Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-31
ORIENTAL BANK CLOSED.
Sequel to Run on New York Bank
Yesterday.

NEW YORK, January 31.-The Oriental
Bank. on which a run OF depositors was
started yesterday. did not open for bust
ness today. notice was posted on its
doors announcing that the institution was
closed by order of the state superinten-
dent OF banks.
capital stock Of $4,000. According to It's
pcsitors $7,576Sli and to banks. bankers
and brokers $3.477.252. 1t had surplus
fund Of $ol2, 900 and undivided profits Of
SOCIAL
G. 8. Leonard. a state bank examiner,
was placed in charge Of the institution
this morning. A branch OF the Oriental
Bank at fH2 Bowery also was closed
The recent troubles Of the Oriental date
from the failure of tho Borough Bank of
Brooklyn and the International Trust
Company In October last The Oriental
was a depository for the capital stock OF
the trust company when 1t was organized
by William Cow and others last fall.
When the Borough Bank closed it was
discovered that the Oriental Bank had
loaned 1t 1900. and 1t was asserted
that this was returned to the Oriental as
part OF the capital stock Of the Inter-
national Trust Company.
Oriental Bank. retired in November and
Hugh Kelly. a well-known commission
merchant. was elected president. In the
distrust which followed the Brooklyn dis.
closures the Oriental suffered consider
ably and 1t was compelled to take out
about 81. 40O.OOo OF clearing house certifi-
Gates About 81, 600, 600 OF these had been
retired when the clearing house retused to
issue any more certificates to the Oriental
and a few other banks which were In
- e., tt,A,- let
facts became known yesterday the depos-
itors began to make heavy Withdrawals,
taking out about $20O00O.
Twelve OF the leading financial institu-
tions Of the city volunteered yesterday 10
assist the distressed institution to the
total extent Of 81, OOO. OOO in cash. provided
the directors would become individually
responsible for the loan. The majority Of
the directors agreed to this, but there
were some among their number who We're
unable to do so and the plan failed.
The directors at meeting THIS morning
decided TO place the affairs Of the bank
in the hands of the state banking de-
partment. Charles E. Levy, one OF the
directors. announced that none OF the
deposito-s would suffer any loss In con-
sequence of it's closing.
There was debit balance of Sa33.OO
against the Oriental Bank III the clearing
house today. Inability TO meet this de-
msnd and satisfy the depositors at its
doors precipitated the closing OF the Of
flee.
pepositors OF one Of the smaller safe
banks IN BROOKLYN started 4 run To with
draw their deposits at the opening hour
TO-DAY There were about thirty in line
when the tellers began to pay them and
most Of the accounts withdrawn Were
small. Officers Of the institution said
the larger depositors were standing by
them and that they would be able TO
stand the run.
ALBANY, n. Y. January 3l.-Ststc
Treasurer Hauser announced today that
thu state has on deposit in the Orient al
Bank Of New York 100000. credited to
the general state fund and $4,000. to
the credit Of the canal fund. Both
amounts. he stated. are covered in full
by state bonds, and in addition the state
has a hond Of $4,000 from surety
company, which. the state treasurer says
amply protects the state.