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FIRST NATIONAL BANK SALMON CITY CLOSED Action Ordered by Special Bank Examiner-Large Loans the Cause of Failure The First National Bank of Salmon City, in Lemhi county, closed its doors today. A message was received in the city late this afternoon from Salmon bearing the above announcement. The bank was closed up by special nation al bank examiner from Washington D. C. Other than this information the telegram gave no details. The First National bank of Salmon was organized about five years ago and was regarded as one of the principal financial institutions of the Salmon City country. It was capitalized at $50,000 with a surpus of $7500. H. G. King, who is well known in Boise, was the president of the defunct institution and John Lottridge was cashier. Both of these men, as well as all others connected with the bank, have always been held in high regard by the patrons and friends of the institution, and have occupied enviable positions among the banking fraternity of the state. The only reason assigned by local parties for the failure of the bank at this time is the practice of mak ing heavy loans so great in volume that the institution's available funds were not sufficient to meet up with the demand. While the true state of affairs which brought about the closing are not known here, the belief prevails among men well informed upon the subject that this practice of overloaing is doubtless the direct cause of the failure. Charles S. Loveland, who is known to Boise citizens, is the regularly employed examiner for national banks but in this instance the bank was closed by a special federal agent. There are two other banks located at Salmon City, both of which are in excellent shape.