The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-21

FORTY BANKS GO
DOWN In A YEAR
APPALLING LIST OF FAILURES
AND SUICIDES IN IOWA.
Speculation and the Action Of the Beef
Trust in Depressing Prices Of Stock
Held to Be Largely Responsible
Head of State Banking Department
Presents Sensational Figures.
special to The Journal,

Special to The Journal
Des Moines, Iowa, Dec. N.-Speculatfvs fever,
operations on the Board of Trade, and last, but
by no means least, the decision of the beef trust
that cattle and hog values must go down, along
with the rise in the price to the consumers of
the country, have combined to wreck forty Iowa
banks in year, drive fourth of the cash
iers of these banks to dishonored graves by sui
eide and scatter to the winds over S12,ooo,ooo
savings of the people.
The report of the state auditor to be made
public in few days will be the most startling
that Iowa has ever known. The record OF rail-
ures will be about forty. But these records fail
to disclose the more astounding feature that
these failures have been attended in many cases
by suicide. Another feature Of which the state
keeps no record Is defalcations and forgeries
which have been discovered in several banks, but
have not led to collapse: The Soule case at
Iowa Falls where the cashier is alleged to have
made away with $4,000 and the more recent
embezzlement Of $4,000 from an official of the
WapPelo bank are cases In point The snort
age in each case was promptly made good. Soule
and the Wappelo official serving their time
In the state penitentiary.
While actual figures have not been given out by
the state auditor, it is estimated that the losses
in Iowa bank failures aggregate $12,5 90.
Practically every loss which may be brought
to mind resulted from speculation In cattle. Al
cattle paper which deprecated when the high
values were knocked out at the alleged command
of the meat combine.
List of Failures.
Willard Cox, head Of the banking department.
at the state auditors office, has compiled q
complete list of the bank failures: AS the
vate banks not incorporated. 1t Is difficult to Sc
cure the figures on these: State and savings In
! stitutions alone are regulated The following IS
Mr.. Coxs startling list of failures:
Dow CityaH: $; Green's bank, private
Grinnell-CitiZen's bank, private.
Waverly-German- American Loan and Trust
o. Of F daEsv D' p23s;s
F;s 54eSsn SsT Ss5S Etsts
EmeEson. sI'aE5a : .t bank ,oI private
| Ireton-Bank of lreton, private.
Ss9sSsaS q f S s5sf pRs szsts.
Ireton-F. II. McKeever's bank private.
EsS " nsE Ssns 6P PP7as private
st. b 6ank priysts
| Mt. Ayr-Citizens bank, private.
Holstein-E. ii. Mccutcheon & Co.'s bank,
Gorningncornlngs State tate, Sayings yg bank.
Coin-Bank Of Coin, private.
Garden Grove-Farmers' bank private.
| Maquoketa-Exchange bank, private.
! Pleasanton-Royal Richardson & Co.'s bank,
private.
PxonTBa1k Of Dixon iso pTivete how,
Birmingham-E. H. Skinner s. Co.'s bank,
Olin-Bank Of Olin, private.
Few National Banks. -,
Among the national bank failures that Mr..
Cox recalls, from unofficial information, were
those Of large institutions at Grinnell Storm
Lake and lie Mars. The cashier Of a bank at
Lone Tree committed suicide without causing the
failure of the bank and the cashier Of q bank
in a small town near Cedar Rapids recently com
mitted suicide without 1mparing the banks cap
ital. 1t Is safe to assume that If Mr.. Cox's
memory served him perfectly. the list Of banl
failures Or crimes and casualties that nearly re-
suited in failure, would come nearer the fifty
. than the forty mark.
, ions differ. Mr.. Cox, who will use the fore
going material in preparation of his portion O
the forthcoming annual report Of the state audi
q tor, will endeavor to show that the wer
perfectly normal, altho the results were extraor
binary. He resents the suggestion that the bee
trust had anything to do with it and cites In
" stances where downright theft or speculation O
a the Board OF Trade were responsible.
+ Private Banks Should Be Forced.
l. 1t is Mr.. Cox's purpose to show that the low
d banking system Is at fault. He is Of the OpiI
r ion that all private banks should be forced
# come under the supervision of the state auditor
3 be compelled to make reports and submit to e.
y animation. In no other way does he believe tt
Is frequency Of bank failures can be avoided.
Beef Trust at Fault.
Many prominent public men and some of tt
leading bankers blame the meat trust. Senat
Ia Lewis Of Page county, a prominent banker al
a member of the banking committee in the legi
in this way: Those institutions that have faile
a In most instances, have been in small commur
as ties where they have loaned money extensive
r. upon farm mortgages or upon ehattel mortgag
Nv upon cattle. The purpose Of the loan In near
r. all instances was to enable the borrower
We purchase cattle and supplies with which to fe
them. The market was at Its height two yea
ago. Then, according to the views Of tho
IN who evolve this theory, the meat trust deere
It's that the prices should fall Notwithstanding the
en- was comparative scarcity IN cattle and
price Of dressed meat was maintained. At a
rate, many farmer was ruined by the loss
large Investments in cattle and his inability
meet the obligations at the banks caused
collapse of the latter.
nd In many cases the banker was himself
ere heavy investor in livestock This was the CT
Ike of Day Dunning, whose failure in the 1ivesto
business caused the collapse Of the Citizel
-. bank at Mount Ayr. resulting in a loss to
AS creditors Of between 80 and 80 per cent Of
a rn like instances might be cited. George D. Wo
m- cashier of the Bank of Colfax. whose sensation
We suicide started an epidemic Of nearly do;
~ similar tragedies among bank officials, hi
self heavy investor in livestock and
Ing loaned extensively for cattle Investment. ]
zen failure of the national bank at Storm Lake
lila attributable to similar causes. The collapse
Ill the McCutcheon bank at Holste1n, involving
of more than hundred thousand dollars, is ale,
lna to have been due to like cause.
liss The Death List.
i'd It Is impossible to give an accurate list Of
vas suicides. Among them, however, may be no
efe the following:
Grinnell National Bank-Cashier 81. O. Sp
. Ger and his son. assistant cashier.
Bank of Colfax-Cashier George D. Wood.
Citizens Bank Of st. Charles-Cashier Cha
Wood. -.
Corning State Bank-Cashier B. l.. La Rue
81 Sigourney Savings Bank-Cashier G. D. Ut
back. ... -.
i Linn Grove-Cashier H. ". Main.
~ Lone Tree-Cashier. ...-
At least two other instances of suicide
1t known to exist, but the names of the Wet
cannot be recalled by the state auditor.
~ GIRL MAY DIE OF BURNS
IS Threw Herself Upon a Fire to s:
. Sanatorium Inmates.
AZ l