Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1901-06-27
New York Concern Closes It's
Doors Upon the Advice
Of It's Attorney.
NOTICES ARE POSTED
Last Statement Showed That the Sew
enth National, the Institution Which
Failed Had a Paid Up Capital of $3,-
ooo-The German Situation.


New York, June 27,-The Seventh
National bank closed it's doors this
morning upon the advice of William
Norton Cromwell, the banks attorney,
in justice to depositors and stockhold.
ers.
The bank opened as usual today
but at 1O:45 o'clock the five doors
were closed and the following notice
tackled up: "This bank is in the
hands Of the Comptroller of the cur
rency. Forest Raynor, National Bank
Examiner"
Last Statement.
The statement of the Seventh Ma
tional bank for the week ending June
% follows:
Capital s397,0oO; net profit, 1884,
900; loans s4.4O7 900; specie $55s,OO
legal tender $77S,OOO; deposits s5,712,-
600.
Deemed 1t Wise to Close.
The closing of the bank took place
after protracted conference of Off
GERS and directors. AT the clearing
house this morning the Seventh Ma
tonal bank came in as debtor to $644,-
600. In view of this heavy debit bal
ance and other reasons, it was consed-
cred wise for the bank to temporarily
suspend, aud the clearing house COM
N FT,l.
tee Immediately directed the manager
OF the institution to eliminate from its
clearings all operations of the Seventh
National bank.
All other banks made exchange at
the clearing house as usual.
,Marquand Company May Resume.
IA member of the firm of Marauand
I'D Company, stock brokers having
~ ose business relations with the bank,
i lated this morning that while every
s&htng is uncertain in the business
world, yet the firm intended to con-
tinue business.
Held Postoffice Funds.
The bank was custodian for SPOT 900
OF the funds of the New York postof-
nee. but Assistant Postmaster Morgan
says the department is amply protect
ed.
Created No Excitement.
The announcement of the suspension
caused only ripple in the stock mar
ket. There were large offerings of
money on exchange at 6 per cent. In
banking circles it was said the Sew
enth Nationals heavy debit balance
today is the result OF news of the
banks embarrassment on Tuesday be-
ing telegraphed throughout the coun-
try. Interior institutions having
moneys on deposit drew on the bank,
these drafts all coming in at the same
time on the institution.
From the Washington End.
Washington, June 27.-Comptroller
Dawes today ordered the closing of
the Seventh National bank of New
York and appointed Forrest Raynor,
national bank examiner. as temporary
receiver.
Doubtful Security for Big Loan.
The comptroller stated on Tuesday
that he had, received word from the
examiner that HI. Marquand & Co. had
recently become indebted to the bank
about S1,G00,00 collateral security for
which was of a doubtful nature. Upon
the receipt Wednesday of further in
formation regarding the collaterals,
he telegraphed President Thomas that
unless he was promptly and satisfac-
torily assured that the Marauand loan
can be taken up and cash. therefor put
into the bank by Saturday night he
would appoint receiver.
Loan Partially Secured.
The comptroller states the Mar
quand loan is partially secured and he
hopes the loss to depositors will not
be large. The liability of the govern
ment losing anything is remote as the
bond of the bank, which the bank has
on deposit at the treasury department
more than covers the government de-
posits in the bank.
The German Situation.
Leipzig, June 27.-Herr Exner, di-
rector of the Leipziger bank which
suspended Tuesday, has been arrested.
Representatives of the leading banks
of Berlin say there is no doubt but
all of the stock of the bank and it's re-
serve, amounting to 100000 marks,
is lost. High indignation is expressed
at the conduct of the bank examiners.
Searching invertigation is being de-
manded.
Depositors viii Lose Nothing.
1t is said this afternoon that the
Seventh National had quick assets of
about 81, 100000. 1t is further report
ed that depositors would lose nothing.
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