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

mcnced some ten days ago, when the
failure Of the 81. Paul German lnsur-
ance company was announced. The
fact that Hon Albert SCbciier 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 il speedily became known in the
city and was whispered around among
the many depOsitOrs, and the run was
started.
The Commercial bank on March
last had nearly $l.0O0,000 Of deposits,
belonging To over 400 different people.
1T has been popular bank and All es-
pecial fayOute with the smaller mer-
chants, as will be seen from the number
Of the depOsitors, which Is nearly twice
rs great as most banks with double the
amount or deposits. On account Of the
great number of dcpOsitOrs the run was
perhaps made a great deal worse than
il would have been otherwise. The re-
port furnished the papers last evening
by the cashier Herman Schcfer. shows
that since the run commenced over
100000 have been drawn out, the
amount due depOstOrs at the present
time being $685. il9.4I, against which the
bank shows assets in notes, real estate,
bonds, etc, of $l,559, Sl5.35. This APP
parent surplus is reduced, however, by
TediscOuntS amounting to S21G,9l2.GO.
The full statement Of Herman Scheifer,
the cashier OF the suspended bank, fol
lows:
at Is well known that banking bust
ness is largely founded on confidence.
he 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 Schetler being president of 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 derositOrS, which has re-
suited i'm their Withdrawing from the
deposits over 100000 in cash within
the last few DAYS Today the run be
came so strong that the officers cOnSid-
cred that Justice to all depositOrs re-
CURED them to suspend payment tenn
porarily. The assets are ample for the
protection Of all depOsltOrs, and an eff
fort is bring made to effect an arrange
ment 10y which The bank will be enabled
60 pay of its depositors speedily"
Mr.. SCneifer furnished the following
statement of assets and liabilities:
Liabilities
Due depoSltors. ........ ...... 5000 4l0 "A
RedlscountS. .............. ..-...... &'b,9l2 %
Total. ACKNOWLEDGEMENTS. 1910 So "a
Assets
Notes real estate, etc. ...SI, Si5 p
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 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 Schefer, 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
70 the success of the plan.
At . o'clock the members of the
clearing house committee, which is made
up OF President w. Is. Merriam, of the
Merchants National; +. H. Bailey,
cashier of the First National, and Will
lam Dawson Jr., cashier of the Bank of
Minnesota, met in Gov. Merriam's pri-
waite 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 it
was agreed that the board of directors
of the Commercial bank should be adj
Vised chat, under the circumstances. the
clearing house committee is under the
impression that 1t will be best to allow
the courts TO
Appoint u Receiver
to wind up the business of the bank.
The committee estimated that il would
require 100000 to help the bank through
as the opening would preciptate an
other rush. The clearing house was
willing to furnish 100000 but not $780,
900.
While this deciIon of the clearing
house does not settle the fate of the
bank, it means that if it is reopened the
MD will have to be furnished from out
side the members OF the association.
According to the vice president of the
Commercial bank, T.. A. Hendrickson,
this adverse report of the clearing house
Is largely due to the idea given by the
great amount of paper furnished for
examination
"our paper" he said, sis like our de