New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-28
MOTHER NASHVILLE FAILURE.
THE BANK OF COMMERCE MAKES AN AS
SEGMENT
THE MECHANICS BANK DEMANDS SIXTY DAYS
NOTICE OF WITHDRAWAL OF DEPOSITS
CREDITORS OF BOTH LIKELY TO GET
THEIR MONEY - PRECACIioNs
AGAINST RUNS on OTHER
INSTITUTIONS.
rnr TELEGRAPH TO THE rRIBUsE.l

rBY TELEGRAPH TO THE TRIBUNE'J
Nashville, Tenn, March 27.-The Bank Of Com
merce of this city did not open its doors to-uay
at o'clock, the usual time; and an hour or TWO
later, after conference of the directors had Deeh
held, an assignment made. John l. l"ii-
yette was named assignee The bank was
small one its assets and liabilities being ap-
proXimately as follows: Asscts-Notes discouh'eo'
S76, 900: real estate and cash, $2l,'OO; total,
Ss7.7OO Liabilitics-Capital stock paid in'
1927, 800; deposits, savings account, $4,000; de-
posits special account, $1,000; general de-
posits, $4,000; profit and loss, $22,2Oo; total
100. The Mechanics Savings Bank and Trust
Company, capital $250,00O, took advantage OF
the State law permitting sixty days notice to be
demanded before deposits can be withdrawn. At
least IA dozen small banks in adjacent towns are
said to Le in temporary financial straits.
The assignment of the Bank of Commerce was
filed late in tic afternoon. The closing of the
doors was brought about By an apprehension that
o run the bank would be made in the course
of the day. Under the State Banking laws the
bank could have required small depositors in the
savings department to give sixty days notice Of
their intention TO withdraw deposits. This. how
ever, would not have prevented the withdrawal
of regular deposits, which wouh leave the small
debositors at disadvantage The directors there
fore decided, in the interest Of all dcpositOrs alike,
to close the bank. The failure of certain per-
sons, who owe the bank large sums, to meet
these obligations was the principal cause
OF the suspension None Of the
directors or officers OF the bank are indebted to
the institution. Mr.. Brooks, the cashier, thinks
the stockholders, as well the depositors will
he paid in full if the amounts due the bank can
he collected, and that If only so per cent of the
Indebtedness can be collected the depositors ought
to get all that is due them.
The suspension of the Commercial National
Bank on Saturday afternoon occasioned consider
able excitement, which had. however, quieted
down by this morning. change Of feeling largely
due to tho belief of various bankers that the de-
positors Of the Commercial Bank would not lose
anything.
Before beginning business today all the banks.
had fortified themselves with money sufficient to
meet all demands that might be made, and had
arranged for large amounts in addition. There
was a mild run for a while on the First National
Bank. but the amount deposited largely exceeded
the amount checked out. This was the case at
all the banks in the city, men Of means pouring
ample funds into the vaults. At time was
there the least excitement. Tho depositors who
felt panicky simply drew out their money and
went quietly away. Tho First National was more
crowded all tho morning than any other bank.
Everything was quiet at the American National
Bank, and the doors were open till
4 o'clock. Several OF the wealthy stockholders
signed a notice. which Vas conspcuously dis
played pledging and binding their personal estates
to satisfy any obligations OF the bank.
After number Of persons had entered the Me-
chanics' Savings Bank and Trust COmpanys office
and several small checks had been cashed. the
directors saw that was possible ard to pre-
vent demoraliznx excitement, decided TO take
advantage Of the statute which gives bank or
ganized under the State laws the privilege
Of demanding sxty-day notice from depoAt'is
before they can withdraw their deposits Pay
ments We're accordingly stopped, and an eXpana-
tory notice was posted. which closed with an an
nonncement that the bank would keep its doors
open and continue to do business usual save
that the sixty days notice of Withdrawals would
he required for the present and denial OF the
rumor that the bank had sustained loss by the
After this business proceeded quietly az usual.
United States Bank Examiner D. NJ. Mcknight
arrived in the city this morning, and at once
took charge Of the affairs of the Commercial
Bank. s. j. Keith, president OF the Fourth Ma
tional Bank, said to-day that the situation was
not nearly as bad it might appear. Although
one small bank had closed its doors permanently
and another had avaed itself of the sixty days
allowed savings banks, yet it was evident that
the other banks amply prepared TO take
care Of themselves lie added that the business
condition Of the city was entirely healthy.