10354. Mastin Bank (Kansas City, MO)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: private
Start Date: January 30, 1878
Location: Kansas City, Missouri (39.100, -94.579)

Metadata

Model: gpt-5-mini
Short Digest: 490adfd5

Response Measures

Accommodated withdrawals, Full suspension

Description

Two distinct episodes in 1878: (1) Jan 30 run on other banks after First National closed; Mastin Bank experienced a heavy run but paid every depositor in full and remained open. (2) Aug 3–4 heavy run leading to a posted notice and temporary suspension, receiver/assignee (Col. Coates) appointed; later reporting treats this as a failure with large liabilities and indictments — the bank did not resume normal operations and appears to have failed. Cause of the August suspension centers on withdrawals of large State deposits and rumors of State Treasurer defalcation (bank-specific adverse information).

Events (3)

1. January 30, 1878 Run

Cause: Local Banks
Cause Details: Run occurred in immediate aftermath of the First National Bank's sudden discontinuance of business; panic spread to other local banks, triggering withdrawals at Mastin.
Measures: Paid every depositor in full; received large new deposits (over fifty new accounts, one depositing $90,000).
Newspaper Excerpt: there was a heavy run on other banks this morning, the principal run being on the Mastin Bank, which paid every depositor in full and announce that they are prepared for every emergency.
Source: newspapers

2. August 3, 1878 Receivership

Newspaper Excerpt: Col. Coates has been appointed receiver and a meeting of the directors will be held this afternoon. Colonel Coates has been appointed receiver, and a meeting of the directors will be held this afternoon.
Source: newspapers

3. August 3, 1878 Suspension

Cause: Bank Specific Adverse Info
Cause Details: A heavy withdrawal of funds (including a $200,000 withdrawal by the State Treasurer) and ensuing rumors about the State Treasurer's solvency and the bank's ties to state funds precipitated a run leading to suspension.
Newspaper Excerpt: Owing to the recent heavy run on this bank it is deemed necessary to close business for the present, that the interests of all creditors may be equally protected. Signed: JOHN J. MASTIN, Cashier. Col. Coates has been appointed receiver.
Source: newspapers

Newspaper Articles (17)

1. January 30, 1878 Daily Press and Dakotaian Yankton, SD

Article from Daily Press and Dakotaian, January 30, 1878

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ed to 200,000, will raise the needed capital to meet the impairment. W. E. CHANDLER. New Orleans, Jan. 30.-In replying to W. E. Chandler's recent telegram to him, Burke says that he first wishes to know if this is the Chandler who as assistant secretary ot the treasury, traveling through the south in in the the gathered 1868, corruptly by supervising participated treasury agents spoil engaged in robbing their government, and in defrauding the distressed people of this and adjacent states, who as secretary of the republican national committee with certain republicans from Louisiana, at a conference or conferences at the Fifth Avenue hotel, New York, concerning the Louisiana affairs, about October, 1872, secre:ly and corruptly conspired to take advantage of the absence from Louisiana of the gov. ernor thereof, to assemble secretly in the legislature, impeach the governor, seize the government and use its machinery to carry the election of 1872, who earned and received a fee from Kellogg of three thousand in 1873, and the encomium. You had done more for him than any one, except Attorney General Williams, in maintaining a foul and infamous usurpation of office of the governor of this state. Is it the Chandler who encouraged, abetted and conspired with infamous allies in this city to rob twelve thousand citizens of New Orleans of the franchise and drag them before the courts, on or about the day of the late elec tion, who in November, 1876, guaranteed Kellogg that the whole power of the gov eroment would sustain the returning board in counting the vote of Louisiana for the republican candidates, and then hastened to Florida to manipulate frauds in the count. Is it the Chandler who has of late been vainly seeking to stir up the hell broth of sectional hate, and foul his political nest to the diagust of the decent citizens of the north and south? If yea, permit me to say that the inquisitorial powers of political tramps terminated in March last, such persons are subjects of inquisition. If nay, the impertinent telegram shall have such consideration as it deserves. [Signed] E.A. BURKE. CRISPIN TROUBLES at Marlboro continue. Last night, A. E. Townsend, one of the publishers of the Marlboro Advertizer, was shot, but not killed, for not using his influence to make the girls leave the factory. FAILURE. Kansas City, Mo., Jan. 30.-At a meeting of the board of directors of the First National bank held last evening it was voted that the bank discontinne business. This step was rendered necessary by the shrinkage in deposits over $350,000 within the last few days, added to continuous very large reductions of the last few months, aggregating a much larger amount, and by the prospect of the continued prevalent money distress They promise full payment to depositore. The closing of the bank took the entire community by surprise, and there was great excitement. This morning there was a heavy run on the other banks, especially on the Mastin bank, which paid every deposit in full, and announces that they are pre pared for every emergency. Up to noon to-day they had received over fifty new accounts, on depositors paying in $90,000. The excitement is now dying out. It is not expected that there will be any further trouble.

