New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-05
ST. PAUL BANKS GO UNDER.
SURPRI~ THAT THE GERvAN-AMER!CAN
CLOSED IT'S DOORS.
STATEMENT FROM ITS OFFICERS - i"o
SMALLER INSTITUTIONS COMPELLED

SMALLER INSTITUTIONS t0NPELLEo
TO SUSPEND PAYMENT
St Paul, Aug. 4.-The temporary suspension OF
the German American National Bank last hs"'
although not wholly unexpected In banking cre'e''
was a great surprise to the general COMMUNE
STILL so confident the people or the s"e"e
of the remaining banks, that although sohe ~
postors are quietly Withdrawing their money io
a few banks, there is particular excitement ol
general run on any OF the banks. the savings oa"n'
for several DAYS having been enforcing the s'Hy
dav rule although most OF them have abunuan'
resources for any emergency. The failure vi -"
Seven Corners Bank on Tuesday attracteo NJ.
attention, as 1t has been known TO De "eah '
a good many months. Some Of the other DahhS
had helped It at times but felt at the present ''"
dispclina ton TO continue their help. which seeneo
only to postpone the failure that nnalIy CAME
But the closing Of the German-Amer'cah d. 49,.
last night was OF different CHARACTER IL OF" ~
predecessors have been institutions OF the cl.y' 's
Grst organization having been effected IN $780, anu
all s,bseollent changes Strengthening anu e"'"'e
,na tho hank Among its depositors were great
WV email German depositors VINO nave pee"
quietly Withdrawing their money ior SOME "on'',.
The bank was severe sufferer by d ho'"oe ~
h,siness failures during the last TWO years i"e
dimcuIty of making collections ana ulshhe io'
forced collections caused the su'pe
on the door reads: , ,o.,,s
..Ou,ro 70 the continual withdrawal OF deposits
the bank has been compelled 10 suspe"' Inc
bank has ample assets to pay all hao''''ie'' :,
According to statements by the officers ana oi
rectors of the bank the bank mas stV"'V" u s.
commercial paper, banking-house anu ,,,
worth at least 100000 and other assets which VIII
,, ssoo ooo moro making a total Of S,OOC.oW TO
nav deposit account of s., 26l,O 900 The bank coud
90 on again in ninety days If the Controller tnought
II hest even II the stockholders had to pay an as
sessment of 10 per cent. ?,
The People's bank closed its doors at noon. IL
has a capital stock of $4,000. NO oetaiieu S''"
ment of the affairs Of this bank can be ootaihe'
before Tomorrow. The same answer was given "
the United Press representative when statement
Of its affairs was asked of the officers OF the "es,
Side Bank which latter has a capital STOCK vi
500 900 and closed it's doors at o'clock Tnere are
a few people hanging around some OF the other
banks but no general run on any OF them'
There was a steady the Germania Bank
all dav The officials decided to keep the bank open
until O'Clock.
St Paul Aug (SpeciaD Daily News
saws: Certain irregularitie Of the past of C. A.
Hawkes. former cashier Of the Seven corners
Bank made the suspension OF the INSTITUTION
necessary and not the financial situation geherai'
Mr. Hawkes. had the fullest confidence OF the
pank's officials and bore unblemished char-
acter He employed this confidence in securing
large loans aggregating than $1,000 from the
funds Of the bank and placing ms oumrs,v for
the repayment of the money. This obtained, Mr.
Hawkes. had gttering prospects at the time money
was taken out He failed to lift his notes, now
ever although the matter was canvassed on se'e-
raj occasions by the directors.
FINALLY a time came when Mr. Hawkes. stepped
out of the cashiers desk, whether by request or
voluntarily has not been stated by the 6ank Peo
pie No charges have ever been lodged against
MIR Hawkes. by President Banholzer OF the bank;
and according to Mr.. BanholZers own statement
charge viii be preferred T. Kellogg, a hanL
ney for Mr. Hawkes. appeared before the Dank
officials a day two since and offered settlement
in full of the Hawkes. paper held by the bank A
day later Mrs Mary b. Hawkes.. mother OF the
cashier, transferred TO President William Ban, Ban
holzer some real estate, the consideration beins
$500 This property is subject to a mortgage of
$500 leaving $4,000 actually paid on the Hawkes.
note Mr.. Banholzer refuses to say anything more
about the irregularities than that the notes gwen py
his cashier in the bank when he himself took
the active management of the institution FROM
another equally reliable source this paper Is IN
formed that the amount will exceed $4,000, and this
deficit in the bank Golfers naturally led to strin-
gency in this time of general pressure So
The suspension of the Seven Corners Bank dld
much toward precpitatng the suspension or the
German American and other banks which closed
TODAY.