The Washington herald., 1907-12-06
MALICE CLOSES BANK
Kansas City President Gives
Cause Of Suspension.
EXPECTS TO RESUME SHORTLY
Middle West Remains Confident, De-
spite Closing of National Bank of
Commerce, with Deposits Of &c.
O0O,OOO-Attribute Failure to Ma
IevOIent Letters Issued.

Kansas City, Dec. 5-Overwhelmed by a
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 this
morning and is in charge of the Office OF
the Comptroller of the Currency
At $50 Clock this morning James T.
Brady. national bank examiner. received
a telegram from the Comptroller Of the
Currency appointing him receiver. 1t is
probable this appointment is temporary,
though this is not known.
In about six weeks the bank has paid
on Sl90O0,OOO of its deposits, reduced its
loans $S,50O0O0. cut down its cash re-
sources Sll. 10000, and sold $2OOO.O00 OF
high-grade bonds. all in the effort to meet
the demands upon il. But there has been
continued decline eliminating yesterday
with clearing house debit balance OF
nearly 100000. which the bank was forced
to meet. Fearing that to-day's exactions
would be beyond its power to pay, the
directors decided to give up the fight and
let the bank be liquidsted.
Few other Banks Affected.
The directors were in session last night
until after midnight, and again this morn
ing at : O'clock considering plans for
continuing in business. but they finally
decided that the task was too great
OF approximately Sl6.00OOOO in deposits
tied up in the suspension. about $500 600
belongs 10 Kansas City people The re-
maindeT. $li,0 ,000 belongs TO out-of-
town banks.
The only banks affected by the suspen-
sion were two small branches in the West
Bottoms. the Stocks Yards Bank of Com
merce and the Union Avenue Bank Of
Comme~re- and the First State Bank Of
Argentine. These institutions together
had yesterday a few hundred thousand
dollars in deposits. The first two did
not open this morning, while the latter
closed at noon.
When the news Of the suspension be-
came 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.
President Wood Places Blame.
DR. w. s. Wood. president of the bank.
said: 1t was a terrific fight We were
talked to death. People who ought not
10 have done It circulated stories against
US 1t frightened depositors and they
withdrew their money.
The Waters-Pierce Oil Company did
Us tremendous amount Of harm. Two
weeks ago they sent TO all their agents
and travelling men in the South circular
letters telling them that in making coIIec-
tons they might take checks on any bank
IN Kansas City except the National Bank
OF Commerce These were shown to tray
cling men and reached the country banks
that had deposits with US Millions in
country bank deposits were transferred
10 other banks here and I'm st. Louis.
Those circulars helped to cause it in my
opinion our offense had been to insist
on the payment of a balance by a bank
IN St Louis, in which the oil people were
interested"
In statement issued by the bank TO
the public, announcing the banks suspen-
sion. the hope was expressed that the
bank would be able to resume in the near
future.
a Feeling of Relief.
At other banks there was a feeling of
relief rather than of increased anxiety
this morning
For several days they have been uneasy
over the large balances against the Com
mcrce and oyer the die5crl+ro i,,,..1. /,