The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1899-12-29
BOSTON BANK FAILS.
Receiver IL AppOinted-ActiOn
Causes Surprise.

boston, Dec. 22.-COmptroller or the
Currency Dawes Thursday evening or
dered the closing of the Globe national
bank of this city. The bank will not
be open for business to-day. This ac-
ton was taken on the representations
made to the comptroller by Special
Bank Examiner Wing, who a few days
ago was made temporary receiver of the
Broadway national bank and who is
now appointed temporary receiver of
the Globe national. The news 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 United
States Mining company, it was thought
the crisis had passed.
Ever since the clearing house came to
the relief of the Globe national by lend
ing it $3,500,000 the bank has been I'M
der close surveillance. Examiner Wing
has been engaged in making rigid in
vestigation of the banks condition, and
has been in frequent conference with
Comptroller Dawes by long-distance tel
| ephone. During the day he informed
the comptroller that in his opinion the
| bank was insolvent. The clearing house
was given further opportunity to ex-
tend relief to the Globe, but this the
clearing house declined to do, and con-
sequently there was nothing left to the
| comptroller except to close the bank.
The clearing house, when it advanced
| to the bank $3,500,000 of course had
| that loan secured by collateral, but the
| depositors and other creditors who were
not secured by collateral, now that the
bank was insolvent, were in danger of
| loss, and it was to treat all alike that the
bank was ordered closed. How much of
the clearing houses loan the bank has
still left it is impossible for the comp
| troller to say, but it is believed that
| it probably has at the present time in
the neighborhood of couple of mil
lions in its vaults.
The failure is one of the most start
| ling and far-reaching since the close
| of the Maverick bank eight years ago,
and as it intimately involves the value
of Boston's pet copper stocks the out
come to-day is anxiously awaited.
The bank has been in difficulty for
some. months; in fact, ever since the
| resignation of Charles III. Cole, for
many years it's president. Mr.. Coles
retirement caused sensation at the
| time, for it was known that he was
| heavily interested in the copper COM
| bine known as the United States Min
ing company.
The downfall of the bank is attrib-
| uted to the heavy shrinkage in the
price of coppers and the Squire fail
ure. The bank had also loaned free
| ly on copper stocks, and when the
| market price of these shares declined
the collateral, regarded as perfectly
good at the time when the loans
| were made, could not be realized upon.
| With the stock market continually
declining any attempt to hquidate by
! throwing the collateral upon the mar
ket only resulted in fresh losses. 1t
is impossible to say at the present
time how bad the failure is. Mucn,
of course, will depend upon the
amount realized upon the Squire fail
ure and the future of the copper mar
| ket. If the Squire assets pay a fairly
good dividend the creditors of the
| bank will profit to that extent, and
if there is a rally in the copper mar
| ket the bank will also be the gamer
| by it.
| In the opinion of conservative peo-
| pie the bank will not pay more than
| so per cent. to its depositors, but to
do this the stockholders will lose
every dollar of their capital, surplus,
and undivided profits, and it is not
improbable that the stockholders may
be assessed.