The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1911-08-01

The bank was capitalized at $50,
900, one-half of which had been paid
in.
II appears that when the state bank
ing department first commenced an
investigation into the financial affairs
OF this institution that 1t was positive.
ly stated that the bank should meet
with several requirements and that
they should be complied with at once.
One was that the directors should pay
into the institution the balance of the
capital stock, which amounted to
something like $4,000 At a meeting
of the directors last week this money
was practically subscribed by the
directors as a sort of voluntary sub
scription, each director agreeing to
pay in his share of the stock with the
exception of one The matter of Sc
curing this fund was left to a COM
mittee, consisting OF two of the di.
rectors and the sum OF $4,000 was
secured in cash and this has been
| deposited and is now in the big vault
| in the banks safe. 1t was the inten-
ton of the board of directors to turn
this money over next Monday as the
assets of the bank.
But according to the statement Of
one Of the directors "the public has
lost confidence in the institution"
and on Friday the drain on the funds
was commenced by the depositors.
| Before the close of the banking hours
this had developed into a depositors'
run, and consequently there was moth.
ing left to do but to inform the state
department of the condition of af-
fairs.
According to the statements Of sew
eral of the directors made to the Ban
ner Saturday morning it is their pos
tive opinion that not depositor will
lose a cent of money. "The bank is
in better condition financially than
ever before" remarked one of the di-
rectors in an interview during the
morning.
The Guaranty Savings and Trust
Company has been in existence in Mt
Vernon for several years. Later the
institution absorbed the Farmers &c
Merchants National bank and was
considered one of the sound financial
institutions of the city
The bank up until it's failure on
Saturday morning was the depository
for the city funds. In addition to this
it was the depository for the city
board of education, the trustees OF
Clinton township and several other
townships in the county and likewise
the depository for the Sinking Fund
and Tax Commission. The last state
ment showed that there was deposited
in the institution 100000 in various
public funds, but at the present time
this amount is somewhat lower. One
of the directors stated Saturday morn
ing that the sum is now about $4,000.
These public funds are all secured
and not one cent will be lost by the
city or townships.
Mr.. Alva A. Dowds, who was recent
ly elected cashier of the bank, was
seen by Banner representative and
he stated that there was but little,
if any, information he could give in
reference to the affairs of the bank.
He said that he had only been elected
cashier last Wednesday and he was
not to assume the duties of the posi-
ton until next Monday; that he there
fore had no official connection with
the institution and was not able to
answer any questions that were put
to him. Mr.. Dowds stated, however,
that the representations made to him
by the directors of the bank when
they rendered him the cashiership
were such as to lead him to believe
that the affairs of the bank were in
sound condition; that if he had
thought otherwise he would not have
accepted the proffer of the position
He also stated tnat ne was aware oi
the order Of the state superintendent
of banks that the remaining $25,OOJ
unpaid capital stock of the bank be
paid in and that it had been complied
with.
Mr.. Dowds further states that he
had acquired no stock interest in the
, bank.
, Chief Deputy Walters stated Satur
!, day morning that the process of liqui
dation would commence some time
next week. He stated that he would
, remain in charge of the institution
until the liquidating officer is appoint
ed by the state department This
| appointment will be made on Monday
According to new law the appoint
, | IF Iinuidatinp officer ig made