The daily morning journal and courier., 1897-12-24
TO AVOID A RECEIYERSHIP
THE SUSPENSION OF TWO BANKS IN
 PHILADELPHlA.

Effort Being Made to Secure the Indebted
 ness SO That They Can Go Into Volun-
 tary Liquidation-Nationa Bank Ex- aminer, 1t is Said, Was Aware of the Con
 dition of Affairs for Some Time.
 Philadelphia, Dec. 2S.-The announce ment to-day of the suspension of the Chestnut Street National bank of this city has created a sensation. The bank was considered one of the strongest in stitutions in the state. The suspension carried with it the closing of the Chest nut Street Trust and Saving Fund com pany, doing business under the state banking laws. William M. Singerly, publisher of the Philadelphia Record, is president of both companies, and the same men, with one exception, act as officers and directors. The first inform ation the public received that the banks were in trouble was in the form of a notice posted this morning on the door of the building occupied jointly by the two concerns, signed by National Bank Examiner William M. Hardt, to the ef- feet that the Chestnut Street National bank had closed it's doors pending an Investigation of its affairs. No state ment of assets and liabilities is availa- ble, but it is stated that the deposits of the Chestnut street bank amounted to $1, TOOL 900 and of the trust company $l,- 300,O0o.
 President Singerly gave out brief statement tonight, in which he said: We are working to secure the indebt edness of the two banks so that they can go into voluntary liquidation and thus avoid receivership" In this con- nection Deputy Comptroller of the Treasury George M. Coffin, who was sent here from Washington by Comp troller Eckels to-day, said: "The mat ter of putting the Chestnut Street Ma tional bank into voluntary liquidation has been taken up by Philadelphia men of great financial ability. Their first step will be to ascertain the value of the assets of the bank. They must first be satisfied that they have value suf ficient to warrant them in assuming the indebtedness"
 It was known for some time in bank ing circles that MT. Singerly's banks were in trouble and the national bank examiner, it is said, was aware of the condition of affairs. Last night num- Der of the leading bank officials of the city had a conference, lasting until nearly three o'clock this morning, con- sidering the matter of raising sufficient money to relieve Mr. Singerly's banks of their distress.
 The statements of the cause of the failure current here agree with that made by Comptroller Eckels at Wash ington to-day-that it was primarily due to the loss of much money by MT. Singerly in his unproductive paper mill at Elkton, Md, one of the largest in the country. One statement placed the sum thus involved at nearly million of dollars. Mir. Singerly also has much money invested in other enterprises in this and other cities. Rumors were current to the effect that the ownership of the Record would pass from MT. Sin gerly, but this he denied, stating posi- lively that he is in absolute control of the paper and will continue at it's head On Monday of this week the Chestnut Street National bank made the follow ing report to the Philadelphia clearing house: Loans and discounts, $2,261 900; legal reserve $396, ,O00 deposits, $1,7S9,- 900; due from banks, $355000 due to banks, $6S6, 1000; circulation, $43,000.
 The reserve has been below the legal requirements for several weeks. The deposits on October 5, when the bank reported to the comptroller of the treas ury, amounted to $2035,S56. The shrink age in this item, therefore, has been more than $3O0,000 in a little over two months. It is said that there have been quiet but steady runs on both banks for several days past. Of the deposits in the bank the city is represented by $2S9,554, the state by $225,000 and the national government by a large sum, but all of these creditors are believed to be protected. When the trust com pany made it's last report to the state authorities, on November 6, the depos- its amounted to $1, 492,2 253.