The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1897-01-02
ANOTHER BIG CRASH.
The Bank of Minnesota Goes to
the Wall
OWNS to a Shortage of Ready Cash, Car
ryins Down with 1t the South St Paul
Bank, a Branch of the Larger Tnsti-
tutfon-WnI Pay In Full.

ing of apprehension and fear that the
closing of the Bank of Minnesota &C.
casioned to-day has to some degree
subsidized as night has come. The
hopeful statement issued by the Off
GERS and directors of the bank has re-
assured the business community.
Aside from the closing of the South
st. Paul bank, which was but a
branch of the Bank of Minnesota,
no other concerns have closed.
When early customers appeared
this morning at the bank they were
surprised to find upon the doors
4 notice to the effect that State Bank
Examiner Kenyon had officially taken
charge of the Bank of Minnesota, and
its records, books and effects. The
news spread with lightning-like ra-
pidity throughout the city, and o
large groups of men and women made
their way towards the bank building.
Some were prompted because they
were depositors. Others came from
mere curiosity. But no one was admit
ted.
The public examiner at ono began
q careful examination of the affairs of
the bank. At noon the clearinghouse
met and suspended the bank from the
1850 citation.
The Bank of Minnesota was always
considered one of the leading financial
institutions of the northwest. 1t had
The longest record of any banking in
stitutlon in st. Paul. AS early as 1851
she private banking house from
which the present bank came
finally was established under the
irm name of Berry, Holland &
Dawson. In 1866 the banking firm be-
came known as Dawson Il Co., and
lid an immense business until 1Ss2,
when the present Bank of Minnesota
was organized under the state bank
ing act. Its capitalization was $780,
900; its surplus and undivided profits
were given at $500, 900. Its last report
to the bank examiner was fled Octo-
Der 8 last and a call for a new report
was issued yesterday which probably
hastened action.
According to the last report, the de-
posits on demand certificates amounted
to Ss65, 900. There was due to other
banks the sum of S235, 600, but there
were also due from other
banks amounting to S319, 400. The
state of Minnesota carried q deposit
with the bank at the time of the sus
pension amounting to Sl04, 000, but
this sum is amply secured by gilt
edged collateral. The corresponding
banks in the country shown on the
last report number As, and many of
these are small banks in the country
towns, whose fate may depend upon
the final resumption of the Bank of
Minnesota The state had given no.
lice that it would withdraw $4,000
during the week, and the city treas
urer also required SIS, 900 of the public
funds. The banks open account de-
posts amounted to $3.50, 900 at the time
il closed its doors.
Although no official statement of
the bank examiner is obtainable until
the examination has been completed,
The directors and officers this evening
gave out the following statement:
Every depositor will be paid in full
with the least possible delay"
VIM. Dawson, il, cashier of the
bank, said to a United Associated
Presses representative that this state
nent was correct. In addition he
said: 1--WE have had a very large
patronage from the retail business
men of the city. The hard times of
The past few years have reduced u
deposits over one-half. In addition
we have mot been able to make collec-
lions on bills receivable in large
amounts nor on notes due the bank.
This, in short, is the story of our clos
ing. We might have continued for an
indefinite time but concluded to save
the assets intact for the depositors
and creditors of the bank with a view
Of making a full settlement"
All of til directors of the bank are
men of great wealth and integrity,
and they have authorized the state
ment that every obligation will be
met. 1t is the current belief that the
suspension is but temporary, and that
the bank viii resume business in a few
days, as o Is arrangements can be
made to obtain the needed ready
money. Its assets are said to be am
pie to meet requirements, the only
difficulty being a shortage of ready
money. The bank officials deny the
allegation that the Chicago failures
had anything to do with the closing
Of the bank.
The Union Stock Yards bank at
South st. Paul closed its doors stimuli
~taneously with that of the Bank of
Minnesota VIM. Dawson, Jr., vas its
president, being also cashier of the
Bank of Minnesota. The South St
Paul bank was a branch of the other
and was capitalized at $4,000 When
Mt made its asst report to the bank ex.
aminer it showed that the Bank of
Minnesota carried S43,G GO of it's cash
on deposit 1t had deposits amount
ing to $50, 100, of which So, 600 were
public funds. Its fate depends en-
: tirely upon the Bank of Minnesota.
If the latter resumes, the South st.
Paul bank will also be on its feet
sP2in.