People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1895-10-24
First National Bank Closed.

|
posted a notice that the bank had
closed and that the comptroller of the
currency had been notified.
The failure OF the bank created
very little, if any, surprise. Its busi-
ness for some years past has been
dwindling away month by month.
Each succeeding statement has been
worse than the last. People who
understand the figures shown by such
statements have constantly wondered
how and why the comptroller of the
treasury permitted it to continue to
do business. The last statement of
the defunct State National Bank upon
which it was closed up by the depart
ment was better one than the First
National has made for two years.
But 1t seems to be the policy of the
present administration TO never
close national bank until it is COM
PEELED to do so; it wants to reduce the
Dumber of bank failures to a mini
mum.
As a result Of this policy the bank |
has continued to do business for
months and months since it actually |
became bankrupt. Every dollar that
could be raised on its assets has been |
used to keep its doors open. Every |
dollar that could be borrowed from its |
eastern stockholders has gone the
same route. Finally an effort was
made to induce the surety company |
that is on its bond to Sumner county |
to take the bank and pay of its de-
pOsitOrs. Cashier R. L. Beatty made
trip to Baltimore to complete such
an arrangement and for a time it was
thought that this would be done.
But delays intervened. In the mean
time, checks were presented and paid
until there was no more money. Re
lief was to have come yesterday, but
it did not. There was no money on
hand this morning and the bank Of
ficers did the only thing left for them
to do.
1t may seem strange that such a
condition should exist and so little be
known generally about it. One ex-
PLANTATION of this fact that it is a
penitentiary offense under the United
States laws to circulate any report
derOgatory to the condition or stand
ing of national bank.
The heaviest creditor Of the closed
bank is Sumner County. SpeDcer's
books show that there is in this bank
balance of sl9,373.66 that has not
been checked upon. Besides this
there are checks out which havelnOt
been paid. These do not exceed
S363.6S and may be two hundred
dollars or less.
The county is secured by the board
of the indemnity company that made
the bonds for all the banks last July.
The probabilities are that this com
pany will make its guaranty good.
But there never should have been any
county money in this bank. Every
body knew the bank to be bank
rupt as a matter Of fact when the
c0unty money was awarded TO it
last July The commissioners did not
pretend that it was solvent. The
same may be said Of the years 1893
and 1894, but the argument was used
that the taking OF the county money
from 1t would cause a bank failure.
Well, we have the failure anyhow.
But we hope the county will get out
without loss. II 1t does, the only
satisfaction that some Of our people
will get out Of il will be the knowl-
edge that foreign corporation, the
indemnity company, is holding the
sack" II they we're chumps enough
} to sign this bond, they are not enti-
tied TO much sympathy.
} We understand that some OF the
stockholders, particularly the Zeig-
! lers Of Pennsylvania, are heavy cred
} itOrs as holders Of certificates Of depos.
it. The general creditors are not many
nor are their accounts large. 1t is
stated that their deposits subject TO
! check do not exceed $1,000; there were
only about $4,000 outside OF the
county funds al the time Of the last
statement, September 23rd. They
have fallen off'since then. But quite
number Of our business men are
j caught on small amounts, but none Of
them are large enough to embarrass
any Of them.
There has been absolutely no ex-
citement over the failure. None Of
the other banks have suffered in the
least. They"have known that tie
failure Of the First National was i'm
inent and inevitable and have fOrtifi-
ed themselves accordingly There
is no cause whatever for any uneasi-
ness about the other banks and this
seems to be very generally understood.