Rensselaer Semi-Weekly Republican, Volume 22, Number 83, Rensselaer, Jasper County, 5 July 1901 — BIG BANK CLOSES. [ARTICLE+ILLUSTRATION]

BIG BANK CLOSES.

Seventh National, of New York, in the Hands of a Receiver. Because it had loaned SI,GOO,(KM), or more than a quarter of its combined capital and deposits, to one brokerage firm,

the Seventh National Bank of New York City was Thursday closed by Comptroller of the Currency Dawes. The Comptroller gave the bank until Saturday night to secure the repayment of the full amount of the loan. The directors met

and decided that this condition could not be fulfilled, and a notice of suspension was at once posted on the door. Only two days previous $983,000 in cash was paid into the bank in one lump by Gen. Samuel Thomas, to enable it to meet a sudden deihand on it, and incidentally to secure the presidency for his son, E. R. Thomas, but that was not enough to save it. Thursday, after a slight run, the directors found they would have to meet checks to the amount of $G44,000,-which were in the clearing house, and this helped them to their conclusion to close the doors at once, although they said they could have paid the debit balance. The desire not to be in the position of accepting deposits in a bank that might be insolvent also hastened their action. The bank’s failure hardly made a ripple in all street. There was a short flurry on the stock exchange, with quick recovery. Rumors that other banks were involved were quickly put at rest. The closed institution is the one popularly known as Perry Heath's bank, that politician and his brother being among its directors. The failure of the firm of Henry Marquand & Co., bankers and brokers,'the name of which has been connected with the embarrassment of the Seventh National Bank, was announced on the stock exchange Friday. _

PERRY HEATH.