The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-22
A RECEIVER APPOINTED
Globe National Bank Forced to
the Wall.
IT CAUSED A SENSATION
Another Panic on State Street May Re-
suit From the Action-The Bank
Heavily Involved in Cop
per Shares.

w aSHlngL ton, Lee. Zl.--ConlDlTOlleF
Dawes this evening appointed Special
Examiner D. G. Wing temporary re-
ceiver of the Globe National bank Of
Boston, Mass. In connection with his
action, the comptroller said:
Some time ago Mr.. Wing, who is one
Of the experts employed in the system
of special bank examinations recently
inaugura ted, discovered a serious con-
dition of affairs in the Globe National
bank, which he Immediately brought
to the attention of the comptroller and,
under his direction, told the directors
Of the bank. The directors very laud-
ably agreed and undertook to make
good the doubtful bad assets found
and have greatly improved the condi-
ton of the bank since that time. They
also delivered to the comptroller a
written guarantee that in time they
would remove the doubtful assets. Re-
cent failures in Boston have lessened
the values of the unperformed por-
ton of the guarantee and involved the
solvency Of the bank.
In view Of the fact that to allow
the bank to remain open longer Will
result in injustice to unsecured cred
itors, now that the condition of insol-
vency is found to exist, 1t becomes my
duty under the law to appoint re-
ceiver. A considerable cash dividend
can be paid to creditors at once.
THE condition of the bank was dis
covered by Special Examiner Wing in
time to secure such action on the part
of the directors as will probably pre-
vent the failure from inflicting heavy
losses upon the deposltors, but the d.
rectors and stockholders will lose
heavily"
The bank, 1t is understood, was in
volved in the Squire failure and in
mining stocks. The following is a con-
densed statement of the condition of
the bank, as reported to the comp
troller, Dec. 81 1899:
Liabilities: Capital stock, S1,o0o,000;
surplus, 100000; undivided profits,
STAT circulation, $S91,000 deposits,
$S0,s9S; bills payable, $275,000. Total,
81. 500, 953
Resources: Loans and discounts,
s553, 104; United States bonds to secure
circulation, S1000,000 United States
bonds to secure United States deposits,
$3.50, 900; premiums ON bonds, S139,35
stocks and securities, Sl,092,202: cash
on hand and due from banks, 81, 535, 297.
Total $10.595, 993
President H. H. Stevens, who sue
ceeded Charles Fl. Cole some months
ago, absolutely refused to say anything
reSaTdine the comptroler's action. The
calm that followed the storm of Sat
urday and the failure of the Broadway
bank had been taken in financial cir
cles as one of reinsurance and hope
and it was the universal opinion that
the furry in copper stocks had passed.
. The closing of the Globe bank there
fore seemed most discouraging and
there were few persons who did not In
innate that tomorrow would be even
worse day than last Saturday. Others.
| however, were of the opinion that the
failure of the Globe bank had been so
fnrs rtrn ~tnl 6nl q
least among conservative fnanciers,
that it would have little upon local
stocks and that by concerted action
and the strong backing of the clearing
house any further gale in local stocks
would be weathered with comparative
ease. Nevertheless, the failure is one
of the most startling and far-reaching
since the closing Of the Maverick bank,
eight years ago, and as 1t intimately
involved the value of Boston's pet cop
per stocks, the outcome tomorrow is
anxiously awaited.
The bank has been in difficulty for
some months, in fact ever since the res
ignation of Charles H. Cole, for many
years its president Mr.. Coles retire
ment caused a sensation at the time,
for 1t was known that he was heavily
interested in the copper combine known
as the United States Mining company.
One of the directors. N. Fl. Stevens,
was elected TO fill the position of the
president, and since then has done
everything possible to keep the bank
from going under. Every known meth
Cd was adopted to keep up the tone Of
the market in copper shares, and 1T
was expected that the bank would
gradually be able to realize on a great
er part of the loans on these stocks
without loss. The tight money mar
ket, coupled with the great decline in
all stocks, however. carried down the
coppers, and last Thursday the bank
was forced to call upon the clearing
house for assistance. After consul
| tation the clearing house came to the
rescue and issued s3,000,0O0 in certifi
Gates to enable the Globe to meet its
Indebtedness to other banks. The ac-
ton of the clearing house was gener-
ally regarded as timely, although there
was much surprise expressed when,
| two days later, the clearing house re-
! fused to rescue the Broadway bank
| from the hands of receiver.
On Monday came the failure OF the
| brokerage firm that financed the min
| ing company, but no other followed,
| and, as the Globe bank gave no init
nation OF succumbing through the bad
! fall in copper stocks, confidence in the
! local situation seemed in a fair way
! Of being restored. Whether the old
| wound will be opened again tomorrow
| remains to be seen. but it is known that
| every effort will be made on the part
| of strong financial institutions to avert
panic Upon their success depends
! the status Of many brokerage houses
| which have been carrying over Christ
| mas heavy blocks of copper stocks. A
| few Of those houses have already at