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Bank Examiner Takes Charge. The bank was closed by E. E. Ames, bank examiner, under instructions from the controler of the currency. The controler had yesterday, it is stated, informed the officers of the bank that it must take up $200,000 bad paper immediately or they would not be permitted to open today. The bank was examined last night by a committee of local bankers, who reported at a meeting early today that the affairs of the institution were in such shape that they would not feel justified in extending assistance. Although the City National Bank was not a member of the local clearing house association, that association, it was stated by one of its officers today, would have extended aid had they not found so much bad paper. Although the holding of Devlin paper upon which no immediate realization could be made was the prime cause of the failure, it is stated that the general knowledge that the bank held other bad paper and was in a weakened condition had led to a gradual withdrawal of deposits. At no time had a run of any big proportions been on, but it is stated withdrawals had been made quietly for several months, and that within sixty days $600,000 had been taken. From another source it was asserted that when the City National Bank was ordered to repair its capital several months ago the needed funds were burrowed, not from a local capitalist, but from certain New York banks, but what institutions it was not disclosed. Examiner Ames said today that it would be impossible for him to talk at this time either regarding this statement or other affairs of the bank. The bank officials likewise declined to issue a statement now. The majority of the bank's depositors are persons in medium circumstances, twothirds of whom live outside Kansas City. There was no excitement at the doors of the bank when the closing notice was posted today, less than a dozen depositors appearing to withdraw their money. Had Varied Experience. The posting of this second notice developed the fact that other Kansas City banks, knowing that the City National was to fail, wired certain of the latter's outside customers, principally small near-by banks, that they would pay certain drafts drawn on the City National. Later in the day other notices, from other Kansas City banks, designating different outside Institutions which they offered to protect on drafts drawn through the City National were posted. The City National Bank has had a varied experience. In its five years' existence it has had four sets of officers, and upon numerous occasions the controller of the currency has called upon its officers to repair its capital or to conform in other ways with the banking laws. It was organized in 1900, with a capital of $250,000. Last winter the capital was reduced to $200,000. Later the capital was increased $100,000, to $300,000, charging off all its surplus and $50,000 of Its original capital. It now develops that this did not take out all the bad paper. Aside from the notice placed on the bank door by Examiner Ames, which simply stated that the bank was in charge of the controller of the currency, the following unsigned notice was pasted up later: "Present all drafts drawn by the following banks on the City National Bank of Kansas City, Mo., to the National Bank of Commerce, Kansas City, Mo., for payment: "Bank of Greeley, Greeley, Kan. "Citizens' State Bank, Belle Plaine, Kan. "Citizens' State Bank, Osage City, Kan. "Citizens' State Bank, Edna, Kan. "Citizens' State Bank, Paola, Kan."
