The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-06-27
world, but I believe We win get


source that the Seventh National bank
has on deposit 100000 Of postal funds,
all of which is amply secured by oonos.
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 1 to 215 points
in some of the principal stocks The
offering Of large sums of money on the
exchange at 6 per cent and large buy
ing orders placed in the market rallied
prices and left the stock market dull
but somewhat feverish until noon.
In banking. circles it was said that lie
Seventh Nationals heavy debit bal
ance today was the result Of the news of
the banks barraSSment on Tuesday
being telegraphed throughout the coun-
try. 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 hands of the controller of the cur
rency who has appointed Forrest Ray
nor as temporary receiver. MI Kay
nor's examination OF the loans OF the
bank is understood to have proved that
the collateral back Of them was weak in
some instances.
The objections of the bank examiner
to these collateral securities is said to
have decided Mr.. Cromwell to advise the
President Oakley Thayer. Of the
some business relations with the Sew
enth National. said his corporation was
not in any way anected by the suspen-
sion of the Seventh National. When
asked as to the effect of the failure he
II don't know anything about any
concern except our own and tnat 4
can assure you, is all right If anyone
asks reference on the subject can re-
fer him to the state bank examiner
His statement will, am sure, be ta-
ken. I know there are rumors con-
Meeting US with the trouble of the Sew
enth National but they are merely ru--
mors. 1 am happy to say we are all
right
At noon President Tappen, of the
Galatin National bank, and chairman
of the clearing house committee, said
he did not think that any firms or
banks, even small ones, would fail as q
result of the Seventh Nationals sus-
pension
President Alvah Trowbri9ge. Of the
Ninth National bank, reiterated his de-
nial of connection with any of the fin
ancial transactions which impaired the
Seventh National It regret the clos
ing of the Seventh National" he said
Il don't believe any other bank will be
affected, in fact I am assured by the
clearing house that none will be. The
Ninth National is in excellent condi-
ton and there was absolutely no war
discussion Of the situation on Tues
day"
shortly before O'Clock Frank B.
Poor. OF Marquand & Co. Anndlfneed
that his firm was in much better hnan-
cfal position than it had been during
the morning. This was taken as an in
ference that the firm had received as
sistance, but Mr.. Poor would not talk
on that subject.
RECEIVER APPOINTED.
Washington, June 27.-Con ptroller
! Dawes today ordered the closing of the
Seventh National bank of New York
| and appointed Forrest Raynor, ma
tiOnal bank examiner, temporary re-
] ceiver. Later the comptroller made the
following 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 approximating $780,
I 600 to the Seventh National bank of
New York, which was secured by col
/ lateral of a doubtful nature Upon re-
ceipt on Wednesday of further tnfor-
| nation regarding the nature of the
| collateral securing this loan, he sent a
/ telegram to Mr.. e. r. Thomas. pres1-
dent Of the Seventh National bank, as
follows:
I have just received information
from the national bank examiner that
| Henry Marquand & Co. have loans of
/ large amount in your bank approx
! mating 81 500. 600. Unless promptly and
| satisfactorily assured that this loan
Will be taken up and cash therefor put
! into the bank by Saturday night, June
29, I will appoint a receiver for the
| bank Please convene your board OF
! directors and announce this to them
In explanation of the conditions i'm
posed, the comptroller states that while
advances had been made by the direc-
| tors to the bank. they had been made
4 upon the credit of good securities
! owned BY the bank but that no such
| advances affected the banks solVency
| while the Henry Marquand paper re
| mained. 1t was necessary, therefore,
| for him in the performance OF his duty,
| to prom lily impose these conditions,
before further Withdrawals of deposits
were made. The comptroller stated
that the Marquand loan is partially Sc
| cured and it is hoped that the loss 10
depositors viii not be large"
Comptroller of the Currency Dawes
| says there is no possibility of the gov
ernment losing anything by the closing
/ of the Seventh National bank In the
first place the bonds which the bank
/ has on deposit at the treasury depart
ment more than cover the government
! deposits in bank and in addition the
courts have held that the government
/ always is a preferred creditor IN the
sense that it has an equal chance on
] the assets which remain, irrespective
of the fact that it has the collateral
CONDITION APRIL "a
washington. June 27.-The following
is the statement of the resources and
liabilities of the Seventh National bank
of the city of New York. N Y, as
shown by the report of its condition at
the close Of business April "a. 1901:
LIABILITIES.
| CAPITAL stock ...........$3 $500, 600 90
Surplus and undivided profits 234, ,406. 2C
| Circulation outstanding ... 29S, SOC. 90
Due to trust companies and
savings banks .........-.... 412, ,727. IS
Due to national banks and
bankers ....... ...... 974. .210. OF
! Individual deposits ...-..5,2 ,23s. OBS. 26
! United States deposits.. 21O. .3S3. .2S
Total liabilities ,668, ,265. g.
RESOURCES.
Loans and discounts. 50, ,767, ,179. 7s