10286. Bank of Kansas City (Kansas City, MO)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
May 15, 1884
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini
Short Digest
f4f4398d

Response Measures

Accommodated withdrawals, Full suspension

Other: Bankers' concerted agreement to pay 20% cash and give certified checks for remainder; clearing house to announce balances.

Description

Multiple contemporaneous reports (May 15, 1884) describe an early-morning run on the Bank of Kansas City followed by directors agreeing to pay 20% cash and certified checks for the balance. Some dispatches deny a suspension and say the flurry subsided; other reports explicitly say the bank closed its doors and suspended due to failure of New York correspondents Donnell, Lawson & Simpson. No clear article indicates a later reopening, so the final status is ambiguous — categorized as run -> suspension with uncertain outcome.

Events (2)
1. May 15, 1884 Run
Cause
Correspondent
Cause Details
Run triggered by failure/uncertainty surrounding New York correspondent Donnell, Lawson & Simpson and related New York broker failures (Fisk & Hatch, etc.).
Measures
Directors/other Kansas City bankers agreed to pay 20% cash to depositors and give certified checks for the balance; concerted action among banks and clearing-house arrangements.
Newspaper Excerpt
There is a run on all the banks there... paying depositors 20 per cent. of deposits.
Source
newspapers
2. May 15, 1884 Suspension
Cause
Correspondent
Cause Details
The bank suspended/closed its doors citing losses or uncertainty because of its correspondents Donnell, Lawson & Simpson in New York; directors arranged to pay 20% cash and certify checks for the balance.
Newspaper Excerpt
The Bank of Kansas City closed its doors this morning... the suspension is due to the failure of Donnell, Lawson & Simpson, their New York correspondents.
Source
newspapers

Newspaper Articles (10)
1. May 16, 1884 Eureka Daily Sentinel Eureka, NV
Article from Eureka Daily Sentinel, May 16, 1884

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Assistant lows: From this date to June 1 you are authorized to pay bonds embraced in 125th, 126th and 127th calls, with accrued interest, subject to the decision of the Department as to the regularity of assignments-expressage to the Department to be paid as heretofore by the party having the bonds redeemed. NEW YORK, May 15.-At the Produce Exchange there is nc excitement. The market is firmer. The rush on the Second National Bank has about stopped. There were 148 deposits up to noon. The Clearing House has arranged to pay all the Second National's debts. BOSTON, May 15.-Hill, Stanford & Co., brokers, correspondents of Goffe, Randle & Co., New York, have suspended. NEW YORK, May 15.-The failure of Fisk & Hatch was announced before the closing of the Exchange. The effect was instantaneous, causing a decline of 1 to 5 points in stocks. The street was excited. Brokers were rushing around wildly, and the situation again assumes & troubled aspect. The market closed weak. Cash Shot to Death. CHARLESTON, S. C. May 15.-Gov. Thompson received the following this morning: CHERAW, S. C. May 15.-To Gov. Hugh S. Thompson: I went with a posse last night to arrest W. B. Cash, and instructed the men not to fire unless absolutely necessary. Placing two men between the house and barn, and two between the barn and the swamp, and finding Cash in the barn, I ordered it surrounded. Cash came out and fired. The fire was returned. After Cash fired several shots he was killed, being riddled with bullets. None of the posse were struck except W. H. Hilton, whose fingers were shot off by Cash. (Signed) E. L. KING, Deputy Marshal. Missouri Bank Troubles. KANSAS CITY, Mo., May 15.-There is no truth in the report of thesuspension of the Bank of Kansas City. The bankers of the city met this morning. They agree to pay 20 per cent cash to the depositors, and give certified checks for the balance. The agreement included all except Armour's Bank, which prefers to pay dollar for dollar. The balance at the Clearing-house will be announced atl o'clock, when a plan of settlement will be agreed upon. It is thought the plan decided upon in New York will be adopted here. Trouble in Illinois. QUINCY, Ills., May 15.-The Union Bank of this city has failed to open its doors this morning. When the Marine Bank of New York failed the Union Bank transferred its account to the Metropolitan, and the closing of the doors of that bank yesterday is given as the cause of the suspension. A Proper Investigation. WASHINGTON, May 15.-Morgan offered a resolution to the Senate, which went over one day, directing the Committee on Finance to examine into the causes of the failures of the National Banks in the city of New York. Lumber Company Failure. ST. PAUL, May 15.-Armstrong Taylor has been appointed receiver of the St. Croix Land & Lumber Company, of which E. S. Austin is President. The assets are placed at $500,000; liabilities at about $400,000. Not Guilty. NEW ORLEANS, May 15.-A Times-Democrat Hazelhurst special says: The jury in the case of E. R. Wheeler, for the murder of J.P. Matthews, was out about an hour and returned a verdict of not guilty. Loan of a Million. WASHINGTON, May 15. The Senate passed the House bill in aid of the New Orleans Exposition by the loan of a million of dollars. Greenback Tactics. WATERBURY, Vt., May 15.-The Greenback State Convention appointed a committee of five to make all nominations of delegates to Indianapolis.

