The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-15
BOSTON BANK IN STRAITS
GLOBE NATIONAL AIDED BY THE
CLEARING HOUSE ASSOCIATION.
Three Million and q Half Dollars
Panic Barely Averted.

BOSTON, Dec. 14-At meeting of Bos-
| ton Clearing House Association, represent
| ing the national banks of this city, today.
| II was decided to issue $35OO.G0O in special
clearing house certificates TO enable the
Globe National Bank to tide over the diff
| ficulties in its finances. which have ex-
listed for some time. 1t is announced at
the clearing house that the bank will there
by be able to continue without further
| trouble.
The finances of the institution have been
in an unsatisfactory condition owing to un-
profitable investments in oil and mining Sc
curities The trouble first came to the sur
face early in November, when President
Cole resigned his position. For several
weeks his successor, H. H. Stevens, and his
assistants have been endeavoring to place
the bank on firmer basis. 1t was found.
however, that large amount OF certain
securities could not be disposed Of readily,
the stocks having steadily fallen in value
the past fortnight, and the matter was laid
before the clearing house association, with
the result that assistance was voted to-
day.
The last report of the condition of the
ness on Dec 2, showed resources Of s10,529,
$50, and liabilities, including capital stock
paid in, $1,OOO,oOO; due to other banks, ST.
927 PSI; due to state banks and bankers,
$347, ,537, and individual deposits, subject to
| checks. $5.47So6S.
The money situation and apprehension
over the connection between several mining
men and the Globe National Bank to-day
caused considerable excitement in the stock
market Some of the copper shares formed
an object of attack, and prices fell rapidly.
Tamarack and Boston and Mo 'tana were
sold heavily. Block after block Of Montana
was thrown on the market mainly long
stock, until the price sagged to $3.50. de-
cline of S25 a share from the opening Mon
tana afterward rallied somewhat. Arcadi-
an, Parrott and the other coppers suffered
in a less degree. United States Oil fell to
25; United States Mining. one Of the Globe
Bank stocks. f1uctuated but few points,
regaining its losses.
1t is generally considered that by it's
action the clearing house management
averted a panic. as the tying up of about
s., 100000 of deposits would have been
very serious thing. BY to-day's vote the
assets of the Globe Bank will be turned
over to the clearing house. 1t is improbable
that any loss will be incurred by the banks
concurring in the vote, but the method
taken insures that if there is any such loss
II will be subdivided among so many that
the share of each will be Insignificant
A meeting of the bankers and brokers
was held tonight to take steps towards
protecting the interests of the United
States Mining Company, whose stock is
largely held as security by the Globe Ma
tional Bank. 1t was stated that the other
banks will cease to call their loans on these
securities for while. and Ii was agreed
that pool should be formed to protect the
stock. No definite plan was adopted and
another conference will be held tomorrow
II. II. Rogers, of the Stnndard Oil Com
pany, is probably the largest owner of Bos-
ton and Montana next to A. s. BigeIow,
and 1t is understood that the so-called
Standard Oil interest In coppers will give
all assistance possible in relieving the sit
uation. so far as anything further may be
needed in connection with that class of
stocks. For the moment about a million
dollars in New York money is to be loaned
on Boston and Montana stock which has
been carried in New England. With three
millions of Standard Oil money for Boston
and Montana interests and $3,500OO0 of
clearinghouse certificates for the Globe
National Bank, whose deposits were re-
duced by reason of mercantile overdrafts.
he situation must be considerably inn
proved although 1T cannot be expected that
money can be easy here until after the jan
nary settlements and easier monetary con-
dittons prevail at New York and London.