People's Pilot, Volume 3, Number 5, Rensselaer, Jasper County, 21 July 1893 — MANY BANKS COLLAPSE. [ARTICLE]

MANY BANKS COLLAPSE.

A T>ay of Extitement in Denver* Ww, More Banka, a Big Dry Goods House and Several Small Firms FaU—Five More Kan was Banka Closed. « , >a HUHXK, Col, July 18.—such" scene was 4 ever witnessed tn the west as could- bp seen here Tuesday morning shortly after 10 o’clock, whem the banks were supposed to open their doors for business. The failure ’of”’ three Savings banks Tuesday had excited the masses and the streets were crowded with anxious depositors. , The eleven clear-ing-house banks, located within four blocks of each other, were surrounded, and far into the streets the crowd gathered until officers and special police were called out to clear the way for traffic. The Union national, with a capital of 81,000,000, posted a notice that they would not open their doors. _ This started the panic, and, following quickly, the Commercial national posted a similar notice and then the National bank of commerce. A run was immediately startedon all of the other basics. The excitement continued unabated until about 3 o’clock, when it almost entirely subsided at all the banks, except the Utah state national and tlie German Rational, where the line of depositors seemed ers and business men is.that the panic is over and that no more banks will be obliged to close, although the run in a mild way may continue against two or three banks for a day or two. D. H. Moffatt, president of the First national, stated that the deposits at his house during the flay greatly exceeded the withdrawals. ; It is believed by financiers that Tuesday’s run will result in the people having more confidence in the strong banks, that the money withdrawn will at once be redeposited and a better footing be established in financial circles, which will make money easier. The suspended banks expect to resume business in a short time. The constant drain on the bahks by scared depositors brought about the crisis. It is stated by bankers that no less than 13,000,000 has been drawn from the banks during the last three .months. Of this 83,000,000 has gone to the east in regular lines of business, but there is 85,000,000 hoarded id the city. The safety-deposit vaults are full and there is reason to suppose that the homes of workingmen contain secret places in which their savings are hidden. If one-fifth of that amount was let into circulation the stringency in Denver would cease. The banks paid all demands except on time certificates, they demanding that these remain until the expiration of time. The clearing house will render no assistance, each institution being compelled to stand upon its own foundation. The Mercantile bank, a private institution, with a capital stock of 8100,000, closed its doors at noon. The failure was caused by the failure of the Union national bank, through which it cleared. The McNamara, Dry Goods company, one of the largest institutions of the kind, failed Tuesday morning. The liabilities are placed at 8260,000. The failure was brought on by an attach ment served at 1 o’clock Tuesday morning by the Union national bank, which failed to open its doors, for 871,780, and the Colorado national for 820,847. The failure was not unexpected, but it had been hoped that money would be easier, and that tl}e firm would be able to pull through. The stringency in the money market and inability to place securities or sflcure an extension from the banks, aided by the closing of three savings banks Monday, was the direct cause. Nearly the entire amount falls on Denver banks and commercial houses. Following the failure of the big McNamara dry goods house several other mercantile failures were quickly announced. One was the John Mouat Lumber company on an attachment from the German national bank for 8155,200. ,■ Albert Nelson’s restaurant and saloon went down with the National bank of commerce. His assets are placed at 8111,510, with liabilities of 896,725; M. S. Noah, installment furniture house. Assets, 840,000; liabilities, 816,000. Three other firms with liabilities of 820,000 each were announced as having failed Tuesday afternoon. They were all caused by the bank panic. Topeka, Kan., July 19.—State Bank Commissioner Breidenthal was notified Tuesday afternoon of the failure of the Citizens’ bank of Kansas City, Kan.; the Citizens’ bank of Armourdale, the Bank of Richmond, Franklin county, and the Farmers’ and Merchants’ bank of Osawatomie. All of the banks were doing a small business. Fort Scott, Kan., July 19.—The First national bank of this city failed to open for business Tuesday morning, owing to steady withdrawal of deposits and inability to collect assets. The officers claim that the bank’s assets are more than three times ite liabilities and depositors will Ipse nothing.