The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-30
MONEYSTR|NCENCY
CAUSES BANK TO
CLOSE ITS DOORS
Barksdale to Apply for
Receivers for Com
monWealth.
DEPOSITORS WILL
BE PAID IN FULL
State Bank Examiner Believes
Creditors Will Not Lose, and
Declares General Banking
Conditions in Rich
mond to Be Sat
isfactory.

by order or Charles e. Barksdale,
examiner Of the banking bureau OF the
state Corporation Commission the
Commonwealth Bank and it's branches
at Twenty-ffth and Broad Streets and
at 1914 Williamsburg Avenue, Fulton,
were closed yesterday afternoon. APP
plication will be made before Judge
Moncure. OF the Chancery Court, early
to-day by Mr.. Barksdale for the 1p-
pointment OF receivers. The doors will
not be opened this morning. notice
having been posted last night that
they were closed by direction Of the
banking bureau
$50 for ns nbie to ascertain"
Hnfd Mr.. Bnrksdnle last night, ode
positorn will receive their money in
full, and might ndd further, that,
In my opinion, general banking con-
ditfons In Richmond arc satisfactory
and sound. and TINT / see NO cause for
unenEiness among the citizens of
RichmOnd.o
Cnune of Trouble.
The Immediate cause OF the Com
monwealths embarrassment, accord
Ing to a statement issued last night by
President W. l. Walters is the banks
temporary Inability to meet .he de-
mand OF creditor banks for the repay
ment of money borrowed to take care
OF it's customers. The statement gives
assurance that the banks investments
will be paid 100 cents on the dollar.
Slr. Barksdalc stated. in explanation
OF the banking bureaus action. that
an examination Of the Commemorative
finances disclosed the fact that IL did
not have enough quick assets to raise
the necessary cash to meet the usual
demands necessary for the protection
of its depositors. 4 large proportion
of it's loans md investments are on
real estate collateral. which because
of the stringency of the money mar
ket and In the inactivity OF real es-
tate. are not Immediately collectible.
Complications due to these causes.
said Mr Barksdalc. made ii necessary
to ask for the appointment of a re-
cciver.
Independents of clearinghouse.
In the transaction OF its business the
Commonwealth Bank was independent
OF the local clearing house. The Com
monwealth Bank is in no way con-
nected with the Clearing House Asso-
citation of Richmond" said officers of
that institution last night.
The Commonwealth Bank was found
ed about seven years ago, and main
tained Its principal banking house at
IL North Ninth Street 1t apparently
enjoyed solid growth. establishing
branches at Twentyfifth and Broad
Streets and 1914 williamsburg Ave.
nue.. The home bank and two branches
.
ing 10. the statement of the banks
finances at the close OF business Au-
gust ., individual and saving deposits
totaled S6l5.396.14, and demand certifi-
Gates OF deposit, s31,239.7o.
Deposits Uniformly Small.
Most Of the depositors belong to the
city's industrial classes. the bank hav-
Ing been founded. according TO the
statement of its officers. 10 cater par
ticuiarly to the small depositor and
small borrower. The individual saw
ings 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
prise. It's stock. par value 500, was
stock market at 112. The bank is
known to have valuable real estate
holdings, both improved and unim-
proved. and the hope was expressed
generally that It Will be able to ad
just all demands without loss to de-
positors. The officers were of the opin-
ion that unless liqudating expenses
proved to be unusually heavy, there
would be even no loss to the holders
Of the banks 100000 OF capital stock.
Statement by Walters.
President w. L. Walters last niobt
made the following statement:
The commonwealth Bank was cs-
tablished with the idea of catering to
tho small depositor. but particularly
to tho small borrower. and it has made
Il specially OF loans In small amounts
However, In the aggregate. the total
OF such loans does not compose the
large items OF money loaned to bor-
rowcrs. but IN the number Of loans
our bank exceeds that OF any other in
stitution In the city.
THE investments have been care
fully made by the directors, and en-
brace real estate loans on safe mar
gin stocks and bonds OF good char
acter ana good commercial paper; but
unfortunately. in the stress of the
financial world during the past five
months. and for the purpose of taking
care of the banks customers money
was borrowed from other financial in
stitutions located outside of the CITY
OF Richmond. These institutions. in
the course of their business, found il
necessary TO make demand for the
repayment by the Commonwealth Bank
of that borrowed money, but our bank
found 1T impossible to make the loans
in other directions within the number
OF days allowed US by the lending
banks
THE depositors in this bank and in
It's branches will not lose penny until
the ofiicers directors and stockholders
haVe lost more than 100000, a possi-
bility which Is SO improbable as to
justify me In saying that every de-
positor will receive 100 cents on the
dollar. and I am also confident that
there Will be n handsome dividend LEFT
for tho stockholders In fact, can
SEQ no reason why the stockholders
themselves should not receive par for
their stock, unless tho liquidating
losses and expenses arc excessive. >
I'VE roalize that this is the first
5000 1TS0.eI..,.I |>-sS q. sS---------