The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1907-12-13
A BIG BANK Fails
The National Bank Of Commerce
of Kansas City Obliged 10
Close.
IN HANDS OF COMPTROLL
Unfavorabe Rumols Caused Funds
to Be Withdrawn Faster Than
1t Could Realize Upon AS
sets-May Pay in Full.

Kansas City, Dec. 6.-Overwhelmed
by wave of distrust that has been
steadily wearing away its resources
for nearly two months, the National
Bank of Commerce, the largest bank
between st. Louis and San Francisco,
suspended business Thursday morning
and is in charge of the Office of the
comptroller of currency.
AT $50 o'clock Thursday morning
James T. Bradley, national bank ex-
aminer, brought to the bank this no
tice which a clerk posted on a win
dow:
This bank has been closed by reso-
luton of its board of directors, and is
now in charge of James 7. Bradley,
national bank examiner, by order of
the comptroller of currency"
In about six weeks the bank has
paid off $4,000 900 of it's deposits, re-
duced its loans $3.50O,0OO, cut down
its cash resources 100000, and
sold $2,OOO,0O0 of high grade bonds,
all in the effort to meet the demands
upon it. But there has been con-
tinued drain, eliminating Wednesday
with a clearing house debit balance of
nearly 100000, which the bank was
forced to meet. Fearing that Thurs
days exactions would be beyond its
power to pay the directors decided to
give up the fight and let the bank be
liquidated.
OF approximately $16,000,000 in de-
posits tied up in the suspension about
$5,O0O,00O belong to Kansas City peo-
pie. The remaining $11,000,OO0 be-
longs to out of town banks.
The only banks affected by the sus-
pension were the two small branches
of the Commerce in the west bottoms,
the Stock Yards Bank of Commerce
and the Union Avenue Banl. of Com
merce and the First State Bank of
Argentine. These institutions togeth'
err had only a few hundred thousand
dollars in deposits. The first two did
not open Thursday morning. The
third closed at noon.
When the news 'of the suspension
became generally known there were
some Withdrawals from other. banks,
chiefly by small depositors. These
Withdrawals, however were more than
compensated for by the new ACCOUNTS
opened. All the other banks of the
city were in good condition and there
was no uneasiness.
The banks directors have issued
the following statement:
Much as we regret to do so, we are
compelled to close the doors of the
National Bank of Commerce because
we have not been able to collect mon
ey from our borrowers as fast as the
same was demanded by our deposit
tors.
During this panic we have reduced
our deposits from 49,, 100000 to about
SIC, 500, 900, thus paying out over the
counter and by transfers to other
banks in this city and other cities
about s1S,O00,OOO of deposits. This, OF
itself. tells of our resources. We have
made the fight of our life, but could
not stand the slanderous statements
made against the bank.
1--WE hope to be able to open up the
bank again in the near future for
business. We do not believe it posi-
BILE for a depositor in the National
Bank Of Commerce to lose dollar.
We beg your Indulgence and forbear-
snce until our affairs can be ar
ranged to the satisfaction of all inter
ested parties. We appreciate sensi-
bly, the confidence our numerous Gus
toners, large and small. have placed
in us. and we hope to show in the end
that we have been true to this trust