2. January 31, 1878 The New York Herald New York, NY

Article from The New York Herald, January 31, 1878

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FINANCIAL DIFFICULTIES. BANK SUSPENSION-RUN ON BANKS. KANSAS CITY, Mo., Jan. 30, 1878. At a late hour last night the following notice, signed by the officers of the bank, was left for publication at a newspaper office:-"At a meeting of the Board of Directors of the First National Bank of Kansas City, held this evening, it was voted that the bank discontinue business. This step IS rendered necessary by a shrinkage in our deposits of over $350,000 within the last tew days, added to the continuous very large reductions of the last few months, aggregating a much larger amount, and by the prospect of a continuance of the prevalent monetary distrust. The affairs of the bank will be rapidly liquidated, and the depositors may rest assured that, in due time, they will be paid in full." The closing of the bank took the entire community by surprise and there was great excitement this morning. There was a heavy run 00 other banks this morning, the principal run being on the Mastin Bank, which paid every depositor in full and announce that they are prepared for every emergency. Up to noon to-day they have received over fifty Lew accounts, one depositor paying in $90,000. The excitement is now dying out and it 15 not expected there will be any further trouble.

3. August 3, 1878 Daily Press and Dakotaian Yankton, SD

Article from Daily Press and Dakotaian, August 3, 1878

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TELEGRAPHIC BREVITIES. New York, Aug. 3.-Bank statement: reserve decrease $965,000 Paris, Augus: 3.-A general strike among cab men monday is threatened. New York, Aug. 3.-The sales of 4 per cent bonds yesterday amount to seven million dollars. Wash reton, Aug. 3.-Valentine Dell, of Arkmass has been appointed register of the land office at Little Ruck. Batavia, August 3-A vessel has arrived with a portion of the crew of the ship Mabel Clark. It is supposed that all saved. N. Y. August 3.-The Marble mills owned by Vael Shortwell & Co., 52 Green wich St, suspended. Liabilities $100,000. Springfield, Mass, August 3.-William Whitney Sheet. of Northampton, who was worth a half milliondoliara, leaves $125,000 for charitable objects. Cincinnati, August 3.-The well known groc ry house of B. M. Bishop & Co, at the head of which is Gov. Bishop, suspended to day None of the firm's paper has as yet gone to protest, but it was deemed best to suspend in order to reach a settlement. The heaviest creditors are in the east. N. Y. August 3.-The Tribune says: Private di-patches received yesterday from Philadelph states that the Philadelphia & Reading Coal Co. will offer on extra drawback of 35 cts on coal from New York harbor to take effect Monday. Coalmen in this city regard this action as the reopening of competion in coal, which may result in another coal war. Hat Creek. Wy., August 3.-The southbound coach was again stopped 4 miles south of Jenny's stockade yesterday afternoon about five o'clock, by six armed men. As the coach W IS empty; they did not attempt any interference; but inquired of the driver as to the in overleate of the treasure coach, which they are evidently wating for. New York, Aug. 3.-Twent-threey coun ties hear) from indicate that the legislature will be largely democratic, though tbus far the democrats have lost nine members, divided among republicans, indep endents and nationals. The independents, however, cannot strictly 'be classed with the republicans, as most of them will vote with the democrats. Boston, Aug. 3.-The directors of the Eliot National bank of this city recently discovered that their cashler, B. B. Conant, is a defaulter to quite a large amount. At the request of these officials the cashier resigned a day or two since. It is thought that the bank will not be seriously affected, as Conant's bonds are $26,000, and the bondsmen are reliable. New York, Ang. 3.-A petition in bankruptcy has been filed by Sidney W. Hopkins, for himself, and against his late partners, Robert J. Carter and Francis P. Collins. The firm had been in the iron commission business for many years, but dissolved in 1877. Hopkins owns about $250,000. He was treasurer of the Chicago & Lake Huron railroad. Kansas City Mo.Aug 3.-The Mastin bank of this city suspended morning The fol lowing was posted on the dcor: Owing to the recent heavy run on this bank it is deemed necessary to close business for the present 80 that the interests of all the creditors may be equally protected. [Signed] JOHN J. MASTIN, Cashier For the past 3 or 4 days there had been as steady drain upon the bank and business The public have looked for something of this nature. Col. Coates has been appointed receiver, and a meeting of the directors will be held this evening.

