New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1915-10-13
OLD CENTRAL BANK
REALLY DID EXIST
HUGO ROOS DIGS UP EVIDENCE
TO ESTABLISH ITS
IDENTITY.
DID BUSINESS HERE IN 1859 AC-
CORDING TO "NEW ULM
PIONEER"

When it gets down to the ancient
history of the City, the proper person
to appeal to for information is Hugo
Roos of Kansas City, Mo-, for he is
more thoroly posted on the early history
of New Ulm than any one else of the
younger people and besides that he has
in his possession considerable valuable
data to which he can refer. Last week
the "Review" published a short article
about bank notes of Central Bank Of
New Ulm being in possession of party
in Oregon. No one with whom F. H.
Krook of the Citizens Bank State con
suited had any recollection of such a
banking institution ever having ex-
listed in our city and the "Review"
published this as matter of news.
Now comes Hugo Roos and claims
that there was such bank at one time
and Immediately proceeds to prove it.
He gathers his information from the
New Ulm PIONEER" which was pub
lished here before the Indian Massacre.
Under date of June rs, 1859, this
newspaper says: Central Bank is the
name of new bank which was opened
here in New Ulm few days ago. The
capital of the Central Bank is $27 100000
which amount has been deposited in
Minnesota State Bonds with the State
Auditor. 1t is hardly probable that
more than from $4,000 to $4,000 worth
of bank notes will be issued during the
summer. This bank is no better and
no worse than all the other Minnesota
banks and as the owners of the bank,
Franklin Steele and John w. North,
who are personally responsible for all
notes that may be issued, are considered
some of the most responsible people in
the State, we believe that we run very
little risk if we accept them as legal
tender. The notes will be redeemed by
J. Jay, Knox & Co. of St. Paul and
Aug. H. Wagner of this city. At present
the Central Bank is not doing regular
banking business here but has simply
established redeeming Office. 1t is
however their intention to do so next
spring after they have secured the
confidence of the citizens of New Ulm."
The notes of the Bank in 1, 2, 5 and
10 dollar denominations look quite
attractive. Under date of July 28,
1860, the "Pioneer" reports: "About
$4,000 of the notes of the Central
Bank of New Ulm and the Peoples
Bank of St. Peter were delivered by
J. Jay Knox and E. S. Edgerton to the
State Auditor and were by him burned
up. The notes of these two banks
always enjoyed the confidence of the
people even after the other shin plaster
factories had ceased to exist and will no
doubt in future enjoy the same con-
fidence, especially since the circulation
currency has been diminished and has
brought these institutions on a safer
basis A perusal of the files of the
"Pionier" does not give any mention
of the bank having ever built building
in New Ulm. Advertising carried by
the Bank indicates however that they
accepted deposits of money and paid
interest on time deposits. Drafts were
furnished on Chicago, St. Louis, New
York and other eastern cities. Gold
and silver were bought at the highest
market price.
This bank was not destined to remain
in existence very long, because so soon
as two years later they were forced to
close their doors. In speaking of this
the ''Pionier" Of July 6, 1861, says:
"The owners of the Central Bank of
New Ulm, J. J. Knox & Co. of St. Paul
closed their doors June 18th and with
them the last of the shin plaster banks
has gone to the wall. Only few days
prior thereto the bank discounted their
bills for gold and silver on a basis of
3 per cent. But they could not stand
the run made on them caused by the
absolute depreciation Of all Northwestern
paper money and they were forced to
close their Office. The bank notes still
in circulation amount to trife over
$4,000 and are secured by $4,000
worth of railroad stocks which have at
present only a nominal value. Whether
the Messrs. Knox will be able to redeem
the notes, remains to be seen. In New
Ulm only proportionately small num-
Der of these notes are in circulation. 1t
is to be hoped that the State Auditor
will follow the course pursued by the
Auditor of Illinois who upon the sur
render of certain amount in notes de-
livered a portion Of the securities de-
posted with him, because they would
on forced sale bring next to nothing
Since the above was written F. n.
Krook, Cashier Of the Citizens State
Bank has received from E. NJ. Church.
Portland, Oregon, one 1Oc, one 25c and
one SOC bill of i. S. paper money ,1sod