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Has a Credit Balance. New York, Oct. 28.-The Bankers' Trust company of Kansas City, Mo., has a credit balance with the Oriental bank, which is its New York correspondent. Cashier Adams of the Oriental bank said: "The Bankers' Trust has a moderate credit balance with the Oriental bank. The suspension can in no way affect the Oriental bank."
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positors' Checks. PHILADELPHIA, October 28.-At a meeting of the trust companies of Philadelphia today, following the action of the clearing house in Issuing clearing house certificates, the trust companiea decided that until further notice they will meet the checks of their depositors by the issuance of checks drawn by the trust compantes upon their respective national banks stamped as "payable through the clearing house only." and to pay out money over their counters in the same way as the national banks will do; that is, only for business requirements, pay rolls or the personal needs of depositors in cash where bankable funds payable through the clearing house will not answer. A committee of trust company prestdents to co-operate with the national banks was appointed as follows: Effingham B. Morris Girard Trust Company. chairman: Rudolph Ellis. Fidelity Trust Company: C. S. W. Packard. Pennsylvania Company for Insurance on Lives and Granting Annuities: Asa S. Wing, Provident Life and Trust Company; William L. Dubois, Philadelphia Trust, Safe Deposit and Insurance Company: William R. Nicholson, Land Title and Trust Company; Richard Y. Cook. Guarantee Trust and Safe Deposit Company, and Horatio G. Lloyd, Commercial Trust Company. Chairman Morris said after the meeting that the situation in Philadelphia is in admirable shape. and that this action of the trust companies was taken merely for the purpose of co-operating with the national banks to prevent large withdrawals of cash either to other cities or its hoarding by depositors. It is one of the means adopted. he said. for the protection alike of both banks and trust companies and their depositors. Notice of the action taken by the large trust companies was sent to all the trust companies in the city. Trouble in Kansas City. KANSAS CITY, October 28.-The Bankers' Trust Company has asked aid of the clearing house. but it was declined because of the class of collateral offered. James F. Downing, president of the Clearing House Asociation, said that no other banking institution here had requested aid and he believed them in a safe condition. The Bankers' Trust Company was organized last year and had a capital of $500,000 and a surplus of $14,000. It took over the busines of the City National Bank which failed in July, 1905. The Bankers' T ust Company was not a member of the clearing house, and while no run was experienced at this bank at the opening of business this morning, it was decided temporarily to suspend business to protect depositors and stockholders. Cashier Hughes said that the bank had ample assets to meet all liabilities Its foreign correspondents are the Oriental Bank of New York and the Pratrie National Bank of Chicago. There was no appearance of anything like a run at any of the other local banks up to 10:30 o'clock. Members of the Clearing House Assoriation today advised their correspondents in the southwest by telephone to restrict payments to depositors until the present flurry had passed. and the indications were that this advice would generally be accepted. Providence Is Quiet. PROVIDENCE, R. I., October 28.-At the hour of opening today there was every indication that banking conditions in this city would be normal today. Previous to the beginning of business today there was no evidence that any of the savings institutions would be subjected to an unusual number of withdrawals. Pittsburg Still Comatose. PITTSBURG, October 28.-It was decided not to open the Pittsburg Stock Exchange at a meeting of the board of directors this morning. Just when the exchange will resume transactions is not known Another meeting of the directors will be held tomorrow morning. It is the belief in some quarters that the exchange will remain closed throughout the week. Aside from the suspension of the exchange there is nothing else worthy of mention in the local financial situation. Boston's Precaution. BOSTON October -The Boston Clearing House Association today decided to issue clearing house loan certificates bearing interest at 7.3 per cent. The high rate of interest is for the purpose of retiring the certificates at the earliest possible date. The New York rate is 6 per cent. The loan committee of the clearing house will pass upon collateral and approve the issue of the certificates at 75 per cent of the market value of the securities. Leading bank officials declared today that the adoption of the clearing house certificates for the settlement of bank balances was solely as a precaution against the withdrawal of money by persons desiring to hoard it or to take advantage of high currency rates in other cities. Maine State Bank Suspends. BATH. Me., October The Bath Trust Company. a small bank controlled of New York closed