4. August 4, 1878 Daily Globe Saint Paul, MN

Article from Daily Globe, August 4, 1878

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Bank Failure at Kansas City, Mo. KANSAS CITY, Mo., Aug. 3.-The Mastin bank of this city suspended this morning. The following notice is posted on the door: "Owing to the recent heavy run on this bank it is deemed necessary to close business for the present, that the interests of all creditors may be equally protected." [Signed.] "John J. Mastin, cashier." For the past three or four days there has been a steady draw upon the bank, and the business public have looked for something of this nature to occur every day. Col. Coates has been appointed receiver and the meeting of directors will be held this afternoon. KANSAS CITY, Mo., Aug. 3.-The Maslin bank did not open for business this morning, notice being posted on the door stating that owing to the continued withdrawal of deposits a temporary suspension was necessary. There was no excitement, but an intense feeling of regret among all classes. There was a meeting of the principal stockholders this morning, at which Mr. John Martin made the statement that the assets of the bank were more than sufficient to pay the liabilities, and his and his brother's private fortunes were pledged to the payment of every dollar in full. Col. Kersey Coates was appointed assignee, and a legal assignment was made this morning. From the best information the following are public funds on deposit: State about $20,000; city between $60,000 and $70,000; county $12,600. The universal belief is the suspension is only temporary and that the bank is entirely solvent and will assume business soon. There was no run on the other banks, and while business to-day was generally suspended, there will not be any general suffering as the bank did not have a class of small creditors.

5. August 4, 1878 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, August 4, 1878

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TELEGRAPHIC BREVITY. Paris, August 3: A general strike among the cabmen on Monday is threatened. New York, August 3: Walter H. Shupe, ditor of Ithe Advocate, has gone into bankruptcy. Batavia, August 3: A vessel has arrived with a portion of the crew of the ship Mabel Clark. It is supposed that all were saved. Victoria, August 2: In the provisional parliament, to-day, a bill was introduced to impose a tax of sixty dollars per annum on any Chinese person in the province. Springfield, Mass., August 3: The will of Whiting Street, of Northampton, who was worth half a million dollars, leaves about twenty five thousand dollars for charitable objects. Cincinnati, August 3: The mayor has appointed August 14th as the day for the special election on the proposition to issue two million dollars in bonds for the completion of the Southern railroad, as per contract recently made by the trustees. London, August 2: The American boat Nautilus arrived yesterday in Mount's bay, an inlet of the Atlantic on the coast of Cornwall, situated between the Horns of Cornwall-two promontories which terminate respectively in the Lard's End and Lizar's Point. Kansas City, Mo., August 3: The Mastin bank did not open for business this morning. A notice was posted on the door stating that, owing to continued withdrawals, a temporary suspension was necessary. There was no excitement, but an intense feeling of regret among all classes. St. Louis, August 3: The Democratic central committee met here to-day, and made arrangements to open the campaign at Springfield on the twenty-fourth instant, when Governor Phelphs, Samuel T. Glover and Thomas Allen, all senatorial aspirants, will speak.

