The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-05

more On deposit IN some Oh the pdIihS
and some months less. Mr. Horst de-
MED the report that $4,000 had been
drawn from another bank few days
ago and deposited with the Germania
bank. Still the report is street talk,
The bond given by the Germania TO
protect the city deposits is signed by
the following gentlemen as sureties in
the sum of 100000:
John Klein, John B. Hermann, Jo-
seph Haag, Z. F. Berrisford, William
Schornstein and Albert Spangenberg.
The bond has been approved by only
one branch of the common council and
is being considered by the ways and
means committee of the assembly. This
the city authorities claim will not pre-
vent suit being brought against the
sureties, If this action should be con-
sidered necessary.
The following statement from Presi-
dent Gustav Willius explains itself
st. Paul, Jan. 4, 1897.
To the Stockholders and Creditors of the Ger
mania Bank:
In January, 1895. the directors of the Ger
mania bank rendered me the position of
president.
My predecessor having declined re-elec--
ton, and there having been a great deal OF
talk and gossip regarding the bank, the d.
rectors desired very strongly that / should
accept the place at once, without previous
examination, assuring me that the bank was
of some bad paper was admitted.
Upon the strength of this assurance | ac-
copied the position and assumed It's duties
on the 18th of January.
| then entered upon a careful examination
of the affairs of the institution, and found
it's capital impaired to a larger extent than
| had reason to expect. of which result L ad-
vised the directors in full meeting.
Shortly after my election, the Hon. M. D.
Kenyon, superintendent of banks, also made
a thorough examination, with similar re-
suit.
1t was at once evident to me that 1t would
require an assessment of 90 per cent and
reduction of % per cent of the capital STOCK,
to entirely remove the impairment and start
the bank on a new career or success ana
prosperity.
The Hon. NJ. D. Kenyon fully coincded
with my views and 1t was agreed that the
assessment should be made on the ist OF
November 1896.
In the meantime the officers were to use
their best efforts to strengthen the bank by
increasing it's cash by collection OF bills re-
ceivable.
1 Iabored conscientiously in that direction
with good success. and improved the assets
of the bank considerably; but owing to the
free silver agitation, a great many deposits
had been withdrawn, and when the time
fixed for the assessment arrived, had
another consultation with Mr.. Kenyon, with
a view of having the assessment postponed
until May l. 1897
AS soon as the result of the presidential
election became known, matters began to
improve IN a remdfkaDlo QeSTeep anu lIloIc
did not seem to be any doubt that on May
l. the bank would be in so strong and i'm
pregnable condition, that the assessment
could successfully be made.
This was the situation on the 22nd OF De-
cember when the suspension or the Bank OF
Minnesota occurred, following Immediately
upon the failure of the National Bank OF II
linois at Chicago, which came as unexpect-
eddy as a stroke Of lightning in midwinter
and caused general alarm.
The four Minneapolis bank failures in
creased the panicky feeling but l did not
fear any disastrous outcome, until 1t became
apparent that certain evil-disposed persons
maliciously directed the attack towards the
Germania bank circulating false and man
ufactured reports regarding it from one end
of the city to the other, with systematic per-
sistency.
Those people are a veritable pest and they
deserve the contempt of the entire commu-
nifty.
| hoped from day to day that the excite
ment would subside and make room for bet
ter judgment, but it grew in intensity. The
attack became holder every day. After the
close of business, on Saturday the End of
January, we found that the withdrawal Of
deposits had assumed such dimensions that
we did not feel justified to continue receiv-
ing deposits or to pay out money, beyond
that day, without having submitted the con-
dition of affairs to the directors.
Consequently we called a special meeting
of the board on said day at 1880 p. M, for
that purpose.
We had paid off nearly $225, coo deposits in
nine business days and kept on hand and in
reserve something over 100000 cash means,
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 Of
! ficers had been correct. and that. however de-
plorable it might be, it became their duty
for the protection Of all depositors and other
creditors. to close the doors, and to place the
assets of the bank in charge Of an assignee
Mr.. Kenyon is entitled to the gratitude Of
all parties concerned for the wise and lib
eraI policy pursued by him towards the bank
since my connection with it, which was cal
! cuated to avert disaster.
1t is the intention of the directors to take
| immediate steps towards the reorganization
of the bank, upon an absolutely sound basis,
| free from all questionable assets and it is
| to be hoped that every interested party will
| come forward and help.
If we meet with the proper encouragement
and assistance, the bank ought to resume
| not later than April /. next.
Very respectfully,
GUSTAV WILLIUS.
The report of the condition of the
bank at the close of business Dec IL
| the last public report to the state ex-
aminer-showS:
Resources
| .