Western National Bank of the United States

Episode Information

Episode UID: 456701248
Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 45670 national
Charter Number: 4567
Start Date: December 7, 1903
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 063006a4b910c09a

Response Measures

None

Description

Article states consolidation and prior liquidation, indicating a voluntary closing/absorption.

Events (3)

1. May 9, 1891 Chartered

Source: historical_nic

2. October 5, 1903 Voluntary Liquidation

Source: historical_nic

3. December 7, 1903 Suspension

Cause: Voluntary Liquidation
Cause Details: Consolidated with the National Bank of Commerce; described as having been in liquidation prior to consolidation.
Newspaper Excerpt: consolidation with that association of the Western National Bank of the United States in New-York, which, prior to its liquidation, was capitalized for $12,500,000.
Source: newspapers

Newspaper Articles (1)

1. December 7, 1903 New-York Tribune New York, NY

Article from New-York Tribune, December 7, 1903

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Article Text

410,117. The loans and discounts made by the 351 associations located in the central and other reserve cities aggregated $1,802,659,666, against $1,678,787,106 by the 4,691 associations located else- where. # ORGANIZATION OF NATIONAL BANKS. On February 25, 1903, the national banking sys- tem had been in operation for forty years, and from June 20, 1863, the date of issue of the first certificate authorizing a national bank to begin business, to October 31, 1903, there have been char- tered 7,029 national banking associations, with cap- ital at date of organization of $860,931,182, of which 1,126, with capital of $293,148,628, were conversions of State banks, effected in conformity with the pro- visions of Section 5,154, of the Revised Statutes, and the remaining 5,903, with capital of $567,782,554, banks of primary organization. Since the passage of the act of March 14, 1900, under authority of which banks are organized with minimum capital of $25,000, circulating notes issuable to the par value of bonds deposited, and semi-annual duty on circulation reduced, 1,765 asso- ciations, with authorized capital of $104,493,000, have been added to the system. The organizations dur- ing this period represent approximately one-fourth of the total organizations effected during the ex- istence of the national banking system. Since March 14, and under authority of that act, banks with individual capital of less than $50,000, the aver- age being approximately $26,000, have been organ- ized to the number of 1,148, with capital of $29,948,- 000. During this period 617 banks, with individual capital of $50,000 or over, were organized, their total capital amounting to $74,545,000. The average capital of banks of the larger class is approx- imately $120,000. Classified by geographical divisions, the Middle Western States lead both in number and capital of banks organized-547, and $31,666,000, respectively. The Southern States are second in number of organizations, namely, 421, and capital of $22,208,000. In the Western States 380 banks, with capital of $12,360,000, were organized; in the Eastern States, 325 banks, with $27,214,000 capital; in the Pacific States, 70 banks, with capital of $6,520,000, and in the New- England States, 19 banks, with $3,900,000 capital. Two associations, with aggregate capital of $525,000, have been organized in Hawaii, and one with cap- ital of $100,000 in Porto Rico. Notwithstanding authority conferred for the issue of circulation to the par value of bonds deposited, bonds to the amount of $25,174,850 only were de- posited as security for circulation on the capital of $104,493,000-less than one-fourth of the amount which might have been deposited, and circulating notes issued thereon. During the year ended October 31, 1903, there were organized 553 associations, with aggregate capital of $34,333,500, of which 343, with capital of $8,848,500, were with individual capital of less than $50,000, and 210 with capital of $25,485,000, with individual cap- ital of $50,000 or over. A further division shows that there were 306 associations of primary organ- ization, with capital of $16,425,000; 49 with capital of $2,438,500, conversions, and 198 with capital of $15,- 470,000, reorganizations of State or private banks. In addition to the augmentation of capital re- sulting from the organization of national banks during the year, there was an increase in the cap- ital stock of previously existing associations to the amount of $52,412,900, banks to the number of 187 increasing their capital stock in conformity with the provisions of the act of May 1, 1886. In a num- ber of instances increases of capital were effected for the purpose of absorbing the business of other associations placed in voluntary