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STEADY LOSS OF DEPOSITS CLOSED RENSSEL'ER BANK
Only $480,000 Deposits, Instead of $800,000, First Reported.
NO HYSTERIA
The public reaction in Rensselaer to the closing of the Rensselaer Trust and Savings Bank has been very admirable, according to the Evening Republican of that city "True," says the newspaper, "the disaster has had a disquieting effect but there has been no hysteria shown and the depositors and public generally have accepted the crash in philosophical manner After urging the people not to tighten up financially, but to keep their money circulating in 1 normal way, the Republican continues: "The city has had financial reverses in the past and recovered from them It will recover from this one if everyone will exercise good judgment and accept the situation philosophic allv Instead of $830,000 deposits, as stated in press dispatches, the de funct bank had deposits of only $489,610 The former amount evidently was taken from an old published statement, since which time the deposits have shrunk great deal.
The last public statement of the bank in October showed deposits of $486,610.73; bills payable $100,000; undivided profits $7,492.10; surplus $25,000 capital stock $100,000 Total liabilities being $723,819.11. Offsetting the above amount were the following resources Loans and $4,785.20; advances to estates, $162.94; U. S. Bonds, $3,000; other bonds, $13,128.78 furniture and fixtures, $9,000;real estate, $47,700; banking house, $28,000; due from banks and trust companies and cash on hand, $32,150.31, and cash items. $469.32. The total resources were $723,819.11.
Hunt's Statement
The representatives of the state banking department have made no statement, but J. J. Hunt, secretary treasurer of the bank, said that 'the gradual, but persistent, shrinking of deposits and accounts reduced our cash and reserve faster than loans could be reduced and resulted in the decision to close the bank." Mr. Hunt attributed the bank's condition a good bit to lack of public confidence. Many people, he said, knew there were assets of former bank, with which the Trust and Savings Bank consolidated in 1926, still unliquidated. Others knew the bank had real estate holdings. This knowledge on the part of the public," Mr. Hunt went on, "weakened the confidence of the people in the stability of the bank so much that there has been a persistcnt shrinkage of deposits. The institution needed new blood in the way of deposits. "The decline in deposits has made it impossible for us to make as many loans as we should, and the fact that we were not able to realize fast enough on our loans, reduced our cash and reserve, which necessitated borrowing money We ultimately came to the conclusion we would not be able to reduce our loans fast enough to carry on the bank in safe manner.' Mr. Hunt said there was an incipient run on the bank soon after word was spread around Tuesday that examiners had arrived. He believes the institution will pay in full if given sufficient time to complete its liquidation.
Mr. and Mrs. James Magee and John Griffin were in Winamac Wednesday where they attended the funcral of Mrs. Rena Miller. Mr. and Mrs. Harry Pingry were in Winamac Tuesday evening, called there by her death.
Mrs. 1. W Jenkins who has been quite ill at her home on North IIIInois street remains about the same
