The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-26
GERMAN BANK GOES DOWN
CAUSE WIDESPREAD FINANCIAL
PANIC IN GERMANY
NEW YORK BANK IN STRAITS
Seventh National, Though Reported
Sound, Has to Hustle to Make
Debit Balance Good Pres.
1dent Resigns.

LEIPZIG, June 8-The directors Of the
LeipZiger bank, announce that, owing to
the stoppage of the Dresliner Credit
Anstalt in Conscience of difficulties in
discounting bills, the Leipziger bank is
compelled in the interest Of it's creditors
to temporarily suspend payment. The
directors say that if the commitments
can be liqutdated quietly the creditors
will suffer no loss and the shareholders
may hope for favorable outcome. The
capital of the bank is As, coo marks.
BERLIN, June 25.-The Lokal Anze ger
estimates the liabilities of the Leipziger
bank, whose suspension was announced
today, at 100000 900 to 100000 marks,
against assets amounting to 100000
marks The failure is said to be mainly
owing to the bank s close connection with
the Cassel Treber-Trocknung company,
which has also failed.
The crash Of the LeipZiger bank was
complete surprise to the Berlin boerse,
where yesterday the banks shares were
quoted at 140. The failure now turns out
to be worse than at first reported. For
years past the board of directors of the
Leipziger bank have denied the worst
feature of the failure, namely, that the
LeipZiger bank had practically become
the owner of the Cassel Treber-Trock-
nung company, which in itself was de-
clared to be financially unsound.
Well informed Berlin financiers fear
that the Leipzger bank will save little, If
anything, out of the wreck, and that the
failure of this institution Will seriously
affect number of other banks.
Immediately after the Leipzig failure
became known here, there was almost
panic in bank stocks, including that of
the Darmstaedter National, which fell
considerably. Nearly all other values on
the Boerse dropped somewhat, while the
stock of the Saxon bank, the Leipzig Saw
ings bank, the Leipzig Mortgage bank
and the Magdeburg bank verein were
struck off the Berlin quotations.
The Frankfurt-Am-MaIn boerse re-
acted similarly on news of the Leipsig
failure, all the bank stocks dealt in there
losing from to 9 points
The newspapers tonight Intimate that
the directors of the Leipziger bank will
be criminally prosecuted. The Leipziger
bank was founded in 1889, and up to the
present time the institution has been
highly considered. The newspapers gen
orally claim that this new failure, WINE
more far-reaching than former failures,
is not to be taken as representative, but
that it is an Isolated case which in no
wise affects the bigger banks, but rather
the German provincial banks. The press
generally admonishes caution.
known that there was a debit balance
at the clearing house against the Sew
enth National bank amounting to $93S 900.
This gave rise to rumors that the bank
was in difficulties and caused other ru-
mors that other banks were also hamper
ed. All these were cleared away when
Manager William Sherer, of the clearing
hNlse association, gave out statement
to the effect that all the banks III the
GSSnciatiOn
and that all clearing house sheets had
gone through. William H. Tappan, pres
ident Of the Gallatin National bank and
who was present at a conference held
during the day with other members of
the clearing house association, made the
following statement:
"All the banks have settled their bal
ances satisfactorily. This disposes Of all
rumors.'
Tonight a statement was given out by
the officials Of the Seventh National bank
in which It is said that the debit balance
Of the Seventh National bank with the
clearing house this morning was $93S 900,
and that this balance was due to heavy
checking on the part of men connected
with several large brokerage and bank
ing houses. The directors and stock
holders of the bank convened and at
| once provided ample means for all busi-
ness purposes.
The statement further says that the
furry was probably started for stock
johbing purposes and that the rumors SO
weighed on the mind of President viii
lam H. Kimball, of the bank, that he
tsagsTed tender hi his tTesignaRon WHICH was ac-
Samuel Thomas elected In his Siaea
Gen Thomas is q director and one Of
the heaviest stookholders In the bank
The statement ayers thef the bank Is h
excellent condition and Is not connected
directly or Indirectly With any Other
financial institution in New York or else.