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HALLOWELL BANK IS CLOSED, IN HANDS OF STATE BANK COMMISSIONER. LOANS EXCEEDED DEPOSITS No Charge of Crookedness, and Hallowell Vicinity Hopes the Bank Can Be Organized Again. The Hallowell State Bank is closed, and in the hands of an accountant from the state commissioner's office. There is no hint of any irregular dealings, in connection with the bank. It appears to be just a case of extending too much credit to borrowers, coupled with the inability to realize on notes. It became rumored last week that the bank was in difficulties, and, as usual in cases of that kind, this started a small run on the little bank. Withdrawals of between $3,000 and $4,000 hastened the closing. According to figures supplied by Pres. Jas. H. Elliott, of the bank, there were loans of $130,000 outstanding. The bank had $97,000 deposits. But with the capital of $10,000, and surplus added, the bank's loans exceeded the combined figures. Mr. Elliott, who has worked early and late, for years, to keep the Hallowell Bank on a sound working basis, is discouraged at the turn of affairs which has resulted in misfortune for the bank which meant so much to the community of Hallowell. But it was always hard for Jim to refuse a loan to a farmer, or a business man, when it was needed to carry on an enterprise or an improvement. It seems to be a case of a $10,000 bank attempting to do too much. The one real unfortunate circumstance, in connection with the closing of the bank, is the fact that it was not operating under the state guaranty law, as practically all the other state banks of Cherokee County are. This fact will make it more difficult to liquidate the affairs of the bank, with the ultimate result that the depositors will probably not get more than 75 per cent of their money back, if that much. It all depends upon how successful the collections of outstanding notes may be. The stockholders, who subscribed the $10,000 capital, are liable for an additional $10,000, which will be turned over to the state, to apply on the liabilities. That much is sure. The bank also owns a fine building, and of course many of the loans of the bank are perfectly good, and well secured. But it is said that there are a number of loans, that were secured only by second mortgages, which will be hard to negotiate. Hallowell needs a bank, as it is
