Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-12-23
BOSTON'S PANIC
Did Not Materia|ize, Friday,
as Was Expected.
Globe Bank Closed, But Depositors Are
Aided by Shawmut Bank.
Situation Easier and Confidence Is Returning
Squire Creditors Meet.

Boston. Dec. 22.-Anothcr day of I'M
rest in BostOn's financial circles went
by without incidents of a startling ma
turc, and once more the public was
shown how we'll supported the institu
lions of this city can be made by a
concerted effort. The receivership for
the Globe National Bank took nearly
every banker and broker by surprise
and before business in the money mar
kct began. forebodings We're dire. But
prophesying and fears were not real
lied, for the situation, tonight, was
conservatively considered as good. if
not slightly better. than at any time
for fortnight. Not a failure was
announced when the Stock Exchange
was closed and best of all. money
seemed easy.
The key Of the whole situation is be-
leved to be in the action of the Clear
| ing House Association in issuing 49,
100000 worth of certificates for tempo
rary relief. From this amount, it is
| understood, the Globe Bank received
| s., 0O0. 900 in cash. Yesterday, it is cur
rentIy reported. the Clearing House
committee declined to give the Globe
| Bank further assistance, and to this
| TACT Is attributed IHe QUICK appoint
| ment of n receiver.
| There is some interest in the value
| of the $4,000. 900 worth of collateral
| turned over to the Clearing House by
! the Globe Bank, and whether the lat
tcr's failure has impaired that value.
officially, nothing will be said at pres
ent about the dealings of the Globe
Bank with the Clearing House, and if
|
deprecated below the margin Of safe
ty, the individual banks will have to
bear the loss pro rata.
| The loan of the s.. 900 900 to the Globe
| Bank relieved the financial tension on
| numerous brokers and bankers. Firms
that had thousands on deposit, when
the Globe Bank first showed evidence
of trouble. have since withdrawn their
accounts, and the money paid out came
from that Clearing House loan.
The bank paid out from its deposits
during the past month s2,Oi2OOo- or
May G. the amount in the bank reach
ed IS. 900. 900 and 50, 900 900 up to the time
Of the recent troubles.
Three fourths Of the banks stock. OF
$3.50 900. is held by Massachusetts, saw
ings banks. all Of which are good fol
the 100 per cent. liability imposed by
law by individual stockholders.
When early would-be customers ap
reared at the Globe Bank they fount
Receiver Wing in charge of the clerk!
at their accustomed places. There wa!
no excitement for time. but as bust
ness on the street grew to it's height
the bank was the centre of attraction
and many harsh words We're sale
against it and the officials. In tn
market itself. the usual mirror of tn
ups and downs of finances, hardly
good sized ripple was created. To b.
, sure. stocks went down. but Boston
brokers claimed that quotations her
! followed New York. AS for cOppers
which class of stocks are charged witt
turning Boston topsy turvey. they di'
not slump away as predicted. thei
weakness hardly touching the 10y
, priced ones. and being on an averag
scarcely more noticeable than 70
weeks past
The Broadway National Banks af
fairs would have been lost sight of 70
1 the time being had not the creditor
G of the Squire Co. the fortunes of whiC
! are mingled with those of the bank
met to outline their plans and to forr
= 2 committee of action. Some deman
for ready cash was made on the mar
I, ket here by a Portland bank. on whic
i run was made, but il did not dis
: turb conditions.
. Tomorrow being a short day, an
!. naturally dull one, no furthe
n changes are looked for. and the mex
= influential factor is expected to be con
tanned in Receiver Wings report o
the broadway Bank For both the lat
If ter bank and the Globe, it is confident
) ly said. that the crash will not be near
-, ly as bad as pictured and the outloo
+. FOR creditors is reassuring.
- Receiver Wing and the clerks in til
g bank continued at work on the bank
books until late hour, tonight. an
messages We're frequently exchange
with Comptroller Dawes at Washing
: ton. The result of the days wor
as seemed to indicate that the banks a.
sets would be nearly sufficient to pa