St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-04-28

JlcImdn OCuSHcI, was pOSLcu Oil lHC
door. While the rush was greater yes
terday morning, the run really com
menced some ten days ago, when the
failure Of the ST. Paul German Insur-
ance company was announced. The
fact that Hon. Albert Scbeffer held the
Office of president in the insurance com
pany, as well as the bank, alarmed some
of the local banks throughout the North
west having accounts with the Com
mercial, and they commenced with
drawing their funds. This in itself was
not a matter of sufficient moment to
Cause Any Trouble,
but it speedily became known in the
city and was whispered around among
the many depOstors, and the run was
started.
The Commercial bank on March
last had nearly $l,000,000 Of deposits,
belonging 10 over l,400 different people.
IT has been popular bank and an es-
pecial faVOrlte with the smaller mer-
chants, as will be seen from the number
of the depOsitors, which Is nearly twice
as great as most banks with double the
amount OF deposits. On account OF the
great number OF depositOrs the run was
perhaps made great deal worse than
port furnished the papers last evening
by the cashier. Herman Scheifer. shows
that since the run commenced over
100000 have been drawn out, the
amount due depositOrs at the present
time being 5000, 1874, against which the
bank shows assets in notes, real estate,
bonds, etc, Of Sl,559, Sl5.35. This APP
parent surplus is reduced, however, by
TedisCOunts amounting to S276, DIEGO.
The full statement Of Herman Scheffer,
the cashier of the suspended bank, fol-
lows:
1T is well known that banking bust
ness is largely founded on confidence.
The tact that the German Insurance
company, which lately closed its doors.
has been generally supposed to be close
~ allied to the Commercial bank, AL
bert Schetfer being PRESIDENT both
institutions, has, without reason, caused
the opinion to become prevalent among
the depositors that the future of the one
Involved the Other.
"This has caused feeling of uncer-
tainty among depositors, which has re-
suited in their withdrawing from the
deposits over $300,000 in cash within
the last few days. Today the run be-
came so strong that the officers consd-
cred that justice to all depostors re-
Quired them to suspend payment tenn
pOrarily. The assets arc ample for the
protection of all depositors, and an eff
fort is bring made 10 effect an arrange
ment by which The bank will be enabled
10 pay Off its depositors speedily"
Mr. Scneifer furnished the following
statement of assets and liabilities:
Liabilities
Due depositors...... ........ 49,. S6!9, 4l9 A
Rediscounts. Observation-Disclosures. 2760l2 GO
Tolal. ......-.........-S0 'o5o2 W
Assets
Notes, real estate. etc. .. 81. 550S15 %
At the commencement of business
yesterday morning the bank officials had
no idea that they would be obliged to
close up. Aid from other banks had
been promised and a considerable
amount advanced. The clearing house
association met yesterday morning, and
after looking over the situation SuS-
pended the bank before the clearing
hour. This was with the assent OF
Cashier Herman Schetfer, and was
made necessary by the fact that the
bank did not have the funds with which
TO meet the heavy drafts. When this
news reached the bank the payment OF
all demands was continued for time,
several of the other banks having vOlun-
teered the funds. Some of this money
was furnished, but several of the volun-
teers desired time to consult with their
fellow officers, and this delay was fatal
TO the success of the plan.
At 2 o'clock the members of the
clearing house committee, which is made
up OF President w. Is. Merriam, of the
Merchants National; +. Ii. Bailey,
cashier of the First National. and Will
lam Dawson Jr., cashier of the Bank of
Minnesota, met in Gov. Merriam's pri-
vate office and made an examination of
the assets of the suspended bank. A
good part of the afternoon was spent at
this task, and when IL was completed il
was agreed that the board of directors
of the Commercial bank should be adj
Vised that, under the circumstances, the
clearing house committee is under the
impression that 1t will be best to allow
the courts to
Appoint Receiver
to wind up the business of the bank.
The committee estimated that it would
require $500, to help the bank through
as the opening would precipltate an
other rush. The clearing house was
willing to furnish 5000, 900, but not $780,
900.
While this deci.lon of the clearing
house does not settle the fate of the
bank, it means that if it's reopened the
aid will have to be furnished from out
side the members Of the association
According to the vice president of the
Commercial bank, E. A. Hendrickson
this adverse report of the clearing house
is largely due to the idea given by the
great amount of paper furnished fol-
examination.
"our paper" he said, sis like our de-