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BANK FAILURES AND SUSPENSIONS IN 1893."

It does not seem essential, nor would it be possible, to enter into a minute statement of all the circumstances attendant upon the closing of the banks during the past year. It is sufficient to say that the cause which brought about the large proportion of such suspensions was the action of depositors who, becoming doubtful of the solvency of the banking institutions of the country, withdrew their deposits. The result was that many banks, after paying out on the one hand all the money in their vaults and failing to collect their loans on the other, suspended and passed into the hands of the Comptroller. With a full knowledge of the general solvency of these institutions and the cause which brought about their suspension, the policy was inagurated of giving all banks, which, under ordinary circumstances would not have closed and whose management had been honest, an opportunity to resume business. This policy was one which seemed to commend itself to the Comptroller as proper to pursue under the circumstances, and it is believed the results have justified the experiment of its adoption.

In no instance has any bank been permitted to resume on money borrowed or for which as an association it has become liable. Whenever those active in the management of the banks resuming, either as executive officers or directors, have been debtors to such banks, their indebtedness has been paid or secured, and whenever impairment

a Report of the Comptroller of the Currency, 1893, p. 10–12.

of capital stock has been found, such impairment has been made good, either by voluntary or enforced assessment on the shareholders. In a number of instances changes have been made in the directory and official corps of resuming banks. The criticism to be made on the management of these banks was the improper distribution of their loans, a circumstance which greatly retarded the conversion of such loans into money at a time when it was needed to avoid suspension.

Of the banks which failed to resume many had long been under the continual criticism of this Bureau for violations of law and imprudent methods of banking, and the closing of them was only hastened by the general condition of financial affairs. Some failed because of criminal acts on the part of the officials in charge and others because of a lack of proper appreciation of the purposes of a bank.

An analysis of the suspensions and failures which occurred showed that during the year 158 banking associations, as heretofore stated, were compelled to suspend business, being 4.09 per cent of the number of existing associations. Their capital stock aggregated $30,350,000, or approximately 4.3 per cent of the paid-in capital stock of all the banks in the system.

Of the banks which suspended 65, or 41.14 per cent, with a total capital stock of $10,935,000, were insolvent, and required the appointment of receivers; 86, or 54.43 per cent, with a capital stock aggregating $18,205,000, were able to resume business, and 7, or 4.43 per cent, with a capital stock of $1,210,000, were placed in charge of examiners in the expectation of resumption. Of the sus

pended banks 2 were located in the New England States, both in New Hampshire, with a total capital stock of $250,000, for each of which a receiver was appointed.

In the Middle States there were 3 suspensions2 in New York, with a total capital stock of $500,000, and in Pennsylvania, with a capital stock of $50,000. Those in New York were placed in the hands of receivers, and the in Pennsylvania in charge of an examiner pending proposed resumption.

There were 38 suspensions in the Southern States, the capital stock involved aggregating $8,815,000. Of these 19, with a total capital stock of $5,630,000, resumed business, and the same number, with a total capital stock of $3,185,000, failed. In this geographical division Texas furnished the greatest number of suspensions, namely, 12, with a total capital stock of $1,480,000, of which 6, with a total capital stock of $430,000, resumed business, and the remainder, capitalized to the amount of $1,050,000, failed. There were 6 suspensions in Kentucky and the same number in Tennessee. The total capital stock of those in Kentucky was $2,300,000 and of those in Tennessee $2,750,000. In Kentucky all the banks that suspended, except one, with a capital stock of $50,000, were permitted to resume business. Two of the banks in Tennessee, with a total capital stock of $2,000,000, resumed business and 4 were placed in the hands of receivers. Four banks in Georgia suspended and the same number in Alabama, with a total capital stock of $675,000 and $550,000, respectively. Of these, I bank in Georgia, with a capital stock of $250,000, and

3 in Alabama, with a total capital stock of $400,000, resumed business. Two banks in North Carolina suspended, with a total capital stock of $300,000, both of which were able to resume business, but the 2 which suspended in Florida, with a total capital stock of $200,000, required the appointment of receivers, as did also the I in Mississippi, which had a capital stock of $60,000, and the one in Arkansas, with a capital stock of $500,000.

The Western States furnished 49 suspensions, with an aggregate capital stock of $10,250,000. Of these, 31 resumed business, 17 failed, and I was placed in charge of an examiner pending resumption or the appointment of a receiver. The capital stock of the banks which resumed aggregated $6,275,000, and of those which failed $3,750,000. The greatest number of suspensions which occurred in this section was in Kansas, namely, 8, although the capital stock involved-$880,000-was less than that of the banks in four other States. Four of the banks in Kansas, with a total capital stock of $480,000, resumed, and 3, with a capital stock of $300,000, failed. Of the 7 banks in Indiana which suspended, 4, with a total capital stock of $450,000, resumed, and 3, with a total capital stock of $550,000, were placed in the hands of receivers. In Iowa 6 banks suspended, with a total capital stock of $575,000, of which number but I failed, with a capital stock of $50,000. The same number of banks in Nebraska suspended, 3 of which, with a total capital stock of $350,000, resumed business, and receivers were appointed for the remaining 3, the total capital stock of which was $450,000. Five banks sus

pended in Wisconsin, with a total capital stock of $625,000, all of which resumed business, while in Illinois there were 4 suspensions, with a capital stock aggregating $2,150,000. All of these were placed in the hands of receivers. In Missouri 3 banks suspended, with a total capital stock of $1,300,000, all of which resumed. In Michigan there were the same number of suspensions as in Missouri, but the capital stock involved aggregated only $215,000. But I of these banks resumed, the capital stock of which was $65,000. The fewest suspensions which occurred in any State in this division was in Ohio, there being but 2, the aggregate capital stock of which was $180,000. One of these banks, with a capital stock of $80,000, resumed business, and the other failed.

Sixty-six banks suspended in the Pacific States and Territories, being nearly 42 per cent of the total suspensions which occurred and represent capital stock amounting to 35 per cent of the total capital involved. Of these, 36 banks, with a capital of $6,300,000, were solvent and resumed business; 25, with a capital of $3,250,000, were placed in the hands of receivers; and 5, with a total capital of $1,060,000, in charge of examiners pending resumption. The greatest number of suspensions was in Colorado, involving the largest amount of capital stock of suspended banks of any State in the Union, the number being 16 and the capital $3,600,000. All of these banks resumed except 2, the capital stock of which was $300,000. second greatest number of suspensions occurred in the State of Washington, 14 banks, with an aggregate capital stock of $1,735,000. Of this number, 4, with a capital

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