The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-01-05

81. Paul, Jan. 4.-Ine Germdnld, the
Allemannia and West Side banks, all
doing business as state banks. today
closed their doors. The failure of the
Bank of Minnesota, Dec. %, caused
unrest in the community, and depos-
itors withdrew their money from these
three banks to such an extent that
they were forced to go to the wall,
because they had not funds enough i'm
mediately in hand to meet the de-
mands made upon them. Each of the
three, however, is solvent, and they
will organize as soon as the money
for that purpose can be put into use.
The directors of the Germania met
this evening and appointed commit
tee on reorganization. The. Germania
is in the hands of c. NJ. Kerr and the
others are in the hands of Bank EX-
aminer KENYON.
A receiver will be appointed for the
Allemannia tomorrow, and the West
Side bank viii try to make arrange
ments with its creditors and reopen
without the intervention of a receiver.
The last official statement of the Ger
mania bank showed total resources of
81, 625, 76S, $253,S47 of this being in the
building and S975420 in loans and dis
counts; liabilities, $1,625, 76S including
$400,0 900 capital stock and $633, ,019 in
time certificates of deposits; deposits
subject to check are $345, 191.
THE PRESIDENTS STORY.
The closing of the Germania was in
pursuance of the action of the direct
ors on Saturday night, who concluded
to protect their depositors by suspend
ing. President Willius prepared a
statement, in which he said:
&c ba of 10
Dental election became known, mat
ters began to improve in a remarkable
degree, and there did not seem to be
any doubt that on May l the bank
would be in so strong and impregnable
a condition that an assessment could
successfully be made on stock. This
was the situation on the 22nd of De-
cember, when the suspension of the
Bank of Minnesota occurred, follow
ing Immediately upon the failure of
the Bank of Illinois of Chicago, which
came as unexpectedly as a stroke of
lightning in midwinter. and caused
general alarm. The four Minneapolis
bank failures increased the panicky
feeling, but | did not fear anv disas-
trOus outcome until it became apparent
that certain evil-disposed persons ju-
diciouSly directed an attack toward
the Germania bank, circulating false
and Manufactured reports regarding it
from one end of the city to the other,
with systematic persistency. I hoped
from day TO day that the excitement
would Subside and make room for bet
ter judgment, but it grew in intensit~
The attack became bolder every day.
After the close of business on Satur-
day, Jan. 2, we found that the with
draWal of deposits had assumed such
dimensions that we did not feel justi-
fed to continue receiving deposits or
without having submitted the cOndi-
ton of affairs to the directors Conse-
quently we called a special meeting for
the board on the same day at T. for
that purpose We paid off nearly
1925, 900 deposits in nine business days,
and kept on hand and in reserve some
thing over 100000 cash means, which
shows the Unreasonableness of the
ranic The directors, after having
weighed the matter in all its bearings
came unanimously to the conclusion
that the action of the officers had
been correct, and that, however de-
plorable it might be, it became their
duty for the protection of all depos-
itors and other creditors, to close the
doors and to place the assets of the
bank in charge of an assignee"
A CLAMORING CROWD.
The Allemannia closed a few min
utes before II o'clock with a crowd of
depositors clamoring at the paying tell
ers window for their money. Presi-
dent Scheffef said:
Our suspension is due to the large
number of Withdrawals this morning.
and the fact that most of our deposit
OrS withheld their deposits. The news
of the suspension of our neighbor, the
Germania, precipitated the run here.
and of course with all the deposits be
ing withheld and the fact that there
was a steady withdrawal, we could not
stem the tide. When the full force of
the Germania's failure burst on them
they seemed to become panic-stricken
and thew came down on rs like Wolf
on the fold. When the Bank of Min
resCta failed the BUSINESS men Ior-
tunately were not much disturbed and
few were caught. The feeling of ease
returned shortly, and might have con-
tinued had it not been for the failure
of the four banks in Minneapolis Then
the panicky feeling came back and was
by the fact that the bust
ness men then caught it very badly
The feeling naturally spread over here
and the people have not been easy
since then. When the Germania closed
its doors this morning that was the
last straw in the case, and they came |
down on us like a herd of wolves"
The total resources of the Alleman- |
MIA, according to their report of the |
same day, was s1,061 .009 including $685.
S42 of loans and discounts. Liabilities, |
Sl,OS1, ,009, including capital stock OF |
$40O, 900 and deposits of 1929, 7S9.
THE WEST SIDE.
Speaking of the failure of the West |
Side bank. President Staples said:
Our suspension was due to the Allie |
We did all of our clearing |
through the Allemannia and this morn |
ing they failed to cover our clearings |
and sent them all back on us. In the |
the news of the suspension |
Of the Germania and the Allemannia |
spread through West st. Paul and our
depostors began scrambling in to OBJ |
tain their money. We could not refuse |
and in little while there was a good |
sized run on the bank. We were
obliged to close up to save ourselves"
The official statement of the West |
Side bank, made to the state bank ex-
aminer on December X, is as follows: /
Total assets, S2I1, ,014.17. OF this $780, |
300 was in loans and discounts, and |
in Tot