The morning news., 1899-12-22
RECEIVER FOR GLOBE BANK.
sTOCKHOLDERS LIKELY TO HE THE
ONLY LOSERS.

ONAA RaOSHAhSs
Banks Total Assets Are More Than
SIC,0gO, O,C0O-Reccivcr Appointed
for Protection of the Unsecured
CreditOrs-FIurry in the Copper
Market Brought About Its Failure.
Efforts WIN Re Made to Avert II
Panis, But Another FURRY May
Come.
Washington, Dec. M.-Controlicr Dawes
this evening appointed Special Examiner
Daniel G. Wing temporary receiver of the
Globe National Bank Of Boston.
The banks resources are as follows:
Loans ana discounts, $5,513 lOl; United
States bonds to secure circulation, 81 0OO,-
eco; United States bonds to secure United
states deposits, $4,000; premiums on
bonds, $lS9,S5O; stock and securities. $lO92,-
202; cash on hand and due from banks 81
53S, 81. Total. $l0,529, 1853.
Controller Dawes. in explanation of his
action, said
In view of the fact that to allow the
bank to remain open longer win result
in injustice to unsecured creditors, now
that the condition OF insolvency is found
to exist, it becomes my duty under the
law to appoint a receiver A consider
abe cash dividend can be paid to creditors
at once.
THE condition of the bank was dscov-
cred by Special Examiner Wing in time
to secure such action on The part of the
directors as win probably prevent the fail
ure from inAictlng heavy losses upon the
depositors, but the directors and stock
holders will lose heavily
In Difficulty for Months.
The bank has been in difficulty for some
months, in fact ever since the resigna-
ton OF Charles Cole, for many years It's
president Mr. Coles retirement caused
a sensation a the time, for it was known
that he was heavily interested in the cop
per combination known as the United
States Mining Company.
one o. the directors, II. II. Stevens,
was elected 40 fill the position of president,
and since then has done everything possi-
bic to keep the bank from going under
Every known method was adopted to keep
up the tone of the market In copper
shares, and Il was expected that the bank
would gradually be able to realize on a
greater part of loans on those stocks with
out loss. The tight money market, coup~
led 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 "a consultation the clearing house
came 10 the rescue and issued s.. 800 90
in certificates, to enable the Globe to meet
It's Indebtedness to the other banks.
The action of the clearing house was
generally regarded as timely although
there was much surprise, when, two days
later, the clearing house refused to rescue
the Broadway Bank from the hands OF "a
receiver,
On Monday came the failure of the
brokerage firm that financed the mining
company, but as no other firm followed
and as the Globe Bank gave no intima-
tion of succumbing through the bad fail
in copper stocks, confidence i'm the stua-
ton seemed in fair way of being re-
stored.
The slumps in the New York market on
Tuesday brought no material reverse in
this city, and this was regarded almost an
additional guarantee that the crisis here
had passed.
May be More Trouble.
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 the strong financial insti-
tutions 70 avert a panic. Upon their sue
cess depends the status OF many brokerage
houses which have been carrying over
Christmas heavy blocks of copper stocks.
A few Of those houses have already at
tempted to protect themselves, and attach
ments have been filed against the promot-
ers of the United States Mining Company,
Charles II. Cole late president of the
Globe Bank, William II. Coolidge and Ed
ward c. Clark
The action of the controller in waiting
a reasonable time for the guaranty to be
made good regarding the bad assets OF the
bank, is geneally acknowledged to have
been very generous, and indicated a desire
to assist as much as possible, and 1t is
generally agreed that If the bank had been
closed last week a severe panic would have
resulted, which would have undoubtedly
carried down its stocks and wrecked many
strong Institutions.
During the past week the Withdrawals
from the bank have been exceedingly
heavy, amounting. it is said, to over ST.
900, 600 In deposits. 1t was stated that the
closing OF the institution could not af-
feet any great number of individual depos-
itors.
furry in copper stocks is anticipated
at the opening Of the Stock Exchange to-
morrow.