The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-07-01
BANK S
|. DOORS
CLOSED
Not
Able to Meet Its
Obligations and
Suspends

While srarm es Tragedy -serirk-
en men and women stoo3 apa-
the1icnlly In TIN WARM dria11e
oufNiDs tlse scandinavian Amert
can hank, officials Al tisc stste
hank exnuslneS's bard begnn
t1srlr imvenllensi0N FSld1nv inio
/ ~ Anosas - ~ oefuncs lnstl1ur
11sa
How much cnn b sasvaged from
the wreck win not BE- known for sew
eral weeks. aitho weIi-informed bank.
ers bciieve that the iosses 10 de-.
positcrs win be comparatively small.
CLOSES AFTER BANKERS
TRY vAINLY TO SAVE II
The scandinavian American closed
It's doors when conferences Of bank.
ers from all parts Of the state failed
tn find a means to save the bank.
Ralph 3. Stacy. who took over she
management ~ the bank . year ago.
when II wns on the financial shoals.
turned over the records ana papers
of the institution TO the state super.
viEor Of banks Friday morning.
stacy's desperate fight 20 keep the
bank on its feet had left him white
and drawn He had been without
sleep for three nights. trying to find
means to prevent crash ~
According TO bankers high In
financial circles here. II will be at
least three weeks before Il will be
possibIc for any deposition 70 with
draw money from the bank.
STATE GUARANTEE FUND
WILL BIZ DRAINED
The Seattle Clearing House Asso-
citation has agreed to advance money
on depositors' claims. and the entire
5000 In the state Deposifors'
Guaranty Fund win be called upon
to help pay the debts Of the bank
The Scandinavian American. ac.
cording to John r. Duke. state su.
pcrvfsor Of banking. owns large
amount Of valuable property. but II
viii take considerable time TO turn
this into cash.
Possibility that an member.
banks Of the State Depositors'
Guaranty Fund may be assess~d
b pay the Dnsse~ Of t3se Scandi-
nsvizn American hank. dollar for
dollar, WIN Indicated by Duke.
II have not been able TO determine
yet whether the banks are liable for
the full amount Of the loss or just
to the extent of the money In the
fund--s5oo. .ooo." Duke declared.
This point, according 30 officials,
has never been raised
The total deposits of the Scandi.
navian American bank were 81, $751;
ISL.
Stacy and his associates in the
new management were completely
exonerated from blame by Duke.
"A great deal Of credit Is due
them" Duke asserted. They have
made a tireless fight 10 protect the
interests Of the depositors and to tide
the bank over its difficulties"
TACOMA BANKS
FAILURE FASTENED CRASH
Duke attributed the failure to the
shrinkage Of values after the war
and TO the failure OF the Scandinav.
Ian American bank OF Tacoma.
At one time the two institutions
were closely connected. Tho di.
vorced at the time. collapse OF the
Tacoma bank reflected upon the Sc,
attic institution. to the extent of
50 900 900 In Withdrawals.
Governor Hart arrived in Seattle
and was cIosetcd with Banking
Supervisor Duke for nearly an hour
Friday II is thought that he is here
In the interests OF the State Deposit
ors' Guaranty Fund.
A larger number Of persons are AZ.
fected by the failure Of the Scandi-
navian than by the collapse OF
any other Seattle bank. The
Scandinavian has over 21 900 raw
ings accounts. ranging from a few
dollars 10 the thousands.
Dreary. hopeless faces were
much in evidence outside the
bank Friday. Iaborers, scrub
women. fishermen and small
farmers gazod nj the closed
doors NJ the institution and ask
evi worried questions of the by
ISLANDERS.
Would the hank pay any
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