The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-07-02
4 BANK SUSPENSION
THE SEVENTH NATIONAL BANK OF
NEW YORK SUSPENDED.
COMPTROLLER OF THE COMPANY
Notifies the Bank to Collect and Turn
Into Cash Assets q Loan OF Over One
Million Dollars, Made On Security
Become Doubtful, by saturday-This
with b Heavy Debit Balance TO the
Clearing House Causes h Onicials
TO Close the Doors.

Clearing House Causes the On1cialsi
TO Close the Doors.
New York. June 27.-The Seventh nal
tional bank was closed at 10:45 o'clock
today, when the following notice wasl
posted On its doors:
This bank is in the hands Of thel
comptroller Of the currency.
FORREST RAYNOR,
National Bank Examiner"
At the same time w. n. Cronwell,l
the banks attorney gay out the foil
statement:
In justice to the depositors and
Of the Seventh NATIONAL
bank, William Nelson Cromwell, theI
banks attorney, has advised the bank
to suspend payment"
This action was taken after a prof.
tracted conference in tt> ~directorsl
room in the bank, which was partici-|
pated in by the new president, Ewardl
R. Thomas. ex President William H.
Kimball, Edwin Gould, Lorenzo Semple,
who is n of the directors, and several
other members Of h board.
After the suspension of the bank, the
following statement was made at the
clearing house:
AT the clearing house this morning, |
the Seventh national bank came in
debtor s644, los. 95. The clearing house
committee has been in session since
$3.50 o'clock a. m. awaiting h results
of the clearing. When it was found
that the debit balance was so heavy the
committee communicated with III off,
GERS of the bank and was informed that
the board Of directors was in session.
and that a decision would be arrived at
in fifteen or twenty minutes as to the
action of the bank. In consequence OF
this statement, the clearings were held
back twenty minutes. At 10:45 o'clock
a. m. Mr.. w. Nelson Cromwell, Mr. Ed
win Gould and Mr.. Thomas, president
of the bank. came into the clering house
and informed the committee that in
view Of their heavy debit balance and
for other reasons it was considered wise
that the bank should temporary sus-
pend. The clearing committee there
upon directed the manager of that in
stitution to Inmate from the clear
ings all operations of the Seventh ma
bank"
The statement of the Seventh n%ational
bank for the week ending Jun %, 1901,
to the clearing house was as follows:
Capital 1915, 900, net profits 1924 400, loans
81, 4O7, 100; specie 1851, 700. legal tenders
S777, 700, deposits IS, 712, 400. Percentage
of reserve % 4-1O. The Seventh nation
al bank was originally the old Seventh
Ward bank and was established in 1888.
For a long time control Of the instltu-
ton was held by John McAnerney, a
southerner who was president of the
bank. In May 1899 First Assistant Post
oar%ar Cyaroro1 Dnrru G Heath nrQnfI-
cally acquired a controlling interest in
the stock of the Seventh and on July
4th, William H. Kimball, resigned as
national bank examiner to become vice
president of the Seventh, several
changes in the directorate being made
at the same time. Josiah Quincy, OF
Boston was one of the directors then.
On August 2, 1899, Mr.. McAnerney re-
signed the presidency and Vice Presi-
dent Kimball was chosen in his stead.
Fletcher S. Heath was elected vice pres
ident.
Washington. June 27.-Comptroller
Dawes today ordered the closing of the
Seventh national bank, Of New York,
and appointed Forrest Raynor, national
bank examiner, temporary receiver.
Later the comptroller made the follow
ing statement:
Comptroller Dawes stated that on
Tuesday he received word from the ma
tional bank examiner that Henry Mar
Quand & Co., had recently become in
debted in a sum approximatlng $l,6OO,-
900 to the Seventh national bank, OF
New York, which was secured by collat-
erals of a doubtful nature. Upon re-
ceipt on Wednesday of further informa-
ton regarding the nature of the col
laterals securing this loan he sent a
telegram to E. r. Thomas, president of
the Seventh national bank as follows:
ct have just received information
from the national bank examiner that
Maryland & Co., have loans of large
amount in our bank approximately
81, 100, 900. Unless promptly and salts
factorily assured that this loan will be
taken up and cash therefor put into the
bank by Saturday night, June 18th, ]
will appoint a receiver for the bank.
Please convene your board of directors
and announce this to them
I'm explanation of the conditions i'm
posed the comptroller stated that while
advances had been made by the direc-
tors to the bank, they had been made
upon the credit of good securities own
ed by the bank, but hat no such ad-
vances affected the banks s%olvency
while the Henry Maryland debt re-
manned. 1t was necessary, therefore, in
the performance of his duty to prompt
ly impose these conditions. before FUR
Their Withdrawals of deposits were made.
The comptroller stated that h Mar
quand Dan is practically secured and it
is hoped that the loss to depositors will
not be large"
Comptroller of the Currency Dawes
says there is no possibility of the gov
losing anything by the clos
ing of the Seventh national bank. In
h first place the bonds which the bank
has on deposit at the treasury depart
ment more than cover the government
deposits in the bank, and, in addition,
the courts have held that the govern
ment always is a preferred creditor in
the sense that it has an equal chance
OF the assets which remain, irrespective
of the fact that it has the collateral.
Deafness Cannot be Cured