St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-04
THE FUNDS TIED UP.
NATIO:AL GERMAN-6NE2IcAR BANK
NOT TO OPEN TODAY.
DEPosHroRs TO RE FULLY PAID

J
lowing statement was given to the pub
lie:
The National German-American bank
Will not open for business tomorrow
(Friday) morning The prolonged drain
upon the assets, which has been steady
and 1nceasing for many months past, at
a period of the year when our agricult
ural and business community are await
ing the gathering of the crops, and in
creasing just when the financial skies
were apparently Frightening. has forced
this step upon the officers and directors.
The universal diStruSt which has per-
vaded all parts of this country for the
past four months has been felt both
East and West. This bank has felt a
steady drain by its depositors, and
there has been withdrawn Sl,562,-
600 since January, while it has
been Impossible 10 correspondingly
reduce its loans at a period OF the year
when every one in agricultural sections
like ours is so largely relying upon the
matdring harvest. The bank has sus-
tanned no serious losses of any nature,
and has ample assets to meet all its
liabilities, but when the temper of its
depositOrS is SO unreasonable and unre-
lenting, no other course but temporary
suspension was possible"
The above brief official statement tells
the story of the first serious reverse
which has come to St. Paul during this
unparalleled financial stringency.
in accordance with the usual custom
in banking business. a large amount of
paper of the customers of the bank had
been rediScOunted in the East, and a
considerable sum was rapidly maturing.
1t had up to date been promptly paid
when due, but as the financial strin-
gency prevented the banks Gus
toners from meeting their paper,
except by renewal, and as this same
Stringency caused the Eastern CORE
spOndents to decline renewals and ill.,
SiSt on payment. it was impossible. In
the face of the continued withdrawal of
deposits, to do otherwise than tempo
rarity suspend. 1t was not because of
improper management, or losses or in
solyeGcy, but simply the sheer impossi-
bilitY Of being able TO realize upon as
sets with sufficient rapility to meet the
demands for cash. and the only way to
meet the crisis was TO temporarily stop
business.
a Cali on President Hockey.
A GLOBE representative called upon
President Joseph Jockey at his Summit
avenue residence last evening. Mr..
Jockey said there was little to add to
the official statement given above.
You can, however, say he added,
that the depositors will be paid every
dollar in full. We have over four mill
iOh dollars in bills receivable to twenty
four hundred thousand dollars in de-
posts, and it is only question of the
time required to realize upon our assets
to enable Us to pay depostors the entire
amount due them"
"What will be the next step taken?"
was asked.
The comptroller Will be notified at
once, and, l suppose, will put bank
examiner in charge until some definite
plan of work for realization is inaugu-
rated"
Views OF Other Bankers.
II. Z. Upham, president of the First
National bank, expressed himself with
the utmost confidence concerning there
being no loss to depositorS. The stock
holders may suffer some loss, but the
depositors are sure to receive all of
their money. The capital of the bank
added to the assets. which OF themselves
largely exceed the deposits, makes the
dep0sitors safe.
William Dawson ST., president of the
Bank of Minnesota, said he had seen a
statement OF the condition OF the bank.
and, aside from the Inconvenience of
delay, no depOSitor Will suffer in the
least. Il regard the depositors absO-
lutely secure he said, land | would be
willing to exchange half million or
more of my unImpoyed real estate at fair
prices for their claims. l regret that the
bank did not ask assistance some time
ago. 1t the st. Paul banks had adopted
tile plan Of clearing house certificates,
which is used for relief in New YORK,
Philadelphia and other leading cities,
the suspension might have been
avoided
-. y. Monfort, cashier of the Secon d
National bank, who was also aware OF
the situation of assets and liabilities
expressed himself with similar conf
dencG concerning the depOSitOrs. They
get it tomorrow, OF course, but as rapid
~ as collections are made dividends
will he declared until all is realized.
The statement of the bank which | saw
today shows this"
mo deposition will suffer-" said l.. E.
Reed, of the Capital bank. 1.-The sus-
pension is business calamity, OF
course, but ii need not he widespread.
There is no occasion for excitement OF
alarm. The banks of st. Paul are in
such condition that no depOsitors will
lose theiI money. | should not be sur
priSed if the National German Amer.
lean bank could pay small dividend tC
dep0Sitors in few days"
Calls were made at the residences OF
eX-G0v. Merriam, OF the Merchants Ma
tional; William BiclZel, of the Germania,
and other bankers, without finding them
at home.
The general sentiment expressed by
those VINO were seen was both sympathy
| and regret for the disaster, especially
SO as the tide in the country at large
/ seems to have turned for tie better. and
even a few days more of leeway to en-.
| abie realization on assets might have
aYerted the suspension.
The state had on deposit $4,000, the
| county sos, 26S.S0 and the city $62, 100
| all Oh Wnlcn IS amply secured by bonds
Independent of the assets, and the as.
sets themselves are ample.
Officers and Directors.
The officers and directors, who are
gentlemen of the highest busimes.
standing and character. are as follows
Joseph Jockey, president; J. w
| KTapfel, cashier; t. Draz. assistant
cashier. Directors-J0seph Jockey. g
Wiliius, f. WIlius, John B. San6orn
+. Knauft, j. II. Weed, NJ. Holi, Chan
ming SeaburY. Frederick Driscoll, j
Ii. Allen. Alex Nj. Drake, }. W. Lusk
John Ii. Hullsiek, Alex Sternberg, f
Weyernauser, =. Ii. Kelly, L. c. Field
a. ii. Lindeke and J. \. Humbird
History of5h,e EsanE1.
The germ of the bank was the estab-
liShment of the small private banking
Rouse of Meyer IL Wlllius in 1856. the
firm being composed of II. Meyer and
Ferdinand Willius. In 1857 Gustav vii
LUIS and Fred Meyer were admitted to
the firm. One of the Meyers died, the