The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-19
FORCED TO SUSPEND
NATIONAL BANK OF KANSAS CITY
GONE INTO LIQUIDATION.
Its Assets timat at s~f,sso,ooo and
Liabilities, 81 ,o50,0 o0-Too Much
Boom Paper the Cause.

KANSAS i Mo-, March lS.-Wlth as
sets estimated at s1,sS0.0oo and liabilities of
$1,G50.000 the National Bank of Kansas City.
at Fifth and Delaware streets, suspended
this morning, and will liquidate and go out
of business. At the usual hour of opening
the bank. $50 o'clock this morning, two no.
tees were posted ON the door. The first
was signed by J. S. Chick, president. 1t
said: ..The directors and stockholders of
this bank have decided to discontinue bust
ness. All deposits will be paid in full" The
second notice read: This bank is in the
hands of the undersigned" The under
signed was c.. W. Galbreath, the bank
examiner.
These announcements caused no excite
ment. A small crowd gathered about the
bank, but it soon dwindled away to a half
dozen loungers and an occasional passer-by,
who would read the notices. say That's too
bad and pass on. stockholders or depos-
itors called occasionally, and most of them
were admitted. In almost every case they
would walk to the desk and shake hands
with President Chick, who would explain
the situation. His explanation was in every
case satisfactory. There was no loud talk
and no uafavorable comments were made.
Since the publication Of the banks state
ment on March 5 depositors have been
withdrawing their deposits. and on Thurs
udy evening 1t was apparent 10 Tie OllCCTS
of the bank that they could not carry on
the business through to-day unless the
clearing house came to their assistance with
a loan. A meeting of the clearing mouse
association was called for yesterday, which
was attended by the directors OF the Ma
tional Bank of Kansas City.
President Chick said: Saturday we paid
out over 60,000, and saw that we could not
meet the demand this morning unless some
thing was done. We needed about $60O,0W
to put us in good standing. Some of the
banks were anxious to help us, but the
feeling was not general, and we consequent
ly declined the assistance. The Bank of
Commerce offered to help us, but we had
decided to suspend SO as to pay all deposit
advantage. Every depositor will be paid
In full. and no one will lose a cent. We
will endeavor to have a settlement just as
A prominent member of the Kansas City
Clearing House Association said: The
City, in no wise affects the other banks
of the city. That the bank wclld have to
tiaoa 2 for sooner c or lh5sr has W Peen f TOR hans
failed on July Is, 1893, during the panic, it
was doubtful then whether or not it would
bank are close to s.. O00,0 600, but owing to the
fact that much of this is represented by
boom paper and real estate it will be very
slow for collection. In fact, the closing of
the bank can hardly be termed a failure,
but simply a gradual dying out. There is
celve dollar for dollar, with interest for
their money, although 1t may be some time
before they Will get their pay
bankers and others who have
on the matter fixes the amount that will be
realized by stockholders at from rs to 40
per cent. of their holdings of stock. The
principal stockholders were on the directory.
Cashier "; A. Rule, of the Bank of Com
merce. said that kilograms had been sent
out by his bank to the country banks who
have been customers of the Bank of Kan
sas City, informing them all drafts on the
suspended bank will be honored by the Ma
tional Bank of Commerce. Cashier Rule is
also notifying the wholesale merchants Of
this city that his bank will honor their
checks If they so desire. In this way there
or depositors of the Bank of Kansas City.
The following figures show the gradual
falling off in the banks business since the
panic of 1893. On July Il, 1898, the total de-
March 5, 1894. 1920 600. The total deposits
aggregate $400. GEO; cash on hand yesterday,
100000.
The bank is the oldest financial institution
Messrs. j. II. and ". II. Chick before the
war. Its capital stock was $1,000, 900. Until
the panic of 1893 it was ranked as one of
the strongest banks in the West. IN july.
closed it's doors. Although the capital was
reduced and the stockholders paid in a 30
cent assessment in the reorganization, the
institution has never recovered from
suspension now is directly attributed TO that
suspension.
At the other banks the suspension was re-
garded as an unfortunate affair which will
business of all the other banking institu-
tions. In banking circles the weakened con-
dition of the bank had been known for a
long time, and the action of the directors
in deciding on suspension was no surprise.
There were no indications of a run at any
other institution.