Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1901-06-27

Tie announcement OF the suspension
caused only a ripple in the stock mar
ket The lrst selling Of stocks which
followed the announcement of the sus'
pension interrupted recovery III
prices and caused reaction OF | 10
~ points in some Of the principal
stocks. The offering of large sums
Of money on the exchange at per cent
and large buying orders placed IN the
market rallied prices and left the STOCK
market dull but somewhat feyerish UNI
I'll noon.
In banking circles II was said thal
the Seventh Nationals heavy deblt
balance today was the result Of the
news of the banks embarrassment on
Tuesday being telegraphed through
out the country Interior institutions
having money deposited with the
Seventh drew on the bank and these
drafts all coming in at the same time,
were too much for the institution
The suspended institution IS in the
hands Of the comptroller Of the cur
reucy who has appointed Forest Ray
nor as temporary receiver MIR. Ray
nnr's examination of the loans Of the
bank Is understood TO have proved
weak in some instances.
The objection Of the bank examiner
10 these collateral securities is said TO
have decided Mr. Cromwell to advise
the suspension.
President Oakley Thorn, Of the North
American Trust company, which had
some business relations with the Sew
enth National. said his corporation was
IL, n NaafnA hRf the gugnpn-
sion Of the Seventh National. When
asked as to the effect of the failure. he
said:
II don't know anything about any
concern except our own and that can
assure you, Is all right. II any one
asks reference on the subject can
recommend him to the state bank ex'
aminer. His statement will, | Nh sure.
be taken. know there are rumors
connecting me with the trouble of the
Seventh National, but they are merely
rumors. ! am happy to say we are all
right"
TO REOPEN IN EIGHT DAYS
Another director said that the bank
would be reopened In eight days. Adj
vertisements were printed in the after
noon papers Offering to buy Seventh
National bank stock The offer was
made by a broker who said he was act
ing for Gen. Thomas,
State Superintendent of Banks Kill
burn this afternoon had consultation
with Bank Examiner Raynor at the
Seventh National He said he had
consulted with Mr. Raynor for the pur-
pose Of ascertaning whether any other
bank was involved and also that he was
satisfied this was not the case.
COMPTROLLER DAWES TALKS.
Washington, June 27-Comptroller
Dawes today ordered the closing of the
Seventh National bank Of New York
and appointed Forest Raynor bank ex-
aminer, temporary receiver Later the
comptroller made the following state
ment
Comptroller Dawes stated that on
Tuesday he received word from the ma
tiona bank examiner that Henry Mar
quand & Company had recently become
indebted In a sum approXirnating ST.
600 600 10 the Seventh National bank OF
New York which was secured by coll
lateral Of a doubtful nature. Upon re-
ceipts on Wednesday OF further infor-
nation regarding the nature of the coli
laterals securing this loan he sent a
telegram to Mr.. y. X Thomas, presi-
dent Of the Seventh National bank as
follows:
al have Just received information
from the national bank examiner that
Henry MarQuand & Company have
loans Of large amount in your bank APP
prOXimatlng 81, 100000 Unless prompt
La Ga Of, ha
loan will be taken up and each there
fore nut into the bank by Saturday
night, June 20. viii appoint a receiver
for the bank Please confer with your
board OF directors and announce this TO
them
"In explanation Of the conditions i'm |
posed, the comptroller stated that while |
advances had been made by the direct |
ors to the bank they had been made |
upon the credit Of good securities owned |
by the bank, but that no such advances
affected the banks solyency while the |
Henry Marquand paper remained, 1t |
was necessary therefore for him In the |
performance OF his duty 10 promptly |
impose these conditions. before further
Withdrawals Of deposits were made. |
The comptroller stated that the Mar |
quand loan Is partially secured, and II |
is hoped that the loss 10 the depositors |
viii not be large"
The following Is the statement Of the |
resources and liabilities Of the Seventh |
National OF New York. as shown by |
the report Of its condition at the close |
OF business April "a. 1901:
LIABILITIES.
CapItal stock. 100000; surplus and |
undivided profits, S2SSi 400: circulation |
1898 800; due to trust com |
panies and savings hanks Sil2 797' due |
TO national banks and bankers. 1920; |
deposits. s5.23S.0Ss. United |
states deposits. 500, 1888. Total liabilities,
1865. 265,
RESOURCES,
Loans and discounts, 50, lie; stocks,
securities claims. etc, $lSS,SS2; United |
States bonds and premiums, S57l,i7i; |
banking house, 81, 0O0 cash on hand and
with other banks. si,isi,27s Total re-
sources s7G6s,265