The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-11-05
TWO WHATC0M BANKS
Bellingham Bay and Bennett
National Stop Business.
FORCED BY LOSS or DEPOSITS
Bennett National Holds Chattel Mort
gage on Tucoma "Ledger"-Tacona
Hotel stock Hypothetical.

Whatcor1. Nov. A-Special.-The follow
ing notice was posted at the entrance OF
the Belllnzham Bay National bank short
IL after 10 O'Clock this morning: Due 10
recent heavy Withdrawals and demands
this bank Is. by authority OF its board Of
directors. hereby closed. James ". Nor
gan. President"
President James w. Morgan said 10 the
observation-disclosures reporter: The general
cause OF the closing is the recent with
dragals and heavy demands of deposit
ors coupled with a falling OF Of de-
posts. Since the closing Of the Tacoma
banks there has seemed to be a gradual
and steady shrinkage OF business, which
was probably due in a measure to the
general unrest Of the people caused by the
Tacoma troubles. and also is directly
traceabIe TO Iong-continued and concert
ed action ON the part Of certain persons
here to close the bank, from pure malice.
by circulating false statements about its
condition. The immediate cause was the
demand of the county treasurer this
morning for the county funds on deposit
with US which deposit was secured by a
good ard sufficient bond. as required py
law and as We were not in condition 10
comply with the demand on such short
notice we had no recourse but 10 take the
action stated"
Cashier Charles Donovan stated this ev-
ening that the Habinues are SU,Ve 10 de-
positors and s., coo 10 banks. a total OF
sI05g09 and the total assets $4,000. The
officers declined TO give the amount OF the
countys deposit, hut il is said TO have
been less than s.. 900. and it is secured not
only by bond bat by mortgage for $500
recorded this morning. The city has
small balance there. but the treasurer
was unable to say this morning just how
much. but ii is only few hundred dol
lars.
During the panic of 1898 the bank was
obliged to suspend on the 18th Of July,
and il remained in the charge OF an ex-
aminer until January 9. 1884 when 1t was
reopencd by means Of extensions granted
by the depostirs and money raised by the
directors on their own personal security.
independent Of the banks assets. Mr..
Morgan especially Iabored very hard 10
get the bank open. and he has struggled
manfully for nearly two years against
adverse conditions to keep IL open.
AS soon as the suspension Of the Bel
lingham Bay National bank became
known. a quiet but STEADY run was begun
on the Bennett National, which has done
the best banking business on the bay since
removing here from Fairhaven in 1923. The
county treasurer withdrew nearly $1,000
OF county funds and the city treasurer
about 81 go and there was a steady de-
mand from smaller depositcrs until short
~ after ] O'Clock, when creditors were
Northern train from Seattle. 1t was half
an hour late. but brought by express
several thousand dollars, with which pay
ments were resumed and leisurely con-
tinued until the closing hour, o'clock
Some of the larger depositors were in
ducod to accept exchange. and several de-
mand certificates Of deposit presented just
before the closing hour were returned I'M
paid The Bennett National bank viii
post notice Of suspension In the morning.
The run was entirely unexpected, and the
president and cashier say that II they had
had two or three days In which 10 prepare
for It there would be no question about
meeting all demands.
Nelson Bennett. Of Tacoma, owns
portion Of the stock and the recording
OF a judgment against hir for large
sum in this county this morning undoubt-
edly heightened the feeling Of distrust
among depositors and stimulated WIFE
drawals quite as much as the suspension
of the Belllngham Bay National. The last
statement Of the bank showed It to be in
excellent condition. with assets largely in
excess of liabilities
This evening the Bennett National d.
rectors held a meeting and adopted
a resolution not 10 open in the morn
ing, and directing the president TO
wire the comptroller of the cur
rencv 10 place the bank in the hands
OF the examiner. The directors say that
within thirty days sufficient assets can be
realized upon 20 settle with all creditors.
The asst statement. on September -
showed - per cent. Of the total deposits
on hand in cash or exchange. The total
resources were then S207 4si, and the liabil-
tiles 10 depos!tors sil7Si9. The deposits
tbs morning were $4,000. and the with
drawals today were $50 There IS now
due from banks about $20,GQ. The bal
ance OF cash IN the bank is very small.