Click image to open full size in new tab
Article Text
FINANCIAL. READING, PA. Special Disputch to The Chicago Tribune. PRILADELPHIA, Nov. 17.-The suspension of the Reading Savings Bank, followed by the stoppage of every banking institution in the city except the national institutions, was mainly owing to a disposition to go to the utmost limit in assisting its debtors of the manufacturing class, rather than precipitate a cessation of business that their failure would make inevitablc. Large manufacturing and mining interests, involving the employment of a large number of operatives in the coal and iron districts, were dependent upon the advances made. A year ago the deposits were $1,400,000, and in two years they have shrunk $700,000, but despite that the bank has discounted good paper freely, and helped out everybody that seemed deserving. Last night the Ilon. George P. Stirsel and Henry A. Muhlenberg were appointed Assignees, and will furmish a statement as soon as possible, clerks being at work might and day upon the books. President Boas says all his private property will be sacrificed if need be to pay the claims of depositors. but it was believed that sufficient would be realized from the assets to pay all liabilities. Nothing would be withheld from the creditors of the bank. The Cashier, another member of the Boas family. talks in the same way. An assignment of all the Boas estate would be made. There had been a large withdrawal of deposits during the summer, and since the Jav Cooke failure the bank has paid out over $700,000 to their depositors. He stated that the First National Bank, the business of which has been conducted in the same building. would be in no wise effected by the business of the Reading Savings Bank. Even more serious than the suspension of this bank is that of Bushong & Brother. This firm has been the custodian of accounts of many large mining and manufacturing concerns, and has had unlimited confidence. They suspended in 1873, but only to avoid a rull, and resumed without impairment of credit. At that time their deposits amounted to $1,900,000. At present their deposits amount to between $300,000 and $400,000. They say their depositors are amply secured, and will be paid dollar for dollar. They have devoted themselves for four years in paving off the claims against them, and this should be an assurance that no loss would be incurred by the present suspension. Messrs. Loyer & Sellers. proprietors of the Dime Savings Bank, which suspended yesterday, were engaged in discounting notes, buying and selling stocks, and doing a general brokerage and commission business. The deposits are not believed to have been large at the time of the suspension. and that they do not exceed $12,000 to $15,000. The excitement over the closing of the Reading and Dime Savings Banks, and the bankinghouse of Bushong & Bro., is still very intense. Crowds of people from the country districts who have money on deposit in these banks came into town this morning to find out how matters stand, which helps to increase the excitement. To the Western Associated Press. PHILADELPHIA, Pa., Nov. 17.-A dispatch from Reading says: " There is now a run being made on the First National Bank of this city. A large crowd is surrounding the door. Several wealthy citizens, in order to show confidence in the institution, are making deposits." READING, Pa., Nov. 17.-A representative of the Associated Press visited the three National Banks doing business here, in view of the Philadelphia dispatch reporting a run. and fhis is the result: Henry S. Eckert, President of the Farmers' National Bank, said: "We are doing less than the usual business, and receiving more than we pay out." W. H. Clymer, President of the First National. said: There is no run on our bank, and we are receiving nearly as much as we pay out. We are ready to meet any demand, and will continue to cash checks as fast as they are presented." Charles B. McKnight, Cashier of the National Union Bank, said: .. More money was coming in than going out. There is no excitement worth mentioning. and the reports concerning runs are without foundation."
