The Nome nugget., 1921-07-09
NOME CITIZENS SAVE
 BANK FROM IMPENDING RUN

effect that the Min ITS and Merchants Bank. Nome's sole hanking establish ment. was in some way involved in the aeccnt failure of the Scandinavian American Bank of Seattle, came daa- rerorslv close to precipi.ating a run on that institution Tuesday morning. The news of the Seattle bank failure became public Saturday and provoked widespread uneasiness among local citizens owing to the almost general belief that :he Nome banking house was in some way connected with the Seattle concern. The financial troubles of Jafet Iindebc,-. former president Q: the bank and a reputed large stock holder in the Seattle concern. also con- .ributed not little to increasing the uneasiness among the banks deposi- tors. Owing doubtless to the custom of closing at noon on Saturday. the bank was spared a. general withdrawal of funds on that day although num- Der of good sized deposits we're re- turned to canny owners. Owing to the two following days being holidays sufficient time was gained to forestall q continuation of the run on Tuesday. Realizing the disastrous results of such an eventuality. a large number of rep rcsentative citzens met the bank off, cials in an open conference in Eagle Hall Sunday evening and decided upon ;t plan of action to allay the general feeling of insecurity. A. Polet pre- sided and Chas. D. Jones. acted as secretary. J. J. Cole. ma nager of the bank. informed the gathering that the institution was absolutely solvent, de- claring that the assets were $250000 over and above the liabilities He stated, however. that owing to the heavy withdrawals Satm.day. the sup ply of ready cash was below the le- gal reserve and as there was no way to replace the amount withdrawn un- til the return of the steamer Victoria from Seattle. the bank would have no altd native but to close if a run was precipitated. MT. Cole stated that Mr. l.indeberg was not indebted to the bank for q single dollar and also de- clared that the bank was in no way involved in his personal financiai troubles. He also declared that thy failure of the Scandinavian-A America Bank did not in any manner affect Miners and Merchants Bank nor h
 the bank suffered any loss throushiIN n failure. MT. Coles statement waS
 companied by a display of facts figures which left no doubt that the hank was absolutely solvent although not in a position to withstand an ex- tensive withdra wal of funds. After a general discussion of the situation, it was decided to appeal to the citizens to avoid forcing the bank into insoi- vency and a committee of nine per- sons was appointed to interview the banks depositors and other citizens and urge them to protect the institu- tion and avoid a disastrous fina ncial cifsis. It was pointed out that the closing of the bank would provoke a situation of the most clamitous char acter and result in serious harm to practically every industry in the dis trict. As a final proof of confidence in the intlgrity of the bank. the gather ing pledged a fund of $1o0.O00 to back up the banks assets and insure the safety of depositors. It was also de- day assuring the citizens that the bank was safe and sound if they avoid hys- terical and ill advised action and con tinue their business with the bank in the customary manner. As result of this timely action and the efforts of the committee during the holiday interval, confidence was prac ctically re- stored by Tuesday morning and the run which appeared imminent Satur- day was averted. Several of the committee journeyed to the nearby mining camps Monday giving assur- ;,nces that the bank was entirely safe if permitted to continue business in a nomal way. Almost without excep- tion all who were interviewed readily agreed to assist in supporting the banl. in every way possible and at one min ing camp the visiting committeeman were handed q considerable sum O!
 money to deposit on their return tc town.
 When the bank opened Tuesda :. instead of a rush to secure funds
 practically all who visited the bank
 left money behind. Large sums were
 deposited by business men during thu IL T