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OKLAHOMA BANKS CLOSE DOORS ON ORDER Oklahoma City, Okla., Oct. 28.Every bank in this city is closed today on orders of Acting Gov. Charles Filson and it is said that the order will be in effect for the rest of the' week. Bankers of the city are in session at the Chamber of Commerce. Order astounded bankers as there had been no uneasiness felt here, and all local banks are considered of strong financial condition. The people of the city and the rural districts have plenty of money Frantz Takes Precaution. Mr. Filson issued a proclamation closing banks of the territory for one week on demand of bankers. Action was taken because banks of Kansas City and St. Louis refused to forward cash to banks of the southwest. It is said that a consultation of bankers of Arkansas, Oklahoma, and northern Texas took place this morning over the telephone and that all have decided to act in accordance with the order issued by Acting Gov. Filson in Oklahoma. Closing is for purpose of protecting banks in case of run. KANSAS CITY BANK SUSPENDS BUSINESS. Kansas. City, Mo., Oct. 28.-The Bankers Trust company with deposits of $800,000. closed this morning. Cashier J. C. Hughes said that they had decided to close temporarily because clearing house association has refused to extend it the privilege granted thirty other leading banks here of association in issuing clearing house certificates. COMPANY WILL GO INTO LIQUIDATION The Bankers Trust Co. will go into liquidation. The concern has been planning liquidation for several weeks and under ordinary conditions would have been able to do so without loss to any one. Statement of condition at the close of business Saturday night shows loans and discounts $658,701; stocks and bonds $598,581; cash and sight exchange $114,547; deposits $798,245. There was but $8,000 cash on hand when the bank opened this morning.
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PRECAUTIONARY MEASURES TAKEN Banks of Southwest Close For One Week FOR PROTECTION OWN Small Institution at Kansas City Goes Into Voluntary Liquidation. Oklahoma City, Okla., Oct. 28.Acting Governor Charles Filson is sued a proclamation today closing the banks of the territory one week on demand of the bankers. This action was taken because the banks of Kansas City and St. Louis refused to forward cash to the banks of the southwest. It is said that a consultation between the bankers of Oklahoma and Indian Territory, Arkansas and northern Texas by means of the long dis tance telephone took place during the early hours of today and all have taken similar action. The closing is for the purpose of protecting the banks in case of a run. Kansas City Trust Company Suspends Kansas City, Oct. 28.-The Bank ers Trust Company with deposits of $800,000. closed its doors this morning. Cashier J. C. Hughes said the company had decided to close temporarily because the Clearing House Association had refused to extend it the privilege granted thirty other leading banks here of issuing Clear ing House certificates. The Bankers Trust Company will go int liquidation. The concern has been planning to liquidate for several weeks and under ordinary conditions would be able to do so without loss to any one. The statement of the condition of this bank at the close of business Saturday night showed: Loans and discounts $658,701. Stocks and bonds $598,581. Cash and sight exchange $114,547 Deposits $798,245. There was but $8,000 cash on hand when the bank opened for business this morning. Clearing House Issues Statement. The Kansas City Clearing House association, in conference here last night, requested the Associated Press to send out the following statement to its country correspondents: "To the Banks of the Southwest: "In view of the action taken by the clearing houses of New York, Chicago, St. Louis and in other cities, in order to protect the business interests of Kansas City and the southwest, the Kansas City Clearing House association will issue clearing house certificates as needed and will require all payments to be made through the clearing house. "It suggests that banks make all payments by drafts payable through the clearing house only." Bankers say that this precautionary act was made necessary for the protection of local financial institutions, because the same action had already been taken by the clearing houses of the larger cities of the east.
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[By Associated Press.] KANSAS CITY, Mo., Oct. 28.The Bankers Trust Company with deposits of $800,000 has been closed temporarily because the clearing house association refused to extend them the privilege granted to other leading banks here of issuing clearing house certificates. There was no run on the institution and it as done to protect depositors.
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BANKER MISSING RECEIVER NAMED KANSAS CITY, Oct. 28.-Following the disappearance of J. E. Brady, a receiver was today appointed for the Bankers' Trust Co., a Brady concern.
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KANSAS CITY TRUST CO. Kansas City, Oct. 28.-Following the disappearance of J. E. Brady, a receiver was today appointed for The Bankers Trust Company, a Brady concern.