2. May 16, 1884 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, May 16, 1884

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Crowding Kansas City Banks. NEW YORK, May 15.-Dispatches received from Kansas City state that there is a run on all the banks there, but they are standing together and paying depositors 20 per cent. of deposits. LATER.-A dispatch from Kansas City re popts that the bank is now paying depositors in full and the flurry is over. KANSAS CITY, Mo., May 15.-There is no truth in the report of the suspension of the Bank of Kansas City. The bankers of this city met and agreed to pay 20 per cent cash to depositors and give certified check for the balance. This agreement include: all except the Armour's bank, which prefers to pay dollar for dollar. The balances at the clearing-house will be announced, when a plan of settlement will be agreed upon. It is thought the plan decided upon in New York will be adopted here There was some excitement, but it materiall subsided at noon.

3. May 16, 1884 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, May 16, 1884

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Fisk & Hatch failure, owing to the uncertainty as to its dimen. sions. KANSAS CITY COOLER. KANSAS CITY, Mo., May 15.-The slight flurry of this morning has disappeared this afternoon. A large number of deposits were drawn out this morning but nearly all were small amonnts, large depositors appearing confident the scare was artificial. Encouraging eastern advices brought about an eariy reaction and the excitement gradually subsided. The report which got abroad that the Bank of Kansas City was involved seems to have originated in the impression that the bank had a large account with Donnell, Lawson & Simpson. Their books show they had only $34,000 with the Now York firm, comparatively a small amount. The feeling now is that the occasion for the apprehension of serious trouble is over. THE FEELING IN EUROPE LONDON, May 15.-The St James Gazette says: The New York panic was discounted yesterday. There have been large purchases of American securties on the stock exchange today. Some jobbers caught short stocks. There was a general rebound in securties, Lake Shore, Central Pacific. Milwaukee & St Paul, and Ills. Central advancing. The largest business on the street in a single day for years was done today. Purchases American stocks by the small-investing public was enormous. The market is firm throughout no cheques men returned from the clearing house. Advice from Frankfort and other financial centres report gr eat activity in the purchase of American securitfes. The feeling of confidence was increased by the growing belief in the solvency of American banks. At Amsterdam American securities were in great demand; prices went much higher over New York quotations, but the markets closed less firm.

4. May 16, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, May 16, 1884

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A Reported Suspension Denied. KANSAS CITY, May 15.-There is no truth in the report of the suspension of the Bank of Kansas City. The bankers of the city met this morning and agreed to pay 20 per cent. eash to depositors and give certified checks for the balance. This agreement includes all except Armour's Bank, which prefers to pay dollar for dollar. It is thought the. plan decided upon in New York will be adopted here. There was some exeitement this morning, but this had materially subsided at noon.

