The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1897-01-08
HIRE MORE ST. PAUL BANKS.
Two Were Large Institutions, the
Other INnS Smnu

suit of the closing of the Bank of Mime
sofa, two weeks ago, which created new
distrust among depositors and started
runs on a number of city banks that were
reputed not to be as strong as the depos-
TORS wished, three st. Paul banks-the
Germania, the Allemania and the Vest
Side, none of them national institutions,
all closely ssociated-closed their doors
today, one being in the hands of the state
bank examiner and the others making u.s.
signments.
During the time that had interv sned
since the closing of the Bank of Minne-
sofa, the Germania paid out $225, 600 to
frightened depositors, and early today the
directors concluded they would stop the
drain n make an assignment to the
cashier, Peter M. Keerst.
The Allemania bank, which, like IL e
Gcrmania, had a large clientage among
the Germans, and whose vice preside INT
had formerly been vice president of tile
Germania, then became the target for q
lively run. Crowds gathered about the
doors and fairly fought for a place in the
line before The paying teller's window.
The bank officials realized fully what sch
- run meant, and promptly called on
ltank Examine Kenyon to take posses
sion of the bank, and that official is now
in charge.
The West Side bank, a small but posi-
bly, stronger BANK, cleared through the Al
lemania, and today its clearings were re-
turned by the latter institution. Follow,
ing this there was a decided run inal,U-
rated on the bank, and at 2 o'clock :his
afternoon the bank officials closed the
doors and called a meeting of the directors
to decide what action to take. Their decis-
ion was apparent late in the afternoon,
| when they filed a deed of assignment to S.
II. Staples, president of the bank.
Considerable public money is tied up in
the three Institutions, but there is am M
pie supply for all immediate needs in the
| other banks of the city.
The assignment Of the Germania and
| West Side banks has brought up a some
| what new question in the banking laws Of
! the state, and the courts will be called up
ON to settle it. The state bank examiner
doubts their right to assign, holding thai
| they should have, under the law, turned
| over their assets to him. The attorney
general intimates that he will bring an ac-
| ton to test the matter as soon as papers
can be issued.
During the day numerous reports of
trouble among the other banks We're cur
rent, and a few banks suffered runs of
! greater or lesser intensity, but the savings
banks We're protected by the law that al
lows them to require 60 days notice before
paying out deposits; and the national
banks are in strong condition, and have no
| fear of anything of the sort.
The GcrrInnia Bank.
The Germania bank was a state insli-
| ti,tip1 and had n canitn1 of S1O0 00 THE
last official statement of the condition OF
| the bank, December Il, gave loans and
| discounts as $975, 420. SO; total resources,
| 81, 625, 7SS. Among the liabilities We're cap,
ital stock, $4O0, coo; surplus and undivided
profits, $5S, 191; individual deposits subject
to check, $345, 1871; demand certificates OF
| deposit, $3.50; time certificates of deposit,
1898, o19.
The Germania bank has been organize
many years, Ex-Governor Alexander Ram
say being a long time president, and Will
liam Bickell, cashier. When the governor
retired, Mr.. Bickell became president, but
last spring Bickell retired, becoming vice
president of the newly organized Allie
mania bank. He was succeeded by Gus
tav Willius.
President Willius told an Associated
Press representative tina the closing was
the result of an unreasonable panic, ana
the bank would be opened for business
as soon as the people regained their usual
cool sense.
The bank, as a result of the panicky
feeling, had paid the depositors $3.50, 600 IN
the last nine days. Willius said he fully
expected to have the bank reopened by
the last of March.
The A~Ilemania.
The Allemania bank has n caDltul OF
$500. 600, and a clientage similar to that of
the Germanta. The Allemania was organ
lied last year, as a successor of the Com
mercial, William Bickell, formerly pres
ident of the Germania, joining forces
with Albert Scheffer, of the Commercial,
to organize a new bank. The last Off
cial statement made, December II, show,
ed loans and discounts, 500, Sl2; undivided
profits, less expenses, sos, 764; individual
deposits. 1929, 1S9;; interest certificates.
$lSi, 90.
President Scheffer, of the Allemania,
said the failure was due to combined
withdrawal of deposits. A crowd of de-
p~ositors gathered today demanding their
money, and at II o'clock it was decided
to close.
Runs on other Banks.
Owing to the excitement caused by the
closing OF the Germania and the Allie
mania banks, many depositors went after
their money in one or two other banks,