Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1913-12-25

The American National bank of
Caldwell failed to open its doors Mon.
day morning and is new IN the hands
of National Bank Examiner Fred
Brown. This was the newest Of the
banking institutions of Caldwell and
carried deposits of about $4,000 OF
which a little more than $50, 900 Was
public funds.
1t is stated that the bank will IN
doubtedly be able to pay it's deposit
ors in full, the trouble being that ex-
cessive loans had been made on Sc
curities which cannot be realized up
on quickly enough.
A meeting of other bankers Of that
city was held Monday and for time
it appeared likely that the institution
would be taken over and liquidate1
through one or more of them, but
this plan was found impractical and
was abandoned ard the bank exam
liner was given charge of the bank.
Cashier Resigned.
F. D. Simpson, former cashier of
the bank and its founder, resigned
about a month ago and has left the
state. 1t was found that his personal
obligations were in excess CT his dn-
terest in the bank and this discovery
weakened the institution. His broth.
er, w. G. Simpson, was president of
the bank until succeeded by M. Dew
ers.
On Saturday the bank held cash
reserves equal to 20 per cent Of its
deposits, which were about S115,O0O.
The last statement shsowe1 that the
deposits amounted to s161, 570.S5, thus
showing that considerable Iqui-ati-n
has been going on since then.
The total resources of the bank at
its last statement to the controller o.
the currency were given at
On Saturday besides the
cash on hand the books showed $780,
900 due from other banks and ap-
proved reserves, and $4,000 of bills
payable. The loans and discounts
shown by the last Official statement
were S174,000.
Statement by Bank President.
Former Governor John 7. Morrison,
of Boise, president of the Western
National bank of Caldwell, and who
is familiar with the banking situation
in that city, made the following state
ment regarding the failure:
81 am familiar with the banking ST
uation at Caldwell, have been more
DR. less intimately connected with it |
for over 20 years. The unfortunate |
condition of the American National
IS not due to local conditions, but to
he account of an ex-cashier, who is
now a nonresident. j understar d
hat he and his connections own a
arge block of stock. The local PEG
lie who are stockholders are among
he best and most highly respected
:itizens of the community and are
untitled to every consideration.
understand the bank is not ins3lyent,
nut simply tied up with slow assets.
IS to the other banks, they are old
nd well established institutions, and
ave the banking situation at Cald-
yeH well in hand. They are amply
BILE to serve the community. Their
and directors are for
he most part local people of large
lterests who understand the country
nd its needs and who are in full
with the situation. Their
anks are IN good condition"
John c. Rice, president of the Com
lercial bank at Caldwell, also states
rat the failure of the American Ma
onal to open was not regarded as
cling fraught with any serious con-
,quences to the financial situation
that city and expresses a belief t
lat all depositors will be paid In c
III. No anxiety was shown by de-
,sitors of the other banks when the
merican National failed to open !
Id Mr.. Rice states that the banks :
e well fortified and abundantly able n
take care Of their depositors upon a
mand.