Accommodated withdrawals, Borrowed from banks or large institutions, Clearinghouse loan, Fed/other loan, Public signal of financial health, Full suspension, Books examined
Clearinghouse involved: Yes (loan, examination, or other measures)
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The failure of two banks at Denver today was raised by rumor in this city to the collapse of eleven, or all the clearing house banks. The latter report doubtless arone from the fact that a run was being made on all of the banks, but with the exceptions noted they stood the pressure.
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The Denver Flurry. All manner of rumors and reports of private telegrams were in circulation on the streets today as to the status of financial affairs in Denver, which, as readers of last evening's and this morning's papers remember, culminated in considerable of a flurry yeaterday. Out of the conflicting and frequently absurd stories started, little of a reliable nature could be secured. This much, however, is authentic, coming direct from the scene of the trouble: "Reliable people say there will be no more suspensions." The run on the Denver National is over, with plenty of money still in sight. The same is true at the City and all other unfailed banks. Business men are beginning to breathe more freely. It is generally believed that the incendiary talk of the Colorado bi-metal. Hats at their recent meeting did much to precipitate the crisis which broke over them yesterday. Had they been more reasonable in their utterances they would have been able to com. mand help that would have carried them through any possible emergency swimmingly.
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THE RUN BROKEN. Denver Bankers and Business Men Breathe Easier. Financial Sorrow Still Overtakes Concerns in Other Cities. Failures Reported Wednesday from Beston to the Pacific Coast. DENVER. Col., July 19.-The long-expected closing of the People's National Bank came about 11 o'clock when a notice was posted on the doors stating that the stringency of the money market was so severe that it was impossible for the concern to longer withstand the storm. The statement published the 12th showed that they had less than $60,000 cash on hand and the individual deposits subject to check, not counting any other, amounted to $210,000. The capital stock is $600,000. Later in the day, Tucker & Co., dealers in gentlemen's furnishing good. and the Peoples' Coal Co., assigned. This afternoon the run at the Denver National Bank was over, with an enormous amount of money still in sight. The same was true at the City and all other banks. Business men are beginning to breathe easier.
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DENVER BREATHES EASIER. The Bank Rune Ended-Three Institutions Closed Yesterday. DESVER, July 19.-The German National bank, the State National bank and the People's National bank suspended this morning. The run on the Denver National is over, with plenty of money still in sight. The same is true at the City and all other unfailed banks. Business men are beginning to breathe more freely. The run on the national banks had entirely subsided by noon, and at the closing hour there were not half a dozen people around any of these institutions. The weak banks have all been closed, and there can be little doubt of the soundness of the five banks that withstood the terrible storm of yesterday and today. J. A. Thatcher, president of the Denver National and also of the clearing house, this evening stated that he anticipated no more failures. The banks that had kept open through the clearing house were in good shape and showed that they were in excellent condition for the future. "I am confident that if the financial condition of the country brightens a little," he said, "the failed banks will all resume, and that every depositor will be paid dollar for dollar."
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CURRENT CURRENCY COMMENT A Regular Monkey and Parrot Time in Denver. SENATOR TELLER'S LATEST TALK A Nephew of Leland Stanford Turns up in Idaho-Married to Suit Himself. Associated Press. Denver, July 19.-The panic in this city was resumed this morning with renewed vigor, and as a result the Old German National bank, with a reputation for stability of twenty years' standing, the equally reputable State National, and extremely strong Peoples' National, failed this morning. All night depositors stood in line in front of the German National, and by 9 o'clock there was a long sea of faces stretching down the street. At the opposite corner, where the State National has so long done business, was also a crowd of anxious depositors, Here people were relieved of doubts, when at 9 o'clock a notice was posted on the doors that the bank would not open, owing to the lack of ready cash At the German National, just before opening time, a notice was posted on the (window stating that the doors would be closed temporarily. This notice caused a distressing scene. Men and women down the long line, broke out in tears and wailing. A run on all the remaining banks in the city was renewed. Reliable people, however, say there will be no more suspensions. Bank Examiner Adams this morning took charge of the Union National, Commercial National, National Bank of Commerce, State National andGerman National banks. A number of minor commercial concerns went under today, The run on the Denver National is over, with plenty of money still in sight. The same is true of the City and all the other unfailed banks. Business men are beginning to breath more freely. Washington, July 19.-The comptroller of Currency has been advised that the Hutchinson National Bank of Hutchinson, Kan., has failed. Topeka, Kan, July 19.-The state bank commissioner has been informed of the failure of the State Bank of Parker, and Woodson's State Bank, of Yates Center. Both were small concerns. Washington, July 19.-The comptroller of currency is informed of the failure of the Bozeman National Bank, of Bozeman, Mont. Brooklyn, July 19.-The large carpet house of Hardenburg & Co. has assigned.