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BANKERS' TRUST CO., KANSAS CITY Clearing House Declined to Render Aid and it Closed Its Doors TO PROTECT DEPOSITORS. Only a Temporary Suspension-It Has Ample Assets to Meet All Liabilities. Kansas City, Oct. 23.-The Bankers' Trust company of Kansas City, Mo., with deposits of $800,000, closed at 10:15 this morning. Cashier J. G. Hughes said that they had decided to close temporarily because the clearing house association had refused to extend to them the privileges granted the 30 other leading banks here of issuing clearing house certificates. The Bankers Trust company was organized last year, and had a capital stock of $500,000 and a surplus of $14,000. It took over the business of the City National bank, which failed in ,July, 1905. The Bankers Trust ec mpany was not à member of the clearing house and while no run was experienced at this bank at the opening of business this morning, It was decided that a temporary suspension was necessary to protect depositors and stockholders. Cashier Hughes said that the bank had ample assets to meet all liabilities. Its foreign correspondents are the Oriental Bank of New York and the Prairies National bank of Chicago. There was no appearance of anything like a run at any of the other local banks up to 10:30 o'clock. Members of the clearing house association today advised their correspondents in the southwest by telephone to restrict payments to depositors to a small amount, until the financtal flurry had passed, and the indications were that this advice was generally being accepted. Kansas City, Oct. 28.-The Bankers' Trust company has asked aid of the clearing house, but it was declined because of the class of collateral offered. James F. Downing of the clearing house association, said that no other banking institution here had requested aid. and he believed them in safe condition. Kansas City, Oct. 28.-The clearing house yesterday having decided to issue certificates. that action was put into effect today. It applies to 30 principal local banks and trust companies or this city, The rule not to pay over the counter cash in excess of $100 a day. or $200 a week to any one customer on open account was put into force also and currency shipments to the country correspondents was stopped temporarBy. Trust companies and savings banks likewise enforced the time rule, they agreeing to pay out not to exceed $20 a week. Similar action was taken by the banks at Kansas City, Kansas and Kansas City suburbs, and at none of these places was there any early excitement. The Bankers' Trust company was taken in charge by W. C. Irwin, who had been sent here by Secy. of State Swanger. The bank closed upon the advice of Mr. Irwin, and it will be Iiquidated. He said the concern had been planning for several weeks to liquidate, and under ordinary conditions would have been able to do so. A statement of the condition of the Bankers' Trust company at the close of business Saturday night last showed loans and discounts, $658,701; stocks and bonds, $259,581; cash and sight exchange $114,547 deposits $798,245.
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In Kansas City. Kansas City, Oct. 28.-A receiver was appointed for the Bankers' Trust company. The clearing house instituted the certificate plan. Kansas City, Oct. 28.-The state bank examiner took charge of the Bankers Trust company today, which has a capital stock of a half million and deposits of three-quarters of a million. The receivership is due to inability to collect on assets. It is reported J. E. Brady, one of the principal stockholders, who has been missing a week, is involved to a half million. The clearing house instituted certificate plan today. New York, Oct. 28.-The feeling among banking authorities last night is that united action and wise counsels have already accomplished much in providing a solution for the financial problem with which they have been called on to deal during the past week, and that with remedial plans further perfected the promise is strong for the maintenance of finan cial stability. The usual Sunday calm gave the financial leaders opportunity to ease the tension of overwrought nerves experienced during the week. Most of them remained at home throughout the day. The departure of Secretary Cortelyou for Washington removed a conspicuous figure from the field, but it was felt that with President Roosevelt's strong support, as expressed in his letter made public last night, Mr. Cortelyou's presence in Washington was favorable to such further government assistance as might be required. At the clearing house there was much evidence of activity in preparation for the issuance of loan certificates. This, however, was confiend to the subordinates, as the loan committee, which is to pass upon col. lateral offered for the certificates, did e not hold a formal session. Another t evidence of activity was the small e knot of people gathered at some of the institutions where runs were in D progress last week, waiting for ad1 vantageous position on the opening of business.
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Methods Work Well. Kansas City, October 28.-Outside of the failure of the Bankers' Trust company, with deposits of $800,000, there was no real trouble here today. This bank was considered the weakest institution of its kind here, and its failure neither caused much surprise nor had no apparent effect upon the general situation. There were no runs or any of the banks here or in Kansas City, Kan., up to the closing of business today. The decision of the banks to restrict payments of currency caused but little embarrassment.
