People's Pilot, Volume 2, Number 41, Rensselaer, Jasper County, 31 March 1893 — PANIC DOWN SOUTH. [ARTICLE]

PANIC DOWN SOUTH.

Intense Kxcitement in Nashville, Tenn.— Three Banking Instltations Have Failed with a Total Involved of Over •3,000,OOO—More Failures Anticipated. Nashville, Tenn., March 38.—Monday there was great excitement on the streets where the banks are located. At 9 o'clock, the hoar the banks open, quite a crowd had gathered at the corner of College and Union streets, in the vicinity of the b.anks, and when the doors were opened a small run was made on the First national, bat the depositors got their money so rapidly that they became convinced that their fright was an error and in nearly every instance rede posited. Two of the smaller banks, both doing business understate charters, at an early hour took advantage of the privileges given them by the law and required sixty days’ notice of the withdrawal of deposits. Both of these banks had savings departments connected with them and upon these two banks the principal runs were made. One of them, the Bank of Commerce, doing a small business with deposits amounting to about 850,000, suspended payments, though it might have availed itself of the sixty days’ notice from depositors. It made a general assignment under the state laws for the benefit of all creditors. This failure is a bad one. The Mechanics* bank, another state institution with a savings department and having many small creditors, opened its doors as usual, but soon it was evident that a run was being made npon it, and the directors met and decided to take advantage of the law re quiring sixty days’ notiee frem depositors and suspended payments. This bank will in all probability resume in a few days. The liabilities of the Bank of Commerce are $97,000; capital stock, $27,000. Asa result of the suspension of the Mechanics’ bank Lewis T. Baxter, the president, made a special assignment Monday for the benefit of the bank and other creditors. The excitement growing out of the failure of the Commercial national bank in this city Saturday night continues to be intense. There are many rumors afloat and it is expected that there will be some startling developments when the affairs of the bank come to be inquired into by the official examiner. Criminal prosecution may follow. Other institutions of the city are thought to be involved in the collapse of the Commercial bank and that of Dobbins & Dazey, which wm the primary cause of the troubles. Afore failures are apt to follow. Over $3,000,000 is involved in the failure of the three banks mentioned above, and at least a dozen small banks in adjacent towns are in temporary financial straits.