Show THE TACOJ1A FAILURE Statement of the President of an Eastern Bank as to the Cause NEW YORK June 21n regard to the closing of the Merchants National bank of Tacoma Wash President Cannon of the Chase National bank says It is not true a stated that the bank was closed on our account That statement was doubtless given out as an excuse We are in no sense responsible for the failure and made no telegraphic demand on them The only connection we had with them was that of making them advances ad-vances for which we received ample collateral col-lateral security About a week ago they made drafts on us covering the increase on an amount we had advanced them This was done without consulting us as to our willingness willing-ness to increase the loan and we naturally refused to honor the draft We saw no reason to carry a bank so far west for so largo an amount as they wanted I suppose sup-pose when they found their drafts thrown out here they failed to raise the money needed to take them up and were forced to suspend Our action was perfectly proper and the cause of the failure can in ito sense be laid at our doors Like most of the western banks in rapidly growing and socalled boomtowns boom-towns they were doubtless loaded up with local paper more than they could carry in a tight market |