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BIG KANSAS CITY FAILURE. Bankers' Trust Company Forced by Clearing-House Action to Suspend. KANSAS CITY, MO., October 28.The Bankers' Trust Company, with deposits of $800,000. closed at 10:15 to-day. Cashier J. C. Hughes said that the bank had decided to close temporarily because the ClearingHouse Association had refused to extend to it the privileges of issuing clearing-house certificates granted the thirty other leading banks here. Members of the Clearing-House Association to-day advised their correspondents in the Southwest by telephone to restrict payments to depositors until the present flurry had passed, and the indications were that this advice would generally be accepted. A statement of the condition of the Bankers' Trust Company at the close of business last Saturday night showed: Loans and discounts, $658.701; stocks and bonds, $598,581; cash and sight exchange, $114,547; deposits, $798,245. There was but $800 cash on hand when the bank opened this morning. Outside of the failure of the Bankers' Trust Company, there was no financial trouble to-day. The failure had no apparent effect on the general situation. No other banks were affected. There were no runs on any of the banks here or at Kansas City, Kansas.
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THE NEWS THIS MORNING. POREIGN.-General Maximoffsky, director of the Department of Prisons, was shot six times and killed by a woman in his office at St. Petersburg. The Red Star liner Finland, entering Dover Harbor at night, struck the breakwater and was badly damaged; no passengers were injured. New York interests obtained $5,000,000 in bar gold at a sharp advance in London; it is considered certain that the Bank of England's rate will be raised; stocks were generally steady on foreign exchanges, Americans showing advances. Russian election results show that the next Douma will be overBarbara Lawhelmingly conservative. ponkhin, daughter of the former Governor of Reval, was kidnapped on going out of the Aldwych Theatre, and is held prisoner in a cellar in the Northwest of London. King Alfonso and Queen Victoria were warmly welcomed in Paris; after a dinner at the Elysée Palace the Leading sovereigns started for England. British authors signed a petition for the abolition of the office of censor of plays. DOMESTIC.-President Roosevelt set November 16 as the date for the admission of Oklahoma into the Union. Oklahoma banks closed their doors following a proclamation by Charles Filson, Acting Territorial Governor, ordering a legal holiday until November 2 because The Bankers' of the money stringency. Trust Company, of Kansas City, with deposits of $800,000. closed its doors, but otherwise the financial situation in that city was strong. Boston's District Attorney, because of constitutional questions, abandoned the prosecution of a number of public officials on indictments for soliciting or holding places with public service corporations. The United States Circuit Court of Appeals, at Montgomery, Ala., denied a rehearing in the case of Greene and Gay, nor. A deficit of $25,000 was found in the accounts of the Dollar Savings Bank, of Akron, Ohio, following the suicide of the cashier. There was a slight run on the Hibernian Savings Bank, in Chicago: the municipal payroll of that city was held up. Because of the withdrawal of deposits the Bath Trust Company, at Bath, Me., controlled by Charles W. Morse, suspended operations. CITY.-Stocks made general net gains. The financial situation showed steady improvement. The runs on uptown banks were practically over, Lindsay Russell was appointed receiver of the business of Otto Heinze & Co. The Public Service Commission issued its final order for improved transit on the Fourth avenue and Madison avenue line. Dr. W. R. Gillette, ex-vice-president of the Mutual Life Insurance Company, was sentenced to serve six months in the petitentiary. It was reported to the coroner that Charles R. Henderson, a banker, had been killed on Sunday by falling from the window of his home, at No. 27 East 65th street. A motion to hold the night court open till 3 a. m., as formerly, was defeated by the Board of Magistrates. The subject of milk and its relation to the spread of tuberculosis was the chief topic at the meeting of the State Medical Society. The Aeronautical Congress discussed airships as adjuncts to warfare. Two men confessed to illegal registration. THE WEATHER.-Indications for to-day: Rain. The temperature yesterday: Highest, 60 degrees; lowest, 51.
