Click image to open full size in new tab
Article Text
en THE FINANCIAL SITUATION. at if Suspension of the Exchange and Deposit, the Knoxville and the in Commercial Banks. be di tl Confidence of the Business Community or in the Banks Unshaken. n The Alarm Confined Chiefly to small Depositors. The great financial wave which started in New York, has swept over the country and while) other cities have felt its power, until within the past few days Knoxville has escaped the great maelstrom in which so :many staunch financial houses have been engulfed. Saturday morning the announcement and the suspension of the Exchange of Deposit Bank, of this city, caused a ripple local financial circles, which gathered in few hours later when it became force a that the Knoxville Bank had ceas the known payment, and culminated early similar in ed afternoon with the intelligence of on the part of the Commercial, action which made a gallant stand, paying out $15,000 The well in the known forenoon. integrity of the bankofficers, however, prevented a panic, able as ing know that they are abundantly it is of their personal means to make good out all deposits if their business should turn disastrously, though Messrs. Baxter, that 1 out Van Gilder and McClung all investment assert have not made a reckless they and think they will not lose dollar. N In the afternoon a CHRONICLE reporter and on the different bank Presidents of called obtained their views of the condition points affairs, which agree in essential es and should have tendency to restore public confidence. Id COL. JNO. BAXTER, to ry President of the Exchange and Deposit in s. Bank, expressed himself substantially He to his circular announcing his supension. for the of thought it would been better to al other banks which had suspended would he have done so when he did, as they have been enabled to resume payment not a ee much the sooner. His was be, he nso total suspension and would hundred not dolnpaid out over fifteen ER having lars to depositors who needed the money by he present use and were not influenced to be SO for feeling, and he expected sufficient ut a panicky to make collections with as, able to continue to do so. He had paid promptness out during the day a special deposit of the bank $400 in gold which had been in had erThe present stringency Cooke's in eight commenced, years. really, before Jay avoid the tendency having been to failure, deposits. His bank indebtedness, was perfectly making for every dollar of its in the th good he regarded every other bank wanted and equally solvent, all that they for a hat city being the indulgence of depositors shshort time. has R. M. 'CLUNG, ESQ., of on President of the Commercial Bank, said any ical there was really no occasion for to a that exeitement. The trouble was owing altoing to a want of confidence on the money part gether depositors, who drew out their use of when they had no immediate gh edit to hold, the samo. He had the most collections satisfor assurance that their prifor factory be promptly met. During October, which ns, would had paper to the value of $50,000, but gh he mature, and he had no doubt, Comby would cent would be paid. The made of that every had to bear the brunt and the les. mercial stand, paying out $15,000 during of 208 good but owing to the suspension yield wn, morning, two other banks they had to to the He hoped to resume pay- was eds, hes the pressure. in ten days. Their suspension small erment partial, as they had been paying would in sums only to relieve pressing wants and continue to do so. try. e of MR. JNO. S. VAN GILDER, n & President of the Knoxville Bank, was for a: of bank all day, and gave his reasons sudden heir the pursued by him. The in its the course of the storm was bewildering o ery ness and owing to the alarm of some gradual ionpower, coupled with the nes, withdrawal its depositors, of funds from the legitimate Viochannels of trade, the volume of currency to meet ines circulation was not sufficient not in in demands of business, as it was safes and arge the but kept locked up in the use for usic use, of the people, who had no it i bepockets were mortally afraid of losing almost re o be it, but in the banks. Business had bu will left from the effects of the cholera, Any covered needless panic would have a tendency There iece the a lull for several weeks. the coun/ to to cause really more money in de anwas than ever before. Knoxville the sus rioe. try now would lose nothing by temporary had He positors pension of the banks, beyond individual a prop state erty sufficient inconvenience. to guarantee the payment satisfy depositor, and would circular every of the fact. following o in any was one issued announcing the suspension the bank lin; KNOXVILLE, TENN., Sept. 27, Bank 1873. t in To the Depositors of the Knoxville of thi order to preserve the assets ton Bank In from sacrifice determined during the this present morn ing in panie, to suspend it has been for a sbort time until busi tract ness can The bank be resumed. has not by reason lost a dollar of the nor panic suffer ed any known. sacrifice It is amply solvent and of far as liabilities will be met. its addition to bank assets, the resour under nces In will hold.every individual ban 3on. signed the city or county to dischargeany such b Iton. in and desires to secure, any may any liability, private arrangement that agreed n. The small upon. depositors will be paid individ by th in a short time, from the safet ayes. undersigned in currency, and endange of ual the resources, public funds shall not be ed. It is hoped that this duration. temporary susper sion will not be of long Very respectfully INO S. VAN GILDER President.