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IN THE BUSINESS WORLD. Senator Teller on a Repeal of the Sherman Law. CALIFORNIA SILVER MEN. A Meeting Held Which Is Addressed by Congressman Newlands. Free Expression of Opinion on the Subject of Silver Legislation-The General Sentiment That Western Congressmen Must Stand Together. DENVER, July 19.-The old German National bank, the State National and the People's National closed this morning, owing to a lack of ready cash. The run on other banks is continued, but no more failures are anticipated. President McNeill of the State National bank says his bank has paid out over $900,000 in the last thirty days, and declares that the assets are twice as large as liabilities. The cashier of the German National says inability to place securities and failure to call in loans caused the suspension of his bank. There has been a constant drain on the bank for sixty days and over $1,000,000 has been paid depositors. The bank expected $300,000 from the east this morning, but it failed to come. The bank's capital and surplus is $500,000. It expects to resume. Assets exceed greatly the liabilities. The People's National closed at 11 o'clock. The notice on the door said the stringency of the money market was too severe, and it was impossible to longer withstand the storm. The statement published on the 12th showed less than $60,000 cash, with deposits subject to check of $210,000. The capital of the bank is $600,000. Bank Examiner Adams this morning took charge of the Union National, Commercial National, National Bank of Commerce, State National, and German National. The run on the Denver National is over, with plenty of money still in sight. The same is true at the City and all other unfailed banks. Business men are beginning to breathe more freely. The run on national banks entirely subsided by noon and at the closing hour there was not half a dozen people around any of these institutions, and there can be but little doubt of the soundness of the banks that withstood the pressure yesterday and today. J. A. Thatcher, president of the Denver National, and also of the Clearing House, this evening stated that he anticipated no more failures. The banks that had kept open through the Clearing House were in good shape and showed that they were in excellent condition for the future. "Pm confident that if the financial condition of the country brightens a little,' he said, "the failed banks will all resume and that every depositor will be paid dollar for dollar."
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liabilities are believed to be covered by the assets. CHICAGO. July 20.-It was said in court today that the assets of the suicide banker. Herman Schaffner. would not pay over 12½ per cent. of the liabilities. Judge Tuley this morning appointed N. H. Culver receiver for the Commercial Lumber Company of Havenswood. The concern was incorporated in 1891 with a capital of $30,000. It is declared that the assets are in excess of the liabilities. SAN FRANCISCO. July 20.-Attachments have been filed against the Union Stock Yards Company. whose meat packing establishment is at Rodeo. These claims are said to be preliminary to larger suits by Eastern holders of the company's bonds. The plant has practically shut down. It cost $1,000,000 and Was started on May 15. Attorney-General Hart has decided that the People's Home Savings Bank. which closed a few weeks ago. is solvent, and recommends that if the bank can make sufficient collections within a reasonable time it should do so. SAN BERNARDINO. Cal., July 20.-The national band examiners who have been! looking into the affairs of the First National Bank of this city have made a report to Comptroller Eckels. recommending that the bank be allowed to open at once. They say they find the affairs of the bank in good condition. ASHLAND. Wis., July 20.-The Northern Manufacturing Company. manufacturers of hard wood. assigned yesterday. Assets. $60.000: liabilities unknown. The failure is due to the recent loss of the factory by fire. TACOMA. Wash.. July 20.-S. B. Dusinberre. cashier of the Bank of Puyallup. who was arrested forthe emberglement of $41,000 and released on bail, has been rearrested on a second charge of embezzlement. Ho was held in $15,000 bail. in default of which he went to jail. DENVER, July 20.-The First National banks at Cañon City and Grand Junction. this State. failed to open their doors this morning. The failures were caused by the suspension of the Denver banks. TOPEKA. Kan., July 20.-Notice of the failure of the Bank of Belleville. Republic county. has been received at the State Bank Commissioner's office. It was a private bank with a capital of $20,000.