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SCARE IS OVER. (Continued from Page One.) This has not reached serious propor- issuance however, owing to the the tions, clearing house certificates and of action of all the banking the institutions making checks payable through clearing house. Five Holidays Prociaimed. Portland, Ore., Oct. 29.-At the re- House of the Portland Clearing Chamberquest association, Governor Geo. E. five last night declared the next holiday in lain in his state a legal in days to prevent a money famine are order The banks of this city been this absolutely state. sound and there has has one no run on any of them, nor been threatened. Cashier Shoots Himself. O., Oct. 29.-The Dollar order Sav- of Akron, bank has been closed by of ings directors until after the funeral shot the Baron, its cashier, who An Fred A. while alone in his home. going himself investigation of his accounts is foot to movement is also on take on and the a other banks of the city to have institution over. According deficit of this of the directorate a 60 day members has been discovered. The acnotice $25,000 is enforced on all savings counts in the banks of the city. Discount Rate Advanced. Oct. 29.-The discount rate was of Berlin, Imperial Bank of Germany cent. the today from 51/2 to 61/2 per situaraised significant of the changed adIt is in the market here that the whereas tion was a full 1 per cent discussed vance bank October 17. only The the the rate half per cent. York's raising is directly due to New here change for gold, which it is feared will demand lead to gold exports from Germany. leading exchange rates of all the point. The are now above the gold German countries market had expected the The to await the Bank of engage- England's bank but yesterday's gold apparaction, in London for New York here ently ments rendered immediate action necessary. Gold Engaged, $18,750,000. York, Oct. 29.-Late an- yesterday New the National City bank afternoon that it had engaged to $1,250,000 nounced for importation in addition makin gold $6,000,000 already announced instituits total of $7,250,000 for that by ing a and an aggregate of of $18,750,000 the tion various banking institutions the city on this movement. How Plan Worked. City, Mo., Oct. 29.-The decis- in of Kansas the banks not to pay cash counters ion amounts over their Monlarge very little embarrassment as caused Business went on very much of day. and the closing of the doors only usual, Bankers' Trust company was busian the incident that did not disturb ness anywhere. far as the Bankers' Trust company So concerned it was already liquidat- the was fast as it could, and when ing as met Sunday to decide on belongs their bankers to hold the money that bankers policy Kansas City the other here in not to include the Bankers' setdecided company in their list. That Trust its fate, and when the banks open- knew tled Monday every bank in the city ed the Bankers' Trust company would not last through the morning. Bank of Commerce was busy, beThe a little more than usual possibly the new system required consid- Woods cause explanation, but Dr. W. S. than said erable there was no more business is usual on Monday. "We are just keeping the money at as we ought to," he said. "Nobody home is going to suffer. Some them people may learn economy but it will do good." the Fidelity Trust company one to At the rich depositors dropped in He of draw money for personal expenses. met H. C. Brent who told him $20 was all he "What could good get. will $20 do me?" the de"It positor will do asked. you a whole lot of good. It'll teach you how much you can get 020 JO not All the bankers said they would furnish money for payrolls and cash payroll checks. They are furnishing money to people who are preparing to go on of journeys and taking care generally but reasonable demands for cash. all turning down demands for large amounts of money by giving certified checks. There are a good many millions of dollars locked up in the banks in KanCity and the bankers say they will sas see that enough stays here to handle the business of this city until matters are in better shape in the east. The Bankers' Trust Co. Kansas City, Mo., Oct. 29.-John S. Parks, vice president of the Bankers' Trust company, said soon after the failure: "We were liquidating and getting out, anyhow. I had a very small interest in the bank myself, but was looking after the interests of others. we had not been crowded we would If have been out in pretty good shape, but as it is we can There may liquidate be and pay some
