The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-26
Indianapolis National Bank and Bank
of Commerce Suspend Payments.
1t Is Believed that the Dspositors Of Botl
the Institutions viii Be Paid DOL
lar for Dollar.
Other City Banks Suffer No Inconven-
fence from the Suspensions.
A Few Small Depositors Became Uneasy. but
Confidence Soon Became General
Well Fortified.
INDIANAPOLIS NATIONAL.

INDIANAPOLIS NATIONAL.
Closing of the Bank's Doors Caused No
Denominations of Excitement
The Indianapolis National Bank and the
Bank OF Commerce suspended payments,
yesterday morning. and their doors were
not opened.
1t was known positively to few people
on Monday night that the Indianapolis
National Bank would not resume business.
yesterday morning. and among those who
knew it were members of the Journal
staff. At the request OF the presidents,
after midnight no announcement Of the
fact was made until it should first be an.
nounced OF the bank. A reporter was at
the bank at o'clock. awaiting Cashier
Rexford. to whom the answer of the
other bankers had been given the
night before. When Mr.. Rexford appeared,
shortly before O'Clock. he announced 20
the attorney of the bank and other officers
present that aid could not be secured and
the bank could NOT open. The first newa
of the suspension was conveyed TO the pub
lic through the Journals extra ut s:45 a. IN.
The announcement that the management
of the Indianapolis National Bank had de-
cided not to open it's doors spread with ce-
lerity. and when the usual time arrived
for opening the doors q number of de-
positors lined the street and sidewalk as
both the south and west entrances. The
wild frenzy that Is popularity supposed 10
take possession of n crowd of depositors IN
front of suspended banh was absent. and
there were few blanohed faces, or tears, or
cries, and no imprecations. Deep anxiety
was depicted upon the faces of some who
had their accumulated earnings behind
the doors. but nearly all were
disposed to accept the situation
philosophically. confidence being general
ly expressed that while some embarrass-
mept and incon venience might result. yet
the bank would pay it's depositors dollar
for dollar.
At o'clock piece of white paper was
posted on each of the entrance DOORS bear.
ing the following notice:
Owing TO the general financial stringency, the
steady withdrawal OF deposits and the difficulty
OF conyertin ng securities into cash. this bank ID
INDIANAPoLrs NATIONAL BANK.
The crowds about the bank continued TO
increase until half past 8 O'clock, after
and the people thinned out and went
about their business.
The drain of funds from the Indianapolis
National commenced soon after the failure
of the Capital National. Later there
was q cessation in the withdrawal
of deposits. but the last published
statement, showing the condition of
the bank at the close of business hours
July l2. was not reassurng. and the with
drawsl of deposits was renewed Last
Saturday the cheoklng-out process
evening President Haughey laid before the
other bankers the fact that unless
the other banks came to his assistance
be would be compelled TO suspend.
After a canvass of the situation the sum
OF 5000 was advanced. Monday there
was Im provement in the situation; the
quiet run continued, and by Monday even
ing the S50.000 had been wiped ou:. with
the prospect that yesterday would see
no cessation in the drain. Monday even
ing President Hsughey again LAID the
condition of the Indianapolis National be.
fore the clearing house and made another
appeal for help. The meeting lasted until
late at night. the decision being that the
other bankers. In Justice TO themselves.
could not spare the amount OF money that
would be necessary to tide 10 over its Diff
cuities. This decision left suspension a.
the only alternative.
that led to the suspension was given TO the
prees for pu 5licatlon:
INDIANAPOLIS, Ind, July %, 1893.
1 was not aware until Saturday evening OF the
gravity or the situation. The Louisville aud
New Albany failures seemed TO aggravate the
local financial situation in such a way to
produce rapid-spreading and fatal rumors
thought IL was wise at that time 10 consult with
some of my fellow bankers. and called in repre-
sentatiyes of Fletchers Bank. the Indiana Ma
tional Meridian National and Mercnants National
Bank. It was my opinion that go. 900 would
carry our hank through, and asked for this
amount in the shape OF loan. These banks
very generously gave me $4,000. This sum
was sufficient 10 carry me through yesterday,
but left me at the close considerably worse OF
than on Saturday evening Meanwhile we were
unable 20 Immediately realize on a great deal OF
our securities. l finally concluded that the tide
that had set in too strong to stem and it
would be best for all concerned 10 suspend.
THEo. P. HAUGHEY.
Yesterday morning Con troller of the Cur
rency Eckels was notified OF the suspension
of the Indiana polls National Bank. He st
once notified Hugh Young of Pitteburg,
special bank examiner. who had charge Of
ths Capital National. to come here and
take charge of the Indianapolis National.
Mr.. Young 10 expected 20 reach here from
Pittsburg to-day.