The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-07-26

was ever witnessed in the west as could
be seen here this morning shortly after
10 o'clock, when the banks were sup
posed to open their doors for business.
The failure of three savings banks yes
terday had excited the masses. and at
the hour of opening the streets were
crowded with anxious depositors. The
eleven clearinghouse banks, located
within four blocks of each other, were
surrounded, and far into the streets the
| crowds gathered until officers and spe-
cial police were called out to clear the
way for traffic.
! At 10 o'clock the Union national. with
a capital of $1,O0O,00O, posted a notice
| that they would not open their doors.
| This started the panic, and following
quickly the Commercial national posted
a similar notice, and then the National
bank of commerce, and people asked,
"'Where will this stop" A run was
| Immediately begun on all the other
| banks, though to no great extent upon
| the Peoples national. The First ma
| tionaI seems to be the soundest of all,
| it having over sixty per cent. of its de-
posits on hand, with a private fund of
| 81, 500, 900 in addition to draw upon. The
| Colorado national and several others are
| in equally as good condition. Those
| withdrawing their money are all small
depositors, the large holders being salts
! fled TO let their accounts remain in the
banks The banks are paying all de-
J mands except on time certificates, re-
! quiring that those remain until the ex-
piraton of the time.
The Union banks resources consist Of
| loans and discounts amounting to $1,622,-
6SS.S5; L. S. bonds to secure circulation.
| $3.50, 900; cash and exchange, $147, 567. 50,
| and the redemption fund due from the
! L. S. treasurer of $3.50. 1t has over
drafts, secured and unsecured, amount
ing to $32,O77.72. The liabilities to depos-
itors amount to $533.55s.25 There are
| $14,O97.62 due to other national banks,
and $29, SOS.65 to state banks, and the
bank had paper outstanding for $4,000.
| President Woodbury's opinion is that the
bank will reopen and continue business
as before. 1t 10 he of the oldest banks
in Denver and has always been regarded
as one Of the solid ones. The failure of
the Chamberlain investment company a
few days ago affected the Union national
bank considerably; the company had be-
| come indebted to the bank in the neigh
| bOrhOod Of $4,000, which weakened the
bank in the estimation of those who
| know the relationship.
| The Commercial national bank closed
| it's doors this morning within a few
! minutes after the opening, for it become
! apparent from the size of the crowd in
front Of the bank that run was to he
| continued. a notice was posted on the
door, CLOSED for liquidation, by order
| of the board of directors" The bank
was in bad shape. 1t has a capital
stock OF S250O00, and only had $4,000 in
cash in the bank.
Small depositors rushed to the Ameri-
can national bank this morning and be-
gan to draw out their deposits The
American national bank has less small
depositors than any other of it's capital
$1,OOO,0 OO-in this city, as its dealings
have been largely with men who han
died big money. The vice-president of
the bank said that those who are draw
ing money are those who usually paid
the grocers and butchers with checks
which came to the bank through the
clearing house The depositors had to
go to the bank in person to draw the
money.
Excitement Abates
The excitement and demand upon the
banks after money continued unabated
until about 2 o'clock. when it almost en-
tirely subsidized, at all the banks except
the Utah state national and the Ger
man national, where the line of deposit
ors seemed to increase instead of dinlin-
ish. This bank is understood to have a
special train on the way from Kansas
City bearing $4,000, and that il will
| IL
The First national bank received 800
600 at a little after l o'clock and $3.50 OOO
more at the closing hour This came
from New York. 1t was money due
President Moffatt for bullion he had sold
Just before the close the failure of the
Mercantile savings bank, with a capital
of 100000. was announced. It's assets
are sufficient to pay all liabilities in
time. At o'clock, the closing hour
there were hardly half a dozen peonle
in any OF the institutions except the
above named. Mr.. Moffatt, president OF
the First national, stated that the de-
posits at his house during the day ex-
ceeded the Withdrawals. The bank has
always been most cOnserVatively man.
aged and is almost exclusively owned by
Mr.. Moffatt.
The prevailing opinion among the
bankers and business men Is that the
|
will be obliged to close, although the run
in a mild way may continue against two
or three banks for day or two. IT is
believed by fnanciers that today's rur
will result in the people having more
confidence in the strong banks; that the
money withdrawn today will at once be
redeposited and a better footing be es
tablished in financial circles, which will
make money easier. The suspended
banks expect to resume business in q
short time.
The constant drain on the banks by
scared depositors Is what brought about
the crisis. 1t is stated by bankers that
no less than sS.O0O,OO0 has been drawn
from the banks during the last three
months. OF this 100000 has gone East
In regular lines Of business, but there Is
IS. 100000 boarded in the city. The safety
deposit vaults are full and there is rea.
son to suppose that the homes of work
ingmen contain secret places in which
their savings are hidden. If one-hftietf
of that amount was let into circulation
the stringency In Denver would cease.
Dry Goods Company Failure.
The Mcnamara dry goods company
one OF the largest institutions of the
| kind here. failed this morning. The liza