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(Continued From Page One.) their withdraw intention to money. There was no excitement. In the Hibernian Savings bank about 100 people had given notice of withdrawal by 11 o'clock, and as many more were waiting in line at the other savings banks. Business appeared to be on a normal basis and depositors having checking accounts did not appear worried in the least by the situation. Business proceeded upon normal lines in all the banks. Confidence Returns to New York. New York, Oct. 28.-Fortified by the remedical plans adopted Saturday for the protection of New York's supply of currency, financiers began a new business week in a hopeful frame of mind. The importation of gold is expected to assume large proportions and will aid greatly in providing funds for the banks. American securities in London showed sharp advances today. The Trust company of America resumed payment to depositors as us. ual. There were fifty depositors in line. The Lincoln Trust company also opened for business this morning as usual. The line of waiting depositors was much smaller than at the opening hour Saturday. At the northern bank, a state institution, there were sixty persons in line at the opening hour. Normal at Providence. Providence, R. I., Oct. 28.-At the hour of opening today there was every indication that banking conditions in this city would be normal today. Pittsburg Exchange Closed. Pittsburg, Oct. 28.-It was decided not to open the Pittsburg Stock exchange at a meeting of the board of directors this morning. Aside from the suspension of the exchange there is nothing else worthy of mention in the local financial situation. Any disposition to assume money obligations for the purpose of operating in the stock market was frowned upon business kept at low ebb of the delay in the appearance of supplies of money there caused no anxiety as the intimations were given that loans would be carried over another day and money would be supplied when needed. Most prices continued to show advance. Oklahoma Banks Closed. Oklahoma City, Oct. 28.-Every bank in Oklahoma City remained closed today in accordance with orders issued by Territorial Governor Frantz. It is understood the order affects all national banks in Oklahoma and Indian territory. The action was taken because the banks of Kansas City and St. Louis refused to forward cash to the banks of the southwest. There has been no uneasiness in the city and the bankers say the deposits last week were greater than at any previous week in the month. The closing is for the purpose of protection in case of a run. The banks o fthe city have arranged to issue clearing house certificates until conditions improve. The banks of the southwest are embarrassed because of the demand for cash to move the cotton crop. Kansas City Bank Closes. Kansas City, Mo., Oct. 28.-The Bankers Trust Co., with deposits of $800,000 closed this morning. Cashier Hughes said they had decided to close temporarily because of the clearing house association had refused to extend to them the privileges granted thirty other leading banks here of issuing clearing house certificates. Akron Cashier Suicides. Akron, Ohio, Oct. 28.-The Dollar Savings bank was closed today by order of the directors until after the funeral of Fred A. Boron, the cashier who committed suicide yesterday. In the meantime an investigation of Boron's accounts 18 going on and a movement is on foot to have the other banks of the city take this institution over. The sixty day time limit has been ordered enforced on all the savings accounts in all the banks. Grain Trading Stopped. Duluth, Minn., Oct. 28.-Duluth trading in grain was suspended on the board of trade this morning owing to the money conditions. Business will not be resumed until conditions improve Conference at White House, Washington D. C., Oct. 28-Special -The financial situation was the
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Receiver Appointed. Kansas City, Oct. 29.-Following the disappearance of J. Ed Brady, a director, who has been missing since last Thursday, a receiver has been appointed for the Bankers' Trust Co. Brady, it is reported, became involved with the bank. The clearing house adopted the certificate plan.
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BANKERS TRUST, IN KANSAS CITY, CLOSES Kansas City, Oct. 30.-No appearance of a run on any of the banking institutions was visible today and the leading bankers reiterate they have complete confidence in the situation, the clearance house having decided to issue certificates. That action was put into effect today. It applies to thirty of the principal local banks and trust companies. The Bankers' Trust company with deposits of $800,000 closed at 10:15 this morning. Cashier Hughes said it decided to close temporarily because the clearing house association refused to extend the privileges granted to thirty other leading banks here of issuing clearing house certificates.
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BANKERS TRUST, IN KANSAS CITY, CLOSES Kansas City, Det. 30.-No appearance of a run on any of the banking institutions was visible today and the leading bankers reiterate they have complete confidence in the situation, the clearance house having decided to issue certificates. That action was put into effeet today. It applies to thirty of the principal local banks and trust companies. The Bankers' Trust company with deposits of $800,000 closed at 10:15 this morning. Cashier Hughes said it decided to close temporarily because the clearing house association refused to extend the privileges granted to thirty other leading banks here of issuing clearing house certificates.
