Merchants National Bank (Portland, OR)

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Portland Bank Closed

Portland, Ore., Nov. 12.-The Merchants' National Bank did not open today. The bank was capitalized at $250.000, with deposits of $5,000,000. Officials say the suspension is only temporary, and that the bank is solvent.

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PORTLAND BANK CLOSES DOORS Merchants' National, Unable to Stand Strain, Closes on Advice of Comptroller. HAD PAID OUT $1,500,000 SINCE HOLIDAYS. Bank Asserts That They Have Carried Burden Without Assistance Other Than Clearing House- Declare They Are Solvent and Only Suspend for Time Being on Advice of Comptroller-Crowd Gathers, About Bank and Thirty Policemen Detailed to Prevent Demonstration.

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OREGON BANK SUSPENDS

Merchants' National of Portland Closes Its Doors. PORTLAND, Ore., November 13. - The Merchants' National Bank of this city is for the time being in the hands of the controller of the currency. Its doors were not opened yesterday because of unfounded but persistent rumors which resulted in heavy withdrawals lately Though said to be entirely solvent, the bank was yesterday closed temporarily, awaiting the advice of the control.er of the currency. to whom the bank officers have wired details of the institution. With $5,212,052 on deposit at the close of business August 22 last, wh n th controiler called for a statement of th condition of all national banks, the bank's liquidation since that date has been over $2,300,000. of which amount $1,500,000 nas been withdrawn since the holiday season began. October 29. This run means an average daily withdrawa of cash from the bank of more than $100,000, and the only assistance it has received has been the loan of $250,000 from the Clearing House As ociation, which amount, equaling the capital stock of the bank, was the limit allowed by the national banking act. The Hanover National the National Bank of Commerce and the Merchants' National banks, New York correspondents of the Merchants' Nationa . offered to extend all necessary aid but again the national banking act stood in he way. This left no other recourse than to lay the situation before the controlle: of the currency.

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Had Over Flve Million Dollars on Deposit, But Had Heavy Withdrawals WAS BARRED FROM RECEIVING AID New York Correspondents and Port. land Clearing House Wanted to Help the Institution, But National Banking Act Prevented. (By Associated Press) PORTLAND,, Oregon, Novv. 12 The Merchants National bank of this city Is for the time being In the hands of the comptroller of the currency. Its doors were not opened today because of the persistent rumors which resulted in heavy withdrawals lately. The bank Is said to be entirely solvent. With $5,212,052 on deposit at the close of business August 22 last, when the comptroller called for n. statement of the condition of national banks, the bank's liquidation since that date has been over $2,300,000. of which amount $1,500,000 has been withdrawn since the hollday season began, October 29. This run means on average daily withdrawal of cash from the bank of more than $100 000 and the only assistance it has rocelved has been the loan of $250,000 from the Clearing House association, which amount equalling the capital stock of the bank, was the limit n)lowed by the national banking net. The Hanover National, the National Bank of Commerce, and the Merchants' National bank. New York correspondent's of the Merchant's Na. tional, offered to extend all Decessary aid, but again the national bank Ing act stood in the way. This left no other course than to lay the sit nation before the comptroler of currency.

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Bank

Closes Its Doors, Forest Grove, Ore., Nov. 13.-State Senator E. W. Haines' bank in this city did not open its doors this morning, because it could not obtain its balances from the Merchants' National bank of Portland, which suspended payment yesterday, and which was its local correspondent. The deposits aggregate between $40,000 and $50,000. The bank is considered solvent.

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TEMPORARILY CLOSED

Portland, Ore., k Nov. 12.-The Merchants National Bank of this city is for the time being in the hands of the comptroller of the currency. Its doors were not opened today because of idle and unfounded, but persistent rumors which resulted in heavy withdrawals lately. Though said to be strictly solvent, the bank was today obliged to close temporarily. With $5.212,052 on deposit at the close of business August 22 last when the comptroller called for a state. ment of the conditions of national banks, the bank's liquidation since that date has been over 2,300,000, of which $1,500,000 has been withdrawn since October 29. The only assistance the bank has received has been the loan of $250,000 from the Clearing House Association, which amount, equalling the capital stock of the bank, was the limit allowed by the national banking act. The Merchant National has, it is said, had throughout the present money stringency a larger reserve in proportion to its deposits than any other bank in the city. The size of its reserve is indicated by the fact that it was able to endure a run of $2,300,000, or more than . 40 per cent of its deposits.

