c3325ce7Full suspension, Books examined
Other: Bank was taken in charge by the state bank examiner and later reopened by examiner; stock was owned by National Bank of Commerce which had failed/ suspended.
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REACHES INTO KANSAS. State Bank of Argentine Is Forced to Close. Kansas City, Mo., Dec. 5.-The State Bank of Argentine, Kan., a suburb with small deposits, closed its doors early this afternoon following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City, Mo. The cashier wired the state bank examiner to take charge and said he hoped to be permitted to reopen tomorrow morning.
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sued the following statement regarding the failure of the National Bank of Kansas City: The comptroller's office has been advised that the officers and directors of the National Bank of Commerce of Kansas City decided not to open its doors today and requested that a national bank examiner should take charge until assets could be realized on. There is strong hope that the bank may resume business. This bank is one of the largest in the west and in September last had about thirty-four millions of dollars on deposit. The failure is doubtless due to calls, which have been made on it for these banking balances and their inability to realize on assets quickly enough to meet them. It is yet too early for the comptroller's office to give details of the failure, but it is hoped that the bank will be found solvent so that the depositors can be paid in full if the bank is not able to resume. Branch Banks Close. Kansas City, Dec. 5.-The branch of the National Bank of Commerce of Kansas City, Mo., at the Union Stock yards, closed its doors this morning. Deposits were $300,000. The Union Avenue branch of the National Bank of Commerce in the west bottoms also closed. Its deposits were small. There have been no runs on banks of Kansas City and deposits have been made in all of them as usual. Argentine Bank Closer Kansas City, Dec. 5. --The State Bank of Argentine, Kan., with small deposits, closed its doors this afternoon following a run. The stock of the bank is owned principally by the National Bank of Commerce of Kansas City, Mo. The cashier has wired the state bank examiner to take charge and said that he hoped to be permitted to reopen by tomorrow. Local Banks not Interested. A Citizen reporter this afternoon talked with officials of the Albuquerque banks and found in each case that the local banks will in no manner be effected by the Kansas City situation. For the past three weeks, the local banks have been doing business through the banks of Chlcago and not through Kansas City, because the later has positively refused to make any remittances whatever. As a result the local banks do not have one cent on deposit in Kansas City. In fact, it is said, they owe Kansas City small amounts, the largest being less than five hundred dollars. Local bankers stated today that from advices they had received from other parts of New Mexico, the territorial bankers generally had withdrawn from Kansas City banks several weeks ago and this territory will not be effected. Albuquerque remains as solid financially as before the flurry and her banks are in excellent condition.
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KANSAS CITY BANK FAILS National Bank of Commerce Forced to Suspend HEAVY WITHDRAWALS CAUSE Institution One of Largest and Oldest in Middle West---May Re-Open. Kansas City, Dec. 5. The National Bank of Commerce of Kansas City, Missouri, failed to open its doors this morning and is in the hands of Nation al Bank Examiner J. T. Bradley. The bank is one of the oldest and largest financial institutions in this city and was closed by order of its board of directors. The bank had been in a weaken ed condition since its fast statement on August 22 last, when it owed the clearing house nearly a million dollars. After a conference lasting all night, the clearing house officials could not see any way to aid the bank further The statement of the National Bank of Commerce in response to the last call shows that since August 22 its deposits had been reduced from $35, 000,000 to $16,942,694 and its loans and discounts cut down $4,000,000. The statement issued this morning fol lows: Resources. Loans and discounts $12,895,656 Five per cent redemption funds $50,000. Real estate $697,542. Cash and sight exchange $5,343,460. U. S. bonds par $1,280,000. Other high grade bonds $4,006,771. Total $24,276,429. Liabilities. Capital stock $1,000,000. Surplus and undivided profits $1. 