Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1907-12-06
BANK FAILURE At
KANSAS CITY, MO-.
Large Financial Institution
Is Forced to Close
It's Doors.
NATIONAL EXAMINER IN CHARGE
News of the Failure Brings a
Crowd to Bank Which
Stops Street Traffic.
Deposits of the Institution, the Nation.
al Bank of Commerce, Have Fall
en- OFF Heavily - Other
Banks Closed.

Kansas City, Mo, Dec 6.-The Ma
tonal Bank of Commerce of Kansas
City. Mo, failed to open its doors in
the morning, and is in the hands of the
national 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 at $50 a. M:
This bank has been closed by order
OF the board OF directors. 1t is in the
hands of James T. Bradley, national
bank examiner, by order of the comp
troller of the currency"
Bank in Weakened Condition.
The bank has been in a weakened
condition since its last statement,
which was iYued Aug. %, last. At
that time it Was stated the bank owed
the clearing house close to a million
dollars. When the financial disturb
ance came and the clearing house de-
cided to issue clearing house certifi-
Gates, rumors regarding the banks
condition came, and the clearing
house. in the past few days, has held
several conferences of other national
banking officials here in this connec-
ton, and means of keeping the bank
open were discussed
No Response to Comptroller.
Much surprise was expressed when
the request of the comptroller for
statement of condition of banks was
not responded to by the National Bank
of Commerce. Other local banks pub
lished their statements, showing a
healthy condition, but the officials of
the Commercial announced that its
statement would not be forthcoming
till morning
This created further distrust in the
banks condition and after conferences
lasting into the early hours of the
morning, the clearing house officials
decided they could not aid the failing
bank.
Heavy Reduction in Deposits.
When the statement of the National
Bank of Commerce appeared in the
morning papers 1t showed that since
the statement of Aug. %, last, the de-
posits had been reduced from close to
$35,0OO,OO0 to $16,952, 900. The state
ment showed, also, that the item of
loans and discounts had been cut down
S1.0O0,OOO. Its statement showing the
heavy falling off in deposits drew
big crowd of depositors to the bank as
early as 9 o'clock, evidently intent
upon withdrawing their money More
or less excitement followed the news
that the bank had been closed, and the
crowd gradually grew in size until it
stopped traffic.
Depositors Will Not Lose.
William A. Rule, cashier Of the
bank, made the following statement in
the presence of DR.. w. S. Woods, the
president:
1.-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 cent"
DR.. Woods acquiesced in what the
cashier said and added: 'You may
also say that the Commerce Trust
company Is absolutely all right. Yester-
days statement showed 60 per cent.
of its cash on hand"
Branch Banks Close.
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 bottoms.
also closed their doors during the
morning They were the Stock Yards
Bank of Commerce, deposits. $500. 900.
and the Union Avenue Bank of Com
merce, with small deposits There
was no especial excitement around
these institutions.
The failure of these banks failed to
cause run on any Of the other banks
in this city.
The State bank of Argentine, Kan,
a suburb, with small deposits, closed
its doors early in the afternoon fol-
lowing run.
Statement of Comptroller.
Washington, Dec. 6-The comptrol-
Ter of the currency, in a statement re-
garding the failure Of the National
Bank OF Commerce of Kansas City,
says:
This bank is one of the largest in
the west and in September last had
about $4,000, 600 of deposits. Some
thing like $22,OOO,OOO of this vas due
to other banks. The failure is doubt
less due to calls which have been made
on the National Bank of Commerce for
these banking balances and their in
ability to realize on their assets quick
ly enough to meet them.
''It is hoped that the bank will be
found solvent, so the depositors can be
paid in full if the bank is not able to
resume" :