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Little Kansas Banks Controlled by Bankers' Trust Co. Close. Commissioner Royce Is Notified to Take Charge. TRIES TO FIX IT UP. Kansas Official Tries in Vain to Straighten Out Tangle. New Plan to Meet Any Future Emergency. News has reached Topeka that three small state banks in southeastern Kanowned by the Bankers' Trust comsas, which colof Kansas City, Mo., a few days ago, doors and notified to come and lapsed commissioner pany Thursday, closed take the charge bank their was of The cause of their the of the Bankers' the to secure currency the of them. inability collapse demands business. failure Trust, to meet and That there is a shortage of currency with which to do business is apparent. are coming in to of bank Telegrams the state commissioner the asking house office for "authority" to adopt clearing of rules and put a limit in the amount to be drawn by any depositor. bank commissioner can it is an such The money authority; authority assumed give which as an no banks have simply met the measure, but as it has banking emergency no opposition from the his with department, it is considered to have sanction- Commissioner John Q. several Royce Bank been in Kansas City for has trying to straighten out in some It is days Bankers' Trust tangle. out in way this concern will pay Kansas said were about 25 small that the There depositfull. which had their reserves these banks the Bankers' Trust, and failure. ed with are much worried by the practically banks these banks were three Some of the Bankers' Trust, and been owned by as already stated, have Mr. to continue in has been trying to get the of unable Royce these, business. of things Bank- in shape so that the be reserves made available for the ers' Trust small might Kansas banks which now need their has money. yet been officially given three Nothing concerning the failure of the Kansas, out in southeastern will small banks known that no receivers but that but it is for the present, be appointed of the state banking depart- in an an officer take charge of them their temment will get them through back on their feet. porary effort to embarrassment and Fiat Money Scheme. the prominent banking allow expert his of name A refused to today state. who made this suggestion who are to be used, banks of Kansas reserve: to the small to get cash for their small banks unable scores of their deposits "There are 50 per cent of who are in which the have shape enough of reserve, currency and I to owned make unable to safe get for them. would be If my plan: call of business such a bank, into this the bank a the dozen town. of the I would leading business before them men a big I bundle would I would lay of the bank. want of the gentlemen, worth securities 'Now $20,000 I say to them, from that lot best. you to select consider the worth very in the which you $20,000 number as will place that of your proceed to a hands of any and one I will then this bank for security, cashier's checks on these checks in the $20,000. 25 cents up so issue I will issue numbered, to $10, that and inall sizes, from will be not be check issue can will pay each outstanding the $20,000. I that the creased beyond cashier's checks, provided to go out and out these merchants that will they agree are all good right as you tell people and are and come are at your fully stores. circulating secured, This medium. will provide As gold temporary cashier's checks battered a fast as to the these bank retire in a torn them, or and file back condition, I will when I have them the to entire you, them away, back, and I will present securities back.' with and get my like that $20,000 roposition bonds and would community, meet I A in almost any save many banks a approval it would placed in believe, and otherwise be simply bewhich embarrassing might position of currency. is are which banks, cause There very insolvent is of not the today, a shortage bank very but in there the short state are on which many currency."
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Receiver Appointed for Bank. Kansas City, October 31.-Thomas R. Marks, chairman of the republican county committee, was today appointed receiver for the Bankers' Trust company, which closed its doors October 28 under instructions from Secretary of State Swanger, because the local clearing house would not give it the privileges granted other banks of issuing clearing house certificates. The indebtedness of the company outside of the half million capital stock is $908,658. In the petition for receivership nothing is said about the assets.
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FIVE BANKS CLOSED. Failure of Trust Company Forces Three Kansas Suspensions. Topeka, Kan., Nov. 4.-J. W. Royce, Bank Commissioner, announced to-day that three Kansas banks had been forced to close their doors owing to the failure of the Bankers' Trust Company, of Kansas City, Mo., on October 28. The banks are the Coyville State Bank, Coyville; the Garland State Bank, Garland, and the Citizens' State Bank of Mulberry, all small institutions. They had deposits with the Bankers' Trust Company. Receivers will be appointed at once. The Coyville State Bank had deposits of $10,000. the Garland State Bank, $50,000. and the Citizens State Bank of Mulberry, $85,000. The National Bank of Commerce of St. Louis was the foreign correspondent of the Mulberry bank and the Mercantile Trust Company of New York was the correspondent of the Garland institution. The banks have been organized only a few years. Leetonía, Ohio, Nov. 4.-The First National Bank here failed to open to-day. A notice posted on the door states that the concern will liquidate its liabilities. C. N. Schmick, of Cleveland, is president of the bank, which has been in business twenty-two years. It was organized with a paid up capital of $100,000. Aurora, Ind., Nov. 4.-Owing to the money stringency the Aurora National Bank failed to open to-day. The bank was organized in 1883 with a capital of $50,000 and its deposits aggregated $165,000. No statement of the liabilities has been made.