639,735. Circulation accounts $1,000,000. Due depositors $16,942,694. Clearing house certificates $3,694, 000. Total $24,276,429. Dr. S. Woods is president of the Bank of Commerce, W. H. Winants, vice president, and William A. Rule, cashier. James F. Downing, president of the clearing house said: Causes of Failure. a "I consider the failure due to lack of conservatism. None of the other banks here have found it necessary to ask aid of the clearing house and I consider them perfectly sound. The Commerce failure will not affect them." The Bank of Commerce held deposits of many small banks of the Southwest. The witdrawals of these funds caused the trouble. There nad been no run by local depositors but the publication of the bank's statement this morning caused a big crowd of depositors to gather about the bank building with the intention of withdrawing their money. Cashier Rule said: Statement of Cashier. "We made the fight of our lives but the conditions were against us. The depositors will not lose one cent.' Dr. Woods is president also of the Commerce Trust Company which has deposits of $1,395,400, of which sixty is said to be on hand. This it is asserted not af the Commerce per fected company cent by will failure. be Bank Examiner Bradley said he would make every effort to get the bank on its feet but could not say definitely when it would reopen. Branch Bank Forced to Close. Two small branches of the National Bank of Commerce, one located at the Union Stock Yards, and the other wholesale district in the west closed their doors were the Stock in ing. bottoms, the They Yards this of morn- $300, Bank of Commerce with deposits 000, and the Union Avenue Bank of Commerce, with small deposits. There were no runs on any of the other banks and deposits were made as usual. The State Bank of Argentine, Kansas, with small deposits closed its doors this afternoon following a run. The stock of the bank is owned principally by the National Bank of Commerce of Kansas City. Its cashier wired the state bank examiner to take charge and said he hoped to be permitted to re-open tomorrow. Has Large Balan.e With New York Correspondent. New York, Dec. -The New York of the of Kansas City, Commerce correspondent National Missouri, Bank official of is National Bank. An institution said bank had a Kansas of the that First City today large that balance here. the with the First National Bank The stock market was affected by the (Continued on Page Eight.)
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Run Closes State Bank. Kansas City, Dec. 5.-The State Bank of Argentine, Kas., a suburb, with small deposits, closed its doors early this afternoon, following a run. The stock in the bank was owned principally by the National Bank of Commerce of Kansas City, Mo.
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to other banks. The failure doubtless was due to calls which have been made on the bank for these banking balances and their inability to realize on assets quickly enough to meet them. It is too early for the Comptroller's office to give details of the failure, but it is hoped that the bank will be found solvent so that depositors can be paid in full even if the bank is not able to resume." Affected the Stock Market. New York, Dec. 5.-The New York correspondent of the National Bank of Commerce of Kansas City is the First National Bank. The officials of that institution said today that the Kansas City bank had a large balance with the First National. The stock market was affected by the news of the failure, but not to a serious extent. Signs of Recovery in the East. Boston, Mass., Dec. 5.-Signs of recovery from the business depression are being felt in all parts of New England, by the resuming of operations in the mills which were either shut down or shortened their working hours. Kansas City, Dec. 5.-(1:50 p. m.) The state bank of Argentine, with small deposits, closed this afternoon, following a run. The stock of the bank was owned principally by the National Bank of Commerce. The cash ier wired the state bank examiner to take charge and said he hoped to be permitted to re-open tomorrow.