5. May 16, 1884 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, May 16, 1884

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purpose of obtaining such relief as it is entitled to relating to notes and other securities belonging to the company held or disposed of by Grant & Ward. AN OFFICER OF THE METROPOLITAN BANK told a reporter this afternoon that $185,000 was paid out during the day. The deposits amounted to $664,000 and checks for $454,000 were certified. It is estimated that by settling his privileges on the basis of to-day's prices Russell Sage would lose from $800,000 to $1,000,000. FAILURE OF A SMALL BROKER W. H. Sweeney, a small banker at 104 Nassau street, assigned to-day to A. C. Aubrey. The failure is insignificant. A RUN ON THE BROOKLYN BANKS. There was a run on the South Brooklyn Savings bank to-day. The depositors are mostly poor and ignorant people who were misled, as the bank is on Atlantic avenue, into supposing it was the Atlantic bank which suspended yesterday. The demands were promptly met. Father Franceli, of St. Peter's Catholic church, to which most of the depositors belong, went to the bank and addressed the crowd, begging them to go home and not lose six months' interest by drawing out their money. He said he would personally vouch for the soundness of the bank. His remarks, however, were not heed~ ed by the excited crowd Up to the elosing of business $125,000 had been paid out. The cashier says there is a surplus of $700,000 and all applicants will be paid in full. The Brooklyn Savings bank was also run upon and paid out $150,000. The officers count their gain of $6,000 in interest. Nearly all the other savings banks in Brooklyn sustained slight runs. Another Bank Shuts Its Doors. St. LOUIS, May 15.-The Bank of Kansas City closed its doors this morning. It had a capital of $600,000 and was the last to close in the great panic of 1873. President Chick states that the suspension is due to the failure of Donnell, Lawson & Sintpson, their New York correspondents. The bank had a surplus of $106,688.After a meeting of the directors it was announced that the bank would pay twenty per cent. cash and the rest in certified checks. The amount of deposits is figured at $2,000,000. A Bank in Illinois Goes Down. QUINCY, Ill., May 15r-The Union bank of this city failed to open its doors this morning. When the Marine bank of New York failed the Union transferred its accounts to the Metropolitan, and the closing of that bank yesterday is given as the cause of the suspension Comments of the London Press. LONDON, May 15.-The Daily Telegraph this morning regards the financial situation in New York with cheerfulness and says everything will be straightened out in the course of a few weeks. It praises Secretary Folger's action. The Times and the News think it deubtful that the crisis is yet reached in the New York panic. They do not think, however, that the panic will be as disastrous as that of 1873. Ward Tells About His Business Methods. NEW YORK, May 15-The examination of Ferdinand L. Ward was continued before Referee Cole to-day. Mr. Ward admitted that he never had any government contracts, yet had given out that impression to the people he was dealing with. The examination also developed the fact that two ledgers were kept by the firm of Grant & Ward, the entries in the one being at considerable variance with those in the other. The testimony of the bookkeeper of Grant & Ward showed that two weeks before the failure Mr. Spicer deposited with the firm $26,000 in Colorado bonds and that on the day of the failure Mr. Ward declared that the bonds were only deposited for safe keeping and not as security for Spicer's account, and they were withdrawn from the assets of the firm. The examination will be resumed to morrow

