house says: Il am confident to-day will
see the worst of this and the people will
come to their senses. At meeting OF the
Clearing house last night we decided we
could not help the banks and so some of
them have gone to the wal. All Of them.
| believe, have ample security to protect
all the deposto-s. But unfortunately at
this time cash and not security Is what
the majority Of the people are clamoring
for"
The First National appears in unexcep-
tionable condition. having over 60 per
cent of deposits on hand. with private
fund of S1,500,OO0 in addition to draw
upon, making 1t impossible to close their
doors. The Colorado National and sew
eral others are equally good.
John p. Hanna of the City National
said they were in as good condition as any
body Hanna hopes to be able to control
enough of the deposits to tide over the
bank. Several Of the principal dep0sitors
made large deposits this morning. Some
who owe the bank in the shape of notes,
but have cash deposited. had payment re-
fused on their checks. Liabilities subject
to check, $5S9,SOS. or this the officials
control nearly two-thirds, so that the cash
on hand, amounting to 1888, 1888, will meet
the demand of small depositOrs.
The Union Banks resources consist of:
Loans and discounts. $1.622,6ss; United
States bonds TO secure clrcu alton,
$50, 900; cash and exchange, Sl47.566;
cverdrafts, S32.07S; deposits. S533.55S; due
other national banks, S14 09S; State Bank,
S29. 800; paper outstanding. $4,000.
President Woodbury. thinks the bank
will reopen.
Constant drain on the banks by scared
depositors brought about the crisis. 1t is
stated by bankers that no less than
SS. 100000 was drawn from the banks
during the last three months. OF this al
least ST. 0OO. 600 is locked up id this city.
While banks were topping on every side
the business community began to feel the
distress, and shortly after the hour of
opening for business the Mcnamara Dry
Goods Compa one Of the largest houses
in the West, was closed by an attachment.
The liabilities are $25O,O00; assets un-
known. The failure was caused by attach
ments by the Union National Bank for
S71, $50; Colorado National. S2O,s47 The
president of tho latter hank had private
claim Of $25, 900. and d. Sheedys. an officer
| in the Denver National, for $4,000.
Following the failure Of the big McNa-
mara dry-goods house several other mer.
camille failures were announced. They
we're the John Mouat Lumber Company,
on attachment from the German National
Bank for S155. 200; Albert Nelson. restau-
rant and saloon, with assets of Sill, $40,
liabilities 500, ,725; M. S. Noah, insta llment
furniture house. with assets of $4,000.
liabilities S160 900. Three other firms with
liabilities of $40. 600 each also failed.
ECKELS ON THE SITUATION.
Address of the Comptroller at a
New York Banquet.