New-York tribune., 1900-12-23
ANOTHER BALTIMORE BANK GOES DOWN
ECONOMY SAVINGS INSTITUTION INVOLVED IN
FAILURE OF AMERICAN BANK


Baltimore Dec. % (speciaD.-The failure of the
American National Bank. of this city carried down
other institutions with it. The Economy Savings
Rank which occupied quarters in the same ouild-
;ro closed it's doors to-day. Russian Hebrews and
other poor persons are the depositors Over six
hundred of them crowded about the doors OF the
bank to-day. Some were crying. others curslng
and at one time the crowd became so threatening
that squad of police was summoned 10 dlsperse
them The directors issued this statement: Owing
10 the fact that our cash funds are oepositec IN
the American National Bank. we have been com
pelled to suspend payment We expect as soon as
its affairs are Strengthened out TO pay our de-
os,torS IN full and hope that they will only suffer
slight Inconvenience from possible shortness OF
Christmas money.
rsurnors concerning other institutions in the build
ing elected a statement that neither the Old Town
Building Association nor 81. Vincent de FauI )
Building Association would be affected. but u Is
not definitely known yet what may be involved IN
the American Bank failure. II Is believed that the
Economy Banks failure was partly caused oy
loans 10 the American Bank Stockholders IN the
American Bank are directors in the Economy Bank
It is feared the depositors viii lose heavily Ths
total amount Of deposits is about $S5o0OO mostly IN
small accounts Of people who cannot afford TO lose
their little savings
The failure Of the American Bank also appears
70 be worse than first reported Receiver Aldrtch
and National Examiner Griffith were busy exarnin-
ing the accounts to-day. Through the good judg-
nnent OF Mayor Hayes, Baltimore City escaped be
ing involved to the extent OF half million in the
American Bank failure. In the administration OF
his immediate predecessor. Mayor William T. NAL
ster who was a director in the American Bank. IL
was the city's depository. and time the ctry
had on deposit s6OOOOo Mr. Malster was president
OF the Columbian Iron Works. which went into re-
eeivers' hands this time last year City Finance
Commissioner Ramsay, at the time the CITY was a
heavy depOsitor, sent protest 70 Mayor MASTER.
in which he said: 'As business man. consider
thA continuance OF this large sum or money IN a
hank which 20 the least, is under Suspicion oy
the Government is not TO be 5ustided. And as one
Of rhe Finance Commissioners or the city or balt-
more I respectfully but firmly protest against the
making OF any further deposits CT the ctty'S money
in the American National Bank. and advise that a
bond De required from IL that will indemnify the
rirv AGAINST any possible loss by reason OF havtn
a large amount OF money there"
When Hayes became Mayor he at nrSr demanded
that the whole amount be immediately Withdraw n
The Finance Commissioners and others were called
into conference, in which there was warm IaIk,
finally ending in decision 70 deposit no more
money in the American National Bank as y woGId
cease TO be a city depository at the enc oI tnS
year The bankers made the plea that no NauoIsal @
bank had ever failed in Baltimore ana tney pro
posed 20 carry the bank alons Eaen man -,s, yaSn
piedGed himself TO protect the cry 20 eeEtall
amount the total reaching all Of the citys money
in the bank. This was accepted anc the Si'y
money was quietly but steadily ~itharawn