Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-06
FAILURE
IN KANSAS
CITY
COMMERCE NATIONAL
FORCED TO SUSPEND
Statement of Cashier Declares
DepoSitorS viii Lose Moth
ingi Outside Banks Unaf-
feCted by Suspension,
lBy Morning Journal special Leased wir..I

lBy Morning Journal Special Lessed wire.I
Kansas city. Dee. 5.-The National
Bank OF Commerce. the second fnan-
cial Institution in importance in Kan
sas city. announced it's suspension in
stead of opening this morning after
steady run OF six weeks during which
the bank had paid OF three and one
half million dollars. cut down It's cash
resources eleven and three-fourths
million dollars and sold two million
dollars Of high grade bonds in an ef-
fort to meet the demands upon IL. The
directors were In session until after
midnight this morning and again met
at Z o'clock considering plans for con-
tinulng business. Chicago and New
York had offered substantial assist
ance, but the officers OF the National
Bank Of Commerce saw no prospect
that the steady strain would be
checked. even with this assistance.
and decided just before the opening
hour to post notice of suspension.
The comptroller Of the currency APP
pointed James T. Bradley. national
bank examiner. as temporary receiver
of the bank. and he at once took
charge. He has issued no statement
as to the banks condition. nor have
the officers Of the bank
The directors made a statement TO
the puDic saying the hdhk tuuiu hot
stand "slanderous statements made
against IT," and saying they did not
believe II possible for a depositor to
lose a dollor.
OF approximately seven million I'm
deposits tied up in the suspension
about two million dollars belongs to
out-Of-town banks and iive millions to
Kansas City people. The failure of
the National Bank of Commerce was
followed by the closing of three small
affiliated banks. one In Argentine,
Kan. and two ia west bottoms In this
city Reports from Kansas. Oklaho-
ma and Missouri are that no bank IN
those states viii be carried down by
the tying up OF It's reserve in the Ma
tional Bank Of Commerce. All the
banks in Kansas city state and ma
tional. published statements of condl-
tions Yesterday, showing reserves
ranging from 80 to so per cent All
the banks in this city were prepared
for the suspension. The commerce
Trust company of which DR.. X. ).
Woods is president. Is an entirely sep
arate concern and has 75 per cent of
its deposits on hand. The Commerce
Building company. which has nearly
a magnificent hfteeh-Story
building here, has no connection with
anv bank and Is not involved IN the
failure.
1TeNluent w NnOlNs IT ~ announce
has given his personal endorsement
To three million dollars of collateral
pledged to secure his depositors Pres
ident Woods is reputed To be mil I
lionaire many times over and has
valuable real estate holdings. jackson /
county has its entire balance OF $23S- |
900 in the suspended bank. but II u
by bond. The local post |
office has $4,000 on deposit. also (
paid by bond. The city has t450.OOO !
on deposit. also paid by bond.
The National Bank Of Commerce Is
one of the oldest and largest financial
in this city and was closed
by an order from It's board OF di-
rectors.
The bank had been In a weakened
condition since its last statement made
August IS last when II owed the
clearing house nearly one million dol |
lars
After a conference lasting all night |
the clearing house officials could not |
see their way clear to aid the bank /
further.
4 statement OF the National Bank |
Of Commerce In response to the last
caH showed that since August 2S last
It's deposits had been reduced from
$4,000. 600 to S16.942.692. and Its
loans and discounts cut down to So
coo. 900 statement issued this
follows
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