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me National Bank or omneice appeared in the morning papers it showed since the statement of Aug. 22 last deposits had been reduced from close to $35,000,000 to $16,953,000. The statement showed also the item of loans and discounts had been cut down $4,000,000. Leading Men Interested. The principal officers of the National S. Bank of Commerce are: Dr. W. Woods, president; W. H. Winants, vice president, and William A. Rule, cashier, Its directors and stockholders include some of the most prominent men in the city. Woods is also president of the Commerce Trust company of Kansas City which nas a capital of $1.000,000 and deposits of $1,396,000. Since its last statement the deposits of the trust company have increased nearly $200,000, and that institution is believed to be in a sound condition. Others Not Affected. James F. Downing, head of the local clearing house association, expressed the belief the failure of the Commerce would not involve deeply any other Kansas City institution, and that the other local banks would be able to weather the storm, The Commerce held the deposits of numerous small banks in this part of the southwest. What effect this failure will have upon them is problematic Outside Banks Cause Trouble. There has been no run by local depositors, but many outside banks caused trouble by withdrawing their funds on deposit with the Commerce. The Commerce was a United States depository and was interested in many local enterprises. Its individual depositors were among the largest of any bank in the city. Its statement printed this morning showing a heavy falling off in deposits drew a big crowd of depositors to the bank early, evidently intent upon drawing their money. More or less excitement followed the news that the bank had Deen closed, and the crowd gradually grew in size until it stopped traffic. Cashier Makes Statement. William A. Rule, cashier of the bank, made the following statement this morning in the presence of President Woods and two directors: Name National Bank-ofCommerce thought it best to at least close temporarily We made the fight of our lives, but conditions were against us. Depositors will not lose a cent." Woods acquiesced in what the cash ier said, Statement as Published. The statement issued today follows: I Resources - Loans and discounts $12,899,000; real estate, $689,000; 5 per cent redemption fund, $50,000; cash, sight exchange, United States bonds, and other high grade bonds, $10,630, 000. Total, $24,277,000. D Liabilities-Capital stock. $1,000,000; surplus and undivided profits, $1,640, 000; circulation account, $1,000,000; d due depositors, $16,943,000; clearing house certificates, $3,694,000. Total $24,277,000. Two Branches Shut Doors. Two small branches of the National rBank of Commerce also closed their to doors this morning. They were the al Stock Yards Bank of Commerce, det. posits of $300,000, and the Union Avenue Bank of Commerce, with small n deposits. There was no especial exat citement around these institutions The failure of the banks failed to cause y a run on any of the other banks and on at most of the other institutions de SS posits were made as usual. Another Small One Caught. Kansas City, Mo., Dec. 5.-The State d Bank of Argentine, a Kansas City su eburb. with small deposits, closed its ordoors early this afternoon following run. The stock of the bank was to at owned principally by the Nationa Bank of Commerce of Kansas City. erChicago Banks Debtors. reChicago, Ill., Dec. 5.-President For ial gan, chairman of the Chicago clearing house committee, said the failure o es, re the no would Kansas have City effect Bank upon of Commerce Chicago banks for the reason Chicago bank: with which it has accounts are al 1ddebtors to the Kansas City institution nd th Has Deposits in New York. at New York, Dec. 5.-The New Yor am correspondent of the National Bank o beCommerce of Kansas City is the Firs National bank. An official of that in lly uld stitution said today the Kansas Cit bank had a large credit balance wit Ily the First National. The stock marke in was affected by news of the failure but not to a serious extent. as lue Does Not Change Rate. ayLondon, Dec. 5.-The rate of discour of of the Bank of England remained un of changed today at 7 per cent. New England Factories Reopen. Boston, Dec. 5.-Signs of recover the from the business depression whic en started several weeks ago are bein unin of New England b
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Small State Bank Fails. Kansas City, Mo., Dec. 5.-The State Bank of Argentine, Kas., with small deposits, closed its doors this afternoon, following a run. The stock of the bank was owned principally by the National Bank of Commerce of Kansas City, Mo. The cashier wired the state bank examiner to take charge, and said he hoped to be permitted to re-open tomorrow.
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SMALL BANK SUSPENDS. Kansas City, Dec. 5.-The State Bank of Argentine, Kansas, a suburb, with small deposits, closed its doors early this afternoon following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City, Mo. The cashier wired the state examiner to take charge, and said he hoped to be permitted to re-open tomorrow morning.
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not say definitely when It would reopen. BRANCH INSTITUTIONS ALSO CLOSE THEIR DOORS Kansas City, Dec. 5.-The branch of the National Bank of Commerce of Kansas City, Mo., at the Union Stock yards, closed its doors this morning. Deposits were $300,000. The Union Avenue branch of the National Bank of Commerce in the west bottoms also closed. Its deposits were small. The state bank of Argentine, Kas., with small. deposits, closed its doors this afternoon following a run. The stock of the bank is owned principally by the National Bank of Commerce, of Kansas City, Mo. The cashier has wired the state bank examiner to take charge and said that he hoped to be permitted to reopen by tomorrow.
