The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-02-14
ITS DOOR WAS SHUT
Helena'S Merchants National Bank at
the Jumping-Off Plac.
1T WAS QUITE A SURPRISE
Nobody Is Telling How 1t Hap
pened, but It's Funds Had
Been Too Heavily
Drawn on OF Late.
1T WAS QUITE A SURPRISE
Special Dispatch to the STANDARD.

Special Dispatch to the Standard
Helena. Feb. 13.-The Merchants Ma
tional bank of Helena, one of the oldest
banking houses of Montana, suspended
this morning. The whole story is told
by the following notice on the doors,
which confronted those who attempted
to enter the bank at 10 o'clock this
morning:
Persistent and relentless withdraw
ais have largely reduced the banks
available resources and to better pro-
tect depositors we deem il advisable To
order a suspension of business for the
time.
tSigned), BOARD OF DIRECTORS"
Depositors have been withdrawing
money from the Merchants National
ever since the First National bank
closed its doors Sept. last. Several
times since then a report has been cir
culated that the Merchants was on the
verge of supending. Then followed 9TH
er reports to the effect that Lewis II.
Hershfleld, its president, had offers OF
all kinds of assistance from eastern
bankers. II was said that the bank
was perfectly sound and that all offers
of help had been declined. These re-
ports cOunteracted the first in part, but
all had the effect finally of creating dis
trust In the bank. To many the news
of the suspension was not surprise. A
report that the bank was in trouble was
in circulation about a week ago. The
bank was then given until Saturday by
the gossipers to close. When IL opened
up as usual Monday and Tuesday.
many believed the trouble, If there was
any. had been averted. The failure was
doubtless precipitated by the action of
H.
of the city moneys from the bank on
Monday. At recent session Of the
city council Tuesday night, City Treas
urer Tlton was ordered to withdraw
that much of the money from the bank
and to secure additional sureties on the
indemnifying bond given by the bank
for the balance of the deposit. about
100000 Mr.. Tilton withdrew the money
as directed and secured the additional
bond, so that the city Will not lose any
of its deposits through the suspension.
The county had some of it's money In
the bank but had paid most OF IL out
last month. IL Is amply secured by an
indemnlfying bond.
President Hershfield had little to say
about the SUSPENSION.
Ihe card signed py lne directors eX-
plains all, he said The suspension Is
due to the wholesale withdrawal OF de-
posts. Yes, L believe the pank VIII pay
In fuli.
j. sam Brown, receiver OF the FIRST
National bank OF Helena, mas peen
temporarily placed IN charge OF the
Merchants. All ne would say 10 re-
porter was thls'
Il can give you no information What-
ever. ] received dispatch from tne
comptroller directing me 10 take tenn
porary charEe OF the Merchah,s Ma
tional. ! have done so. presume !
shall be relieved by another oifcer OF
the treasury department IN rev
days
The suspension of the Merchants dld
not cause run on any OF the other
banks. They all did business as usual
and none OF them anticipate any
trouble.
The Merchants had capital STOCK OF
s35O,OOo. According To It's last state
ment the condition was as follows:
Surplus, SIO,OOO undivided prohts, sos'-
600; due from other banks. sl23,0Oo; in
dividual deposits, 1000; United
States deposits, SIO,Ooo; circulation out
standing. s5O.o00; notes ana bilis re-
discounted, $4,000; bill payable, N,a'-
000 overdrafts. $4,000; loans and dis
counts, $l,2i6,OOO
County Treasurer French had S3o,Ooo
of county money in the bank. but 1t Is
not believed the county VIII lose any
thing. as 1t Is protected by an indeln-
pifyinp hon1 The hank was the IInltpl