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MISSOURI BANKS SOUND In an Interview with H. C. Turner, Secretary of State Swanger EMPHASIZES SOUND CONDITION of the Banking Institutions of the State of Missouri Sec'y of State, Jno. S wanger, in an interview with H. C. Turner, of this City, made the following statement which is timely and it should be encouraging to any Doubting Thomases in Missouri, made such by the little flnancial flurry, which started in the east. Mr. Swanger, who has supervision of the banking system of Missouri is in a position to know the inside of the situation and it is very enocuraging to hear him state that out of one thousand and thirty banks in Missouri, only one has found it necessary to ask for a receiver during the duration of the flurry. To quote Mr. Swanger: "I think it is commendable of the Mis souri banks to be able to pass through this little flurry and not have to ask any aid OF advise outside of the usual. I can state as Sec'y of State, that out of one thousand and thirty banks in the State of Missouri, only one has asked for a receiver and that was the Bankers Trust Company of Kansas City and no complaint up to the time left my office had been recelved from any of the banks. This shows the solid and substantia condition of our State balks and it also speaks well for the people during this time. Weknow that this financial stringeney, 80 called is a result of gambling on Wall Street, which created a little mistruet. We know that there is h just s much money in the country and there never was a time perhape when there was more of the substantial things of life. Of course the business of this country can't be carried on with hard cash and when people demand it, makes scarcity. Normal business is largely done on check and other paper and to demand cash of course makes an abnormal condition, but as I say, the people of 7 the country are showing themselves patriots by refusing to en5 courage this condition by demand0 ing cash but are actually putting 0 money in the banks simply to show their faith. The salary of my office is $3,000 a year. I gen0 erally keep a part of it on hand 0 for ready use but the other day 0 when the State paid me, I walked to the bank and showed my faith 1 3 by my works and left the cash there; other people are doing likewise and this is the cure for the situation." d Secretary Swanger, who is one e of the most popular Republicans in Missouri discussed politics briefly with Mr. Harry Turner K. and said: "We Republicans exis pect to nominate Hadley for governór; he may not want the office t but I think that he will accept it as be is the man for the place at a this time. Of course we are for Taft for President in Missouri and is I think Roosevelt's policies will be t adhered to because they are right. A now issue or two may arise out s of the situation but I think that the Republican policies at the present are sound and will stand the test." e P
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department has been entirely self-supporting. The fund which had accumulated in this department during the ten years of the operation of the banking law was $3,638.61. During the four years just preceding the present incumbency nothing whatever was added to that fund. During the three and one-half years of Mr. Swanger's administration the fund has been increased to $8,330.56. Examinations of banks have been rigid, impartial and complete. The reports of the several examiners have been subjected to the most thorough scrutiny, and any violation of the banking laws, or the essential rules of good banking have been called to the attention of the bank without fear or favor and a strict compliance of the law required. During the present administration several banks have been closed, others that were unsafe required to liquidate; others have consolidated, making stronger institutions, and everything done that could be accomplished to place the banking business of the State upon an absolutely safe and stable basis. During Mr. Swanger's administration only four banks and trust companies he has closed resulted in loss to the depositors. One of these was the Middleton Bank at Waverly (resulting from a defaulting cashier), where the depositors will probably lose about 5 to 10 per cent of their deposits. Another is the Joplin Savings Bank, caused by the reckless investments of the president of the institution, where the depositors will lose a percentage of their deposits. Another is the Bankers Trust Company of Kansas City caused by the Brady failure. Reckless investments by the officers of the institution and a slump in their values caused by the panic will cause a loss to the depositors of about 57 per cent of their deposits. Last, but not least, the Salmon & Salmon Bank of Clinton. The most disastrous by far, the causes of the failure of which are well known to the people of the State. It has been the earnest effort of the present administration, whenever it was possible, to prevent receiverships for banks, and many thousands of dollars have been saved to depositors and stockholders by the efforts of Mr. Swanger to