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BANK FAILURE AT KANSAS CITY, MO. Large Financial Institution Is Forced to Close Its Doors. NATIONAL EXAMINER IN CHARGE News of the Failure Brings a Crowd to Bank Which Stops Street Traffic. Deposits of the Institution, the Nation. al Bank of Commerce, Have Fallen Off Heavily Other Banks Closed. Kansas City, Mo., Dec. 6.-The Na. tional Bank of Commerce of Kansas failed to open in and is in the the City, the morning, Mo., hands its doors of national bank examiner. The bank is oldest here and is larginstitution in est one financial of the the the city. The following notice was posted on of the bank at m.: the door 8:30 by a. "This bank has been closed order board of directors. It is in the of James T. hands of the Bradley, of the national bank examiner, by order comptroller of the currency." Bank in Weakened Condition. The bank has been in a weakened since its last condition statement, last. At which was issued Aug. 22, that time it was stated the bank owed the clearing house close to a million dollars. When the financial disturbance came and the clearing house decided to issue clearing house certificates, rumors regarding the bank's came, and the clearing in the past few days, condition house, has national held several conferences of other banking officials here in this connection, and means of keeping the bank open were discussed. No Response to Comptroller. Much surprise was expressed when the request of the comptroller for a of condition of was to by the statement not responded National banks Bank of Commerce. Other local banks pubtheir statements, a but of lished healthy condition, the showing officials the Commercial announced that its statement would not be forthcoming till morning. This created further distrust in the condition and after into the early bank's lasting hours conferences officials of the morning, the clearing house decided they could not aid the failing bank. Heavy Reduction in Deposits. the statement of the of Commerce the Bank When appeared that National in since morning papers it showed the statement of Aug. 22. last, the deposits had been reduced from close to $35,000,000 to $16,952,969. The statealso, that the item of discounts had been loans ment and showed, showing cut down $4,000,000. Its statement the off in deposits drew a of depositors to as big heavy crowd failing evidently the bank intent early as 9 o'clock, withdrawing their money. More excitement followed bank had been upon that or less the closed, the and news the crowd gradually grew in size until it stopped traffic. Depositors Will Not Lose. William A. Rule, cashier of the bank, made the following statement the in the presence of Dr. W. S. Woods, president: "The directors of the National Bank Commerce thought it was best to at of least close temporarily. We made the fight of our lives, but conditions were against us. The depositors will not lose cent." Dr. Woods acquiesced in what the cashier said and added: "You may also say that the Commerce Trust company is absolutely all right. Yesterday's statement showed 60 per cent of its cash on hand." Branch Banks Close. small branches of the Two located the National at Bank of Commerce, one the Union Stock Yards and the other in wholesale district in the west bottoms, also closed their doors during the morning. They were the Stock Yards Bank of Commerce, deposits. $300,000. Union Avenue Bank of Comwith small merce, and the deposits. around There was no especial excitement these institutions. The failure of these banks failed to cause a run on any of the other banks in this city. The State bank of Argentine, Kan., suburb, with small deposits, closed fola its doors early in the afternoon lowing run. Statement of Comptroller. Washington, Dec. 6. The comptrolcurrency, in a statement rethe failure of the Commerce of garding ler Bank of of the Kansas National City, says: bank is one of the largest in and in September of the about "This west $34,000,000 deposits. last Some- had due like $22,000,000 of this was thing other banks. The failure is doubt- made less to due to calls which have been National Bank of Commerce for banking to realize on their on ability these the balances them. and assets their quick- inly enough to meet "It is hoped that the bank will be be found solvent, so the depositors can paid in full if the bank is not able to resume."
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Kansas State Bank Suspends. Kansas City, Dec. 6.-The State bank of Argentine, Kan., a suburb, with small deposits, closed its doors following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City. The cashier wired the state bank examiner to take charge.
