The herald., 1893-06-18
COULDN'T STAND THE RUN,
A San BernardinO Bank in
Financial Straits.
The Farmers Exchange Forced
to Close Doors.
A Three Days Run on the Institution
Caused the Collapse.
The Crash Indirectly Due to tho River
side Faiiure-Depositor VIII be
Paid In Full--No Other
Banks Involved.

Special to the HERALD
SAN BERNARDNo, June 17.-This morn
ing the Farmers Exchange bank did not
open its doors. As the town clock was
striking 10 one Of the clerks affixed an
inscription to the door which read:
Bank closed. Depositors will be paid
every dollar"
The announcement was surprise to
all, as the impression prevailed that the
institution was in sound condition, al
though a three days run on the bank
was known to many. Yesterday about
$685. 900 was drawn out by depositors who
had become anxious in regard to their
savings. The cause of this uneasiness
was undoubtedly the failure of the River
side Banking company last Wednesday.
The demand for ready money was so
strong that the officials made several
efforts to raise $4,000 in San Francisco
and other points on the coast, but COM
pletely failed owing the stringency OF
the money market at present. 1t seems
the banks all along the coast are prepar-
ing for contingencies and are making
few loans.
The directors of the Farmers Ex-
change met last night and at IL o'clock
decided not to open the doors this
morning.
The bank has been the victim OF cal
umnv and misrepresentation. Wednes-
day when the Riverside Banking COM
pany closed it's doors three irresponsible
persons circulated reports to the effect
that the farmers Exchange bank was
~ho condition IfkoIxy To fotl
any day. These reports had bad effect,
and from Wednesday till the close OF
business yesterday there was q steady
drain upon the cash resources of the
bank. This run WAS instituted by the
employees of the Santa Fe shops in this
city, they having heard the stories that
were being circulated. Many of them
had deposits in tbe bank, and the rail-
road company paid them the 14th inst.
with checks on the bsnk. Not oniy
those having money on deposit withdrew
1t, which amounted to q considerable
sum. Other small depositors began to
withdraw, but it was noticeable fact
that few business men lost confidence in
the institution. The daily extent of the
run is shown by the fact that at the
close OF business on the 18th the de-
posits were $2l5, 500; on the 14th $202,-
800; on the 10Th, sl9l, 900; on the 18th,
$157 900.
The capital stock, surplus and un-
divided profits Of the bank amount to
$155 900, and there is no doubt whatever
that the bank is thoroughly solvent and
that for every dollar OF deposits there is
almost two dollars assets with which to
meet it. The bank is supposed to carry
considerable gilt edge securities which
may be realized upon in the next few
months.
The following circular was mailed to
patrons of the bank this morning:
after a.continuous run on the bank
for three days, during which time every
possible effort has been made by the di-
rectors and officers to avert the result,
we are compelled to close our doors.
This we do with great regret, as we are
sure that within a few days more we
could have realized sufficient means on
our securities to carry us through safely.
Our securities are ample, and very
shortly sufficient money can and will be
realized thereon to pay every depositor
in full dollar for dollar. A full state
ment of the banks condition will be
published as soon as possible"
The stockholders and directors in
CA0QC bVAAJ vi bnO WO0kbAl0ob lu6u III
this section and San Francisco, among
whom may be mentioned w. w. Stow Of
San Francisco, Richard Gird of Chino,
the Byrne estate, the Waters estate, N.
s. McAbee, H. L. Drew, James Flem-
ing, John Anderson, the Hinckley
estate, the Spence estate, Richard Stew
art and Clarence Stewart of Riverside
and s. F. Zombro.
The directors of the bank are Richard
Gird. John Anderson, Richard Stewart,
H. l.. Drew. James Fleming, N. s. Nc
Abee and 8. F. Zombro.
At a meeting OF the directors this
morning, among other subjects discussed
was that of resumption. There is a
strong probability that the bank will re-
sume in short time.
The following statement was secured
late this evening by your correspondent:
Total assets, not including Office fixtures
and vaults, valued at $500, $357, ,783. 73;
total liabilities, s214, 4,05l.04; total assets
in excess of liabilities, $143, 1882. 80.
These figures were given by A. Gerber
ding, state bank examiner, and are cor
rect.
Mr.. Gerberding states that he was
positive that the bank would be able to
pay off dollar for dollar. even If the re-
celver wnlcn would nave TO be appoint
ed could not realize on the surities by
40 per cent. He finished his business
with the bank and left for
Riverside, where he is engaged in
strengthening out the Riverside banking
company's affairs. He spoke in the
highest terms Of the bank, and thought
there would be no trouble in realizing
enough to pay off in full. He said that
kha fnfls4ro hxx -
money market. and not by any misman-
agement.
FL. l.. Drew, president of the bank, was
interviewed. and said that he was conf
dent that they would be able to meet all
obligations In few days. He said that
an assignee or receiver would be APP
pointed Monday, and that he did not
think that there was any occasion for
worry on the part Of depositors. He de-
DiAd HAzaral rumors that have been cir