liquidation, and to provide, in a measure, for the shareholders of the closed institutions. As reports of proceedings re- lating to increase of capital do not show what dis- position is made of the additional stock issued, the extent to which the shareholders of banks closed by liquidation participated in the increase of the absorbing banks cannot be stated. The reduction of capital steck, under the provis- ions of Section 5.143, United States Revised Statutes, amounted to only $2,095,000, and but 21 associations were concerned in these changes. The most notable change effected in the last year was the increase of the capital stock of the Na- tional Bank of Commerce in New-York from $10,- 000,000 to $25,000,000 and the consolidation with that association of the Western National Bank of the United States in New-York, which, prior to its liquidation, was capitalized for $12,500,000. The National Bank of Commerce and the National City Bank of New-York are the only national banking associations in existence with capital of $25,000,000. # VOLUNTARY LIQUIDATIONS AND FAILURES. Under the provisions of Section 5,220 of the Re- vised Statutes-that is, by the action of repre- sentatives of the required number of shares of stock-1,337 national banking associations have been placed in voluntary liquidation, and the cor- porate existence of 146 banks organized under the acts of 1863 and 1864, has expired by limitation, thus making the total number voluntarily closed 1,483, the aggregate capital at date of closing amounting to $260,239,550. From the date of the first failure in 1865 to Oc- tober 31, 1903, receivers have been appointed for 418 national banks, their capital aggregating $71,167,420. Of these banks, however, 19, with capital of $3,725,- 000, were placed in solvent condition, and authorized to resume business, resulting in a net loss to the system by insolvency of 399 banks, with capital at date of failure of $67,442,420. The affairs of 330 of these trusts have been finally settled, and the re- ceiverships terminated. The capital of these asso- ciations at date of failure was $51,795,920, and their outstanding circulation $16,398,783. The total amount of asses (par value) coming into possession of re- ceivers was $188,925,911, from which there was col- lected $88,074,670, and settled by offsets $14,672,927. The losses on assets compounded or sold under order of court aggregated $75,929,065, the nominal value of the remaining assets being $10,249,249. Stockholders were assessed to the amount of $30,- 826.020, from which was realized $14,469,575. On claims proved, amounting to $101.724,870, dividends were paid to the amount of of $72.542,142, or 71.31 per cent. Including, however, offsets allowed, loans paid, etc., creditors received on an average 78.55 per cent on their claims. The cost of liquidation of insolvent banks was 8.3 per cent. # CHANGES IN CAPITAL AND CIRCULATION. The number and authorized capital of national banks steadily increased during the year from 4,679 and $713,435,695, respectively, on October 31, 1902, to 5.147 and $766,367,095, respectively, on Octo- ber 31, 1903, the increase in number of banks being 468 and in capital stock $52.931,400. At the beginning of the report year bonds to the amount of $338,452,- 670 were on deposit with the Treasurer as security for circulation, on which notes were issued to the amount of $335,783,189. On December 31. 1902, bond deposits and circulation had increased to $344,252,120 and $342.127.844, respectively, but by March 31 the bonds had decreased to $342,160.770 and the circula- tion to $338,349,814. Refunding operations were re- sumed in April, and the bond deposit increased $10,535,350 during that month. In May the increase was $15.131,800; in June, $7,519,350; in July, $4,825,760, and in August, $1.313,400. There was a slight de- crease ($1,600), however, in September, but an in- crease of $1,242,000 in October, following the re- sumption of the refunding operations which began on September 24. At the close of the year ended October 31, 1902, of bonds on deposit as security for circulation, 95 per cent was in 2 per cent consols of 1930, and at the close of the year ended October 31, 1903, over 98 per cent of the total amount was of that class. National bank circulation covered by bonds and by lawful money increased from $380,476,334 on Octo- ber 31, 1902, to $419,610.683 on October 31, 1903. On an average about one-tenth of the total circulation outstanding is represented by notes of banks re- during their circulation, associations in voluntary liquidation and those in charge of receivers, which are covered by deposits of lawful money, The outstanding circulation of the national banks in the city of New-York was $45,296,500, and their capital stock $100.200,000. The Chicago banks, with capital of $25,600,000, issued notes to the amount of