6. August 4, 1878 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

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A Kansas City Bank "Run" Into Suspension. KANSAS CITY, August3.-The Mastin bank of this city suspended this morning, the following being pasted on the door: "Owing to the recent heavy run on this bank, it is deemed necessary to close business for the present, that the interests of all creditors may be equally protected. "JOHN J. MASTIN, Cashier." For the past three or four days there has been a steady drain upon the bank, and the business public have looked for something of this nature to occur every day. Colonel Coates has been appointed receiver, and a meeting of the directors will be held this afternoon.

7. August 5, 1878 New-York Tribune New York, NY

Article from New-York Tribune, August 5, 1878

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TELEGRAPHIC NOTES. MONTREAL, Aug. 3.-The local Government has agreed to give grants of land and assistance, under the colonization law, to residents of the Province. KANSAS CITY, Mo., Aug. 4.-The Mastin Bank of this city has suspended, owing to the recent heavy run. Colonel Coates has been appointed receiver. MONTREAL, Aug. 3.-Charles E. Legge, a civil engineer, has seized the plant belonging to the Montreal, Portland and Boston Railway for debt due him. VICTORIA, B. C., Aug. 3.-In the Provincial Parliament to-day, a bill was introduced to impose a tax of $60 per annum on every Chinese person in the Province, BOSTON, Aug. 4.-The first entry for the regatta of the Eastern Rowing Association, on the 15th instant, was made last night, by George W. Lee, of the Trenton Club, of Newark, N.J. CINCINNATI, Aug. 4.-The Mayor has appointed August 14 as the day of holding a special election on the proposition to issue $2,000,000 in bonds for the completion of the Southern Railroad. CHICAGO, Aug. 4.-The Chicago Jockey and Trotting Club was organized yesterday and elected officers. It has a track on the Westside, and will holdits first meeting the second week in September SPRINGFIELD, 111., Aug. 4.-Governor Cullom has been appealed to for a company of militia to protect the coal mines at Stanton, Maucoupin County, which are threatened with destruction by striking miners. SAN FRANCISCO, Aug. 4.-A. M. Tullis, a wealthy farmer of Grand Island, Sacramento County, has been murdered while at work in his orchard by unknown persons. Robbery was not the object of the murder. DETROIT, Aug. 4.-The Shoe-wae-cae-mette Crew passed threw this city yesterday on the way to Monroe. The crew will return to Detroit on Monday or Tuesday next, to attend the regatta of the Detroit River Navy. MILWAUKEE, Wis., Aug. 4.-The jury in the Wheeler-Henderer murder trial, after being out about twenty hours, returned a verdict at 7:30 o'clock this morning, finding the defendant guilty of manslaughter in the fourth degree. The defence gave notice of an intention to move for a new trial.

8. August 5, 1878 The Daily Gazette Wilmington, DE

Article from The Daily Gazette, August 5, 1878

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SUSP as NSIONOF A BANK. KANSAS CITY, Mo., Aug. 3.-The Mas. tin Bank, of this city, suspended this morning, the following notice being posted on the door: "Ow ing to the recent heavy run on this bank, it is deemed necessary 10 close business for the rresent in order that the intorests of all the creditors may be equally JOHN J. MASTIN, Casuler. protected. For the past three or four days there has been a steady drain upon the bank, and the business public have looked every day 'or something of this nature to occur. Coi. Coates has been appointed receiver, and a meeting of the directors was held 10-day.

