People's Pilot, Volume 4, Number 18, Rensselaer, Jasper County, 19 October 1894 — POLITICS CAUSES A FAILURE. [ARTICLE]

POLITICS CAUSES A FAILURE.

Merced Bank of California Closes Its Doors Cannot Realize on Its Assets. Merced, Cal., Oct. 17.—The Merced bank, which has been doing business since 1875, closed its doors Tuesday morning. The failure is due to the bank’s inability to realize on its securities. As? yet no statement has been made, but it is known that the bank had $200,000 loaned to merchants and ranchers of this community on which it could not realize. The bank’s statement to the state bank commission in July last gave the reserve as $243,029. The bank’s liabilities at that time were: Capital paid in coin, $48,000; due depositors, $160,637; due other banks, $25,000. The d rectors of tne bank are all substantial business men. It is believed the depositors will be paid in full and that the failure will have no disastrous effect upon the business of the community. While the failure is undoubtedly due to the general financial stringency the immediate cause of the suspension is said to be of a political nature. For years it has been customary for the county treasurer to place the county funds in deposit with the three banks of Merced. County Treasurer Bartlett was defeated for renomination in the recent democratic county convention, and, attributing his defeat to the interference of the officials of the Merced bank, he demanded the county funds deposited with the bank. Part of this money was paid to him. Other depositors learning of the action of the treasurer withdrew their deposits. Thus it was that a run was started which the bank could not meet.