The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-01-05
THREE ST PAUL BANKS GO.
A C0NSTnN RUN FORCED THEM
TO CLOSE DOORS.
National Of DEVILS Lake
Closes Pending Action Of Com
ptroIlar; Also iowa Bank.

ptroIIar; Also iowa Bank.
ST. Paul, Jan As q direct result Of
the closing of the bank of Minnesota, two
weeks ago which created new distrust
among bank depOsitors and started runs
on number of city banks that were re-
puted not to be as strong as the depositors
wished. three st. Paul banks, the Ger
mania, the Allemania and the West .J4de,
none Of them National institutions and
all closely associated to-day closed their
doors, one being now in the hands of the
State bank examiner and the others max
ing assignments. During the time that
has intervened since the closing Of the
bank of Minnesota, the Germania bank
paid out $225, 900 to frightened depositors
and early to-day the directors concluded
that they would stop the drain and
made an assignment to the cashier, Peter
NJ Kerst. The Allemania bank, which
like the Germania has a large cl.cntage
among the Germans and whose
! v.ce-pres;dent had formerly been presi-
dent Of the Germania then became the
target for rs lively a run as has been
seen during panic times anywhere. Peo-
pie crowded about the doors and fright
fully fought for a place in the line be-
fore the paying tellers window The
bank officials realized fully what such a
run meant and promptly called on bank
examiner Kenyon to take possession of
the bank and that official is now in
| charge.
The West Side bank, small, but posi-
bly stronger bank cleared through the Al
lemania and to-day its clearings were re-
turned by the latter institution. Follow
ing this there was decided run inaugur.
| ated on the bank and at 2 O'Clock this
| afternoon the bank officials closed the
doors and called a meeting OF the direct
ors to decide what action to take. Their
decision was apparent late in the after
| noon when they filed a deed Of assign
| ment to Charles F. Staples, the president
| Of the bank Considerable public money
| is tied up in the three Institutions, but
there is an ample supply for all imme-
diate needs in the other banks of the
! city. The assignments Of the Germania
! and West Side banks have brought up
somewhat new question in the banking
laws Of this State and the courts will be
called ON to settled it. The State bank
examiner doubts their right to assign,
| holdiHs that they should have under the
| law, turned over their assets to him. The
Attorney General intimates that he will
I bring action to test the matter as soon as
| the papers can be prepared.
During the day numerous reports OF
| trouble among the other banks were cur
rent, and few banks suffered runs Of
| greater or less intensity, but the savings
! banks were protected by the law that al
! lows them to require sixty days notice
| before paying out deposits, and the Ma
| tional banks are in strong condition and
/ have no fear of anything Of the sort
! Owing to the excitement caused by the
| closing Of the Germania and Allemania
| banks to-day, many depOsitors started af-
! ter their money in one or two Of the 9th
er banks, the Minnesota Savings Bank
being the center OF excitement. The
| cashier Of the bank, VIM. Bickel, Jr., Is
a son Of the first vice-president of the
/ Allemania, and this fact seemed to turn
! the minds OF the people that way. The
! bank was open as usual for business at
2 p m, but was taking advantage Of the
rule requiring sixty days notice before
allowing Withdrawals OF deposits
| Public funds were on deposit in all
/ three Of the closed banks. The State
| had $10,546 in the Germania S35, 1902 in
! the AllemaDia: and $3,646 in the West
! Side Bank The county treasurer had
| deposited $9,635 in the Germania; 500
| 215 in the AlIemania, and 81 ,564 in the
| West Side Bank. City Treasurer Horst
| had on deposit city funds in the Germa-
| mia $40, ,793 in the Allemania $751; ,456,
and in the West Side. Bank $21, ,S94
DAKOTA BANK FAILS.
| Devils Lake, n. D., Jan. 4.-The Mer-
| chants National Bank closed its doors to-
| day, pending the action OF the Comp
! TROLLEY Of the Currency. President Per
| ciyal is in the East and the Cashier
would make no statement The bank
was organized in 1887 with $4,000 capi-
tai Two or three years later, Il. Ash
| ley Menrs bought the controlling inter
| est and increased the capital to 100000
| In 1892, when Mr.. Mears's string Of
banks and other concerns went down,
the affairs were put in the hands OF
| John A. Percival, the stock being re-
| duced to $4,000, but the recent hard
times were too much for it. The last
statement showed SAT 900 deposits
IOWA BANK DOWN.
Mason City, Ia, Jan 4-The First
city bank Of Moran Springs, has failed.
An assignment was made by Bryan Gam
midge
A VIRGINIA ASSIGNMENT.
Petersburg, Va, Jan. 4-M. w. Pyne,
dealer in musical instruments, made an
assignment to-day, manning Alexander
Hamilton as trustee. Liabilities $4,000;
assets not stated. The principal credi-
tors are in this city and Richmond.