9. August 5, 1878 The New York Herald New York, NY

Article from The New York Herald, August 5, 1878

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A BANK SUSPENSION. THE MASTIN BANK, OF KANSAS CITY, MAKES A TEMPORARY STOPPAGE-EVERY DOLLAR SECURED. KANSAS CITY, Mo., August 4, 1878. The Mastin Bank did not open for business yesterday morning, a notice being posted on the door statmg want owing 10 the continued withdrawal of deposits.a temporary suspension was necessary. There was no excitement, but au intense feeling of regret among all classes. There was a meeting of the principal stockbelders in the morning, at which Mr. John Mastin made a statement that the assets of the bank were more than sufficient 10 pay the liabilities, and that his and his beother's private fortune were pledged to the payment of every dollar in full. Colonel Kersey Costes was appointed assignee and a legal assignment was made yesterday atternoon. From the best information the following are the pub.ic is funds on depomt:-Stateabo about $20,000; city, between $60,000 and $70,000; county, about $12,000. The universal belief is that the suspension 18 only temporary and that the bank IS outirely solveni and will resume business soon. There was no run on other banks, and, while the business on Saturday was generally suspended, there will not be any general suffering, as the back did - have the class of small depositors. ST. LOUIS, Mo., August 4, 1878. It is unofficially stated that the liabilities of the Mastin Bank, of Kansas City, are $1,900,000 and the above nominaily about the same.

10. August 6, 1878 The Sedalia Weekly Bazoo Sedalia, MO

Article from The Sedalia Weekly Bazoo, August 6, 1878

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The Mastin Bank. The temporary suspension of the Mastin Bank of Kansas City, caused but little excitement there yesterday. The stockholders of the bank are good, and no fears are enteriained of any loss. The cause that led to the suspension is briefly that the law requiring the listing of money in the assessment was being evaded and depositors were drawing their money out of the bank until after the assessor had been around. The run was a little too heavy and the course pursued was the only way to protect all creditors. The Mastin Bank is one of the safest in the state and as soon as a meeting of the directors and stockholders can be had, there is no doubt but that the bank will continue.

11. August 7, 1878 Ottumwa Weekly Courier Ottumwa, IA

Article from Ottumwa Weekly Courier, August 7, 1878

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Bank Closed at Kansas City. KANSAS City, Mo., August 3.Mastin Bank of this city has suspended. This morning the following notice was posted on the door: "Owing to a recent heavy run on this bank it is deemed necessary to close business for the present that interests of all creditors may be equally [ protected. Signed.] JOHN J. MASTIN, Cashier. For the past three or four days there has been a steady drain on the bank and the business public have looked for something of this nature. Col. Coates has been appointed receiver. A meeting of directors will be held this afternoon.

12. August 8, 1878 The Saline County Journal Salina, KS

Article from The Saline County Journal, August 8, 1878

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The failure of the Mastin Bank, of Kansas City, was a great surprise to the busines men in all sections of this State. It has been considered one of the strongest banking institutions west of the Mississippi river, and enjoyed the confidence of many Kansas banks. It was one of the depositories of the State funds of Missouri. Its failure is attributed to political influences, the managers having lately taken an active part in the defeat of Franklin for Congress. A rumor was started that the State Treasuror (who was in the Franklin fight) was a defaulter,and as the Mastins were on his bonds for a million of dollars, a run on their bank was started which resulted in the closing of the bank's doors. It is hoped that the bank can be opened again on good footing.

