The failure of the Spring Garden National Bank followed closely upon that of the Keystone National. This bank was also originally a State institution, doing business under the title of The Spring Garden Bank of Philadelphia. It was converted into a national association March 13, 1886. The immediate cause of suspension was its failure to meet Clearing House balances.

The unsatisfactory condition of this bank was apparent to the Comptroller's office for several months immediately preceding its suspension, and the officers of the bank had been repeatedly admonished by the Comptroller to make good and maintain the lawful reserve at the legal requirement. The Clearing House was aware of the bank's inability to do this and on several occasions complained to the Comptroller of the deficiency in reserve. In October, 1890, when the financial stringency came on, the depositors in this institution became alarmed at the embarrassment of other banks and began withdrawing their deposits. The average monthly withdrawals for several months before suspension amounted to $100,000, so that the bank was unable to meet its Clearing House balances.

At the time of the failure of this institution, F. W. Kennedy was its president, and H. H. Kennedy the cashier. Subsequent investigation disclosed criminal violations of law on the part of these officers and two of the directors of the association, no less culpable than those of the officers of the Keystone National Bank. Both of the Kennedys were indicted for wilfully misapplying the funds of the association and both pleaded guilty and were sentenced to terms in the penitentiary. Nelson F. Evans and Ephraim Young, directors of the bank, were also indicted for the same offense and entered pleas of not guilty, but were also convicted and sentenced to the penitentiary.

The capital of this bank was $750,000. Its total assets and liabilities at the time of failure amounted to $2,936,662, respectively. The loans on assets compounded or sold under order of the court amounted to $2,367,827. One hundred per cent. assessment was levied upon the shareholders, or $750,000, of which amount there was collected $274,110, and the total amount collected by the receiver from all sources aggregated $712,711. The creditors were paid dividends amounting to 25.70 per cent., or $537,687, and the receivership was finally closed December 9, 1901.

The difference between the sum collected by the receiver and the amount paid the creditors, represents loans paid and expenses of the receivership.