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The work of closing Denver banks by excited depositors may be said to have been effectually completed. The night of the 18th, the city was agog, and but few retired to rest. Streets in the vicinity of banks were crowded with people many of whom stood in line in order to maintain a position which would favor them in reaching paying tellers' counters at the earliest possible moment, but the night's vigils did not avail them. Before the hour for opening notices were posted on doors of banks that on account of exhaustion of ready cash, consequent upon the previous day's run, the bank would not open and thus it stood, at latest dates. This is not the worst feature of the depressing influence that encompasses Colorado. Mines in every part of the state are shut down. Leadville is as pulseless as a graveyard, and some of her best paying mines are virtually abandoned by the withdrawal of the pumps and consequent ruin by reason of accumulation of water, which in a brief period fills every shaft, tunnel and drift.
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BANKS IN DENVER FAIL. Denver, July -The Union National bank, of which R. W Woodbury is president. failed to open its doors yesterday morning The capital is $5,000,000. No statement can be had. A run was made on the City National, German National, First National, Colorado National and all the eleven clearing house banks. The Commercial National bank and the Na tional Bank of Commerce are also closed. Ex-Gov. Job Cooper is president of the last named bank.
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COMPTROLLER ECKLES showed the right spirit when he announced to the officers of the Denver banks that he would lend every possible assistance in order that they might resume business at an early date. He fully appreciated the fact that these banks were closed not because of the lack of sufficient capital or bad management, but simply because of a run of depositors who could neither be advised nor restrained. Under these conditions the comptroller is entitled to all credit for his efforts as an officer of the government to bring business back into its legitimate channels.
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The great smelter at Chihuahua, and the Santa Eulalia mines, for which it was recently built, has shut down to await a rise in the price of silver. Four hundred and eighty-five thousand ounces of silver and forty thousand Mexican dollars will be shipped to Europe tomorrow. The total earnings of the Denver & Rio Grande for the "second week in July amount to $114,700, which is a decrease from the earnings for the same week last year of $54,400. The run at the Denver National is over, with an enormous amount of money still in sight. The same is true at the City and other National banks and business men are beginning to breathe freely. Four hundred and fifty-four thousand ounces of silver were offered for sale to the treasury department yesteaday at prices ranging from 71.50 to 73. 75,000 ounces were purchased at $071.50, the balance being declined and the same rate tendered. This makes the total purchases of silver for the month thus far 1,023,000 ounces.
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RUN ON DENVER BANKS. One Closes Its Doors and There is a Run on the Others. DENVER, Col, July 18.-The Union National bank, of which R. W. Woodbury is President, failed to open its doors this morning Capital, $170,000. No statement can be had. A run is now being made on the City National, German National, First National, Colorado National and the eleven clearing house banks. The panic is on.
