Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1908-01-30
TWO MORE NEW
YORK BANKS FAIL
Unable To Wealth
er Financial
Storm
BOTH DECLARED SOLVENT
New Amsterdam National
and Mechanics and
Traders Close Doors.


New York, Jan 30-National bank
examiners took active charge
today OF the affairs of the New Am.
sterdam National Bank and the Me.
chanics and Traders Bank, a state In.
stitution, both of which failed to open
their doors this morning. Both these
banks were included in the Morse.
HeinzeThomas chain of banks and
after the closing Of the National Bank
OF North America a few days ago
there has been what practically
amounted to n run on them.
Both were unable to take up their
allotment of certificates which the
clearing house issued to them during
the money panic beginning n Oc-
tober and when the renewed drain
upon their resources began the clear
ing house declined to further extend
their credit. Fearing heavier with
drawals today the officials of both 2
banks decided last night to close.
Failures Cause Runs On Other Banks
AS result of the closing Of these
banks, several other banks. none OF
an important class, met with heavy
Withdrawals today. One of these was
the Oriental Bank, where quite a run
developed as soon as 1t opened. All
the depositors were paid promptly
and President Hugh Kelly announced
that twelve other institutions had
come to the aid Of this bank and that
he hoped to be able to withstand the
drain.
1t is not anticipated the closing of
these two banks will have any ef-
feet on the general banking situa.
ton of this city as both were going
through gradual liquidation during
the last few months in which their
debts and credits have been gradual
ly reduced.
New Amsterdam Declared Solvent
National Bank Examiner Charles A.
Hanna, temporary receiver Of the Ma
tional Bank of North America, today
was appointed temporary receiver OF
the New Amsterdam National Bank.
The institutions liabilities are placed
at s., 4,482,016, Of which $2,065.270 is due
/ to depositors. This bank was capital!
lied at $1,000,0OO. The bank officials
assert that not only will every dep0s-
itor be paid in full, but the stockhold-
ers will receive substantial dividend.
The New Amsterdam National Bank
was formerly one Of the chief links In
the chain of banks established by
Charles w. Morse. The institution oc-
cupied quarters in the Metropolitan
opera house, in the heart Of the up
town theatrical district, and numbered
among its clients are many Of those
prominent on the stage.
Failure Of Mechanics and Traders
Bank Surprise.
The Mechanics and Traders Bank
Is a state institution, capitalized at 81 Z
100000 and previous to the panic last /
fall carried deposits amounting to
more than $20,0O0,0O0, but this amount
| has since been largely reduced. This
bank has two branches In Manhattan
and ten in Brooklyn. All these
branches remained closed today
The Mechanics and Traders Bank
was one of the banks In the e. r.
Thomas chain. Davis A. Sullivan was
made it's president by Thomas In jan
juary, 1907.
Old and Importan
F. Augustus Heinz
directorate of the
Traders Bank after
traol and bought {
terest in the ins
as and Helnze got o,
result of the Octot
before the panic. 1t
most important Of the state DanKs,u.,-
ing total resources Of $26,0o0,000. IL
was also one of the oldest Of the state
banks having been established three
quarters of century ago and was not /
only a member Of the clearing house. (
/ but one of its founders.
In It's report to the state banking de-
partment under date Of August =,
1907, the Mechanics and Traders Bank
showed net deposits OF 31S,S26. 900. On
October 10, the date Of Its last report.
these had shrunk to $10,077, 900.