The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1893-08-11
TEMPORARILY SUSPENDED.

"Mankato. Aug. A. 1898. This bank
is closed on account of the stringencY
of the money market, and the
Inability to collect what is due 1T fast
enough to meet the demands of depOS-
itors. The bank is solvent and de-
positors will be paid in full"
The closing of this bank is under
stood TO be due to the gradual with
drawal of deposits which has been 60
ing on for many weeks, and which
was shown by the last bank statement,
published ten days ago. The suspen'
sion of the National German-AmeIi-
can Bank at St. Paul had some effect
in precipitating the suspension OF
this bank, by creating a general feel
ing of uneasiness and simply fastened
what the officers of the bank cOnsld-
cred to be inevitable. The statement
of the bank speaks for itself and
reeds no additional words. 1t cannot
be definitely said when this bank Will
resume business, but it will probably
not be very long.
The suspension of the First Nation
al Bank created much surprise, and
some of the more foolish and
excitable of the depoSltors
in the other two national banks
started to draw out their deposits.
Fearing that run might be started,
Presidents John F.Meagher and j. ii.
Raw held a consultation shortly after
noon, and as result the directors OF
both banks were called together to
consider the situation. After careful
consideration it was decided in each
instance that it would be the best
policy to suspend temporarily. Messrs.
Meagher and Raw found but two
courses that could be pursued, one
being to stand the runs an1 allow the
selfish depositors to get the ready cash
and do an injustice to the Others, and
the second being to temporarily sus-
pend until the excitement should
have died away and place all deposit
ors on an equality. The latter course
recommended itself to the presidents
and was also adopted by the boards OF
directors.
At about half past one o'clock
the National Citizens bank closed its
doors and hung out the following
placard:
''Mankato. Aug. 4, 1893. Resolution
of Board of Directors of the National
Citizens bank, adopted Aug. 4, 1893:
sowing to the suspension OF the
First National bank of this city, and
the present stringency of the money
market, it is resolved to suspend pay
ment until the present excitement
SUBSIDIES"
At about two O'Clock the Mankato
National bank closed it's doors, and
the following statement was posted
up:
"Mankato Aug. 4, 1898. Owing to
the closing of the First National and
National Citizens banks of this city,
this bank is temporarily closed.
1.-The bank is perfectly solvent and
all depositOrs are safe.
'The bank will probably resume
business very SOOn"-aS soon as public
excitement abates.
JOHN h. THOMAS, CASHIER.
The National Citizens bank has in
it's vaults about 100000, and the Man
kate National bank has $4,000. The
banks are as substantial and the de-
posits as safe as they were year ago,
or at any time in their history. They
will resume in few days.
The action of the National Citizens
and Mankato National banks in max
ing temporary suspension is COM
mended by all business men, and is
considered as the only fair way to deal
with the depositors.
There are no better or stronger
banks in the country than
the three Mankato national
banks. They are carefully conducted
by prudent and successful business
men. The stock holders represent
wealth several times in excess Of all
the liabilities Of the banks, aud are
individually responsible to the depos-
itors. But they will not be called up
largely in excess Of the liabilities. At
the very worst, 40 stock holder could
possit ly lose cent. In view of this
it is strange that anyone should be so
foolish as to lose his head and draw
out his money for fear of losing it.
The temporary suspension of the
banks is due to the censurable foolish
ness of some of the depositors, who
have shown an unreasOning distrust of
the banks. The want Of confidence
on the part of these people is to be
deeply regretted, and the suspension OF
First National bank was as needless
as the acts of these depositors were
censurable, especially as the financial
situation was improving.
There is a duty which all good
citizens owe to the welfare of the
city and that is to keep cool heads
and try to cool down the unreasoning
Il