The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-12-06
BIC BANK SUSPENDS.
Largest Institution in Kansas
City Closes Its Doors.
FAILURE NOT UNEXPECTED

UoU,UJo on Aug. 22 to About S16, ,OOO,-
600 at the Present Time-Two Small
Branches Also Forced to Suspend.
Kansas City, Dec. 6-The National
Rank of Commerce failed to open its
doors and is in the hands of a ma
tional bank examiner The bank is
one of the oldest here and is the larg-
est financial Institution in the city.
The following notice was posted on
the door Of the bank:
This bank has been closed by or
der Of the board of directors. 1t Is
in the hands of James T. Bradley, ma
tional bank examiner, by order of the
comptroller of the currency"
The bank had been in a weakened
condition since its last statement,
which was issued Aug. % last. At
that time it was stated the bank owed
the clearing house close to S1,000,0O0.
When the financial disturbance came
and the clearing house decided to is
sue clearing house certificates rumors
regarding the banks condition were
current and the clearing house, in the
past few days, has held several con-
ferences at which means of keeping
the bank open We're discussed.
Much surprise was expressed
Wednesday when the request of the
comptroller for a statement of condi-
tion of banks was not responded to by
the National Bank of Commerce.
Other local banks published their
statements, showing a healthy condi-
ton, but the officials of the Bank of
Commerce announced that its state
ment would not be forthcoming for a
time. This created further distrust
in the banks condition and after con-
ferences lasting nearly all night the
clearing house officials decided they
could not aid the failing bank.
When the statement of the National
Bank of Commerce appeared it showed
that since the statement of Aug. 22
last the deposits had been reduced
from close to $35,000.000 to s16,952,-
969. The statement showed also that
the item of loans and discounts had
been cut down $4,000,000.
Officers of the institution.
The principal officers of the Ma
tional Bank of Commerce are DR.. w.
S. Woods, president; w. H. Winants,
vice president, and William A. Rule,
cashier. Its directors and stockhold-
ers include some of the most prom
inent men in the city. DR.. Woods also
is president of the Commerce Trust
company of Kansas City, which has
capital of $1000,000 and deposits of
1885 1863. Since its last statement
the deposits of the trust company
have increased nearly 100000 and
that institution is believed to be in a
sound condition.
James F. Downing, president of the
New England National bank and head
of the local Clearing House associa-
ton, expressed the belief that the
failure of the Commerce bank would
not involve deeply any other Kansas
City institution and that other local
banks would be able to weather the
storm. The National Bank of Com
merce held the deposits of numerous
small banks in this part of the South
west. What effect the failure will
have upon them is problematical. On
Aug. l the Commerce bank owed
other national banks s13,299,450 and
state banks and bankers s9,S19, ,495.
There had been no run by local de-
positors, but many of the, outside
banks caused trouble by withdrawing
their funds on deposit with the Com
merce
William A. Rule, cashier of the
bank. made the following statement in
The presence of DIR. w. S. Woods, the
president
"The directors of the National Bank
of Commerce thought it was best to
at least close temporarily. We made
the fight of our lives, but conditions
were against us. The depositors will
not lose a cent
Two small branches of the National
Bank of Commerce, one located at the
Union stock yards and the other In
the wholesale district in the west bot
toms, also closed their doors. They
were the Stock Yards Bank of Com
merce, deposits 100000, and the I'm
ion Avenue Bank Of Commerce, with
small deposits. There was no espe-
cial excitement around these institu-
tions