The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-05
Citizens National, of Muncie, Forced to
Temporarily Suspend Payment
Its Assets Ample TO Meet All Liabilities. and
Its Standing So Good that the Business Men
Have Guaranteed to Pay ALI Depositors.
First National of Hammond, with Small
Capital, in the Examiners Hands.
Receivers Appointed for the BIG Chicago Dry
Goods House Of James II. Walker & Co..
Other Business and Bank Failures.
MUNCIE BANK sUsPENDs.

MUNCIE BANK sUsPENDs.
The Citizens National. with Ample Assets.
Temporarily Closes It's Doors.
Special 10 tile Indianapolis Journal
MUNCIE. Ind. Aug. 4.-To-day the follow.
ing was posted on the doors of the Citizens
National Bank:
NorIcE-On account of the rapid Withdrawals
OF deposits and the inability 20 make collections
IL is ordered by the board OF directors that this
OF the bank are ample TO pay all liabilities, and
depositors Will be paid In full.
The Citizens Bank is Muncie's oldest
banking establishment. and one of the old.
est in the state. Presidents Kerwood says:
"On June there was run on the bank,
and since that time there he's been a con-
stant drain on the resources In the way OF
Withdrawals of deposits. No one knows
what a load We have bad TO Garry. aud
what We have done for Muncle."
Judge c. E. Shipiey. one of the directors,
was seen at his Office. and said: Since the
have paid out nearly 500. 900. We were ex-
pect,ng SIS. 600 to our credit yesterday. but
1t failed 20 materiaiize. and we were forced
to CLOSE our doors"
Both Of the sbove-named gentlemen. and
Cashier Marsh stated that the assets of the
institution are double the deposits. and
that every depositor will be paid In full.
and they believed the suspension was only
teniDorary.
The leading financial men of the city, 3D.
resen;ing over one million dollars. have
prepared ana signed the following state.
ment:
MUNCIE. Ind, Aug. 4, 1893.
In consideration that the individual depositors
In and with the Citizens National Bank, the
Farmers National Bank, the Delaware County
National Bank and the Merchants National
will not unnecessarily withdraw their deposits
from said banks, or either OF them, we. the un-
dersigned. hereby guarantee that said depos-
itors, and each and every one OF them, shall be
paid said deposits and each OF them In full.
The original OF this guarantee is on file
IN the office OF the recorder IN and for Del.
aware county.
The amount of deposits of the CitizeuS
National is 32l2000; resources. S64l. .OoA
capital stock, $780, 600.
What Controller Eckels Says.
Special to the Indianapolis Journal
WASHINGTON. Aug. 4.-About noon 70.
day Con troller of the Currency Eckels re.
ceived q dispatch from Muncie, stating that
the Citizens National Bank, of that city.
had suspended paymen {. by vote OF its
directory. The announcement was q great
surprise to the officials in the Controllers
Office. as the Citizens was REGARDED one OF
the most conservative and solid financial
institutions IN the State, and the report
upon Its condition on July ~ last showed
the bank to be not only solvent, but in .
good, healthy condition.
1.-The failure of the Citizens National
Bank. of Muncie." said Controller Eckels
to the Journal correspondent. this after
Boon, ''onIy shows again the unwisdom Of
depositors becoming panioky and with
drawing their funds from sound financial
institutions. l have examined the state
ment of the condition of the Citizens Bank
made on the 18th of last month. and in my
Judgment it 10 one of the safest banks in
the country; but any bank can be closed. il
depoeitOrs become unreasonable. With q
capital of S2c0. .00U. and surplus and undi-
vided profits aggregating almost half that
amount the bank could pay two dollars for
every one of It's liabilities IL lt could real
iZe on it's securities. The suspension was the
voluntary act of the directors, and have
no doubt that il will be only temporary. L
have directed Mr.. Ford, the bank examiner
for Ohio. to go to Muncie and make an ex.
animation. with view 10 facilitating its
early resumption OF business. and doubt
not that il will be only q few days till it
opens for business. / do not apprehend
receiver will be necessary. You may say
to the bank depositors at Muncie" con-
"
that q careful examination into the con-
ditOn of the other three national banks in
that city warrants me In declaring them
all safe. sound and solvent beyond ques-
tI0n. and that regard It the duty OF de-
positors in such banks to stand by them
during times like these. The deDositors IN
such banks can lose nothing. and they owe
1t to themselves and their city and county
not to become frightened, but to stand
steadily by their baDkers."
Controller Eckels stated. further. that it
was his policy to lend every assistance to
national banks WI bich have been. or may be
closed. under such circumstances as sur.
round the Citizens National, at Muncie.
and enable them to reopen with the leass
possible delay. He pointed to a statements
which he had received, to-day. from Ken.
daliyille. showing that the national
pended payment had received deposits
on the first day It reopened amounting
to nearly S15.0 900. THAT shows" said Con.
troller Eckels how quickly bank hon.
estly conducted can regain public conf
dence. There lie no sense in deposltors
withdrawing their funds from banks whicn
they would know were sound II they would
make little inqliry. When Withdrawals
do n good and much harm. men who now
have money in banks should refuse 20 draw
IL ont but keep it where it IL. simply 10
MAINTAIN condolences; for the moment one
man takes out his money from fright the
scare becomes contagious and much harm
is done"
The closing OF the First National Bank,
of Hammond. reported this morning, 10 not
regarded rs imp portant at the office of tho
Controller of the Currency. The bank has
but $50 600 capital and not much moro OF
deposits; It had q surplus fund and undi-
vided profits which 1t 10 believed will. with
the capital. aggregate az much as the de-
posits, so that if the affairs of the bank
have been honestly managed both the de-
positors and the stock holders will be safe.
A. NJ. Fowle 10 president and Edward 4.
Fowle cashier. Representative Hammond
said this afternoon that the other bank
there. @ private institution, was safe and
sound, having no connection with the ma
tional and that II would weather the
storm. Examiner Pack ard has been placed
in charge of the First NasionaL