6. May 16, 1884 Seattle Daily Post-Intelligencer Seattle, WA
Article from Seattle Daily Post-Intelligencer, May 16, 1884

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ing generally expressed was one of con fidence that the panis would be considered merely local, but they were in a position to occasion no failures in London, either inside or outside the Stock Exchange. The remarkable decline in American securities during the past few days, attracted a new class of investors into the market. who are stimulated also by the cheapness of money in England, Germany and France. A prominent banker said: "It is amusing how little real stock is being sold here. Bat," be said, "the bear sales are immense." The market shows a strong disposition to respond to anything fav rable from America. The largest business on the street. in a single day, for years. was done today. The purchase of American stock by small investors, is enormous. The market is firm. Advices from Frankfort and other financial cente 8. report great activity in purchasing American securities. GOVERNMENT ACTION. WASHINGTON. May 15.-Bank Examiner Schriba believes the crisis is past. The Secretary of the Treasury has telegraphed the Assistant Treasurer at New York as follows: From this day to June 1st you are authorized to pay the bonds embraced in the 125th, 126th and 127th calls, with accrued interest, subjeet to the decision of the department as to the regularity of the assignments, and the expressage to the department to be paid, as heretofore, by the party having the bonds redeemed." AT BOSTON. BOSTON, May 15.-F. A. Hawley & Co., bankers and brokers, have suspended. They cannot give a statement of their liabilities, but state that their suspension is due to a failure to ascertain just where they stand. The amount due depositors is unknown. They hope to resame. but this is net probable. The house rates at about $100,000. THE OIL MARKET. PITTSBURO,May15.-Petrolen opened firm at 83, and under the impression that the worst was over. good buying was inangurated, which sent prices up to 95, when the announcement of the failure of Fi-k & Hatch and A. W. Dino k caused 4 reaction. and a worse panic than that of yesterday ensued. Certificates were damped on the market in large bundles, and prices dropped to 761/ in a few moments amid the wildest excitement. The news of the panic spread rapidly, and large crowds flocked to the Exchange: but me intime the market had touched bottom, and prices rallied and closed at 77½. The shies of the day were enormous. HILL, STANWOOD & CO. BOSTON, May 15.-Hill, Stanwood & Co., brokers, correspondents of Goffe, Randle & Co., of New York, have sus. pended. The liabilities are $100,000. It is stated that the deposit accounts of Hawley & Co. are $250,000. Total liabilities, $500,000. AN UNFOUNDED REPORT. Kansas CITY, May 15.-There 18 no truth in the report of the suspension of the Bank of Kansas City. The bank ers of the city met this morning and agreed to pay 20 per cent cash to depositors and give certified checks for the balance. This agreement includes all except the Farmers' Bank, which prefers to pay dollar for dollar. The balance at the Clearing House will be announced at 1 p. m., when a plan of settiement will be agreed upon. It is thought the plan decided on in New York will be adopted here. FAILURE AT QUINCY. QUINCY, III., May 15.-The Union Bank of this city failed to open its doors this morning. When the Marine Bank of New York failed, the Union Bank transferred its account to the Metropolitan, and the closing of the doors of that bank yesterday is given RS the cause of the suspension. ACTION IN WASHINOTON. WASHINGTON, May 14.-Hundreds of telegrams from New York have been received by members of Congress today urging immediate legislation to relieve the financial strain. The majority were received by Representatives. Just before the adjournment of the House unanimous consent Was asked by Spring or to pass the Diagley bill, authorizing the Secretary of the Treasurv to invest

7. May 17, 1884 Lexington Weekly Intelligencer Lexington, MO
Article from Lexington Weekly Intelligencer, May 17, 1884

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Fisk & Hatch; Donnell, Lawson & Simpson, and several other New York brokers have failed this week. Among the consequences is the suspension of the Bank of Kansas City, and the State Savings Bank at St. Joseph. It is not thought, however, that the Missouri banks generally will be at all shaken, as their reports of April 15th show them in a better condition than ever before.

8. May 21, 1884 Mower County Transcript Austin, Lansing, MN
Article from Mower County Transcript, May 21, 1884

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FROM DIFFERENT POINTS. MISSOURI BANKS. ST. LOUIS, May 15.-A Jefferson City special says Secretary of State McGrath is in receipt of a report from banks in the state up to the first of the month. He says the statement shows the banks to be in a flourishing condition and in better financial standing than at any previous time. A SHORT RUSH. BRIDGEPORT, Conn., May 5.-The raid on the banking house of Watson & Co. was resumed this morning, but the excitement subsided by 10 o'clock. THE FLURRY AT KANSAS CITY. KANSAS CITY, May 15.-The slight flurry of this morning has disappeared this afternoon. A large number of deposits were drawn out this morning, but nearly all were small amounts, the larger depositors appearing confident that the scare was artificial, and the concerted action of the banks coupled with encouraging Eastern advices, brought about an early reaction and the excitement gradually subsided. The report which got abroad that the Bank of Kangas City was involved seems to have originated in an impression that the bank had a large account with Donnell, Lawson & Simpson. Their books show that they had but $34,000-with the New York firm, a comparatively small amount. The feeling is now that occasion for apprehension of serious trouble is over. CONGRESS TO INVESTIGATE. WASHINGTON, May 15.-In the Senate Morgan offered a resolution, which, under the rule, went over one day, directing the committee on finance to examine into the causes of the failures of such of the national banks in the city of New York as have suspended business in May, 1884, and report whether said failures have to any and what extent resulted from any violation of the laws regulating their conduct, or from giving certificates upon drafts or by their acceptance of drafts and ot ther commercial paper drawn upon them, directly or indirectly, in violation of the laws and whether any national bank in New York city has been engaged since July 12, 1882 in violation or evasion of the laws regulating their conduct and that the committee have leave to sit during the gessions of the Senate, and to visit the city of New York, to send for persons or papers and examine witnesses on oath. Mr. Cullum introduced a bill, which was referred to the committee on finance, to prevent speculation on the part of officials of national banking associations.

