Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-24
Plan to Pay Depositors.


The controller of the currency in COM
menting today on the closing of the Peo-
pies Savings Bank made the following
statement:
The trouble with the Peoples Savings
Bank, closed by National Bank Examiner
Reeves this morning, is mainly due to very
large loans made to the National Invest
ment Company, of which S. j. Masters is
president.
Mr. Masters was formerly president of
the Peoples Savings Bank and these loans
were made during his administration They
are an inheritance of the present manage
ment, who claim not to be blamed for
them.
Some of the present directors of the
bank have a movement on foot looking to
the raising of enough additional funds to
at once pay off all the depositors This
plan Is now In consideration, and will
probably be decided during the dav
THE Peoples Savings Bank has been
running with very strong reserve. and
the receiver finds on hand, in cash or due
from other banks, over 40 per cent of their
deposit liabilities"
Attracts Large Crowd.
The ciosed doors and the announcement
posted in writing on the outside that the
bank was in the hands of a receiver nat
urally attracted this morning a great deal
of attention. The passers-by on the west
side of 14th street just north of F. street
stopped in front Of the bank to see what
the written notice contained, and during
the early portion of the day groups gath
cred under the piliared portion of the en-
trance. These groups were constantly
changing, some coming up others went
away.
Inside the bank the examiner from the
controllers office, Mr.. Reed. was in charge
and was assisted by a corps of clerks
The president of the bank Mr.. Wilton J.
Lambert; the treasurer, Mr. John B. Kin
near and Mr.. S. ]. Masters, former presi-
dent of the bank and at present a member
of the board of directors, were on hand DIS
cussing the situation and answering in
quirieS.
The officials of the bank are positive in
their assurances that every dollar due the
depostors will be paid. The statement was
frequently made in the course of converse
ton that the action of the Treasury Depart
ment had it been deferred for short time,
would have been entirely unnecessary, as it
would have been easily possible to replace
the paper which the examiner objected to
and to have corrected any defect which was
noted on that score
AS an evidence of the truth of this state
ment it was asserted that only this morning
the maker of two of the notes in question
came to the bank and offered to pay the
notes in full.
Situation Outlined.
The situation Of the bank. as outlined by
the officials, especially Mr.. Kinnear and
MI Masters Is as follows:
'-Of the $118,000 OF deposits there is on
hand in cash the sum Of $4,000 or Al per
cent. In addition the amount on deposit
out of the total above given. which is
made by the officers and directors of the
bank is $41, 0oO SO that there remains of
the total liability to depositors outside of
the management and the cash on hand only
5000 to be raised to pay the depositors
in full.
1.-THE resources of the bank" the officials
claim, ARE ample to meet such pay
ment and more. too. The available re-
sources are $162, 600 to meet $69,000.'
Mr.. Kinnear remarked. and what he said
met the approval of Mr.. Masters, that there
Is no question about paying every dollar
due to the depositors mo one was more
surprised than l was" said Mr.. Kinnear,
"at the action of the Treasury Depart
ment."
1t was further stated that the entire
number of depositors Is 3, 165. and with the
exception of those active in the manage
ment of the bank they are all small de-
positors 1t is stated that no one VII
be a loser ON account of the stoppage
which has been placed on the further
transaction of business.
'Of course, it is impossible to say" OBJ
served Mr.. Masters whether we will open
for business again. AS far as meeting all
our liabilities are concerned, we can do SO
easily. But 1t will be question of conf
dence on the part of the public, which is
SO essential in the savings bank business
This confidence has received rude shock
and while the bank may be able to open its
doors again the question is would business
be resumed in its former volume. It is