Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-23
ST.PAUL BANK CIR AS
A LEADING STATE INSTITUTION
CLOSES ITS DOORS.
NEED OF READY CASH The TROUBLE.
As Soon ns Securities Can He Rea-
Iixed On. the Bank VIII he All
Right Agnin-A Small Allied Bank
Also Closes.

ST. PAUL, MINI. December Estate
Bank-Examiner Kenyon this morning
took official possession Of the books and
assets of the Bank of Minnesota closing
its doors pending a thorough investigation
OF its affairs. The bank has been in
need of ready cash for some time. At
a meeting OF the Clearing House at noon.
the bank was formally suspended, upon
the report of the Banking Committee. A
special committee has. also been ap-
pointed by the Clearing House Committee
to prepare a statement for the public.
This committee. in advance of its state
ment, informed a representative of the
Southern Associated Press that the bank
would undoubtedly resume business in a
short time. and protect all Of it's credi-
tors In full. The directors are all men
of wealth and property interests. and
they have already signihed a Willingness
10 meet the requirements of the occasion
The Bank of Minnesota was established
in 1882 and was capitalized at $4,000.
Its stated surplus was 600. and IL is
the general belief that as soon as cash
can be realized upon its many securities
the institution will be all right.
The officers Of the bank are: William
Dawson president; Robert A. Smith. vice
president, and William Dawson. Jr,
cashier. The directorate comprises the
leading men of the city. The bank has
been the depository of the City Trea-
surer OF ST. Paul, and at present carries
$4,000 OF the city's public funds. The
State is also large depositor in the
bank, covered by heavy bonds, and is
fully protected. The City Treasurer drew
out large sum on last Monday. and
about $1,000 would have been required
shortly after January lst.
A constant stream Of curious people
has been to the scene of the trouble all
the morning, and the subject is the talk
OF the commercial centres Of st. Paul.
The bank was not national one, but
was organized under the State-banking
act II has always been rated as one of
the strongest financial institutions in
the Northwest with many country
correspondents. and a direct line OF ex-
change banks in the leading cities OF the
United States. Its deposits run into the
millions yearly.
William Dawson, Jr. cashier of the
bank. said: THE cause OF our suspen-
sion was inability to meet a severe situ-
alton. on account OF the depressed times
for the past year. especially of the past
few months. We applied TO the Bank
Examiner to close. and he is now in
charge. The State OF Minnesota was the
heaviest depositor. and intended to make
draft on us for s25.0 900 next Monday.
The State has 100000 in the bank"
SMALLER BANK CLOSES.
As result of the failure of the Bank
OF Minnesota. the Stock-Yards Union
Bank at South st. Paul, also closed it's
doors. The average deposits Of this bank
are $500 the capital $4,000. and the
average loans and discounts 10000. The
Dawsons, senior and Junior. are presi-
dent and vice-president of the Stock
Yards Union Bank also.
The Bank of Minnesota was the deposit
tory for the county and until recently
was the main bank through which city
business was transacted. r. A. Smith.
present postmaster. and until last spring
Mayor of st. Paul. was for years vice
president of the bank. The Dawsons
ranked high among firanciers. William
Dawson. Jr. was one OF the owners of
the St Paul Globe. I'm which he became
interested eighteen months ago. The
closing of the bank was as great a sur
prise TO the officers as 1t was to the gene
raj public.
Bank Examiner Kenyon was early on
the scene, and took charge of the banks
affairs. He would not give out any
statement: i'm fact. was not I'm n position
TO do so. inasmuch as he had not COM
pleted his examination. He did state
that the case would go into court to-mor-
row. when application would be made for
the appointment of receiver
According TO the last report of the
Bank Of Minnesota. the deposits on de-
mand for certificates amounted to $685.
0o0 There was due to other banks the
sum of s235,O0O but there was also due
from other banks S3l9 400. The corre-
spending banks in the country, shown
in the last report number forty-fve and
many OF these are small banks in the
country towns. whose fate may depend
upon the final resumption of the Bank .,
Minnesota.
Frank Seymour. cashier OF the Mer-
chants National Bank, was this evening
named as receiver of the Bank Of Min
nesota.