9. May 21, 1884 Morris Tribune Morris, MN
Article from Morris Tribune, May 21, 1884

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Money Matters at Other Points. ST. LOUIS, May 16.-The Bank of Kansas City closed its doors Thursday. It had a capital of $600,000, and was the last to fall in the great panic of 1873. President Chick states that is due to the failure of Donnell, Lawson & Simpson, their New York correspondent. The bank had a surpius of $106,688, and after a meeting of the directors it was announced that the bank would pay 20 per cent. cash and the ba anein certified checks. The amount of deposits is figured at $2,000,000. There was a run on the bank early in the morning which resulted in a panic among the depositors. The Merchants' National bank also issued certified checks to creditors. The Bank of Commerce was forced to post a notice thae it would pay 20 per cent. cash, only. There were very painful scenes in the crowd of laborers and small depositors that surrounded the Bank of Kansas City, and many women were observed in tears. There is no evidence of any trouble in the other banks of the city, and nearly all of the present institut tions passed through the panic of 1873 with flying colors. QUINCY, III., May 16.-The Union bank, of this city failed to open its doors Thursday morning. When the Marine bank of New York failed, the Union bank transferred its account to the Metropolitan and the closing of the doors of that bank Wednesday are given as the cause of the suspension. NEW LONDON, Conn., May 16.-The losses here by the New York failures will probably amount to between $100,000 and $200,000. NORWICH, Conn., May 16.-The losses by the New York failures on margins here will be all of $250,000. CHICAGO, May 16.-The feeling on 'change here is that, while our markets are becoming more and more affected by what occurs on Wall street, there is not much danger of any similar trouble here. For years the banks have not been in such a good condition as at present. If a panic had been anticipated better preparations could hardly have been made for it. It was remarked by a gentleman well posted on financial affairs that it seemed as though the banks had kept their money all at home to meet just such an emergency. LONDON, May 16.-The fresh failures in New York have had very little effect on the stock market. American securities are in some instances higher than the best figures Thursday, and some American securities are at or within a fraction of Thursday's closing prices. BRADFORD, Pa., May 16.-The failure of the Tuna Valley bank has been followed by the collapse of the Exchange bank. Great excitement exists, and the streets are filled with people. The situation is panicky. The failures of Jefferson & Varney and G.H. Brooks, oil brokers, are also announced, and others are anticipated. PITTSBURG, May 16.-2 p. m.-For fear the banks may throw immense blocks of oil on the market and precipitate a crash, oil brokers will buy nothing, thus forcing the banks to carry on their own affairs.