13. August 8, 1878 The Leavenworth Weekly Times Leavenworth, KS

Article from The Leavenworth Weekly Times, August 8, 1878

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S A BUSTED BANK. T That Being the Condition in Which Mastin's Institution is at Present. S A $500,000 Run Proves too Much, and a Closure of the Doors 1 is the Consequence. A Paralyzing Blow to the Best Interests of Kansas City-The Other Sufferers. A GREAT SURPRISE. The announcement, by telegraph, yesterday morning, that the Mastin Bank, at Kansas City, had suspended, created more than anordinary ripple of excitement, being received with unfeigned surprise by the great majority of the community, as the general impression was that this ins itution was, live Cresar's wife, above suspicion. It has been for years regarded as an exceptionally strong bank, and the fact that smaller institutions throughout the State of Kansas, as also hundreds of individual rt firms THROUGHOUT THIS STATE, 0 a did business there, was h ir sufficient guarantee to prove that it 78 was looked upon with confidence. Since the tailure of the Kansas City First National of Bank, the Mastin has been looked upon as Is the first and best bank in that city, and, in nt fact, stood above the First National in the 1opinion of the people, as regarded solidity. à A small amount of the bank's paper is held m here in this city, by some few of our merchants, or rather, drafts for small amounts, k in the aggregate not exceeding $1,000, if it en should, possibly, reach that figure. us THE FAILURE OF THIS BANK, re regarded as it was as the strongest in the as western country, and the preceding failure, ay but a few months ago, of the First National of Kansas City, will have a tendency to ncreate a feeling of insecurity in the minds à of the people throughout this State and the te banking institutions of Kansas which have been depositing and corresponding with ad these paper concerns, and the natural conhe sequence will be that Leavenworth will bere come the banking headquarters for the he Western and Southwestern portions of the to State, as it is now for the Northwest. Leavenworth is the natural center for Kansas if and is now being recognized assuch. ed THE CAUSE OF THE FAILURE. The immediate cause of the failure was the withdrawal of $200,000 from the bank ly id by the State Treasurer, which, becoming a known, created a pinic, and in two days = some $300,000 was withdrawn by depositors a which, altogether, took $500,000 clear cash ur out of the vaults. Up to the very last moals ment the bank expected to arrivatof $250,000 from the house of Donnell, Lawson & Co, New York, but it did not arrive, nor liany intimation that they could reasonably he expect it, and they went under A STATE DEPOSITORY. The bank was in a certain sense a State depository,the State Treasurer usually havSt. ing from $200,000 and upwards in the bank, all the time. Gates Was elected with Gov. Phelps, James N. Burnes, formerly of St. Joseph, now of Kansas City, Mastin of nd Kansas City, and Britton and Senator D. for H. Armstrong, of St. Louis going his bond. Mastin, therefore, had the use of $200,000, and sometimes more than that, of the to State's money, all the time for his bank. The State Treasurer must have had some idea the bank was not safe when he withdrew the $200,000 of State money, which the withdrawal was the cause of the panic and of the great run. IT WAS KNOWN. Some parties belonging most likely to ere the class of I-told-you-sos, after the bank en had closed its doors, made known the startin ling intelligence that they had been posnd sessed of the information all along that the bank was in a shaky condition, and if they ed had wanted to they could have told the whole story a week before the bank failed. There is little probability in this, as men or who were heavy depositors in the concern en knew nothing of it until the run began, succeeding the withdrawal of the State money. IT WILL CAUSE TROUBLE. The failure of the Mastin Bank will be the cause of a great deal of embarrassment, not only among business men and others in Kansas City, but in scores of towns and villages in the State of Kansas, where smaller banks and private individuals kept th accounts. As an instance of the peculiarnt ly bad manner in which such failures as these affect some depositors, it is nccessary only to cite one instance, that of a hardlis ware merchant in Northwestern Kansas, who sold out some time ago for $16,000, one half of which he deposited in the First National of Kansas City and the other be half in the Mastin. When the former institution closed its doors he very naturally ist congratulated himself upon the fact of ur having been wise enough to deposit $8,000 where it would be safe, and where it ran no risk of being swallowed up by a failure. He succeeded in recovering $3,500 from the debris of the First National, which he at once deposited in the Mastin-

