The morning call., 1893-06-21
UNABLE TO PAY.
Failure of Two Small Los
Angeles Banks.
DEPOSITORS WON'T SUFFER
Plenty of Assets, but Money Could
Not Be Realized on Them.
Other Assignments.
DEPOSITORs WON'T SUFFER.
Special TO TEE MORNING CALL

Los ANGELES. June 20.-The University
Bank, which did commercial business, and
the City Savings Bank closed their doors
this morning. Yesterday afternoon both
these institutions made an effort to borrow
money from the clearinghouse. but failing
in this they were forced to suspend pay
ment this morning.
President Wdney left for Chicago on
Saturday, and before he started he said
that he had decided all his property. both
real and personal. 10 the bank, and stated
if any one loses he will.
Robert Wdney il. says that the secu-
rites overbaiance the deposits three to
one A formal statement will be made in
a few days.
The closed City Bank has ample secu-
rity and can pay depositors in full.
4. D. Chi dress. president of the City
Bank. SAYS that the bank is closed tempo
rarily in order to collect money from its
loans and securities. He says the deposi-
tors will be paid in full.
The news of the closure of the two banks
spread rapidly through tow n. and in short
order run was inaugurated on the Los
Angeles National. The bank paid all de-
mandS as fast as possible.
President BOnebrake made a speech as
suring every depositor that his money
wGuId be paid TO him. Notwithstanding
the Withdrawals, large sums of money were
deposited in the bank by merchants conf
dent of its security. Runs more or less
were made on every bank in town. All
the savings banks are solvent and are pay
ing money without question
There is DO excitement outside of a few
small dpTOSitOrS aud n caVaral nor RI
day the receipts exceeded the payments
Two of the banks kept open after business
hours. The conditions of the Los Angeles
banks is above criticism. the deposits and
reserves having increased steadily since
the depression following the collapse of
the speculative real estate boom in 1885
Real estate values have touched bedrock,
but since the first of the year have been on
the up grade. inside business property
being in good demand at much higher
prices than during the height of the boom.
The clearances Of the Los Angeles banks
for this year up to the end of May show
an increase of So per cent over 1892, as
compared with l per cent increase in the
country at large. There are nearly
S11 ooo0 COO gu deposit in the city banks.
The run Of to-day was caused entirely by
small depositors. who became scared at the
talk of irresponsible persons on the street
SAN BEENARDIN0, June 20.-The fiuan
cthl furry in THIS city caused BY the clos
ing of the doors of the Farmers Exchange
Bank and of the Savings Bank of San
Bernardino has subsidized altogether. The
streets are now perfectly quiet and no
further trouble is anticipated. The Farm
ers' Exchange Bank has gone into the
hands JOf Receiver George l.. Hisom, and
there rs no prospect that its doors will be
orenPd again for some time TO come. It is
the intention of the leading stockholders
10 right their affairs as soon As possible
and nay avery dollar to the depositors.
The public has received the failure with
unusual complaisancy and bet few if any
nl-natured remarks have been heard in re-
gard to it.
ALBANY. Or, June 20-The excite
ment over the financial furry has Quilted
down. Official statements of the suspend
ed banks condition will show. 1t is stated.
assets sufficient to pay depositors every
dollar.
EUGENE. June 2O.-The Lane County
Bank. owned by Hoyey, Humphrey & Co..
the oldest bank in the county, failed to
open its doors this morning. The suspen-
sion was caused by a stringency of the
money market. A notice was posted on
the door which says: "Depositors will be
paid in fall" No statement has yet been
made as to the assets and liabilities, but
the dep0sitors do not seem to have any
fears. and many say if the bank should
open this afternoon they would not with
draw deposits.
VALLEJO. June 2O,-The Vallejo Elec-
trio Light and Power Company has filed a
petition in insolvency in the Superior
Court of Solano County This action is
said to be due to the numerous suits pend
ing against the company, and involving
many thousand dollars. Judgment in
several suits has already been rendered
against the concern. II the petition is
granted the company will be reorganized.
Sheriff Henderson has been appointed
receiver. with bonds fixed at $4,000. Pend
ing the action of the court the company
Will run their plant. as TO suspend its
operation would mean leaving Vallejo in