The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-10-18
NEW YORK FAILURE CAUSES RUN
ON STATE SAVINGS BANK.
INSTITUTION OLvENT
impossibility Of Securing Currency at
Once Cause for the suspension-De-
positors Can Be Paid in Full In 60
days--Examner in Charge.
Especial to The Gazette.)


bank, with deposits of $4,125,OOO ac-
.cording to its statement to the state
examiner, closed It's doors today. Of
ficials state that it will resume bust
ness in the near future, that the in
:stitution is solvent and that every
creditor will be paid in full.
The bank opened as usual this morn
ing at 10 o'clock There was a large
crowd waiting, which grew constant
ly. Realizing that the funds on hand
would be insufficient to meet the de-
mand, Vice President Chaplin de-
termined to close the bank, which was
done, the following notice being post
ed in the window:
News Spread Rapidly.
Because Of unsettled conditions
and rumors, which cannot be verified,
and because Of unusual and excessive
demands by depositors, and owing to
the shortage of currency and inability
to secure additional currency imme-
diately to pay demands which may be
made, the management has deemed 1t
advisable, in the interests Of all de-
positors, to suspend for the time be-
ing The bank is solvent"
The news that the bank had closed
spread with lightning like rapidity
and the throng in front of the institu-
ton grew at a rapid rate Considering
the circumstances and conditions, the
crowd was orderly and undemonstra-
tive. There were occasional cries de-
manding revenge on F. Augustus
Heinze and M. Sellars Largey, who
have recently acquired controlling in
terest in the bank. However, these
threats came to naught and finding no
response in the people, soo- G.ed
down.
Crowd Peaceable.
A lone policeman on duty at the
corner had no dif1culty in maintain
ing order. Vice President Chaplin
made statement that the bank was
solvent and that all creditors will be
paid in full, that 1t was the intention
to resume business in the near future
and that the embarrassment is only
temporary.
The run was caused by the fact
that one Of the so-called Heinze brok-
erage firms in New York had made an
assignment and the announcement
this morning that Otto Heinze & Co.
had suspended business. There was
rush to draw deposits from the in
stitution Of which Heinze, who was
reported to have been crushed, was
the head. The reduction or the cop
per production here and the reduction
I of the number of men employed, to-
gether with the depressing effect on
other institutions, has created most
alarming feeling on the part of many,
but the run was confined soley to the
Butte Savings bank and there were
no signs Of a failure or q rush on the
other banks Of the city.
Condition OF Bank.
8AE5f5 Inc SldL6mGug Lll6 DGuh SuOWS IL
has capital stock of $4,000, a sur.
plus OF like amount and undivided
profits of $250,00O, which if available
would relieve any ordinary emergen.
cy. The bank also has capital liabil
tiles of 100000, but whether this
could be relied upon instantly is not
known. The officers of the bank are
NJ. sellars Lsrgey, president; 3. P
Chaplin, vice president and manager
c. R. Leonard, vice president; r. B
Nuckols, J. H. Curtis, F. A. Heinze
Ed Hickey and e. p. Chapir. direct
ors.
The bank was closed because the di
rectors anticipated run, which would
in time prove disastrous to the fnan
cial welfare OF the city. It was ex
planned that in event OF q run the
bank would not be in position to pay
OF all demands. The rather tight CON
dition Of money and the failure o.
Otto Heinze & Co. of New York anc
the general air of uncertainty entered
into the conclusion Of the directors ii
close. It is stated that the bank !:
solvent and will pay out inside Of g
days.
pebte OF Larsey and Heinze.
Otto HeinEe 6 Co. did not owe th'
bank dollar and F. Augustus Heinz
owes it less than 100000, which il
amply secured. Mr.. Largey. the presi
dent. owes it about $500 and that h
could easily pay.
The bank holds on hand abou
100000, and It's deposits amount t
about $s.o00.oOo. There are abou
5000 depositors and OF this numbe
575 are commercial depositors, th
others being savings of workingmel
and women. The directors announc
that they will proceed with the built
ing of the new bank which is nearin