The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-08-02
INDIANAPOLIS NATIONAL CLOSES.
The Causes Given and General Talk
on the Situation.

on the Situation.
owing to the general financial strin-
gency, the steady withdrawal of deposits
and the difficulty of converting securities
into cash, this bank is obliged to sus-
pend
The above notice appeared on the doors
of the Indianapolis national bank at the
usual hour of opening Tuesday morn
ing. 1t had been rumored on the streets
early in the morning that the bank
would not open and there was a crowd
around the doors at 9 o'clock, most of
whom were small depositors. Many were
the expressions uttered as to the prob
ability Of the bank paying depositors in
full. Most everybody seemed inclined to
look at the matter i'm a philosophical
way. deciding to make the most of the
situation, and the crowd soon dispersed.
There was a lack of the excitement that
is usual in such a case. the depositors
seeming TO have confidence in the man.
agement of the bank. A number of
small depositors were heard to express
it their opinion that they had been
swindled and that their money was lost,
but this sentiment was confined to a
very few, and they were of that class
understand the situation.
Owing TO the similarity Of the names
of the indianapolis national and the In
diana national banks, and the cries of
the newsboys, there was for a while in
the morning a pretty steady run of
small depositors on the latter bank.
That institution met all demands, how
ever, and by 1 o'clock the run was
practically over President MalOtt stated
that the bank had comprehended the
conditions leading up to the present state
of affairs and that while ii had always
kept itself strong, it has been doubly
terrifying itself and is now prepared to
meet any demands that may be made
against it. This is practically the con-
ditiOn of the other Indianapolis banks.
None Of them, however. We're drawn
upon as heavily as the Indiana national.
The run upon all was of short duration,
being over in most cases before noon.
Hundreds of depOsitors who had come
with the determination to withdraw
their deposits from the different banks,
when they saw how quiet everything
was went back to their homes satisfied
to let their money remain.
The Real Cause.
The real cause Of the suspension of the
bank was the publication of the state
ment of the 18th inst That showed a cash
reserve of about % per cent. of deposits,
which is IL per cent. less than what Is
ordinarily regarded by bankers as con-
servative. And in addition to this show
ing there appeared two other unfavor-
able items. namely: Notes and bills re-
discounted amounting to $5l 900 and bills
payable to the extent of S5S.000.
This report was commented upon
throughout the week and the general
feeling was that the publication was
somewhat weak. The result was that
from Monday following the publication
of the statement depositors began
steady drain upon the bank, which to the
management of the bank, who did not
recognize the fatality of the situation,
seemed but the ordinary. 1t was not
until Saturday, when the constant drain
had almost depleted the cash. that Presi-
dent Haughey recognized the true stu
alton and became aware that the de-
positors had lost confidence in the bank
1t then that a meeting of his
fellow bankers was called at the resi-
dence of Allan Fletcher and the matter
was laid before them. Even then Mr..
Haughey did not seem to fully appre-
ciate the situation. as he asked for only
$50, 900. believing that with that amount
he could stem the tide; the bankers,
however. gave him $4,000 at a meeting
held on Sunday night. This amount was
exhausted on Monday and by Monday
night Mr.. Haughey came to the con-
clusion that he could go no further and
that there was no use to try. Accord
ingly, another meeting of the bank Of
ficials was called and Mr.. Haughey ex-
planned his intentions to quit. He is the
oldest bank president in the city and
has the undivided respect and esteem of
all his associates in business. The other
bankers decided to leave the matter en-
tirely with him, and if he had asked
further assistance il would have been
extended, but Mr.. Haughey realized that
the amount of cash that his bank would
require TO weather the storm was more
than could be taken from the others
without seriously affecting them, and he
refused to accept such sacrifice.
BANK OF COMMERCE. CLOSES.