Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1913-08-30
.R|CHMONDbAN
CLOSES ITS DOORS
Commonwealth Bank Com
PEELED to Apply For
Receivers
TO PAY DEPOSITORS.

''tdit o0Hh CSuHllNtTS Is lOnHuen
Creditors VIII Not Lose BY Clos
ing of Institution.
| Richmond, Va, Aug. 30.-By order
of Charles c. Barksdale, examiner OF
the Banking Bureau of the State Cor.
poration Commission, the Common.
wealth Bank and its branches at 25tt
and Broad streets and 1914 Williams.
burg Avenue, Fulton, were closed yes.
terday afternoon. Application vii
, be made before Judge Moncure, of the
/ Chancery Court, early today by Mr.
Barksdale for the appointment of re-
ceivers. The doors will not be open
. ed this morning, notice having been
posted las: night that they were clos
ed by direction of the Banking Bu-
F.. reau.
$50 far as am able to ascertain y
said Mr.. Barksdale, last night, "de-
positors will receive their money in
full, and | might add further, that,
in my opinion, general banking con-
dtions in Richmond are satisfactory
and sound, and that see no cause for
uneasness among the citizens Of
Richmond
The immediate cause of the Com
monwealth's embarrassment, accord
ing to a statement issued last night
by President W. l.. Waters, is the
banks temporary inability to meet
the demand of creditor banks for
the repayment of money borrowed to
take care of its customers. TIE
statement gives assurance that the
banks investments are sound and
that every depositor will be paid 100
cents on the dollar.
Mr.. Barksdale stated in explanation
of the banking bureaus action that
an examination Of the Common
finances disclosed that
it did not have enough quick assets
to raise the necessary cash to meet
the usual demands necessary for the
protection of its depositors. A large
proportion of its loans and invest
ments are on real estate collateral
which, because OF the stringency OF
the money market and the inactivity
of real estate are not immediate
" collectable. Complications due to
these causes, said Mr.. Barksdale,
u adc it necessary 20 ask for the ap-
poirtment of receiver.
In the transactions of its business,
the Commonwealth Bank was nde-
nendent of the local clearinghouse.
"rhe Commonwealth Bank is in no
way connected with Clearing House
Association of Richmond" said Off
GERS of that institution last nglht
The Commonwealth Bank was
founded about seven years ago, ard
maintained its principal banking
house at y North Ninth street. 1t
apparently enjoyed solid growth, es-
tabhshing branches at 25th and Broad
s+raa,s and 1914 Williamsburg Ave.
The home bank and two branches
have about $500 depositors. Accord
;n~ TO the statement of the bank
frances at the close of business Aug
net 9 individual and saving deposits
,otaled s615. 1864, and demand GER
ti6cates of deposit s31,239..7O.
Most of the depositors belong 10 the
c;+v's industrial classes, the barW
having been founded, according to the
atement of its officers, to cater par,
t;cularlv to the small deposltor ano
sra)l borrower. The individual saw
mos accounts are uniformly modest
and in many cases represent the saw
ings of years.
The news of the banks embarrass
ment last night caused general sur
nr;se It's stock par, value s1oo, was
Quoted yesterday on the Richmond
s,ock marke, at 1l2. The bank r:
known to have valuable real estate
holdings, both improved and uhlnf
proved, and the hope was expressed
generally that it will be able to adJus
all demands without loss to deposi
tors. The officers were of the opinion
that unless liquidating expense
proved to be unusually heavy. Their
would be even no loss to the holder
of the banks 100000 Of capital stock