The San Francisco call., 1897-01-05
THREE ST, PAUL
BANKS SUSPE Nd
Solvent Concerns, but Com
PEELED to Give Way
to a Panic.
DepositorS Swoop Down on the
Institutions Like a Herd
of Wolves.
The Trouble Precipitated by the Fail
ure of the -Four Banks in
M nnei po is

ST. PAUL, MINI, Jan. 4.-The Ger
mania, the Allemania and West Side
banks, all doing business as State banks,
to-day closed their doors. The failure OF
the Bank of Minnesota December %
caused unrest in the community and de-
positors withdrew their money from these
three banks to such an extent that they
were forced to the wall because they had
not funds enough Immediately in hand to
meet the demands made upon them.
Each of the three is solvent and in time
will reorganiEe as soon as the money for
the purpose can be got into use. The di-
rectors of the Germania met this evening
for that purpose. The Germania is in the
hands of P NJ. Kerst as assignee and the
other two are in the hands of Bank EX-
aminer Kenyon. A receiver will be ap-
pointed for the Allemania tomorrow and
the West Side Bank will try to make ar
rangements with its creditors and reopen
without the intervention of a receiver.
The last official statement of the Ger
mania showed total resources of 81, ,625, 76S.
$253, SAT of this being in the building and
1915, ,42o in loans and discounts. Liabili-
ties 81, ,625, 768. including 100000 capital
stock and $633, ,019 in time certificates of
deposit. Deposits subject to check,
$445. 19l.
The closing of the Germania was in
pursuance of the action of the directors on
Saturday night, who concluded to protect
their depositors by suspending. President
Willius prepared a statement, in which he
said:
Just as soon as the result of the Presidential
election became known matters began to i'm
prove in a remarkable degree, and there did
not seem to be any doubt that on May 1 the
bank would be so sound and impregnable that
an assessment could be successfully made on
the stock. This was the situation until De-
cember %, when the suspension OF the Bank
OF Minnesota occurred, following Immediately
upon the failure of the Bank OF Illinois, which
came Unexpectedly a stroke of lightning
in midwinter. Four Minneapolis banks fail
ing increased the panicky feeling, but I did
not fear any disastrous outcome until it be-
came apparent that certain evil-disposed per-
sons maliciousIy directed their attention to-
ward the Germania Bank, circulating false
and manufactured reports regarding it from
one end of the city to the other with sys-
tematic persistency.
hoped from day to day that the excite
ment would subside and make room for better
judgment, but it grew in intensity. The al
tack became bolder every day. After the close
of business on Saturday, the I'd OF January, we
found that the withdrawal OF deposits had
assumed such proportions that we did not feel
justified in receiving deposits or paying out
money without submitting the condition of
affairs to the directors. Accordingly We called
meeting OF the board for that purpose. We
had paid off nearly 1925 900 deposits in nine
business days, and kept on hand and in re-
serve something over 100000 in cash, which
shows the unreasonableness OF the panic.
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 deplorable
it might be, it became their duty for the pro-
lection of all depositors and other creditors to
close the doors and to place the assets OF the
bank in charge of an assignee.
The Allemania closed few minutes be-
fore II clock, with crowd of depositors
clamoring at the paying-teller's window
for their money. President Scheffer said i:
Our suspension is due to the large number
of Withdrawals this morning and the fact that
most new depositors withheld their deposits
The news of the suspension CT our neighbor
the Germania, precipitated the run here, and
of course with all the deposits being withheld
drawal we could not stem the tide. When the
full force of the Germanias failure burst on
them they seemed 10 become panie-s tricken
and they came down on US like q wolf on the
fold.
When the Bank of Minnesota failed the
business men fortunately were not much dis.
turbed and few were caught. The feeling OF
ease returned shortly and might have con
tinued had it not been for the failure of the
fOnr hanks n MIOnaaDOiiS Then tho
feeling came back and was intensified by the
fact that the business men then caught it very
badly. The feeling very naturally spread over
here and the people have not been easy since
When the Germania closed its doors this morn
ing that was the last straw in the case and
they came down on US like herd of wolves.
The total resources of the Allemania, ac-
cording to :he last report, were 81, ,061, O09,
including sos 842 of loans and discounts
Liabilities $1061, ,0O9 including capital
stock of $40O, 600 and deposits of 1929. .7S9.
Speaking of the failure of the West Side
Bank President Staples said:
Our suspension was due 10 the AlIemauia.
We did all Of our clearing through the ALE.
mania and this morning they failed to cover
our clearings and sent them all back on us
In the meantime the news of the suspension
of the Germania and AIlemania spread
through West st. Paul and our depositors be.
gan scrambling in and demanding their
money. We could not refuse and in a 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 Examiner
on Deeem Der II is as follows: Total assets,
$217,014 II; of this $150, 900 was in loans
and discounts and $2S,0 900 in real estate.
The total deposits were $113, 546 The fur
niture and fixtures represented $1,000 and
bills rediscounted $500.
There was q considerable run on the
three savings banks during the afternoon,
but all gave depositors notice that they
must give sixty days notice before with
drawing funds. All are perfectly solvent
and the action of the depositors was
wholly due to the generally panicky feel
ing.
"AWAITING The COMPTROLLER. y
Notice Posted by Suspended North
Dakota BANK.
DEVILS LAKE N n Ian 4-The