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KANSAS CITY QUIET The Situation There is Not Alarming. Believed the National Bank of Commerce Will Pay Out in Full.-Argentine Bank Re-opens.- Chicago Reports Stringency Nearing an End. Pittsburg, Pa., Dec. 6.-The Fort Pitt National Bank, of this city, failed to open for business today. The following notice was posted: "Closed by order of the Comptroller of the Currency.." Signed John B.° Cunningham, examiner. President Andrew Herron said to the Associated Press today: "The depositors will be fully protected." The suspension had no apparent effect upon other institutions of the city. During the morning hours not more than twenty depositors loitered about the bank. Washington, Dec. 6.-At the office of the Comptroller of the Currency it was stated that the Fort Pitt bank of Pittsburg was not closed by order of the Comptroller, but on request of the directors of the bank who applied to Bank Examiner Cunningham to take charge of the bank on behalf of the Comptroller. Situation Quiet at Kansas City. Kansas City, Dec. 6.-There was no evidence of a run on any of the local banks in the early hours today. The bank officials generally gave the opinion that the crisis resulting from the failure yesterday of the National Bank of Commerce was over, and that normal conditions will soon be restored. Many depositors of the Bank of Commerce feel reassured by the declarations of officials that the institution will not only pay depositors in full, but that the stockholders also will lose nothing. James E. Bradley was appointed receiver yesterday by the Comptroller of the Currency. No statement was made this morning. Mr. Bradley was receiver of the First National Bank of Topeka which failed as a result of the collapse of the enterprises of the late C. J. Devlin in 1905. His wise management of the affairs of that bank inspired many of the larger depositors of the Bank of Commerce with the hope that he will be able to realize the claims of the officials and that payment in full may result. One Branch Bank Re-opened. Kansas City, Dec. 6.-One of the three small banks in the suburbs of Kansas City affiliated with the Bank of Commerce that closed yesterday, the State Bank, of Argentine, Kansas, re-opened for business this morning. This bank's deposits were a quarter of a million dollars, and its cashier says it is in perfectly sound condition. t Stringency Nearing an End. Chicago, Dec. 6.-There were many e indications here yesterday that the h money stringency is nearing an end. No withdrawal notices were filed, the i deposits are again increasing, no clear : ing house certificates were given out, and the banks have redeemed large ) amounts of the emergency currency. 1 1 name of howl
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NOTICE POSTED THAT THE BANK CLOSES BY ORDER OF COMP- TROLLER OF CURRENCY AT WASHINGTON. President Says Depositors Are Fully Protected, Suspension Being Pre- cipitated by Occurrences of Yes- terday—State Bank at Argentine, Kansas, Resumes Business This Morning by Order of Examiner.
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Kansas State Bank Suspends. Kansas City, Dec. 6.-The State bank of Argentine, Kan., a suburb, with small deposits, closed its doors following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City. The cashier wired the state bank examiner to take charge,
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CLOSING OF BANK'S DOORS CAUSES NO DISTURBANCE By Associated Press. KANSAS CITY, Dec. 5.-The National Pank of Commerce of Kansas City, Mo., one of the largest in the west, with deposits of $16,000,000, closed its doors this morning and was taken in charge by a national bank examiner upon an order of the comptroller of the currency. Later two small outlying banks in which the Commerce was interested, the Stock Yards Bank of Commerce, and the Union Avenue Bank of Commerce, also closed. The failure of these banks had been expected for several days and but little excitement followed the news of the failure. The failure is laid to the withdrawals of outside banks within the past two months of $18,000,000 of deposit. They ex. pect to reopen soon and say depositors will be protected in full. Other local banks were not seriously affected up to noon and at several banks heavy deposits were made. .The State bank of Argentine, Kas, suburb, with small deposits, closed its doors early this afternoon following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City, Mo.
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Kansas Bank Closed. Kansas City, Dec. 5.-The State Bank of Argentine, Kan., a suburb, with small deposits, closed its doors early this afternoon following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City, Mo. The cashier wired the state examiner to take charge and said he hoped to be permitted to reopen tomorrow morning.
