The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1893-08-10
STRUCK BY THE WAVE.
NO LONGER CAN WE BOAST OF.
NOT a SINGLE BANK FAIL
UREIN VIRGINIA.

; UREtN VIRGINIA.
The Bank OF Big Stone Gap Goes
Down In the Generas Crash
lts Doors Closed Tuesday
Morning.
| The Posi- regrets to announce the
failure of the Bank Of Big Stone Gap,
which occurred Tuesday last. The
bank on that day made deed of
assignment to VIM. w. McElwee,
teller Of the bank, for the benefit of
it's creditors. The deed provides that
out of the assets collected by the
assignee he shall first pay the ex-
penses incident to the trust, and then
distribute the balance pro rata among
the depositors and creditors until all
have been paid in full. and that the
balance be disbursed among the stock
holders according to their respective
rights. The directors state that there
is no intention of resuming business,
it being generally conceded that there
is not more than business enough
for one bank.
The history of the Bank of Big
Stone Gap is. in some respects, very
remarkable. The bank was organ
lied in 1889. abont the time the
"boom" in real estate began in this
section. with capital stock of
$50, oGU.00. The deposits increased
rapidly from the start, and in Febru-
airy, 1890, they amounted to about
1920, 10000. Owing to the sub
sidance Of the "boom," and the gen.
eral panic which began in 1890, the
deposits had, within less than year.
dwindlcd to less than $40,000.O0.
During the flush times The loans of
the bank reached the sum OF S225,-
10000. The same causes Which OPP
Grated to decrease the banks dcpos-
it's also operated to cripple many Of
the persons who had borrowed money.
SO that the bank was unable to call
in its loans when due, and it's policy
for the last two years has been to get
its loans better secured rather than
to compel Immediate payment. The
loans have now decreased to about
$S5 100000 and the deposits have
likewise gradually diminished until,
on the day of closing, they were only
Sis, 100000.
ALL DEPoslToRs WILL DE PAID IN FULL.
One of the directors said today that
there was no doubt about all of the
depositors being paid in full. though,
owing to the hard times, it may take
some months to make sufficient col
lections to enable the assignee to do SO.
He said that on careful examination
of the assets he was also of the opinion
that the stock Of the bank would pay
at least fifty cents on the dollar, and
might pay as much as seventy-five
cents, and if there SHOULD he revival
of business here tire Stockholders
would get dollar fer dollar.
No blame whatever is attached to
the officers and directors Of the bank.
The whole trouble comes from the
fact that they did not f"rrsee thy
coming of the panic of 1890. AMI TIE
subsequent hard times. =
Mr.. H. FL. Bullilt, who has held
the position of cashier since the or
ganization of the bank, and who has
had practically the management of
it's affairs, is universally regarded as
an able and efficient banking officer,
and as of the highest integrity, and
no one has made more and warmer
friends in this county than he, and it
is with deep regret that we learn that
he intends shortly to return to Lou
isville, his old home. Too much
credit cannot be given Mr.. Bullitt for
having kept the bank ahoat for the
last three years. He did this by the
great interest he took in it's affairs,
by his hard work and by his strong
family and personal connections in
Louisville and elsewhere. Making
many of his loans where values were.
at their highest, but always at ceii-
servative estimate, he reduced them
all that it was possible for s<man to
10 without wreckiny our people and
impoverishing the town. He COM
bined correct business principles with
an appreciated consideration for
mutual interests, and has with him
TODAY the heart of the community, of
which he was perhaps the most pop.
Mar member. He did all he could
for his stockholders, his dcpositors,
his patrons and this section, so that
everyone regrets the imposSibility OF
the continuance of the bank.
Condition of the Appalachian.
An interview yesterday with presl-
dent w. \. Mcdowell, of the Appa-
locbiau Bank, revealed the fact that
never before was that solid institution
in better condition. In speaking of
the situation. Mr.. Mcdowell said:
lam pleased to state that the
| unfortunate failure of the Bank OF
Ri, Stone Gan has not created the