The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-12-22
Comptroller Dawes Appointing a Special
Examiner as Temporary Receiver.
The Banks Condition Discovered
in Time to Prevent the Failure
InHicting Heavy Losses Upon
the Depositors, But the Direc-
tors and Stockholders Will
Suffer Heavily.

WASHINGTON, Dec. 21.-Comp-
trolier Dawes this evening appointed
Special Examiner Daniel G. Wing tenn
porary receiver of the Globe National
Bank of Boston. The condition of the
bank was discovered in time to secure
such action on the part of the directors
as will probably prevent the failure
from inflieting heavy losses upon the
depositors, but the directors and stock
holders will lose heavily. The bank, it
is understood, was involved in the
Squire failure, and in mining stocks.
CAUSES SURPRISE AT BOSTON.
BOSTON, Dec. 21.-The news that a
receiver had been appointed for the
Globe National has taken this city by
surprise. While the bank was known
to have been in distress ten days ago,
presumably over the decline in copper
specialties, chiefly the United States
Mining Company, it was thought the
crisis had passed. This was borne out
to all external appearances in the mar
ket by the reassuring tone of dealings
the past few days.
The Boston clearinghouse came to
the assistance of the Globe bank, al
though when the Broadway National
Bank was later in trouble, the same
body declined to offer assistance. Three
days ago it was officially stated that
the clearing house committee had GER
tificates signed to large amount to re-
vive any solvent bank should pressure
come upon it. For this reason the sit
uation in financial circles here to-mor-
row is hardly likely to be seriously af-
fected by the Globe bank receivership.
President H. H. Stevens, who sue
ceeded Charles H. Cole some months
ago. absolutely refused to say nything
regarding the Comptroller's action.
The calm that followed the storm Of
Saturday and the failure of the Broad
way Bank had been taken in financial
circles 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 a
worse day than last Saturday. Others,
however, were of the opinion that the
failure of the Globe Bank had been pro-
vlded for at least among conservative
financiers, that it would have little eff
feet upon London stocks, and that by
concerted action and the strong clear
ing-house any further gale in local
stocks would be weathered with COM
parative ease. Nevertheless, the fail
ure is one of the most startling and far
reaching since the closing of the Nav
erick Bank eight years ago, and as it
intimately involved the value of Bos-
tons pet copper stocks, the outcome
tomorrow is anxiously awaited.
The bank has been in difficulty for
some months, in fact, ever since the
resignation Of Charles H. Cole, for
many years it's President. Mr.. Coles
retirement caused a sensation at the
time, for it was known that he was
heavily interested in the copper mine
known as the United States Mining
Company. One of the directors N H.
Stevens, was elected to fill the position
of President, and since then has done
everything to keep the bank from going
under. Every method was adopted to
keep up the tone of the market in cop
per shares, and it was expected that
the bank would gradually be able to
realize on a greater part Of the loans
on the stocks without loss The tight
money market, coupled with the great
decline in all stocks. however, carried
down the coppers, and last Thursday
the bank was forced 10 call upon the
clearing house for assistance. After
consultation the clearing house came to
the rescue, and issued S3,000,0OO in Ger
tificates to enable the Globe to meet it's
Indebtedness to other banks. The
action of the clearing house was gen.
orally regarded as timely, although
there was much surprise expressed
when, two days later, the clearing
house refused to rescue the Broadway
Bank from the hands of a receiver.
The action of the Comptroller in wait
ing reasonable time for the guaranty
to be made good regarding the assets Of
the bank is generally acknowledged to