The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-10-31
SUSPENSION OF The STATE BANK OF MIssor

Rr.-This bank. which had weathercd the
storm Of 1887 without suSpending, and
which had made up its mind 10 weather the
present storm in the same way. was obliged
to succunb last Monday, and close its d ors
A heavy run was continued on it for nearly
week, during which time its deposits ran
down from 1904, 600 to $3.50, 900, and the
specie in its vaults from SG44, 900 TO SlG4,-
goo. The event is thus commented upon by
the Chicago Pros:
The event has taken no one bv surprise
who Is familiar with tho policy that has al
ways been pursued 10y that institution. In
the great reyu,siCn OF 1881 this bank main
tanned specie payments throughout. II had
then but Just started with a limited circula-
ton and light deposits. and 1t had the fur
ther advantage of being the dcposi tory Of
all the government money collected IN the
West and Northwest. From that Gly to the
present. !: has pursued policy at war with
all enlightened notions Of bank manage
mcnt, at once lshmaeiiiisii in its character to
other banking institutions and opprC ssive to
the business community where 1t y located.
Having By force OF circumstances rather than
sagac!ous management passed unscathsi the
terrible ordeal Of 1887, its managers. inti,ted
with the idea Of their wonderful financial
skill, resolved to make it a model Institution
institution 10 show to the world that 1t
IS possible 20 conduct mOneyed institution
uEnn PRINCIPLE tl.~t rTv'Iid ndrT failure or
even suspension an impOsSbi!.tv. To this
end it dissolved all connection with other
banking institutions, drew its head and feet
within its shell and refused to receive the
bills Of other specie paying banks either in
payment Of debt or on deposit. Such n
policy, besides being Objectionable for the
absence of everything like comfy and neigh
bOrly reciprocity with similar institutions. Of
good standing in adjoining States, was not a
little oppressive 10 the business community
compelled to patronize it an in many respects
detrimental to the commercial interests Of
the growing city in which the bank was To-
Gated. 1t stood before the world in the
character Of a true IshmaelIte. Isolated
from other institutions OF like character.
and passing upon them the daily indignity
of discrediting their issues compelling its
patrons who in the course Of trade NIL ht
receive the bills of neighborin2 banks to 20
frs; to the broker and sell them at a discount
for either coin or it own bills; making spe-
Gle the standard and its own issues alone
equivalen to specie, thus driving home the
bills OF all otner spec e-paylng banks That
might make their way into its neighborbood
it has stood for twenty years a onstrosi-
ty among the banking institutions of the
country, and in its fall experiences neither
the sympathy nor the respect Of any portion
of the public either at home or abroad.
When the pressure to which it mas finally
succumbed, began, the course of this bank
was characteristic of its previous career
It's policy was dictated solely by selfish con-
sderatioEs. 1t relaxed none of its accus.
toned risor, but by adhcring strictly to its
exclusive policy respecting the issues of all
other banks, even going to length Of discre-
di;ing the issues of its own branches, it paw
cd Ire way and created whatever necessity
there was FOR the business men of ST. Louis
to throw out the currency of all other states.
For the total prostrat;on which followed
in that city, for the uitiirate failure Of some
of its best business men, for the Sabbath
day stiffness that reigns upon its ievee and
for the solemnity that broods over its ex.
change and its principal business streets, for
the hard feeling which has been created in
Illinois and Iowa against its merchants, the
State Bank of Missouri Is in great part, if
not primarily and wholly, responsible.