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Kansas State Bank Suspends. Kansas City, Dec. 6.-The State bank of Argentine, Kan., a suburb, with small deposits, closed its doors following a run. The stock in this bank was owned principally by the National Bank of Commerce of Kansas City. The cashier wired the state Bank examiner to take charge
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Kansas City, Mo., December 5.-The National Bank of Commerce of Kansas City, Mo., one of the largest in the west, with deposits of sixteen millions, closed its doors this morning and was taken in change by National Bank Examiner James T. Bradley, upon an order of the comptroller of the currency. Mr. Bradley was appointed receiver this afternoon. Two small outlying banks in which the Bank of Commerce was interested, the Stock Yards Bank of Commerce and the Union Avenue Bank of Commerce, also closed today. The failure of these banks had been predicted for several days, and but little excitement followed the announcement of the news, although crowds of depositors gathered about the doors f the institutions. The failure is laid to the withdrawal of outside banks within the past few months of $18,000,000 of deposits. The bank's officials expect to re-open soon and say depositors will be paid in full. The State Bank of Argentine, Kas., a suburb of Kansas City, with small deposits, closed its doors early this afternoon, following a run. The stoc in this bank was owned principally by the National Bank of Commerce of Kansas City. The cashier wired the state bank examiner to take charge, The following statement was issu today by Dr. W. S. Woods, president of the Nationa Bank of Commerce, for the board of directors: "To the public: Much as we regret to do so, we are compelled to close the doors of the National Bank of Commerce because we have not been able to collect money from our borrowers as fast as the same was demanded by our depositors, caused by unjust and unfounded rumors vigorously circulated. "During this panic we have reduced our deposits from thirty-two and onehalf millions dollars to about sixteen and one half millions dollars, thus paying out over the counter and by transfers to other banks in this city and other cities about eighteen milior of deposits. This of itself tells of our resources. We have made the fight of our lives but could not stand the strong tide. "We hope to be able to open up the bank again in the near future for business. We do not believe it possible for a depositor in the National Bank of Commerce to lose a dollar. We beg your indugence and forbearance until our affairs can be adranged to the satisfaction of all parties interested We apprecate sensibly the confidence that our numerous customers, large and small, have placed in us, and we hope to show in the end that we have been true to this trust." Topeka, Kansas, December 5.-John Royce state bank examiner, today announced that the state banks would not be seriously crippled by the failure of the National Bank of Commerce at Kansas City. It is stated that the bulk of the deposits of Kansas banks in the Bank of Commerce have been withdrawn or transfrred.
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FOUR BANKS FAIL AT KANSAS CITY. National Commerce Institution Goes Down, Carrying 3 Smaller Houses With It. The National Bank of Commerce. the second largest financial institution in Kansas City, with $16,942,694 in deposits, failed to open its doors Thursday. Later three small institutions in which the Bank of Commerce was largely interested--the Stockyards Bank of Commerce, the Union Avenue Bank of Commerce, and the State Bank of Argentine, Kas., a suburb-also closed their doors. The failure of the National Bank of Commerce followed a steady run of six weeks, during which the bank had paid off $19,000,000 of its dep Sits, reduced its loans three and a halt million dollars, cut down its cash resources eleven and three-fourths million dollars, and sold two million dollars of high grade bonds in an effort to meet the demands upon it. The directors of the bank had been in conference practically all night before the decision to suspend business was reached. They gave out a statement Thursday morning saying that inability to collect money from borrowers as fast as it was demanded by the creditors of the bank was the cause o fthet closing. They said Chicago and New York bankers had offered assistance, but that it had been refused because they could not tell how long the heavy drains would continue. Certain Chicago, New York, and St. Louis bankers agreed to raise $3,750,000 to help out the National Bank of Commerce if that amount would pull the institution through. It was provided, however, the bank should be specially examined and the securities offered fo rthe loans to be made should be approved. A special examination proved conditions to be unsatisfactory and the bank was closed. A few of the Chicago banks already had advanced several hundred thousand dollars. One of the loans was secured by bonds. Another large bank, instead of making a loan, rediscontinued a large sum of commercial paper. The closing of the bank occasioned no disturbance at Kansas City. The same was true in New York. But as Kansas City is a so-called reserve city under the national banking act, a great many Kansas banks carried a part of their reserve with it. There may be some suffering in Kansas and contiguous territory on this account.