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WILL AID THE BANKS. Comptroller Eckels Will Do All in His Power to Help Embarrassed But Reputable Banks to Resume-The Flurry in Denver About Over. WASHINGTON, July 21.-Comptroller Eckles has sent a dispatch to Bank Examiner Adams at Denver in which he said, in effect, that he would give every possible aid to the banks of that city, and would grant to them sufficient time to enable them to not only collect such amounts as are speedily collectable, but to get together such amounts of money as will enable them to open upon a small basis. The comptroller also said: "It seems to me that such citizens as have. by a foolish course of conduct in withdrawing deposits from banks which so long enjoyed their complete confidence, brought about this condition, ought, in view of the damage they have done their city, as quickly as possible to repair it by standing ready to deposit with them.' Referring to his action the comptroller said the failures in Denver, like a number of other national bank failures, were caused by no fault of the bank officials, but through a foolish and uncalled-for lack of confidence on the part of depositors. He continued: "It is my Intention where a bank has been properly conducted and whose assets under or dinary circumstances would have permitted it to remain solvent, to give the institution every opportunity to resume business. All the Denver banks that failed were well conducted, and every opportunity will be given them to reopen. The people who have caused the Denver disaster by foolish runs should do all they can to help the banks resume." "What is true regarding Denver applies with equal force to banks in other portions of the west where suspension has not resulted from reckless investments or bad managemento the part of officers. Wherever the citizens of a place have precipitated trouble by*instituting a run upon long-established and well-conducted institutions it is but just that they should take hold and assist these banks by redepositing with them, thus placing them in A position to resume their business on a sound financial basis. Wherever possible and advisable the most trusted employes of suspended banking institutions are to be retained by the bank examiners in the interests of the creditors and stockholders, so that every possible means of realizing on the absets of the institution may be accomplished. Instructions to the examiners. however, are to the effect that only in cases of reputable, -established banks are these conditions to be imposed, and no wild-cat institutions or methods will be sanctioned by this office." DENVER, Col., July 21.-There will be no more bank failures in Denver. The panie wore itself out Wednesday with the failure of the People's, German and State national banks. This morning when the First, the Colorado, Denver, City and American nationals opened their doors there was hardly a dozen depositors in all of them at the paying teller's window. In the First and the Colorado nationals a long string of depositors reaching nearly to the street were lined up in front of the receiving teller's windows, and the money was going back into the bank vaults almost as rapidly as it was withdrawn during the past three days. The German, State and People's nationals could pay $3 for $1 if they could realize on securities. Bank Examiner Adams has received a dispatch from Comptroller Eckels which has gone far toward restoring confidence. The officers of the several closed banks all notify the public that they will be able to pay every cent due to customers. But in some cases it will take time to realize on securities. It is learned that heavy withdrawals have been made from several of the banks during the last few months, which would indicate that some of the farseeing anticipated the trouble. It is noticeable that very few of the merchants or business men of the city withdrew their deposits, the runs being made principally by the working pec ple and poorer classes of customers. There may be a few commercial failures in the city within the next few days as a result of the suspension of banks, but it is believed that in no instance, whether a banking or commercial house, will the failure be complete. A resumption of business will surely follow shortly. It is stated that the McNamara dry goods house, which failed Monday for $260,000, have settled with their principal creditors and will resume business Monday. The Flanders dry goods house, occupying premises of five store fronts and five stories high on Sixteenth street, was attached by H. F. Bradley, of Boulder, Col., for $24,000. There is no definite statement of the condition of the firm yet available. Competent judges place the assets at $200,000 with liabilities at $125,000. The failure was caused by the suspension of the People's national bank, to which $25,000 was due. The Union bank of Greeley has closed, with liabilities of $100,000 and assets of $300,000. The Greeley national bank also suspended, but has made no statement. The failures are attributed to the Denver troubles. The Bank of Loveland, at Loveland, Col., has closed its doors, having been caught by the general depression. President Benson, of the bank, assures depositors they will be paid in full. Word has reached here that the First national banks at Canon City and Grand Junction, in this state, failed to open their doors. There are as yet no particulars, but probably the failures were caused by the suspension of Denver banks. The banking house of J. B. Wheeler City and Manitou
