The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-09-05
CLOSED ITS DOORS
The First National Bank Of Helena
Is Locked Up Fast
Mr.. EDGERTON'S STATEMENT
The Prevailing StagnatIon OF Busi-
ness said to Be Accountable
All Deposltors Promised
to Be raid In Full.
specIal pIspatch 70 the standara

Special Dispatch to the Standard
Helena, Sept. i.-The First National
bank OF Helena has failed. the an
nouncement being made this morn
ing. when the doors were closed. Ru-
NOR of impending failure became COM
| mon report late yesterday afternoon.
but 1t was thought that A. J. Davis
of Butte would come To the rescue this
morning. But no help was to be had
and the doors were closed. At 10
o'clock a big crowd packed Main street
at the bank corner. Women filled the
steps leading to the door and there
were hundreds OF anxious persons
about. each with a check ready to
present IL the doors were opened. Then
came the following official notice.
which was posted On the glass door
of the bank from inside: Notice Is
hereby given that this bank has closed
its doors on account Of the withdrawal
of deposits beyond its power to re-
spond. Depositors will be paid in full.
| Il. ID. Edgerton. vice president and
manager"
A few hysterical women made a
scene about the bank. but In the main
| the crowd took the news with fortt-
tude. A short time before the notice
was posted the directors held a meet
ing. II was unanimously decided not
| to open, as the run that was sure TO
follow would exhaust all the money
In short order. President $. T. Hauser
| was present. There has been a steady
| withdrawal from the banks deposits
for several weeks. Drafts from the
East have been large and state banks
have been pulling out their balances.
The statement the bank issued July I
showed liabilities OF s3,500.0o0 and as
sets Of s4.i00.0O0.
State 1tclsurer Wright kept a large
amount OF state funds In the First
! National. HIS balance when the
hank closed was SlsS.60i9l. He Is
amply secured. however. having an
indemnity bond from the bank to the
amoun, Of 100000. signed by the fol-
lowing: r. T. Haussr. sia5.000: Il. d.
Edg rton. $4,000; c. X. Cole. $50. 900:
James A. Talbot of Butte. $4,000:
A. j. Davis % Butte. $4,000: Henry
Klein. $4,000; John T. Murphy. $685.
900. T.. w. Belttie, $4,000; John G.
Curtin. $4,000; A. J. setgman. s25.-
600; George f. Cope. s25.O0o, J. b.
Stanford. $4,000.
Another heavy depositor Is the
Northern Pacific railway. II always
carried a large balance and while
only few days ago 1t Withdrew
large sum. when the bank closed 1t
had a balance OF nearly $4,000 to ito
credit
Ths city treasurer had In the bank
the dty funds. Other bankJ In the
city were little affected by the fall
rre. There were q few Withdrawals
but nothing that could be termed
run on any bank. All OF them are
considered perfectly safe. The comp
froller OF the treasury has notified
the bank that Examiner s. p. Flynn
Is on his way TO take charge.
f. ID. Edgerton. vice president OF
the bank. refused to he interviewed to-
day, but gave cut the following state
ment: THE conditions that led to the
closing of the hank are the same that
prevail over the country generally.
There has been no Withdrawals to any
amount OF local deposits. Eastern
banks had insisted on payments. and
local state banks had found use for
their money. but l was not at all ap-
prehensive OF any serious difficulty, and
found no occasion for fear until after 9
O'Clock yesterday afternoon. I was In
negotiation for funds, which seemed
reasonably certain, and would have
been. In my opinion. ample 10 have
carried the bank through. advice of
the failure of which ! did not receive
until after o'clock yesterday aft -r-
noon.
"The bank could have opened rhIs
morning hut 1t would have been only
for short time. and would have. In
fact. given preference to those who
happened TO get in FIRST because from
the nutoriety that was given the few
closing moments Of yesterday after
noon there had been sufficient alarm
created to make IL impCs BILE to stem
the tide without considerable addition
al help, as things stood this morning
The general conditions OF the country
are In no sense alarming. but they do
represent a very great stagnation OF
business and contraction Of money.
When this bank was organized. there
was practically charged of from the
accumulated hanks that IL represented
over three-quarters OF a million dollars
representing capital. surplus. etc.
There Is still, according to the books,
about one million dollars OF capital and
undivided profits. IL does not occur 20
me that IL IL possible that the deposit
ors may feel any alarm. although, un-
LEES times change. IL will take some
months to convert the securities into
money without doing serious injury to
, the community: and u Is even a ques-
tion under the present circumstances,
; | whether they could be sold at what
, would be called fiattering rates. For
two years we have been in what might
properly be called a waiting condition
I II would almost ssem that the long
pent-up struggle would receive deci-
sive action with the coming presiden-
tial election. no matter which party
succeeds. and that here in Montana
, we should have a decided Improvement
which would tend very materially TO
, the expediting as well as a better real
i1ation upon assets. / have no doubt
the depositors will be paid In full, and
hope a very fair realization may be
made on the stock. II certainly can n
judiciously handled. and a reasonable
amount Of time and patience exer-
| cised."