Los Angeles herald., 1908-01-27


the clearing house committee, issued
the following statement tonight:
Tlo National Bank OF North Amer
lea has decided to withdraw from MEM
bership in the Clearing House associa-
ton and to liquidate under the author
ity of the comptroller of the currency
This retirement of the bank is regard
ed as the simplest method of liquidat
ing.
1.-THE exchanges with the bank will
not be made at the clearing house to-
morrow morning. While the clearing
house committee regard the growing
surplus and improved condition of the
bank as highly favorable to complete
retirement of the certificates the state
ment that the bank is being forced to
retire them has no foundation in fact"
President Havemeyer said tonight
that he believed the bank is entirely
solvent and that with a careful liqui-
dation the stockholders will receive par
for their stock.
Has Heavy Deposits
The National Bank of North America
has a capital of 100000, and August
% last. at which timea report was
made to the comptroller of the cur
rency, showed deposits of $19,7S7, 400.
This sum had been largely and
gradually decreased by Withdrawals
during and subsequent to the panic and
on December O. the late of the next re-
port, showed deposits of $6,926,5o0, and
cash on hand 1881, 800. Since that time,
according to President Havemeyer's
statement, the deposits have shrunk
still further, and today amount to ST.
100000
The bank, which had been known as
the biggest of the Morse string of f1nan-
cial institutions, underwent a reorganl-
cation in October. Alfred II. Curtis
was succeeded by w. F. Havemeyer as
president, the former becoming vice
president in place of C. w. Morse, who
retired from the institution.
On January IA there was further re-
organization. Mr.. Curtis being dropped
from the vice presidency and from the
board of directors.
Comptroller of the Currency William
B. Ridgely came to New York from
washington today and was in confer
ence with the banks officials during the
afternoon.
President Havemeyer tonight gave
out the following statement concern
ing the action of the directorate and the
conditions that led thereto:
Give Up Fight
"The directors of the National Bank
of North America have decided to re-
quest the comptroller of the currency
to assume charge of the affairs of the
bank.
There had been persistent rumors
af1oat that for the last ten days that
the bank would be obliged to liquidate
or else go into the hands of a receiver.
These rumors, coming from apparently
unknown sources, havo been insidious
that it was impossible to meet them.
They have resulted in slow and con
tinuous drain on our resources.
ION Saturday there was a still
heavier withdrawal of funds. indicating
that on Monday the demand would be
increased, so that we would not have
enough cash in our vaults to meet it.
AS the committee of the clearing house
announced its intention to issue no
more clearing house certificates the d.
rectors thought it advisable to request
the comptroller to put some one in
charge at least temporarily, so that all
depositors would be treated alike.
ST accepted the presidency of the
bank temporarily with reluctance, az
the urgent request of prominent finan-
ciers last October, at the time when
Charles w. Morse retired as vice presi-
dent During the panic the bank los
over SO 100000 in deposits. It's deposits
now amount to about S2,b0O,0OO.
ST had hoped to get back large num-
her of our depositors and so rehabilitate
the bank. but the state of our cash re-
serves and the difficulty on our part OF
lending money to those who might
have returned IL to us put it out of oul
| mower to offer them a sufficient reason
for resuming banking relations with us
'1n my opinion the bank is perfectly
solvent and there is every indication
that the stockholders win receive pan
for their stock with a careful and con.
! gervative 1in1idation.'