The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-05
Ct pAUL'S NEW BANK SCARE.
,nrp MORE BANKS CLOSE THEIR
DOORS.

uo.vy Run on a Savings Bank Fol-
4 ,avs and II Takes Advantage of
sixtv Days Notice CIause-One
the other Banks That Closed
uod withstood Run For Two
yoeks-A Few other Bank Fail
of Minor Importance Also Re-
ported.
4 o. psul Mimi, Jan. 4.-The Germania,
E. he AIlemania and the West Side Banks,
~ 5oing business as state banks, to-day
,.ss5 their doors, every one of them be-
# 40 literally pulled down by their depos-
tors,
Doo % caused unrest in the community,
s. od depositors withdrew their money from
i ,s three banks above, to such an extent
hot they were forced to go to the wall,
Il cause they had not funds enough inn
Il o5iatolv in hand to meet the demands
made upon them. Each of the three,
owever, is solvent, and all of them will
/ Ioorganize as soon as the machinery for
hat purpose can be put into use.
The directors of the Germania met this
. .vening and appointed a committee on
n Reorganization.
n The Germania is in the hands of P. M.
Il erst. as assignee, and the other two are
IL the hands of Bank Examiner Kenyon.
81 A receiver will be appointed for the AL
tmania tomorrow, and the West Side
a III, 49,. 90 ,,oaIya arrapgapoapfc with
Is creditors and reopen without the in
tkrvention of a receiver.
The closing of the Germania was in per-
nance of the action of the directors on
saturday night, who CONCLUDED to protect
Il cir depositors by suspendlng. President
HHliams prepared a statement, in which
ii said: LAS soon as the result of the
Residential election became known, mat
ms began to improve in remarkable de-
81 zee. and there did not seem to be any
|abubt that on May l the bank would be in
i'll strong and impregnabie condition that
III assessment could successfully be made
IL stock This was the situation on the
IN of December when the suspension of
"a Bank of Minnesota occurred, follow
- Immediately upon the failure of the
.1ank of Illinois at Chicago, which came
I'd Unexpectedly as a stroke of lightning
81 mid-winter and caused general alarm.
lie four Minneapolis bank failures in
'A eased the panicky feeling, but
FL did not fear any disastrous
.0Ltcome, until it became apparent
~ lat certain evil-disposed persons malic-
|kusly directed the attack toward the Ger
a Aania Bank, circulating false and manu-
Hcured reports regarding it from one end
o the city to the other. with systematic
ID Mrsistency These people are veritabie
~ ST, and they deserve the contempt of
de entire community. / hoped from day
% day that the excitement would subside
al fd make room for better judgment, but
ii grew in intensity. The attack came
~ blder every day. After the close of busi-
ms on Saturday, Jan. 2, we found that
nc Withdrawals of deposits had assumed
81 ch dimensions that we did not feel jug
He'd to continue receiving deposits or to
My out money, beyond that day, without
M wing submitted the condition of affairs
~ the directors. Consequently, we called
p special meeting of the board. We had
Nd off nearly $3.50 deposits in nins
Msiness days, and kept on hand and in
userve something over 100000 cash
mans, which show the unreasonableness
~ the panic The directors, after having
Wighed the matter in all its bearings,
eame unanimously to the conclusion that
~ action of the officers had been cor
ri t, and that, however deplorable it might
beB it became their duty for the protec-
IN of all depositors and other creditors,
90 close the doors and to place the assets
N the bank in charge of an assignee"
he Allemana closed few minutes be-
fQe Il o'clock, with a crowd of deposit
'W clamoring at the paying teller's WIN
Ww for their money. President Scheffer
# d: "Our suspension is due to the large
mmber Of Withdrawals this morning, and
III fact that most of our depositors with
~; their deposits. The news of the sus-
pc nsion of our neighbor, the Germania,
~ aipitated the run here, and, of course,
EN all the deposits being withheld and
4 fact that there was a steady with
= wal we could not stem the tide. When
M full force of the Germania's failure
~ st on them, they seemed to become
"a ic-strcken and they came down on US
~ wolf on the fold. When the Bank
Minnesota failed, the business men,
4N Ntunately were not much disturbed, and
were caught. The feeling of ease
FL smoothly, and might have continued,
II not been for the failure of the four
KS in Minneapolis. Then the panicly
ing came back and was intensified by
1act that the business men then caught
very badly. The feeling naturally
"NNA htLts anu tll6 pNOPlN AihNN
~ Deen easy since. When the Germanta
,NR ed Its doors this morning, that was the
III straw in the case, and they came
on US like herd of wolves"
n4 'eaklng of the failure of the West Side
K President Staples said: "Our sus-
3s.t S'on was due to the Ailemania. We
&< an OF our clearing with the Allema-
E4 and this morning they failed to cover
Ell giearlngs and sent them all back to
ia the meantime the news of the sus-
|S1 slon of the Germania and Aiemanla
aa through West st. Paul,
EN-. our depositors began scrambling in
* demanding their money. We could
eiuse, and in little while there was
&s,H o9 sized run on the bank. We were
eu TO close up to save ourselves"
*.k ere was considerable run on the
Ek savings banks during the afternoon,
XM,t ~ gave depostors notice that they
Hl give sixty days notice before with
&.na .ls FUNDS. All are perfectly solvent,
zx ne action of the depositors was
<hf 'S que to the generally panicky feel