1f015790Accommodated withdrawals, Borrowed from banks or large institutions
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When the news of the closing of the Chestnut Street National Bank of Philadelphia, of which Wm. M. Singerly is president, reached Elkton, Md., yesterday afternoon it had a disturbing effect upon the depositors in the Second National Bank of Elkton of which Mr. Singerly is vice president and a heavy stockholder. This morning there was a run on the bank but the excitement soon subsided.
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ELKTON BANK STOOD UP. Depositors Started a Run but Abandoned It. Elkton, Md., Dec. 24.-When the news of the closing of the Chestnut Street National bank of Philadelphia, of which William M. Singerly is president, reached this town yesterday afternoon, it had a disturbing effect upon the depositors in the Second National bank of Elkton, of which Mr. Singerly is vice president and a heavy stockholder. The bank opened its doors as usual this morning for business and a steady stream of depositors filed in anxious to withdraw their accounts. The officials of the bank had anticipated a run and made preparations for it.
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effort is being made by President Singerly and the directors of the bank to adjust the accounts of the bank in such manner that the creditors will receive every dollar due them. Following the meeting of the directors of the trust company, which terminated So an assignment of the company, there was a conference of the officials of the bank with representatives of a number of financial institutions of the city at which was discussed a plan to raise sufficient funds to liquidate all the claims against the bank. President Singerly says he is confident some plan can be consummated by which all creditors of the bank will be paid and the bank will be permitted to go into voluntary bankruptcy. The trust company has about 3,200 deposit accounts and the bank about 1,800 deposit accounts. ELKTON, Md., Dec. 24.-When the news of the closing of the Chestnut Street National bank of Philadelphia, of which WillIam M. Singerly is president, reached this town yesterday afternoon it had a disturbing effect upon the depositors in the Second National bank of Elkton, of which Mr. Sing. erly is vice president and a heavy stockholder. The bank opened its doors as usual this morning for business and a steady stream of depositors filed in. anxious to withdraw their accounts. The officials of the bank had anticipated a run and made preparations for it. The depositors were as sured by President William T. Warburton and Cashier Isaac D. Davis that the institution was solvent and fully able to meet all its outstanding obligations. As a result of the assurances many depositors decided to retain their funds in the bank. It is feared that the financial failure of Mr. Singerly will close A paper mills in this county.
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PLENTY 0 FMONEY AT ELKTON. Depositors Near Singerly's Mill are Persuaded of Safety. Elkton, Md., Dec. 24.-When the news of the closing of the Chestnut Street National bank of Philadelphia, of which William M. Singerly is president, reached this town yesterday afternoon, it had a disturbing effect upon the depositors in the Second National bank of Elkton, of which Mr. Singerly is vice president and a heavy stockholder. The bank opened its doors as usual this morning for business and a steady stream of depositors filed in, anxious to withdraw their accounts. The officials of the bank had anticipated a run and made preparations for it. The depositors were assured by President William T. Warburton and Cashier Isaac D. Davis that the institution was solven't and fully able to meet all its outständing obligations. As a result of these assurances many depositors decided to retain their fundes in the bank. It is feared that the financial failure of Mr. Singerly will close his paper mills in this country. AD FAILURE.
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SOME DEPOSITORS IN SECOND NATIONAL BANK ALARMED WITHOUT CAUSE. The Elkton Bank is In No Wise Affected by the Philadelphia Failure, and the Fear of the Depositors was Quickly Allayed. The Bank is Strong and a Statement is Made By the Directors. Some excitement was occasioned in Elkton on Thursday afternoon about one o'clock by the telegraphic news that the Chestnut Street National Bank, of Philadelphia, of which Hon. William M. Singerly is President. had closed its doors and was in the hands of an United States Bank Examiner. From the fact that Mr. Singerly is also vicepresident of the Second National Bank of Elkton, some alarm was caused among depositors In the Elkton Bank. who feared that it might be involved in the Philadelphia failure. Accordingly something of a run was made on the Second National Bank of Elkton, which continued up to the closing of the bank's doors at three o'clock. Every demand was promptly met by the bank, and which allayed almost entirely the apprehensions of the people. Throughout Elkton that evening wherever the matter was discussed. after the statement of President William T. Warburton to the effect that the bank would meet every demand and was in nowise crippled. were heard expressions from leading men of Elkton that they had the greatest confidence 111 the bank all of which had such an effect that when the bank's doors opened on Friday morning, wh t promised to be a considerable number of depositors to withdraw their accounts, dwindled down to a very few, and several of those who had withdrawn on Thursday, were back to again make deposit. One deposit on Friday morning was 85,000, made by a prominent business man of Elkton. DIRECTORS STATEMENT. The Directors of the Second National Bank on Friday morning made this statement to the public:The Second National Bank of Elkton, is not materially affected by the closing of the Chestnut Street National Bank as that Bank at the time of its