10. May 22, 1884 The Austin Weekly Statesman Austin, TX
Article from The Austin Weekly Statesman, May 22, 1884

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mour's bank, which prefers to pay dollar for dollar. The balances at the clearing house will be announced this afternoon, when a plan of settlement will be agreed upon. It is thought the plan in New York will be agreed P n here. There was some excitement this morning,but this materially subsided at noon. NEW YORK, May 15.-There was a much better feeling in the stock exchange circles early in the day, due to the action of the Clearing house, and to the resumption of the Metropolitan bank. Shortly after opening, a slightly weaker feeling prevailed, owing to the announcement of the failure of A. W. Dimmock & Co. This was succeeded by strong buying for foreign and home account, and there was a general improvement. Canadian Pacific rose 3 to 47; Central Pac. 41/2 to 421/4; C. B. & Q., 1½ to 116; Northwestern, 2 to 1051/2, preferred 51/2 to 130½; Lackawanna, 3 to 113; Lake Shore, 23/3 to 921/2; Mo. Pac., 514 to 73; Kans. & Tex., 13/8 to 143/8; N. Y. Cent., 23/4 to 1101/4; Northern Pac. preferred 51/4 to 49 Oregon Trans., 21/3 to 241/3; Pac. Mail, 3 to 39; Omaha preferred 6 to 90; Texas Pac., 13/3 to 12; Union Pac., 3 to 44; Western Union, 33/4 to 541/4. At the clearing house new certificates were ready for delivery at an early hour, and the banks availed themselves to extend $47,000,000. The resumption of the Merchants Bank also had a favorable effect, as it set at rest the rumors that the suspension was of the Marine Bank character. Buying for European account was an special feature of the market, and every house with foreign connections had liberal orders to purchase. At times during the day when the market flagged, these purchases turned the course of speculation. The extent of this foreign buying movement is plainly shown by the foreign exchanges. There was a larger supply of bills than for a long time, and the pressure to sell caused a sharp decline in the high rates of money at this centre. Foreign capital, and leading English and German institutions, telegraphed their agents here to draw for any amount. Buying stocks for home account was also very large, brokers offices being crowded with investors. This is usually the Case alter a disturbance like the past few days. Stocks SO bought, it should be understood, are paid in full. This operation, aside from reducing the amount of stocks to be carried on the street, brings in SO much fresh capital to aid the money market. Investment purchases, therefore, naturally had an important influence in the direction of improvement just before the close of the suspension of Fisk & Hatch was announced, and there was evidence of strong support in the final dealings, and, compared with last night's, the closing prices were five per cent higher. Donnell, Lawson & Simpson have over four hundred banks for whom they transacted New York business, scattered through Georgia, Florida, Texas, Missouri, Kansas, Arkansas, Nebraska, lowa, Colorado, Utah and other territories, and over one hundred bulletins were posted on the door. Inside, Donnell and Simpson were busy all day trying to see where they stand. Lawson is in Europe. To a Tribune reporter Simpson said: We are still figuring up and trying to get to a point where we can resume. We can't tell you anything until about to-morrow afternoon. There is a prospect we will resume. That is the point towards which our arrangements are tending." "Has an assignee or receiver been ?" decided "No, sir: nothing of that kind has been or will be done, now. We shall not make an assignment unless satisfied that we cannot go on or settle our business satisfactorily withoutit." A RUN ON A BANK. BRIDGEPORT, CONN., May 15.-The raid on the banking house of Watson & Co. was resumed this morning, but the excitement subsided by 10 o'clock. KANSAS CITY, May 15.-The slight flurry of this morning disappeared this afternoon. A large number of deposits were drawn out this morning, but nearly all small amounts, the larger depositors appearing confident that the scare was artificial, and the concerted action of the banks, coupled with the encouraging eastern advices brought about an early reaction, and the excitement gradually subsided. The report which got abroad that the bank of Kansas City was involved seems to have originated in the impression that the bank had a large account with Donnell, Lawson & Simpson. Their books show they had only $39,000 with the New York firm, a comparatively small amount. The feeling now 18 that all occasion for apprehension of serious trouble is over. WALL STREET, 12:40 P. M.-Comparative quiet reigns on the stock exchange, and it is more apparent every moment that the crisis is past. The suspension of Hawley & Co., of Boston, was caused by a run on the banking department of the house of Beliene. It will be temporary. BOSTON, May 15.-F. S. Hawley & Co., bankers and brokers, have suspended and cannot give a statement of their liabilities. They state that their failute is due to the failure to ascertain just where they stand. They have been doing business as bank depositors and the amount due depositors is unknown. The house was rated at $100,000. It wasstated the Bank of Commerce was this morning a debtor to the Clearing house $500,000. Examiner Scribas' work has been discontinued, and the official advices in general continue reassuring. The Commercial says the general subject of discussion was the remarkable position assumed by President Seney and the directors of the Metropolitan bank, who announced the bank