BANK OF COMMERCE CLOSES.
WITHDRAWALS FOR SIX WEEKS FINAL-
LY SHUT ITS DOORS.
Nineteen Millions of Deposits Paid Out
Since the Statement of August 22 -
Other Banks Are Not Affected
by the Suspension.
Overwhelmed by a wave of distrust that has been steadily wearing away its resources fro nearly two months, the National Bank of Commerce, the largest bank between St. Louis and San Francisco, suspended business yesterday morning and is in charge of the office of the comptroller of currency.
At 8:30 o'clock yesterday morning, James T. Bradley, national bank examiner,, brought to the bank this notice, copies of which a messenger posted on the windows:
"This bank has been closed by resolution of its board of directors, and is
now in charge of James T. Bradley, national bank examiner, by order of the
Comptroller of the Currency."
Yesterday afternoon Mr. Bradley received a telegram from the comptroller of the currency appointing him receiver. It is probable this appointment is temporary, though this is not known.
WHAT THE BANK HAS DONE.
In about six weeks the bank has paid off 19 million dollars of its deposits, reduced its loans 3 1/2 millions, cut down its cash resources 11 3/4 millions, and sold 2 millions of high grade bonds, all in the effort to meet the demands upon it. But there has been a continued drain, culminating Wednesday with a clearing house debit balance of nearly $400,000, which the bank was forced to meet. Fearing that yesterday's exactions would be beyond its power to pay the directors decided to give up the fight and let the bank be liquidated.
The directors were in session last night until after midnight and again this morning at 7 o'clock, considering plans for continuing business, but they finally decided that the task was too great.
RELAXED AFTER THE STRAIN.
Inside the bank, when the notice was posted, the air of the office was that of a relaxation after a terrible strain. When a man has struggled to the limit of his capacity, physical or mental, and the end has come, he rarely shows feeling.
W. S. Woods, president of the bank, and W. A. Rule, the cashier, had slept little any night for a week, and they simply let down. W. H. Winants, vice president, worked on answering telephone calls, but he showed more feeling and his voice choked when he talked. The other directors were not to be seen about the bank during the first hour. The real fight had been made by Woods and Rule. It had been desperate. Dr. Woods said he had done his best and did not know how he could do more. He regarded the loss with regret, but did not show evidence of excitement.
Of approximately 16 millions in deposits tied up in the suspension, about 5 millions belongs to Kansas City people. The remaining 11 millions belongs to out of town banks.
THREE SMALL BRANCH BANKS INVOLVED.
The only banks affected by the suspension were the two small branches of the Commerce in the West bottoms, the Stock Yards Bank of Commerce and the Union Avenue Bank of Commerce, and the First State Bank of Argentine. These institutions together had only a few hundred thousand dollars in deposits. The first two did not open yesterday morning. The third closed at noon.
When the news of the suspension became generally known there were some withdrawals from other banks, chiefly by small depositors. These withdrawals, however, were more than compensated for by the new accounts opened. All the banks were in good condition.
