The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-09-25
Financial Institution at St. James
Temporarily Embarrassed.
N. K. Armstrong Is at the Head
of This Concern.
Affairs Will No Doubt Be Strengthened
Out Very Soon.
He Is at Present Quite Sick in a St.
Paul Hospital.
Especial to The Free Press.l

st. James, Sept. 24.-Closing of the
Old Bank of st. James, of which NJ. X.
Armstrong is the president, has caused
somewhat of a furry in this city. 1t
seems that some of the Old Bank checks
were protested on Monday evening and
the report gained circulation that the af-
fairs of the institution were in doubt
full condition-consequently, on the fol-
lowing morning a mild u was start
ed and owing to an unfortunate circum-
stance there was only a small volume of
currency on hand. 1t was exhausted and
later a placard was posted at the cash
ier's window stating that payment was
suspended on account of lack of funds.
Another circumstance which aggravat-
ed the situation was the absence, at this
crisis, of Mr.. Armstrong himself. 1t is
altogether unlikely that he had any idea
of such an occurrence.
A careful inquiry produced no evidence
that this little furry was any indication
of a weakness in the of the
bank. The worst feature about it is that
it causes an uneasiness among the pa
irons which will interfere with the rout-
inc of affairs and make some shifts nee
essary which would not otherwise be
called for.
Mr.. Armstrong has an abundance of re-
sources financially if the best advices OBJ
tainable are in the least to be considered.
The time deposits of the Old Bank are
variously estimated at from 100000 to
twice that amount, besides the amount
which was subject to check. The bank
at one time paid as high as 6 per cent
of long time deposits and recently has
pand 5 per cent, hence it is no wonder
the volume was large. Mr.. Armstrong;
holdings are quite largely composed of
realty. In st. James he owns the mag
~nificent Park hotel, another hotel, several
fine brick business blocks and some
thing like thirty dwelling houses. In
Butterfield he WINS a nice hotel property
and a large number of vacant lots. Filed
in his name are between 5000 and $780,
600 worth of mortgages, whether held
as collateral or actually owned by MIR.
Armstrong cannot be stated. During the
past three or four years Mr.. Armstrong
has disposed of something like 5000 or
1000 acres of farm lands in this Sec
ton all of which brought from $50 to
$40 per acre, and in all probability large
~ icplcScItCu Ny !" NSNN
An extremely conservative estimate of
the value of interest bearing land con-
tracts owned by the Old Bank would be
100000. The bank has done a thriving
business and enjoyed a profit common
surate with an institution of its magni-
tude.
The idea that this furry indicates any
real embarrassment of the bank is scout
ed by Mr.. Armstrong; friends. One per.
son interviewed in the matter has posi-
tive knowledge of a sum of money in
~stantly available that would have salts
fed the demands to timed depositors had
the head of the bank been on the ground
to get it.
It is expected that matters will be
adjusted satisfactorily and that the bust
ness of the bank will be continued.
At present Mr.. Armstrong is in a hos
pital at st. Paul to which place he went
on Monday to submit to an operation.
On his return to st. James his affairs will
be Strengthened out.