Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-06-27
new YORK BANK FAILS
The Seventh National Closed by
Order Of the Authorities
at Washington.
First Assistant Postmaster Gen.
eral Perry 0. Heath Is q
Stockholder.
Heavy Loans on Collateral Of
Doubtful Nature Cause Of
the Failure.

the Failure.
New York, June 27.-The Seventh Ma
tional Bank closed its doors this morn
Ing upon advice of William Norton
Cromwell. the banks attorney, in Just
ice to the banks depositors and stock
holders. The bank opened as usual to-
day but at 1915 the doors were closed
and the following notice tackled up:
This bank is in the hands Of the con-
troller of the currency.-Forest Ray
nor, National Bank Examiner
The statement of the Seventh Ma
tionad Bank for the week ending June
~ was as follows: Capital, 1897 900; new
profit. s234,000; loans. $4,407,000; specie,
$55S.O0O: legal tenders, seven hundred
seventy-eight thousand; deposits, $5,-
$4,000.
Closing of the bank took place after
a protracted conference of the officers
and directors. AT the clearing house this
morning the Seventh National came in
debtor $4,000 and in view of this heavy
debit balance and other reasons, ii was
|
suspended and the clearing house com
mediately directed the manager Of the
Institution to eliminate from the clear
ings all operations of the Seventh Ma
tional. All other banks made the ex-
change at the clearing house as usual
member of the firm of Marquand and
Company. stock brokers having close
business relations with the bank, stated
this morning that while everything was
uncertain in the business world. the
firm expected to continue business
The bank was custodian of s207 900 of
the funds of the New York postoffice,
but Assistant Postmaster Morgan,
says the department is amply pro-
tected.
Announcement of the suspension
caused only ripple in the stock mark
ct. There We're large offerings of money
on exchange at six. In banking circles
1t was said the Seventh National heavy
debit balance today was the result of
the news of the banks embarrassment
! on Tuesday being telegraphed thruout
the country. Interior institutions l1av-
ing moneys in deposit drew on the bank
and these drafts all coming at the same
time We're too much for the institution.
The Seventh Nationalwa originally the
old Seventh Ward bank. established in
1893. For long time control OF the in
stitution was held by Jonn McAnerny, a
southerner who was president. In May
1899. First Assistant Postmaster General
Perry s. Heath practically acquired a
controlling interest in the stock and
July 4th William II. kimbalf resigned
as national bank examiner to become
vice president. On August second Nc
Anerny resigned the presidency and
kimball was chosen in his stead.
The officers and directors are: Presi-
dent, Z. r. Thomas: vice president.
Fletcher S. Heath; cashier. George w.
Adams; directors. George w. Adams.
Eugene Bissel, Thomas NJ. Boyd.
Fletcher S. Heath. Perry S. Heath, Frs
kline Hewitt, William H. kimball. Alex
ander Mcdonald. Guy G. Major, Will
lam P. Orr. Josiah Quincy. Frank H.
Ray, John A. Sullivan, w. H. Taylor
and Samuel Thomas.
AT noon President Tappen. OF the
Gallatin National, chairman of the
clearing house committee. said he did
not think any firms or banks would fail
aa a result of the Seventh Nationals
suspension.
1t was said this afternoon that the
Seventh National had quick assets of
about $1,5000O0. 1t was further reported
that the depositors would lose nothing.
Comptroller Dawes Statement.
Washington, June 81. - Comptroller
Dawes, today. ordered the closing of the
Seventh National Bank of New York
and appointed Forrest Raynor. national
bank examiner. temporary receiver. The
comptroller stated on Tuesday that he
received word from the examiner that
Henry Marquand & Co. had recently be-
come indebted to the bank for about ST.
100000, the collaterals security for
which were of doubtful nature Upon
receipt Wednesday of further informa-
ticn regarding the collaterals, he tele-
graphed President Thomas tina, unless
he promptly and satisfactorily assured
him that the Marquand loan would be
taken up and the cash therefor put into
the bank by Saturday night he would
appoint receiver.
The comptroller states that the Mar
quand loan Is partially secured and
hopes the loss to depositors will not be
large. There is no possibility of the
government losing anything, as the
bonds which the bank has on deposit at
the treasury department more than COW
er the government deposits in the bank
DOWIEITEs ARE EGGED.
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