St. Paul daily globe., 1893-03-28
SUSPENDED PAYMENT
Two Small Savings Banks at
Nashville in Financial
Difficulties.
They Take Advantage of the
Required Sixty Days
Notice.
One Of Them Will Probably
Resume Business in a
Few Days.
All Of the Other Banks Trans
acted Business as
Usual.

NASHVILLE. Tenn, March 27.-Today
there was some excitement on the
streets where the banks are located, but
the chief excitement was caused by
curhstone loungers, who were predict
inc the failure of the principal banks of
the city, and whose conversation made
doubtful GepositOTS somewhat uneasy.
The business portion of the city was not
at all agitated. and conducted its bus
mess as usual. At 9 9o'clOck. the hour
the banks open, quite crowd gathered
at the corner OF College and Union
streets, in the vicinity of the banks, and
when the doors of the banks were
opened a small run was made on the
First National, but the deposltors got
their money so rapidly that they became
convinced that their fright was an er-
ror. and III nearly every instance re-
deposited. At the other large state and
national banks business went Oh as
usual. In all of these banks the depoS-
its during the day
Exceeded the Withdrawals.
Two of the smaller banks, both doing
business under state charters, at ali
early hour took advantage of the priv
ileges given them by the law and re-
uuired sixty days notice Of the with
drawal Of deposits. Both of these banks
had savings departments connected
with them. and upon these two banks
the principal runs were made, one OF
them. the Bank of Commerce. doing
small business. with deposits amounting
to about S5O.OU0, suspended payments,
though it might have availed itself of
the sixty days provided to depoSItOrS.
and today made Il general assignment
under the state laws for the benefit of
all creditors. This break is rather
bad one, but only for small amounts.
The Mechanics bank. another small
state institution with saw
ings department and having very many
small creditors. opened Its doors as
usual, but soon it was evident that a
run was being made upon II, and the dl-
rectorS met and decided to take advan-
tage of the law requiring sixty days
notice from depositOrS. and suspended
payments. This bank will, i'll all prob
ability,
Resume in IL Few Bays,
as soon as the unQul6L l6GllHS ulSdp-
pears. as this bank has assets III excess
of lis liabilities. and only suspended for
the benefit of all its creditors. All the
other banks transacted business as
usual, and report deposits in excess of
Withdrawals.
The feeling of uneasinesS produced
by the suspension Saturday OF the Com
mercial National bank has almost diSap-
peared, and there is no doubt that to-
morrow business will resume its usual
channels and the banks will have no
further trouble. The officers of the
Mechanics bank suspended are Lewis
I. Baxter, president, and John Schardt,
cashier. The officers of the Bank OF
Commerce assigned are j. II. Var
brough, president, and j. n. Brooks.
cashier. The liabilities of the Bank of
Commerce are $4,000; capital stock.
S27, 500. The consensus of opinion OF
all the leading financial and business
men of the city, is that the furry is over
and that the storm has expended Its
fury.
As result OF the suspension of the
Mechanics bank. Lewis Il. Baxter, the
president, made a SPECIAL assignment
today for the benefit of the bank and
other creditors. No other assignments
are reported and none are anticipated.
Special Bank Examiner j. Nj. Nc
Knight, of Louisville, has reached the
city, and is in charge of the suspended
Commercial National bank.