The age-herald., 1901-06-28
Seventh National Bank Held Securities on Which t
 Gould Not Realize
.DEPOSITORS ARE PROTECTED
President Thomas Issues a Statement Showing That Assets Arc Ample
 To Cover All of the Banks
 5 Liabilities.


 tional Bank was closed at 10:45 o'clock today when the following notice was posted on its doors:
 This bank Is in the hands of the Comptroller of the Currency.
 CSigned) FOREST RAYMOR,
 ''National Bank Examiner"
 At the same time William Nelson Cromwell, the bank attorney. gave out the following statement:
 ''In justice to the depositors and stock holders of the Seventh National Bank. the banks attorney has advised the bank to suspend payment"
 This action was taken after a pro- tRceed conference in the directors room of the bank, which was participated In by the new president. Edward R. Thomas; ex-President W. H. Kimball, Edwin Gould, Lorenzo Semple. who is one of the directors. and several other members of the board.
 The officers and directors are as fol- lows: E. Thomas, president; Fletcher s. Heath, vice president; George w. Adams. cashier.
 Directors - George w.. Adams, Eugene Bissell, Thomas M. Boyd, Fletcher S. Heath, Perry s. Heath, Erskine Hewitt William H. Kimball, Alexander McDon- aid, Guy P. Major. William P. Orr, Jo- siah Quincy, Frank M. Ray John A. Sul- nvan w. H. Taylor, Samuel Thomas.
 After the suspension of the bank the following statement was made at the clearinghouse:
 At the clearing house this morning the Seventh National Bank came An IxT&A rIa In Q committee has been in session since 9:30 o'clock awaiting the results of clearing When 1t 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 min utes as to the action of the bank. In conseouence of this statement the clear ings were held back thirty minutes At 1O:45 A. m. Mir William Nelson Cromwell, MT Edwin Gould Mir 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 or that institution to eliminate from the clearings all operations of the Seventh National Bank.
 A mittee says that at this mornings meet ing the name of no institution, other than the Seventh National Bank, was referred to.
 The Seventh National Bank was the custodian of the funds of the New York post office. Assistant Postmaster Nor gan 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 $250000 In gov ernment bonds as security. The present state of the post office account with the bank do not know, but am investigat- ing it."
 The following statement of liabilities and resources was given out tonight at the bank:
 Resources.
 Loans and discounts $35e0, ,459.N, United States bonds to secure circulation and de- posits s55O,O0 premiums sH. H stocks and securities $121, ,629 .S5. banking-house s4OO0. due from banks $455, ,Sn .SS, cash and exchanges s4O5,0442s per cent United States redemption fund N7.150; total, D. 165, ,5So.12.
 Liabilities.
 Capital stock $500 900. surplus si60ooo. profit and loss account $S7.794, circulation ssOoOOO, deposits $4.125, 7s6.12; total, s6,l6o.- 5S0.12
 w. Nelson Cromwell, special counsel for the bank gave out the following state ment from President Thomas and added that he was engaged in preparing plan for reorganization of the affairs of the bank, and that it was believed plan would be presented at an early date;
 MT. Edward R. Thomas, president of the Seventh National bank, states that the difficulties of the bank were due solely to the making by the previous executive officers of large advances to Messrs. Mar ouand & Co.,, and that the security there on was of an unmarketable character. all though of considerable intrinsic value; that upon the urgent application of the board he and his associate, MT. Edwin H. Gould, had furnished financial assistance upon adequate securities and upon the as- surance that the obligations of Mafquand 6 Co., would be made good by this morn ing; that the firm named had. however failed to fulfill expectations, and while he and MT. Gould and some of the directors were willing to furnish further financial aid, 1t was not deemed by them as just to the deposltors, stockholders or to the public to invite deposits and credit until the affairs of the bank were again placed upon an absolutely safe basis; that for this purpose reasonable time was neceS- sary and to prevent unfair preference or advantages, the board determined, with the advice of the counsel, to suspend oper- ations for the present.
 During the afternoon an informal meet ing of officers of important banks was held at adowntown club and the susren- sion of the Seventh National and its re- lations with other financial institut.4ns was thoroughly discussed. The tacit tfn- derstanding that all interests should be protected was arrived at No one else. said one of those at the meeting. will be allowed to fail. No institution, I may say. is in peril, but measures have been | devised to give ample protection. ..we have got this incident out of the way and I see no danger ahead. The