Amador ledger. (Jackson, Amador County, Calif.) 1875-19??, 1908-01-31
A BANK FAILURE.
The Suffer Creek State Bank
Forced to Suspend.

Francisco, and the following morning
the windows of the Suffer Creek
bank were closed, probably for thirty
days, or until the officers can show
the authorities that certain securities
the bank holds are of value.
Commissioner Lynch stated that
the first intimation the bank com
mission had that there was anything
wrong with this bank was in Deem
Der, wnen that body called for re-
port from all the banks, showing all
the liabilities and assets. Ibis report
was correct in every detail, but it
showed that the bank held too much
security of one concern, the Ames
Manufacturing Company of Niles, a
business recently formed by jackson
Dennis, who is also president of the
Sutter Creek bank and the one in
Niles. The bank commission has
made it rule that no bank shall
have more deposltors' money invested
in any one concern than will amount
to twenty per cent OF the capital
stock and surplus of the bank This
bank has exceeded that amount by
more than $4,000. Besides, the
bank is supposed to have a certain
percentage of the depositors money
on hand at all times. But probably
because of money stringency the funds
had fallen below this mark, though
they have been increasing the cash on
hand during the past week.
Mr. Lynch went to Niles ON Wednes-
day to look over the accounts of the
bank there, in which jackson Dennis
is Interested. He states that practi-
cally the same conditions exist there
as In Suffer Greek, that they have too
much of the depositors' money in
vested in one concern. After looking
over the books of the Niles bank, he
says that he will know better just
what the conditions of this bank is,
but as yet the bank is solvent. But
If the market value of the stocks held
by the Suffer bank are below what
they are stated as being in the report,
then the affairs of the bank look very
dark. jackson Dennis telephoned to
Mr. Lynch Tuesday that he would
have sufficient cash here in few days
so that the bank could be opened
before the thirty days we're up.
The report has been current for
some time that everything was not
just right with the Suffer bank. 1t
has been stated that business men of
that town would send their personal
checks to firms in the city in pay
ment of bills of goods, and they
would be returned to the merchant,
because of the failure of the city
banks to collect on them. But there
was no run on the bank because it
was thought that the nonpayment of
the checks was due to the general
scarcity of money. The failure of
the Suffer bank will have no effect
upon the other two banks of the
county, as they had an inkIing of its
condition, and were not caught to any
extent in the collapse.
10 those who had any insight into
the methods of this institution, the
failure did not come in the nature of
surprise.
The bank has been in existence for
something like fifteen years. 1t was
started as a private bank by Jackson
Dennis, and so continued until two
or three years ago, when it was re-
organized as the Suffer Creek bank,
with capital stock of $40, 600. Jack
son Dennis was the president from
the start, and the principal stock
holder. About two years or so ago,
the Niles bank was started, under the
same president and managing head.
About the same time, brick com
pany, lumber company and meat
company we're started at Niles, and
the Ames Manufacturing Company
was removed from Gait to Niles.
According to reports, the various
enterprises were fiourishing, and
held out the promise of making big
profits.
The Suffer Greek bank did not Sc
cure large amount of deposit funds.
Business men of that town and vicin-
ity banked there more for convent
ence, in the transaction of business,
rather than security for their funds.
A savings account was started ito
gather in deposits. Five per cent
interest was the inducement offered,
and many jumped at the bait. 10
the thinking man, this rate of inter