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TWO KENTUCKY BANKS FAIL. The German National of Louisville and the First National of Newport. LOUISVILLE. Ky., Jan. 18.-The German National Bank, at First and Market streets. did not open its doors for business this morning. and the announcement was made that the institution was in the hands of Bank Examiner James E. Scott. The capital stock is $251,500. with a surplus of $31,000. J. M. McKnight is President. The bank has been in a shaky condition for three years, owing to the failure of the Louisville Deposit Bank, by which it lost $75,000. and there are also lawsuits involving between $250,000 and $300,000 pending. growing out of the bank's connection with the failure. Since the first of the year $75,000 in deposits have been withdrawn and several days ago Bank Examiner Escott began an investigation. On Saturday he telegraphed the result to the Comptroller of the Currency, and the order came for the bank to be closed at once. President McKnight says depositors will be paid in full. The bank has on hand, $60,000 in cash. The deposits subject to check are about $255,000. There are also certificates of deposit for $60,000. Mr. McKnight hopes to have the bank reorganized and ready for business in fifteen days. CINCINNATI. Jan. 18.-The First National Bank of Newport, Ky., closed its doors this morning. The news spread rapidly and soon there was a crowd of excited depositors assembled in front of the bank clamoring for an explanation. The officers sent out word that the bank was solvent, but had been forced to close down for lack of ready money. Assurances were offered that no one would lose anything. The depositors, however. refused to be satisfied. The excitement grew still greater when it became known that Comptroller of the Currency Eckels and a National Bank Examiner of Washington were to be in Newport to-day. A late and rather startling development is that Mr. John Trapp, ex-Sheriff of the county. who was elected President of the bank a week ago to succed Dr. Gunkel. who precipitately resigned. refused to accept the office unless the bank's affairs were thoroughly investigated. It seems that C. W. Nagel, who was elected to succeed Yontsey as cashier. had made sufficient investigation himself to warrant him in warning his friend Trapp that all was not as it should be. Therefore the bank had been without a President for nearly a week. Every bank in Covington, which adjoins Newport, had to meet a run to-day as best it could on short notice. Citizens rushed to their places of deposit by the hundreds as soon as they heard the news that the First National had not opened its doors in the morning and drew their savings. Many heavy depositors were among these. The Third National Bank was the New York correspondent of the Germania National Bank of Louisville. The Germania Bank owes it $13,000. and the loan is fully protected by collateral. The First National Bank was the New York correspondent of the First National of Newport. At the New York bank it was said that the Newport bank had a small balance there.