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COMPTROLLER IN CHARGE

Oregon Institution Is Handicapped by Nationa! Bank. Act. PORTLAND, ORE., November 12.-The Merchants National Bank of this city is for the time being in the hands of the Comptroller of the Currency. Its doors were not opened to-day because of the unfounded. but persistent rumors, which resulted in heavy withdrawals lately. The bank is said to be entirely solvent. With $5,212,052 on deposit at the close of business August 22d last. when the comptroller called for a statement of the condition of all national banks, the bank's 11quidation since that date has been over $2,300,000, of which amount $1,500,000 has been withdrawn since the holiday season began, October 29th. This run means an average daily withdrawal of cash from the bank of more than $100,000, and the only assistance it has received has been the loan of $350,000 from the Clearing House Associntion, which amount, equaling the capital stock of the bank, WILS the limit allowed by the national banking act. The Hanover National, the National Bank of Commerce and the Merchants National Bank. New York correspondents of the Merchants National, offered to extend all necessary aid, but again the national banking act stood in the way, This left no other

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BUSINESS IS IMPROVED Suspension of Merchant's. National Bank Leaves no Panicky Results Apparent. I WILCOX HEARTY STATEMENT I Interesting Opinion Offered by Manager John H. Whyte, of the Astoria Chamher in Regard to the Portlander's Courágeous Stand and Its Effect.

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PORTLAND, Nov. 13.-That the financial flurry has touched bottom so far as Portland is concerned was evidenced today in the increased volume of business that was noticed in all lines. Retailers and jobbers report more business than has been noted since the beginning of the bank holidays, and in financial circles renewed confidence is plainly ap. parent. The failure of the Merchants' National is considered as having been the bedrock of the financial whirlpool and no apparent evil results are to be found in its wake. Incoming shipments of gold from foreign correspondents of the leading banks are adding to the general confidence and it is stated in authoritative manner that the present holidays will be brought to a close at the end of the current week, and the full resumption of currency pay. ments be in force. The officials of the defunct Title Guarantee & Trust Company which suspended last week were bound over to await the action of the circuit court in the sum of $5000 each, having been charged with accepting deposits while knowing the bank was insolvent. Malicious rumors are said to be the cause of the downfall of the Merchants National, but it is stated by the officers of the bank that business will be resumed in a short time. The national bank examiner for this district, Claude Gatch, is in charge of the bank's affairs and is making a rigid examination of the books of the institution. No receiver will be appointed for the closed bank. The statement of Theodore B. Wilcox, at the Commercial Club dinner Tuesday evening, that his firm had resumed the buying of wheat, and that they had cash to pay for it, created a decided upward tendency on the board today. Speaking of the remarks made by Mr. Wilcox at the Club dinner, Manager John H. Whyte, of the Chamber of Commerce, who was one of the Astoria delegation present, said: "I have never seen a more marked influence exerted over a large body of men, most of whom were the leaders of finance and industry of their city and state, than that wielded by Mr. Wilcox over the bankers, merchants and "business men who assembled at the Commercial Club dinner last Tuesday night in Portland. "He had been importuned to speak on the financial situation a number of times, at least to state his opinions concerning it, from it local standpoint, but had refused until the night of the dinner. There was no doubt that the very large crowd present, probably more than 200, were largely down there because it had 1 been voiced around that Mr. Wilcox would speak. And when he began to speak he did not mince matters. He said that some of the men who had recently failed were nobody's friends, not even friends of themselves. He compared some of them to wild horses in the street. But when he gave his opinion for what-

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the speculative undertakings, outside all the principles of banking, which brought two establishments to disas- ter, and created an alarm which pre- cipitated itself chiefly upon this one, that at last has been forced to sus- pend. But from the showing made it is clear that the suspension is only temporary. The run upon this bank never would or could have been so se- vere but for two reasons: First, mali- cious and persistent rumors; second, the disastrous experience the people of Portland have had with other banks, which, unlike this one, were plungers and promoters.

With the fear or frenzy that pro- duces a run on a normally sound bank it is useless to attempt to counsel or reason. The fear or frenzy, after it has gone a certain length, will exhaust it- self. But the financial stress in Port- land is now virtually over. We have arrived at bedrock, after a series of thumps from most unexpected causes. But from this day there will be steady upbuilding. and we may look to com- plete restoration of confidence within a short time. The assets of the Mer- chants' National bank will completely cover its liabilities; while the guaran- tee by Mr. Ladd will go far to dis- charge the obligations of the Title Guarantee & Trust company, and probably will completely discharge them. And the Oregon Trust company has resources which there is promise of bringing into shape for relief of its creditors. Meanwhile the country is full of all sorts of resources, with abundance of merchantable commodi- ties. The worst row is known, and business soon will be normal again.- Oregonian.

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OWING TO IDLE RUMORS

Run Results in Closing Bank at Portland. Ore. Portland, Ore., Nov. 13.-The Merchants' National bank of this city is for the time being in the hands of the comptroller of the currency. Idle and unfounded, but persistent rumors, resulted in heavy withdrawals lately. Though said to be strictly solvent the bank is obliged to close temporarily, awaiting the advices of the comptrol. ler of the currency, to whom the bank has wired details of the situation. With $5,212,052 on deposit at the close of business Aug. 22 last, when the comptroller called for a statement of the condition of all national banks, the bank's liquidation since that date has been over $2,300,000, of which amount $1,500,000 has been withdrawn since the holiday season began, Oct. 29. This run means an average with drawal of cash from the bank of more than $100,000.

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Closed Bank Opens

KALAMA, Wash., Nov. 16.-The Cowlitz county bank, which closed Its doors temporarily owing to the suspension of the Merchants' National of Portland, opened after 24 hours.

