The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1893-05-18
FINANCIAL DIFFICULTIES.

The failureiof the Columbia National
Bank of Chicago, which occurred last
week was followed by the failure OF thir-
teen banks in Indiana, Ohio, Illinois and
Wisconsin. all of which had close connec-
tons with the Chicago concern. Indeed,
most of them were branches of that IN
s.itution which had established a large
number of banks throughout the country
so that Its large deposits could be placed.
Up to the present no bank has failed DUR
ing this crisis except such as have been
conducted poorly. 1t is perhaps due to
this fact that business has been but little
disturbed by the wrecks occurring every
dsy. Ali manufacturing establishments
are running to their full capacity and
commerce is brisk though money IS hard
to obtain.
Many banks in the northwest have an
ticipated runs because of the numerous
failures and have made arrange ments to
meet them. The banks in this city have
| had numerous applications from banks
|
outside for assistance, not from any
threatened danger, but in order to be In
a position to meet it should it come.
The failure of Lappen Il Co. OF Mil
wsukee was productive of a commotion
in that city. The liabilities of the con-
cerp are 100000 It was doing an i'm
| nense business but attempted too much
| On its capital. The firm owed the Plank
inton Bank S219,207. This alarmed de-
positors, and on Friday run was made
On the Bank. 1t kept its doors open
long after business hours and paid de-
positors as rapidly as they called fol
what YVES due them. But this did not
| restore confidence. When the Bank
opened on Saturday morning from 200 te
300 people were at its doors. The paying
teller stood at his window for six hours
paying out money, without eating
mouthful or even taking drink OF water
A large number of police were on hand
to watch for pickpockets and to keep the
crowd in line. Some people were IN line
four hours before they reached the pay
ing teller's Acknowledgement tainted anc
we're taken away, but on recovery, re
turned and took place in the. line.
| The crowd was almost wholly small
depositors. There were no business mel
in it. On the contrary, they made de
posts through the day, amounting IN tn
aggregate to $4,000. Gov. Peck was IL
the city and addressed the crowd, assur
ing them that the Bank was perfect.
safe. Presidents of other city bank
gave similar assurances. These satisfied
some of the anxious crowd and they wen
home. But when the hour for closln.
arrived the Bank was still crowded and l
was announced it would be kept open al
hour longer. When this time was III
there were still $50 people unpaid ant
another hour was added to the banking
day.
The Bank expected run and had 500
900 due it from banks in Chicago sent b.
special train. The money was brough
in a safe, and when the safe was brough
into the bank, the combination would no
work. 1t became necessary to break 1
open, and workmen set to work and die
SO. Local banks which were owing the
Plankinton sent in the balances ant
pledged assistanc, should it be necessary
that 1t would come to the aId OF TN
Bank. But it was not necessary. l
did not pay out one fifth of its own funds
There was drawn ont through the day il
comparatively small amounts, the sun
of 100000
There was nothing like this run in Mil
waukee for 80 years. That the Bank
could stand It without assistance anc
even not come close to the limit Of it's
own resources is proof of Its stabili ty.
With the exception that it is hard to gel
money and that the rate of interest has
advanced considerably, the failures have
had but little effect upon the business
OF the country. There are thousands Of
dollars IN this city seeking investments
IN farm mortgages at low rate of inter
es. The stringency has not reached this
city and everything Is following the usual
tenor of its way. Business is dull but
not from lack of money, as many of the
people have more Of it than they know
what to do with.
|