failure held but a small balance of the funds of this Bank, the reserve of this Bank being at that time with the Commercial and Farmers Bank of Baltimore. The Second National Bank of Elkton is fully prepared to meet all its liabilities. W. T. WARBURTON, JAS. S. HOPPER, J.J. ARCHER, I. D. DAVIS, Directors. On Friday morning the bank received a large sum of money from the Commercial and Farmers National Bank of Baltimore, its reserve agent. At noon yesterday the Second National Bank of Elkton has settled down to its normal condition. The run altogether amounted to not over $25,000. CHESTNUT STREET BANK FAILURE. At the closing of the Chhestnut Street National Bank on Thursday. the Chestnut Street Trust and Saving Fund Company, which was under practically the same management, also suspended, and that the joint liabilities would reach, if not exceed $ 83,000,000, seemed to increase the excitement. A report from Philadelphia yesterdaystate efforts are being made to straighten out the tangle, and last night it was announced that negotlations are under way, by which if they materialize, it is hoped to secure the banks debtedness, and also to save the dedepositors in the trust company. During the day President Singerly and the Directors of the bank sat in the big bank building on Chestnut street, below Eighth, in consultation over the turn affairs had taken. When he left late in the afternoon Mr. Singerly said: "There is no statement to be made at this time except that we are making ever. effort to secure the bank's indebtedness, so that the bank can go into voluntary liquidation and be saved from a receivership.' The cause assigned for the failure is the shrinkage in value of the bonds and notes of the Singerly Pulp and Paper Mills, located at Elkton, Md. This is the explanation given by Mr. Singerly and Comptroller of the Currency Eckels. Mr. Eckels has been in Philadelphia several times recently, trying to make arrangements by which the pulp and paper mills securities could be taken out of the assets of the bank and preferred stook of the Philadelphia Record company substituted, By this and certain other changes Mr. Eckels hoped to put the bank in first class condition. When the pulp and paper mills securities were taken by the bank they were regarded as first class. but since that time has fallen a to less than two cents, paper by pound everyone in price from and ten the cents securities have depreciated in proportion. On all sides were heard expressions of sympathy for Mr. Singesly, whose generous nature has made him beloved by many. Several prominent citizens and officials of numerous banks called upon him yesterday to offer assistance. Shortest Day of The Year
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lied instrton, the Trust and Saving Fund company, which collapsed yesterday, issued this statement to the public tonight. "On Tuesday next. or at the latest on Wednesday, a plan now being formulated. requiring the devotion to its purposes all of my assets, will be submitted to my creditors. and to the creditors of the Chestnut Street National bank and the Chestnut Street Trust and Saving Fund company. 1 believe, and this belief is shared by those who have been informed of the situation. that with this plan. which will involve partly an acceptance of Record Publishing company stock. approved by the creditors, none of them ultimately will lose anything." The only other development in the situation today was the formal assignment of the Trust company to George H. Earle, jr., president of the Tradesmen's National bank. and of other financial institutions, and Richard Y. Cook. president of the Guarantee Trust and Safe Deposit company. This was but a natural outcome of the failure, and was taken after a lengthy session of the board of directors of the Trust company. The deed unreservedly conveys all the property of the company to the assignees. Mr. Singerly's statement comes as the result of a conference of the directors of the defunct concerns held today. and it is generally believed that the hope of an eventual settlement on a one hundred per cent. basis will be realized. A statement will be issued within a day or two. showing the exact condition of the companies' affairs. The only other embarrassment thus far resulting from the crash was the of the and Mailing company, a assignment Binding today Philadelphia small organization incorporated in Maine. The bank examiner and his assistants spent the greater part of the day going over the books of the two companies. but declined to make any statement. 11 is said that the bank has about 1,800 deposit accounts and the trust company about 3,200. State Banking Commissioner Gilkeson and Attorney General McCormick were engaged today, inquiring into the condition of the state's deposit in the bank and looking after the interests of depositors in the trust company, which is incorporated under the state laws. ITS EFFECT AT ELKTON Flkton, Md., Dec. 24.-When the news of the closing of the Chestnut Street National bank, of Philadelphia, of which William M. Singerly is president. reached this town yesterday afternoon, it had a disturbing effect upon the depositors in the Second National bank of Elkton, of which Mr. Singerly is vice president and a heavy stock holder. The news reached Elkton shortly before the closing hour of the bank. The bank opened its doors as usual this morning for business and a steady stream of depositors filed in, anxious to withdraw their accounts. The officials of the bank. however, anticipated a run and made preparations for it. The depositors were assured by President Warburton and Cashier Davis that the institution was perfectly solvent and fully able to meet all its outstanding obligations. As a result of these assurances many depositors decided to retain their funds in the bank. It is feared that the financial failure of Mr. Singerly will close his mills in this county, the depreciation of which stock caused the Philadelphia institutions to go under.