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BISMARCK WEEKLY TRIBUNE: FRIDAY, JULY 28 1893 xpectant of an early turn in the current of affairs. They attach no serious importance to the troubles among the far western small banks, as it is found that those institutions are generally in a sound condition and may be expected to resume payment so soon as the temporary panic among depositors subsides. The "run" on the Denver banks appears to be chiefly due to the exciting harangues of certain local demagogues and silver fanatics, and therefore must subside on the sober second thought; while there will remain the advantage of its weakening the pro-silver element in Congress during the coming debate on the Sherman act. The silver states are having a taste of the fruits of their policy and will henceforth better understand what that policy means. The stock market has been unsettled and widely fluctuating. The "bears" have summoned their whole force of attack, employing every resource of rumor and canard and assailing almost every important stock on the list in detail. With allies in London, they have also attacked our securities in the transatlantic markets, causing heavy declines there and London sales in this city. Their forces have been handled in concert and with great skill, and some heavy declines have resulted from "short" sales from which however there have been quick recoveries upon purchases to cover the sales. The unsettled condition of the London market and the bank troubles in the west have encouraged the "bear" side, and that they have rot made a deeper impression on the market is clear evidence of its intrinsic strength. Purchases for investment are certainly on the increase, and hoarded money is gradually being turned into the dividend paying stocks. again into similar channels. Intelligence, enterprise, and genius would assert itself in the future as in the past, and it would be but a question of time when practically the same conditions as now exist would be brought about. It is pleasant to contemplate a condition of universal peace, contentment and prosperity for all, and quite another thing to put theory into practice. A sliding scale of taxation is the most logical theory. Remove the burdens of taxation as much as possible from the poor and add them to the rich. The millionaires do not pay their proportion of the taxes. They have not borne their just proportion in the past, else the accumulation of these vast fortunes in so short a time would not have been possible. THE North Dakota Independent, the organ of the present administration, goes out of its way to hit ex-Governor Burke, by declaring that "the people of the northern part of the state have lost faith in criminals getting their just deserts since Governor Burke pardoned, etc." Governor Burke pardoned one man out of the penitentiary for every month he was governor. Governor Shortridge's record has been the same and the TRIBUNE doesn't for a moment question the justness of this action. The pardoning power is one of the most difficult problems a governor has to deal with and those who know the least about the matter should be the last to criticise. The Independent is right when it says that the pardoning power should be in the hands of a board and not in the hands of the executive. It would relieve the governor of great embarassment. THE silver producing states that are endeavoring to pit area against capital full confession of his awful crime, and that it was taken down by a stenographer, has been transcribed, read to him and signed by the murderer. It ought not to require much time to meet out justice to this tiend, who, driven to the deed by lust as he confesses, brutally killed six people. DURING the fireworks display at the World's Fair, Saturday night, a bomb lost its bearings and fell through a light in the roof of the Manufactures building and set fire to one of the window screens. Now the authorities announce that there will be no more displays of fireworks on the grounds. On this mode of reasoning, if the roof should be taken off by a cyclone some day an order would be issued to put no more roofs on buildings. THE appointment of ex-Gov. Geo. C. Perkins, of San Francisco, United States senator to succeed the late Senator Stanford, was a disappointment to the friends of Editor Mike DeYoung, who thought they knew the intentions of Governor Markham. The dispatches say that Perkirs is a strong man and his greatest unpopularity comes from his friendship towards the Southern Pacific railway corporation. OCTOBER 11th is the day decided upon for North Dakota day at the fair, the theory being that at this late date very many farmers will be enabled to be present. The month of October will be the most interesting time for farmers to go to Chicago. The great display of live stock will be made in that month and it is certain that it will be the greatest display of the kind ever seen in the world. ATTORNEY GENERAL STANDISH has issued another proclamation. This time A ments of THE greatly d is being belief that state is v trust to i twine. I to make July pier binding t A. FEW
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# The Cloud in the East. "The threatened closing of the mills in the East I regard as a much more serious feaure of the present situation than the closing of the Denver banks," says a New York banker. So it is beyond question. The Denver banks were forced to close by the run resulting from the insane ravings of the Governor of Colorado and his hoodlum convention. The trouble with the mills in the East is of a different nature. They are confronted by the free trade policy of the party in power. The market will not take their product and they cannot afford to tie up money in goods that may be depreciated by an act of Congress before they can be marketed. Some of them can suspend operations and live. Others must run or go under, and since they cannot sell they must do the other thing. If there was no fear of a radical change in the tariff policy there mills would go on as before. It is easy to fix the blame without going far. Wheeling Intelligencer.
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IT is not the Wall street gold bugs who are responsible for the financial troubles in Denver, but the distrust and lack of confidence of her own people. There is no bank that can stand a drainage of hundreds of thousands in a day without preparing for it. There is not a doubt that the Denver banks are sound, but this insane run upon them for hundreds of thousands of dollars has simply forced them to suspend payments. It is a fool movement of the home simpletons.