The Montgomery advertiser., 1901-06-28
BANKS DOORS
 ARE CLOSED Seventh National Of New
 York Fails. IA TEls oRARY RECEIVER
The Cong roller of the Cur
 rencyS 'sumes Charge.
Large Loan on Collateral of |; Doubtful Nature Given as the Cause of the Institu-
 tion's Failure.

New York. June 27.-The Seventh National Bank was closed at 10:45 o'clock today, when the following mo- tice was posted on it's doors:
 This bank is in the hands of the Comptroller of the Currency.
 (SigneD Forest RaymoE National Bank Examiner."
 At the same time William Nelson Cromwell, the bank attorney. gave out the following statement:
 'In justice to the depositors and stockholders of the Seventh National Bank, the banks attorney has advised the bank to suspend payment" The action was taken after pro- tracted conference in the directors room of the bank, which was partici- pated in by the new President. Ed ward R. Thomas; ex-President w. H. Kimball. Edwin Gould. Lorenzo Sem pie, who is one of the directors, and several other members of the Board.
 The statement of the Seventh Ma tional Bank for the week ending June 22. 1901. to the clearing house. was &s follows:
 Capital. Ss76. 900: net profits, $2S4.- 400; loans, $40. 100; specie, $557, zoo; legal tenders, %77.700; deposits. $5,- 712, 400; percentage af reserve, 2S.4.
 The bank opened for business as usual today, but at 10:45 the doors were closed by Cashier Adams. who aaid this action was resolved on at the meeting of the Board of Directors. and William Nelson Cromwell. attorney of the bank, held this morning.
 The Seventh National Bank was orig inally the old Seventh Ward Bank and was established in 1883. For long time control of the institution was held by John McAnerney, southerner, who was President of the hank. In May, 1899, E1rst Assistant; Postmaster auired a controlling interest in the stock of the Seventh and on July 1, William H. Kimball resigned az Ma tiopal 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 elected then.
 On August 2, 1899, Mir. McAnerney resigned the Presidency and Vice President Klmball was chosen in his stead. Fletcher s. Heath was elected Vice President
 The officers and directors are as fol- lows: E. Thomas, President; Fletcher .. t1edIH, NISC~G ACSlAShhp OSSA 5N WI
 Directors: George W. Adams. Eugene Bissell, Thomas M. Boyd, Fletcher S. Heath, Perry S. Heath. Erskine Hewitt, William H .KimbalL Alexander Mcdonald. Guy P. Major, William P. Orr, Josiah Quincy. Frank H. Ray, John A. Sullivan. w. H. Tay- Tor, Samuel Thomas.
 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 $644 410S.95. The clearing house committee has been in session since 9:3O o'clock, awaiting the results of clearing. When it was found the debit balance was so heavy the committee communicated with the officers of the bank. and was informed that the Board of Directors was in session and that a decision would be arrived at within fifteen or twenty minutes as to the ac- tion of the bank. In consequence Of this statement the clearings were held back thirty minutes. At 10:45 a. m., William Nelson Cromwell, Mir Edwin Gould, MT. Thomas, President of the bank, came into the clearing house and informed the committee that in view of their heavy debit balance and for other reasons, 1t was considered wise that the bank should temporarily sus- pend They directed the management of that institution to eliminate from the clearings all operations of the Sev- enth National Bank.
 A member of the Clearing House Committee says that at this mornings s meeting the name of no institution other than the Seventh National Bank, fA
 The Seventh National Bank was the custodian of the funds of the New York postoflce. Assistant Postmaster Morgan said when he heard the news of the banks suspension: The post office Is amply protected. When the account was opened the bank put up S250, 900 in Government bonds as se- curity. The present state of the post office account with the bank I do not know. but am investigating it.
 At 11:20 o'clock the officials of the embarrassed bank posted the following notice: Cheeks drawn by the Man haitian State Hospital will be paid at the Chase National Bank. Drafts drawn by the St. Lawrence County Bank. Canton, N. Y, will be paid at the Chase National Bank"
 Among the institutions having close business relations with the Seventh National Bank was the stock brokeraSe firm of Marquand X Co. Frank B. Poor of the firm made the following statement after the bank suspen- sion: From the outlook just now. said he. 1T think we're going on. At the same time. we cannot tell. Just now everything is uncertain in the ! business w5rld. but I believe we will get through"
 Later it was learned from an author itative source that the bank has on de- posit SPOT 600 of postal funds, all of which is amply secured by bonds.
 The announcement of the suspension caused only a ripple in the stock mar ket. The first selling of stocks which followed the announcement of the sus- pension interrupted a recovery in prices and caused a reaction of to ? 1-9 points in some of the principal stocks The offering of large sums of | money on the exchange at 6 per cent and large buyinR orders placsd in the