Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-12-12
A BIC BANK FAILS
The National Bank Of Commerce
Of Kansas City Obliged to
Close.
IN HANDS OF COMPTROLLER
Unfavorable Rumors Caused Funds
to Be Withdrawn Faster Than
II Could Realize Upon As
sets-May Pay In Full.

Kansas City, Dec. 6.--Overwhelmed
by q 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 $3.50 o'clock Thursday morning
James T. Bradley, national bank ex-
aminer, brought to the bank this no
tice which a clerk posted on win
dow:
"This bank has been closed by reso-
luton Of Its board OF directors, and is
now in charge OF James T. Bradley,
national bank examiner, by order OF
the, comptroller of currency"
In about six weeks the bank has
paid of $4,000 900 Of its deposits, re-
duced It's loans $3,5O0,O0O, cut down
its cash resources $11,75O,00O, and
sold 100000 Of high grade bonds,
all in the effort to meet the demands
upon IT, But there has been con-
tinued drain, eliminating Wednesday
with 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 $16,0O0,0 900 in de.
posits tied up in the suspension, about
$5,O0O,OOO belong to Kansas City peo-
pie. The remaining 81 100000 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 Bank of Com
merce and the First State Bank Of
Argentine. These institutions togeth-
er had only few hundred thousand
dollars in deposits. The first two did
mot 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 $35,5OO,OOO to about
$16,5O0,00O, thus paying out over the
counter and by transfers to other
banks in this city and other cities
about $1S,0OOOO0 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.
I'VE hope to be able to open up the
bank again in the near future for
business. We do not believe It posi-
BILE for depositor In the National
Bank Of Commerce to lose dollar.
We beg your indulgence and forbear-
ance until our affairs can be ar.
ranged to the satisfaction of all inter
ested parties. We appreciate sensl.