Kansas City daily journal., 1897-01-05
Runs on ST. PAUL HANKS FORCE
THREE TO THE WALL.
WERE CLOSELY ASSOCIATED.
TWO OF THEM MAKE ASSIGNMENTS
10 THEIR CASHIERS.
One in Hands of State Bank Examiner
Attorney General VIII Test the
Right of the others to As
sirn-Dcrirs Lake, y.
d., Failure.

St. Paul. Mimi, Jan. As Il direct re-
suit of the closing of the Bank OF Mime
sofa, two weeks ago which created new
distrust among the banks depositors and
started runs on number of city banks
that Were renuted not to be as strong as
depositors wished. three St. Paul banks
the Germania. the Alemania and the West
Side. none of them national institutions
and all closely associated to-day closed
their doors. one being 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 Germauia bank paid out $2-@e99 TO
frightened dCpositors and early to-day the
directors concluded that they would stop
the drain and make an assignment TO the
cashier, Peter NJ. kecrst. The Ailema MIA
bank which. Ike the Germania. had Il
large clientage among the Germans and
whose vice president had formerly been
president of the Gerrnania, then became the
target for as lively run as could be seen
during panic times anywhere.
People crowded about the doors and fair
ly fought for place in the line before the
paying teller's window. The bank officials
realized fully what such a run meant and
promptly called on Bank Examiner Ken
yon to take possession of the bank and
that official is now in charge.
The West Side bank Il small but possibly
stronger bank. cleared through the Ale-
mania, and to-day its cleariugs were return
ed by the latter institution. Following this.
there was a decided run inaugurated on
the bank, and at o'clock this afternoon
the bank officials closed the doors and
called meeting of the directors to decide
what action to take. Their decision was
apparent late in the afternoon, when they
filed a deed of assignment to Cashier S.
Staples. the president of the bank. Con-
siderable public money is tied up in the
three institutions, but there is an ample
supply for all immediate needs in the other
banks of the city.
The assignment of the Germania and
West Side banks has brought up d some
what new question in the banking laws of
this state, and the courts will be called on
to settle it. The state bank examiner
doubts their rights to assign. holding tina.
they should have, under the law, turned
over their assets to him. The attorney gem
cral intimates that he will 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 We're cur
rent, and few banks suffered runs of
greater or lesser intensity, but the savings
banks were protected by the law that al
lows them to require sixty days notice be-
fore paying out deposits. and the national
banks in strong condition and have no
fear of anything of the sort.
The last official sstateRent of the coGGi-
ton of the Germania bank, made December
II. showed the total resources to be 81, ,625-
7SS01. and the liabilities S1,166.9SS.H The
official statement of the Allemania bank,
made December H. showed the total re-
Devils Lake, N. D., Jan. 4.-The Mer-
chants National bank closed its doors to-
day, pending action of the comptroller of
the currency. The bank was organized in
1887 with n $4,000 capital. Two or three
years later f. Ashley Mears bought the
controlling interest and incI eased the capi-
tai to 100000. In 1892. when Mears' string
of banks and concerns went down the af-
fairs were put in the hands of John A.
Perscival. the stock being reduced to $50
900 but the recent hard times We're too
much for it. The last statement showed
SAT 600 deposits.