The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-23
Which Issued Three Million and
Half in Certificates and Gave the
Globe Bank Three Millions.
RELIEF FOR DEP0sITORS
NATIONAL SHAWMUTT BANK PRO-
vIDES CHRISTMAS MONEY.
Sensation at Meeting Of Squire Com
pany's Creditors-Run on a fort-
land CMe) Savings Bank.

n.
i'm Boston's financial circles went py WIFI
out incidents of startling nature Inc
receivership for the Globe National BANK
took nearly every banker and broker by
surprise, and before business in the money
market began forebodings were dire But
prophesying and fears were not realized,
for the situation tonight was, conserVa-
lively considered, as good, II not snghtiy
better, than at any time for fortnight.
Not failure was announced when the
Stock Exchange was closed, and money
seemed easy. The key of the whole situa-
ton is believed to be in the action of the
clearinghouse association in issuing $3,-
500 900 worth of certificates for temporary
relief. From this amount 1t is understood
the Globe Bank received $3,OOO,0oO in cash.
Yesterday, it is currently reported, the
clearing house committee declined to give
the Globe Bank further assistance, and to
this fact is attributed the quick appoint
ment of a receiver.
There is some interest in the value OF the
81, SOC, 600 worth of collateral turned over to
the clearing house by the Globe Bank, and
whether the latters failure has impaired
that value. Officially, nothing will be said
at present about the dealings Of the Globe
Bank with the clearing house, and if the
securities held by the latter have de-
preciated below the margin Of safety the
individual banks will nave to bear the loss
pro rata.
The loan of s2, 200 900 to the Globe Bank
relieved the financial tension on numerous
brokers and bankers. Firms that had thou
sands on deposit when the Globe Bank first
showed signs Of trouble have since with
drawn their accounts. and the money paid
| out came from the clearing house loan.
The bank paid out from its deposits during
the past month s2,O42,OOo On May 6. the
| amount in the bank reached SOL .OOO and
| the average for months was between eight
and nine millions, up to the time of the
recent troubles. Three-fourths of the
| banks stock, or s75O,0OO, is held by Massa-
cnusetts savings banks, all of which are
sooo Ior the 100 per cent. liabilities i'm
posed by law on individual stockholders.
When early would-be customers appeared
| at the Globe Bank they found Receiver
Wing in charge and the clerks at their ac-
| customed places. There was no excitement
| Tor time, but as business on the street
| grew to its height the bank was the center
| or attraction, and many harsh words were
| said against it and the officials. In the
market itself, the usual mirror of the UPS
| and downs of finance, hardly a good sized
| ripple was created. Stocks went down. but
| Boston brokers maintained that quotations
| mere followed New York. Coppers did not
| slump away as predicted, their weakness
| hardly touching the 1ow-priced ones and
| being on an average scarcely more notice
able than for weeks past.
During the forenoon the National Shaw
mutt Bank made public the following
| notice:
| THAT there may be as little incon-
venience as possible to the depositors of
| the Globe National Bank and others the
| National Shawmutt Bank offers to advance
| to-day to all depositors in the Globe Bank
against their deposits SO per cent of the
net amount of the same"
| The Broadway National Banks affairs
| would have been lost sight for the time
being had not the creditors of the Squires
| company, the fortunes of which are min
| gled with those of the bank. met to out
| line their plans and to form a committee
| of action. After the meeting it developed
| that Mr.. Chaplin's denial of the reported
Indebtedness of the firm to the Globe Bank
| caused a sensation, as he stated that the
firm was represented as owing more than
a million dollars through the falsfying of
the books of the bank. This was done Mr..
| Chaplin explained. by charging the notes
and collateral loans against the firm with
out crediting the collateral, SO that every
loan was made to appear twice as large
as it should. At first IT, was not consd-
cred wise to give publicity to the condition
of the banks affairs, but the assignment
| is thought to make it prudent to do SO
| now.
| Some demand for ready cash was made
on the market here by Portland bank on
which run was made. but it did not dis
| turb conditions.