St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-01
DEPOSITORS' EXTENSIONS
ABSOLUTELY NECESSARY FOB GER
MAN-AMERfc6R 10 RESUME.
TALK WITH EXAMINER LYNCH.

Meeting of the Bank Directors
Yesterday = Mr.. Lynch Tells
Them What Must Be Done
Depositors Hold the Key =
They Can Secure Resumption
and Their Money Shortly.
A largely attended meeting of the di
rectors of the National German Amer
lean bank was held yesterday, every
director in the city being present.
A. d. Lynch, of Washington, the
special national bank examiner, was
present to confer with the directors.
MIR. Lynch devoteS his entire time to
investigating suspended national banks
and aiding in their resumption or liqui-
dation, as the case may be-.
He made lengthy address to the di-
rectors, setting forth what was neces-
sary for the bank to resume business.
His views were eXcellently received and
heartily conceded with, and the direct
tors propose to act along the lines laid
down by him.
A GLOBE representative called upon
Mr.. Lynch after the meeting, and re-
ceived in substance the following:
sit is evident" said MIR. Lynch, ''that
further extensions on the part of depos-
itors are absolutely necessary, and, if
they are not granted. resumption of the
bank may be defeated. l consider that
the officers of the bank have done excel
lent work. They have collected $780,
| 600 IN cash, and secured extensions of
deposits amounting to S1,4S2, 900; but
this is not enough. If the depositors do
not grant the extensions a receiver will
necessarily be appointed. and under
the best administration possible it is not
| improbable that four years, if not more,
would be required for liquidation of the
trust. Through the plan now proposed,
the bank can be placed in going con-
! dition, and those having deposits can
obtain their money in the ordinary
| course very much earlier than If the
| bank should be forced into liquidation,
| Depositors should not wait to be called
| upon, but should call at the bank with
out delay and grant extensions. Doing
| so, they act In their own interests. If
| this Is done, the bank can resume in
very short time. l cannot too strongly
| impress upon the depositors their in =
| terests and their duties in this matter.
| The directors, through their committee,
are making the necessary collections
and obtaining money required to
perform their duty, but they must
have the cooperation of the de-
posltors, or all this will come to
naught. There must be enough
money secured, together with the ex-
tensions of the depositors, to enable the
bank to meet the demand liabilities, as
we'll as for working capital. l shall
send the comptroller in a day or two a
report OF the present condition of affairs,
and 1t is probable some representatives
of the ank will visit Washington very
shortly to confer with him in person.
While regard the prospects favorable,
it will be absolutely necessary to meet
the conditions of the comptroller before
he Will grant reopeniug. While the
comptroller desires suspended banks to
resume and will do all IN his power to
aid them, he will only consent when he
is thoroughly satisfied that the bank is
on a safe and sound basis. This is due
to depositors, the public, and to the Off
GERS charged with the administration of
| affairs of national banks"
In reply to the direct question as to
what the conditions imposed by the
comptroller are, MIR. Lynch said that he
did not know that any absolutely spe-
citic conditions had been made, but he
knew that when the reports are made
to him OF the extensions granted by the
depoSltorS, he would require that there
be sufficient cash to meet the demand
liabilities and carry on the business.
Speaking relative to the date of Oct. 1
| being fixed as the time for the bank to
resume. Mr.. Lynch said he did not un-
derstand that there was an absolutely
| liked time to resume, but that while the
! comptroller had hoped the bank would
| be able to put itself in shape to resume
at that time, he did not think there was
| an arbitrary date named, and that, under
the circumstances, there would be no
difficulty In obtaining further time to
| complete the securing of extensions
from depositors, provided it were not too
| protracted.
The amount of extensions Mr.. Lynch
| named applies to those granted for 6, g.
II and 10 months. There is Quite large
sum on which extensions have been
| granted for ninety days.
| Mr.. Lynch notified the directors at the
meeting yesterday that it would be nee
esSary to have the short time extensions
made the same as the others, and also
| that larger sum in cash must be Sc
| cured. Both of these conditions the
| directors agreed were wise and reason
able, and assured Mr.. Lynch that they
| considered themselves able to meet the
requirements, if additional time were
| granted.
Mr.. Lynch will probably remain in
st. Paul until the comptroller replies to
the report which he is about to send to
| Washington. He expressed himself as
much encouraged to believe that re-
ceiyer and liquidation would be avoided,
but was decidedly emphatic that the de-
positors who had not yet granted extern
| sions would have to do SO before the
bank could resume, and in doing so they
would secure their money in much
briefer period than through the work of
a receiver.