The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-08-30
RICHMOND BANK IS
CLOSED BY ORDER
!, Of STATE EXAMINER
Receiver for Commonwealth
viii be Asked This
Morning
FIRST FAILURE OF
THE KIND IN YEARS
Insistence Of Outside Creditors
and Inability Of Bank to Real
ize on Real Estate Loans
Responsible

The Commonwealth bankf on Ninth
near Main street, will not open It's
doors as usual for business this morn
ine. Neither will either OF Its two
branches-at as14 williamsburg ave.
nue.. Fulton, ands Twenty-hfth ano
Broad streets.
state Bank Exapiner c. c. Barks-
daIe. after a CONSULTATION with the
banks officials, which lasted all Gay
late yesterday afternoon posted 9
notice on the door 81 the institution
announcing the fact that he had taken
charge OF 1t. This morning MT
Barksdale will apply to Judge Mon
cure. OF the Chancery court, TOT
receiver for the bank.
News Received Quietly.
Despite the fact that II Is the mrs.
hank failure Richmond has had IN
many years, the news neither has nor
Will create any sensation for num-
her of reasons. In the first place Mr'
Barksdale waited until late In the al
fernoon before he made up his MIND
10 take charge of the bank and Few
saw the notice posted on the daor'
Secondly. the public generally has alb
solute confidence in the integrity oil
the men behind the institution. and
further the State bank examiner de-
clares without hesitation that II the
securities on the loans the bank has
made are good that the deposltors
will be paid dollar for dollar.
Can't Realize on Loans.
The banks Embarrassment. II seems
II due to the fact that II has loaned
considerable money on real estate.
upon. which IL Ia unable to realize nj
short notice, and outside banks 10
which the institution IL indebted are
uressfng Ii for settlement.
Following the last official statement
OF the bank, which was OF date Aug
ust 9Th. State Bank Examiner laarks-
dale sent two expert accountants ~
investigate. The amount OF loans given
In this statement, which aggregated
sefs7s44e inspired the investigation
Acting upon their report Mr.. Banks
dale yesterday held an all~day con-
ference with the officials of the bank
In an effort to arrange some plan
by which the temporary embarrass'
ment could be tided over. but the out
side banks were pressing In their
demands and the paper held ny the
bank on real estate Is not coltectaeie
at short notice. and the examiner
deemed II wise for the protection OF
the depositors TO take charge OF the
institution.
He will apply for receiver this
morning and as soon as the receiver
qualities. he will take charge Of the
banks affairs.
While Bank Examiner Barksdale
was conservative in hts statements
last night. he took very optimistic
view OF the situation. He Will nor
ment as to tNe affairs OF the bank
until he has made a more thorough
Investigation, and this he will insti-
tute this morning
Believes Paper Good.
He expressed the opinion. however
that II the paper held by the bank on
the real estate loans liz good--and
the bank officials declare that the In
vestments have been carefully made
Z that the depositors will not lose any
thing. The settlement OF the banks
affairs, however. will take some time.
The inability OF the institution TO
realize on longtime notes. however
rood they may be, when pressed by
outside creditors In responsible for the
embarrassment. The present financial
atringency has helped to make the
situation worse. X Is said.
Last fail the Commonwealth bank
purchased the site at the southwest
corner OF Main and Tenth streets for
$4,000, and 1t was noised abroad
that II contemplated the erection
there OF a -skyscraper' home, The
new owners went so far, in fact. as
10 give the tenants notice to move,
which thsy did. and plans were drawn
for the building, but for some rea-
son, unannounced. the plans have
been held up.
The Commonwealth bank Is not a
member OF the Richmond Clearing
House association, and the failure will
not affect in any way any other local
- No oil mr.
years ago, and la one of Richmond's
youngest financial Institutions.
Asked for a statement last might
President w. L. Walters said:
President Walters Statement
The Commonwealth bank was es-
tablished with the idea Of catering to
the small depositor. but particularly
to the small borrower. and they have
made a speciality OF loans in small
amounts. However. In the aggregate
the total CT such loans does not COM
pose the large items OF money loan
ed to borrowers: but In the number
OF loans our hank exceeds that OF any
other institution In the city,
THE Investments have been care
!. fully made by the directors, affd-enf-
brace real estate loans on a safe mar.
gin, stocks and bonds OF good char
acter, and good commercial paper;
but unfortunately. tn the stress Of the
financial world during the past five
months, and for the purpose OF tax.
ing care OF the banks customers
money was borrowed from other A.
nAncial institutions located outside Of
me city If r'r%-nnnd. Those insti-
tutions, IN the course OF their bust.
nezs. found = necessary to make q
demand for the repayment by the
Commonwealth bank Of that borrow
ed money; but our bank found 1t i'm
possible to make the loans In other