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PORTLAND BANKS PAY COIN TO ALL WHO ASK Long Period of Holidays Comes to an End, and Court and Public Business Is Again Taken Up By Associated Press. PORTLAND, Ore., Dec. 16.- -The payment of gold and silver in any amount to those who desire it was formally resumed by Portland banks today, on the close of the holiday period which has existed in this state for several weeks. While the banks of the city have paid specie to all who asked for it for more than ten days today is the first day that their willingness to do so has been made public. There was no unusual demand made on any of the banks and deposits were heavier than withdrawals. The close of the holidays also marked the reopening of the courts and other public offices. The long suspension of public business has caused a considerable congestion, and all public officials had their hands full. The fear that Oregon's peculiar attachments law might be invoked with disastrous effect to business was wholly groundless.

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TO OPEN PORTLAND BANK, Plans Being Perfected for Resumption of Merchants' National. Plans for reopening the Merchants' National bank are under consideration by the comptroller of the currency Bank Examiner Wilson and J. Frank Watson, president of the suspended bank, says the Oregon Daily Journal. Mr. Watson is expected to arrive home the first of next week, after a conference with the comptroller on the plan proposed by Watson. It is said the comptroller will await a similar conference between Watson and Wilson on the former's arrival here, and after these two men have gone over the ground thoroughly Mr. Wilson will make a final report and recommendations to the comptroller. At present Bank Examiner Wilson is in charge, as receiver for the government. He is carrying on the work of liquidating claims and collecting accounts. It is said collections are good, and the bank's affairs are in a shape favorable to the plan for resumption of business. It is said E. C. Mears, receiver of the Title Guarantee & Trust company, is making arrangements to take up quarters in the Marquam building and let the large banking rooms and abstracting plant now occupied in the Commercial building. The object is to reduce expenses. Collections are being pushed, and the receiver is preparing to take over the various subsidiary companies through which the depositors' funds were invested. The receiver's intention is 'to sell or lease the abstracting plant and safety deposit department.

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Take in the Script

PORTLAND, Or., Jan. 22-It is stated by the committee of local bankers having charge of the banking operations of the Portland banks during the recent depression that all of the $1,000,000 of clearing house certificates Issued during that time have been redeemed, in cluding $250,000 loan certificates issued to the suspended Merchants' National bank.

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RECEIVER THREATENED

(By United Press.) WASHINGTON, D. C., Feb. 10.If the Merchants' National bank of Portland, which suspended in November, does not re-open in a solvent condition by Feb. 15, It will be placed in the hands of a receiver. This information was given out by Comptroller Ridgely today.

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MERCHANTS NATIONAL REOPENS Portland Bank's Condition Now Satisfactory to Comptroller and Will Open Soon. Portland, Feb. 11.-The Merchants National bank of Portland, white, suspended in November, will reopen within the next few days. Comptroller Ridgley has notified President Watson to resume when ready to do so as the condition of the bank is now satisfactory to the treasury department.

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MERCHANTS NATIONAL TO OPEN, Portland Bank Is In Excellent Shape, Says Ridgely. PORTLAND, Feb. 11.-The Merchants National bank of Portland which suspended in November, will reopen within a few days. Comptroller Ridgely has notified President Watson to resume when ready to do SO as the condition of the bank is now satisfactory to the treasury department.

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Portland Bank to Reopen

PORTLAND, Ore, Feb. 12.-The Merchants' National bank, one of the largest in the Northwest, which was forced to suspend In November, will reopen Monday.

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PORTLAND BANK MAY OPEN

Merchants National Authorized to Resume by Comptroller. Comptroller Ridgely yesterday telegraphed to Bank Examiner Wilson at Portland, Oreg., instructing him to inform the officers of the Merchants National Bank to resume when they are ready to do SO. The Merchants National temporarily suspended on account of a run, during which $2,500,000 was withdrawn. The solvency of the bank was revealed by a rigid examination, and it was not required that a receivership be gone into. The resumption of the Merchants National, an $8,000,000 institution clears up for Portland the banking troubles brought on by the October panic.

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The Merchants National Again Open for Business. DEPOSITS ENORMOUSLYLARGE It Had One Million in Gold When it Reopened-Only $38,000 Was Withdrawn and That by Depositors Whose Balance Was About $100. 1 PORTLAND, Feb. 17.-With excess of deposits and a clearance bab ances amounting to $558,000 over withdrawals, representing the largest actual cash business, in the belief of Bank Examiner Wilson, that was ever transacted by a bank north of San Francisco and west of Denver, the Merchants' National Bank of this city, re-opened its doors for business today after having been closed eleven weeks today. When it re-opened it had over $1,000,000 in gold on hand, this amount being about $300,000 in excess of demand liabilities. The money withdrawn today amounted to $38,000 and represented depositors of sums for the most part of less than $100.

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Bank Resumes Business

Portland, Oreg., February 17.-The Merchants National bank reopened for business today after remaining for eleven weeks in the hands of a receiver. The bank opened with $5,000,000 in actual cash on hand, more than $350,000 in excess of the claims against the institution. Deposits were received all day.