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the board of directors of the Trust Company. The deed unreservedly conveys all the property of the company to the assignees. Mr. Singerly's statement comes as the result of a conference of the directors of the defunct concerns held to-day, and it is generally believed that the hope of an eventual settlement on a 100-per-cent. basis will be realized. A statement will be issued within a day or two showing the exact condition of the companies' affairs. The only other embarrassment thus far resulting from the crash was the assignment to-day of the Philadelphia Binding and Mailing Company, a small organization incorporated in Maine. The bank examiner and his assistants spent the greater part of the day going over the books of the two companies, but decline to make any statement. It is said the bank had about 1,800 deposit accounts and the trust company 3,200. State Banking Commissioner Gilkeson and Attorney General McCormick were engaged to-day inquiring into the condition of the State's deposit in the bank and looking after the interests of depositors in the trust company, which is incorporated under the state laws. Rumors concerning the Trust and Life Insurance Company, of which ex-Governor Robert E. Pattison is president, are entirely unfounded. Clarence E. Cook, secretary and treasurer of the company, stated today that the company had had a small deposit in the Chestnut-street National Bank, but that it had prepared itself for the emergency and anticipated no trouble. Mr. Singerly is a director and a large stockholder in the security company. When the news of the closing of the Chestnut-street National Bank reached Elkton, Md., yesterday afternoon it had a disturbing effect on the depositors in the Second National Bank of Elkton, of which Mr. Singerly is vice president and a heavy stockholder. The bank opened its doors as usual this morning for business and a steady stream of depositors filed in, anxious to withdraw their accounts. The officials of the bank had anticipated a run and made preparations for it. The depositors were assured by President William T. Warburton and Cashier Isaac D. Davis that the institution was solvent and fully able to meet all its outstanding obligations. As a result many depositors decided to retain their funds in the bank. It is feared the financial failure of Mr. Singerly will close his paper mills near Elkton.
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THE ELKTON BANK AVERTS A RUN. Elkton, Md., Dec. 24.-When the news of the closing of the Chestnut Street National Bank, of Philadelphia, of which William M. Singerly is president, reached this town yesterday afternoon it had a disturbing effect upon the depositors of the Second National Bank of Elkton, of which Mr. Singerly is vice-president and a heavy stockholder. The news reached Elkton shortly before the closing hour of the bank, and, as a result, few were aware of the failure of the Philadelphia institution, which acts as correspondent for the Elkton bank. The bank opened its doors as usual *this morning for business, and a steady stream of depositors filed in, anxious to withdraw their accounts. The officials of the bank, however, anticipated a run. and made preparations for it. The depositors were assured by the president. William T. Warburton, and the cashier, Isaac D. Davis, that the institution was perfectly solvent and fully able to meet all its outstanding obligations. As a result of these assurances, many depositors decided to retain their funds in the bank. It is feared that the financial troubles of Mr. Singerly will close his mills In this county.
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RUN ON THE ELKTON BANK. THE EMBARRASSMENT OF MR. SINGERLY CAUSED ALARM IN THE TOWN. Elkton, Dec. 27.-The failure of the Chestnut Street National Bank, of Philadelphia, caused no little alarm among the depositors of the Second National Bank of Elkton, of which William M. Singerly is a director and vice-president. A run was made upon the bank when it opened its doors yesterday morning, but every demand was met promptly, and, confidence being restored, the depositors in many cases returned with the deposits and placed them in the bank again. President William T. Warburton and the other directors, James S. Hopper,J. J. Archer and I. D. Davis, said the Second National would meet every just demand and was in nowise crippled by the failure of the Chestnut Street Bank, which held but a small balance of its funds, the reserve of the Elkton Bank being with the Commercial and Farmers' Bank, of Baltimore. At noon the bank settled down to its normal condition again. The doors were opened to the public some time after tanking hours. Whether or not the large industries of this county will suffer from the failure of the Chestnut Street Bank cannot at this time be stated. Mr. Singerly's mills are the leading manufacturing plant in this part of the state, and employ hundreds of men. Their closing down, even temporarily, would be keenly felt by the people of this town and county.
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A Bank Panic. The closing of Chestnut Street National Bank and the Trust Company of Philadelphia, both of which Mr. Wm. M. Singerly was president, caused a slight mic among depositors of the Second National Bank of Elkton, in which Mr. Singerly is largely interested, being vice-president of the institution. The Democrat describes the paric which was created by the Philadelphia failures: "The result was that quite a run was mode upon it during the hour preceding closing, but all demands were promptly met and patrons of the bank were assured that the institution would not be seriously affected by Mr. Singerly's misfortune. "The depositors however were rapidly getting into a panic, and when the closing hour arrived the bank had exhausted its cash. During the evening the excitement increased and it was rumored that the bank would not open in the morning. The officials met and made the necessary arrangements and promptly at 9 o'clock the bank opened. At once there was a rush and the corridor of the bank was quickly filled with persons eager to withdraw their money. They were promptly served and gradually confidence was restored." $25,000 it is stated was drawn out of the bank. This kind of incident shows the radical error of a financial system employing any kind of private bank. There is no absolute security of the people's money when placed in the custody of an association of individuals composing a banking corporation. There is no difference between a so-called national bank and an old fashioned