The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-05-22
TOO MUCH MONEY
Banks Can't Loan Enough to
Pay Expenses.
Third National and National
City of N. Y. Unite.
THE VAULTS ARE FULL
It is Believed the Consolidation
Plan Will Be Extended.
Eastern Money Policy PrOduc-
ing Its Inevitable Result.

New York, May Announcement
was made today that the Third Nation
al bank had decided to retire from busi-
ness and transfer it's accounts to the
National City bank.
The vote of the stockholders of the
Third National bank to go into hquida-
tion occurred at an adjourned annual
meeting held yesterday afternoon A:
P Hepburn, formerly comptroller Of
the currency was president of the Third
National bank and will be vice preSi-
dent of the National City bank
The business of the Third National
recently has not been profitable, Presi-
dent Hepburn in his statement says:
while we have built up a large and
valuable cltentage and profitable buS1-
ness, our gross deposits being over $2,-
900, 900 today, yet, in view of the pre-
Valent business conditions and the evil
dent economies of consolidated manage
ment. the directors of the Third Ma
tionaI are confident that they have best
served the interests of their customers
and all interests by effecting this con-
SolidatiOn."
The Tribune this morning says:
1t IS not unlikely that further an
nouncements of New York city bank
consultations will be made in the
course of the present year. The pro-
posed absorption of the business of the
Third National bank by the National
City bank has revived discussion in
Wall street of bank consolidation pos
sibilities, and from the character of the
talk heard in banking circles it would
appear that bankers as a rule are in
favor Of fewer banks in the Wall street
community and for that matter through
out the city.
Reasons presented for the voluntary
liquidation of the Third National bank
and the taking over of it's accounts by
the National City bank could be given
for similar proceedings by other city
banks and While as yetnO steps have been
taken in the matter, the probabilities
favor some important changes in the
money institutions of New York in the
near future.
Money continues to pile at the centre,
and the recent gold exports aggregat-
ing about SIS, ,0O0, 900 have not served to
reduce the lawful holdings OF money on
account of the large receipts of curren-
cy from the interior. With money ac-
cumulating at a rapid rate and COM
paratively no demand for it. the banks
or at least many of them, are una able to
do such a business as to make their
existence profitable. These cOnsidera-
uons lead bank directors and officers to
beleVe that number Of institutions
should consolidate and during q recent
visit of Comptroller EIckels in this city
he expressed the same view. He said
at that at least six banks in New York
ought to adopt consolidation proceed
ings with some other institutions and
Mr.. Tappen, of the Gallatin bank is re-
ported to have said that other banks
should do as the Third National and the
National City have done, and that he
would not be surprised if such consoli-
dauOns were to take place.
No surprise was manifested that the
Third National had decided to go into
voluntary liquidation and the fact that
the National City would assume the OBJ
legations OF the first named institution
was received as only additional evil
dence of the well known progressive
ness OF the National City'S manage
ment. The National City had been look
ing for suitable vice president for
some time, and it also desired to in
crease its out of town business. The
Third National banks president A P
Hepburn, eX-cOmptrOller of the cur
rency, was looked upon as a most de-
sirable man for the place and his bank
had high class out of town clientage,
the opportunity of consolidating the
Third Nationals interests with those of
the National City was readily graSDed
by the management of the last named
institution. It has not yet been decided
when A. P. Hepburn Will enter upon his
new duties, but it is probable that he
will begin his work in the course of
few days.
The Third National bank will con-
tinue to honor the checks of its custom
ers until they have transferred their
accounts to the National City bank and
it is believed most of the depositorS will
begin their relations with the last nam
ed bank at once. The Third National
has practically gone out of business and
has ceased making loans. As vet it is
impossible to state the amount of mon
ey that will be realized from the lolIi-
dation of the Third Nationals assets,
but it is thought that the stockholders
will eventually receive at least par for
their holdings. The last sales of the
banks stock were at So at auction on
the real estate exchange and the banks
total assets according to its recent re-
port to the comptroller of the currency
exceeds S13, $1,000.