Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1893-07-26
CREAM CITY DAZED
Milwaukee's Financial Sheet An.
chor Breaks a Fluke.
MITCHELLs BANK HAS TO SUSPEND

Locking Up 1,5OO,OO City and Big
Roll of State Funds-Plenty of Assets
Claimed-Obermann' Brewery Follows
the Bank-Indianapolis Has Another
F1urry-Two Suspensions, the Indian
apolis National and the Bank of Com
merce.
MILWAUKEE, July 26-The Wisconsin
Marine and Fire Insurance bank, gener-
ally known as the Mitchell bank, has
closed its doors. The bank was founded
by Alexander Mitchell, father of Senator
John l.. MITCHELL who is now president of
the bank. The suspension causes the most
intense excitement, as the Mitchell bank
was supposed to be as solid as rock The
notice posted on the door is very curt 1t
is as fellows:
by reason Of the stringency in the
money market this bank has been closed
by order of the board of directors.
-. p. MURPHY, Cashier"
The announcemeI wa, tremendous
shock to the good people of this city.
Mi chel s back closed! then the heavens
might be ready to fall
Was Hard, Cold Fact.
bucd with the idea that this bank-the
old Mitchell bank-was the Gibraltar of
finance that they could not credit the re-
port that it had closed. There was n
general belief that when all other bank
ing institutions had disappeared from the
face of the earth the bank which Alexan-
der Mitchell founded would continue to
do business at the corner of East Water
and Michigan streets, and it was this firm
faith in the banks stability that made the
shock to public confidence so great. A
few minutes after 10 O'Clock the news that
the bank had not opened its doors began
to circulate on the streets and Immediate
ly rush followed in the direction Of the
Mitchell building
Learned It for Themselves
People would not believe what others
told them, but insisted on crowding up
the marble steps and reading the notice of
suspension f r themselves The crowd
, surged in and out aad up and down the
steps leading into the bank from Michi-
gan sire and it grew in numbers as the
, news Of the suspension spread. More than
one business man walked down those
steps with pale face after reading the
laconic notice on the doors At the in
stance of Benjamin NJ. We'll. the bank
cOnsenting. Judge Johnson appointed
Washington Becker receiver of the bank.
His bond was fixed at S1,0O0,0O9
Cashier Murphy's Statement.
Cashier Murphy said: 1--WE have stood
the drain as long as we can, and have shut
down because we cannot get ready money
1t is not a question of assets at all for in
time when we can realize the assets we
will have money enough to pay all liza
bilities and have large balance. 1t WAS
only question of time under the present
circumstances when we would have to shut
down, and we decided to close today. This
is not Il bank failure in the usual sense of
the term"
A dramatic scene was witnessed by the
excited crowd about the bank building.
The venerable vice president of the bank,
David l.. Ferguson, supported by two ply
sicians, was assisted out to carrin.a.
During the delberation in the bank MIR.
Ferguson succumbed to the strain fad
shock and collapsed.
A Constant Drain Did 1t.
The bank had been subject to constant
drain ever since the Plankinton b nix fail
ure. The city of Milwaukee has 81 5OO.-
000 in the bank and the corporation will
probably have to tempn arily uspend
payment, as did the county when the Com
mercial bank closed. he officers nf the
bank are: President, John l.. Mitchell;
vice president, d vid Ferguson; second
vice president, Washington Becker; cash
ier, J. P. Murphy; assistant cashier, R L.
jennings.
Effects May BE Far Reaching.
The effect of the sus pension may be far
reaching. At present it looks as if it We're
the greatest financial disaster ever known
in the history of the city. The fact that
the city has so much money in the bank
is bad complication, but even more far
reaching than this is the fact that the
state has a large amount on deposit in the
bank, as under the present methods pur-
sued by the state administration the risk
is assumed by the state itself and recovery
cannot be made through the bondsmen of
the state treasurer The state orders the
money deposited in certain banks, thus re-
lieving the state treasurer. Under the old
methods the state teasurers retained the
interest on state money, but they and
their bondsmen were responsible foI the
principal.