The Lee County journal. (Leesburg, Ga.) 1904-19??, 1906-01-05
MEMPHIS BANKS
QUIT BUSINESS
Three Concerns Swampsd by Over
loans and Money Stringency.
FORCED TO CLOSE DOORS
Statement is Made That DepositorS
VIII Get Every Cent Of their Money.
Receivers Appointed.

Anticipation Of a heavy run on the
Merchants Trust company at Mem
phis, Tenn, preliminary intimation OF
which was given by the withdrawal
of many deposits Tuesday afternoon,
was the immediate cause Of the sus-
pension of that zank and the appoint
ment Of a receiver Wednesday.
The American Savings Bank and
Trust company, 176 South Main street,
which is dominated by the directorate
OF the Merchants Trust company, fear
ing that the failure OF the other in
stitution would cause a run on it's
own deposits, also suspended payment
until the affairs of the Merchants
Trust company shall have been ad-
jdsted.
Savings Bank Absorbed.
The American Savings Bank and
Trust company, it develops, recently
absorbed the Mechanics Savings bank
at Main and Calhoun streets, and took
charge of the latter company's bust
ness. 1t is stated by the officials OF
both institutions that the depositors
will be fully protected and paid dollar
for dollar.
The stockholders Of the Merchants
Trust company, 1t is said, will suffer
O the extent OF 20 per cent on the
capital invested, as the liquidation OF
the banks finances is expected to
entail a Slight loss.
The assets of the Merchants Trust
company greatly exceed the liabilities.
The American Savings Bank and Trust
company, according to its latest state
ment, is in excellent condition, and is
carrying more ready cash than is
usual for an institution OF its size.
The Merchants Trust company has
on hand only 100000, the remainder
of it's capitalization being loaned The
fact that the bank had overloaned and
the stringency of the New York mon
ey market are given as the direct
causes Of the suspension.
John P. Edmondson, prominent at
torney of Memphis and one Of the
1:-oo,rro T,oc 1,oor o,1CFDtod roooiy7oy.
for the Merchants Trust company. A.
Y. Allen, cashier Of the American Saw
ings Bank and Trust company, has
been appointed receiver OF that insti-
tuition.
The decision not to open the doors
of the Merchants Trust company on
Wednesday morning was reported aft
er an all night conference Of the
board of directors.
Felix T. Pope, president of the Mer-
chants Trust company, gave out the
following statement:
"The bank is amply solvent and
every depositor will be paid in full.
Inc SCOChuUluClo Will uuuOuDlGulJ
realize a large percentage OF their
investments. The Merchants Trust
company had loaned too much money
and was unable to realize on its loans
fast enough to meet the demands. Il
am not in a position to make a state
ment now as to reorganization or fu.
ture plans"
W. A. Percy, attorney for the Mer-
chants Trust company, and the direc-
tors of that institution make the state
ment that all depositors, both Of the
Merchants Trust company and the
American Savings and Trust compa-
ny, will be paid in full
Statements Of the financial status
of the closed banks at the close Of
business, December 20: Merchants
Trust company - Assets, S3,665,055
liabilities, S2,132,919 American Saw
ings Bank-Assets, s758,7O9; nabin-
ties, S758703. The deposits in both
Institutions exceed $2,OOO,OOO.