The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-12-14
7 TREASURER
PUT $4,000
IN CLOSED
BANK DEC. 8
State Deposit Increased
Only Recently, 1t
Is Said

| SANTA FE, Dee. l4.-State
Bank Examiner j. b. Read stated
today he would at once make for.
NAL demand on State Treasurer
C. U. Strong for the delivery Of
$2S0,000 in notes and mortgages,
held by the treasurer as security
on $353,000 of state deposits in
the Santa Fe bank, which was
closed Monday by the examiner.
The latter holds these notes and
mortgages are part Of the asseis
of the bank and if their delivery
is refused will bring legal action
TO secure them.
The treasurer has been advised
by the attorney generals office
not 10 surrender the notes and
mortgages unless so ordered by
the court. Mr.. Strong has retain
ed former Attorney General o. o.
Askren and G. w. @. Ward Of Las
Vegas as his attorneys, aud the
examiner has retained !. o. Seth
of this city. Meanwhile the di-
rectors Of the bank are meeting
today to consider the matter Of its
reorganization. n-'-------.-----
SANTA FE. Dec. f4.--That state
| Treasurer Charles u. StronE. or his
deputy. transferred $4,000 OF state
| funds from the First National bank
- IFa
late as December 3, was learned to-
day from an authoritative source
The Santa Fe hank wax closed Mon-
| day by state bank examiner James -.
Read. Governor Merhem. In discuss
| sing the situation OF the states de-
| poslt yesterday, said u had been
known for some time that the bark
was In difficulties. lie held the state
bank examiner to be free OF blame
/ for not havlsR taken charF. OF the
bank on the ground that insolvency
had not been proven and that an ef-
| fort was being made by the hank TO
work It's way out of ia difficulties. a
course, he held which Involved the
least risk os loss to depositors. In
support OF this II was pointed out
| that the states deDoslt IN the Santa
Fe hank had been materially reduc-
\ ed IN recent months A. one time
i Strong had more than SfOO. 900 on
deposit in the hank.
| why the state treasurer made, or
permitted to be made the transfer of
| $4,000 from one OF tile strongest
banks in the west to one known 60
be In difficulties, on December 2.
could not be hscortainod. II was stat
| ed however. by those IA close touch
with the situation. that AN officer OF
the closed bank reureasnted at the
state treasury that state funds were
being withdrawn too rapidly thus inn
pcriiling the hank In its effort TO get
is affairs m shape.
Acting upon tie advice of the as.
sistant attorney rcnerul the troasur-
cr's office ,oday wa fili holdins
| f2S0. 900 OF notes AMI mortgages. as
| signed to Il 10y the bank t. secure she
said. would be retained pending IN
examination OF the law and an opia-
iur from the attorney ~ neral.
other attorneys contended that "a
tgSO0O0 % securiti 40 eventually
would have 20 be returned TO the
bank In the Interest OF an depositors
b ankle.
Men IN a position 20 SNOW express
ed the opinion today that the closing
OF the bank would result in Legal
controversy between the state. tho
bonding company holding the treas
urers two million dollar bond, an
the general dapositorH OF the bank.
IN the event the bank cannot adjust
ita affairs and reopen. This latter u
rCghrdcd as possible hy well informed
outsiders ami tho president Of iha
bank has announced conudenteiy that
Il would be able 81 do 90 while pro-
tecting all dspositQrs.
Whether the fact that the larger
/ portion Of the states deposit Ia the
Santa Fe bank was there 10 an open.
/ OF checking account although Tor
| some months past Il had been sub
jet 20 check only uader most re-
stricted circumsta nces: would relieve
the treasurer and state finance board
OF responsibility under the iaN limit q
ing deposits to rs per cent OF the can't
tai and surplus OF a bank was The
subject OF some discasaion
II Albuquerque sent tp siso.ocO
ii Il wts learned today that In amt
cipation OF the CLOSING OF the santa
Fe hank on Mondaf. a director Of tho
First National hank OF Santa se went
to Albuquerque sunday and brought
back with him In hls automobile
tl50,o00 in cash from albuquerque
banks, TO supplement the reserves ~
the banks here. The cash was not
II needed and has been returned. tn,
closing OF tho Santa We hank did i0t
cause even furry among deposito.a
III a., other banks AMI has had no np-
preciable effect in local business cir
clos.