14. August 13, 1878 The Sun New York, NY

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MISSOURI'S TREASURY PLUNDERED. Nearly a Million Alleged to Have Been Stolen by the Treasury Ring. ST. LOUIS, Mo., Aug. 12.-The Evening Post publishes a statement purporting to be entirely trustworthy. but the authority is not given. which says that the July interest on the State bonds was not paid by the State, but that $220,000 coupon bonds are held by a bank in New York until it shall dispose of certain Kansas City Water Works bonds to reimburse itself. These bonds are said to be part of the security which the State Treasurer holds for his deposit in the recently suspended Mastin Bank of Kansas City, The statement further says that. in addition to this deficit in interest and money, the State Treasurer has, during his whole term of office, carried among his assets a worthless check on the Mastin Bank for $296,000. which was accepted by the legislative examining committee as cash, making a deficit in the State treasury of over half a million doilars. in addition to the amount lost by the failure of the National Bank of the State of Missouri and the sum admitted by the State Treasurer to be deposited in the Mastin Bank. These amounts are alleged to have been stolen by the Ring which has controlled the State Treasury. and that the only recourse the State has is the Treasurer's bond. which is practically worthless. and about $400,000 in bonds of the Kansas City Water Works, a privatecorporation.

15. August 21, 1878 New-York Tribune New York, NY

Article from New-York Tribune, August 21, 1878

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A SUGGESTIVE CONTRAST. Let two items be contrasted : The experts employed by Senator Davis's investigating committee, after spending a year in minute scrutiny, report that the books of the United States Treasury balance to a cent, though transactions amounting to many thousand millions have been made by successive Republican Secretaries and their many subordinates, during all the excitement, haste, and demoralization of a great civil war. But the Treasurer of the Democratic State of Missouri officially reports that he has $506,187 80 in the defunct Mastin Bank ; that be demanded from the bank money to pay the July interest on the State bonds, and was informed by the officers that they could not comply with his order at once, but would make the remittance very soon after "July ;" that instead of instantly bringing the bank to account for State funds in its charge, he came to this city and borrowed from the Bank of Commerce $220,000 for payment of the interest; that the bank has not only made no remittance, but has failed. It is true he states that he holds a bond in the sum of $1,000,000, with the two Mastins and four other persons as securities, but it does not appear how much property they have that can be reached. He also holds $350,000 bonds of the Kansas City water works, but these bonds have been on the market for months and are yet unsold, and it is stated that they are virtually tied up and rendered at present unsalable by a suit commenced by Colonel Green for the appointment of a receiver. Under these peculiar circumstances, the State Treasury is unable to meet interest on the State debt, and will be unable for some time to come, unless an extra session of the Legislature should be called. It has been the habit of Democrats to make a great fuss over alleged fraud and corruption in the financial management of the Government by Republican officials, and to point "with pride" to the conduct of Democrats in office, with the boast that, when Democrats get the power, all sorts of misconduct will cease. The history of Democratic county officials in Ohio has recently been stated; it appears that, in more than half the counties under Democratic rule, public funds have been stolen by officials. But the transactions in Missouri are peculiarly instructive. About six years ago the Mastin Bank managed to elect as Treasurer of Jackson County, Missouri, which embraces Kansas City, a Confederate veteran named Mercer. From that time the bank became virtually the County Treasury, and was enabled to go into various operations which promised profit. During his term of office, we believe, the bank began to make advances on the contract for the Kansas City water works. Presently the pure and impeccable Democracy held a convention to nominate State officers, with assurance of carrying the State. The Mastin Bank saw another chance, and, by combinations with certain active politicians, contrived to secure the nommation of its friend, Mercer, for State Treasurer. It was currently reported that a great part of the expenses of the campaign was contributed by persons interested in the bank, and after the election the Mastin Bank became the chief depositary of State funds, its managers and friends becoming the Treasurer's bondsmen. Since that time the opportunity for large operations has been fine; and among these operations was an advance to the waterworks company, for which. it appears, the bank took $350,000 bonds of that company, which it deposited with the State Treasurer as security for his deposits, besides other bonds of the same company now advertised for sale here. Rumors of extensive use of State funds in private, political or newspaper enterprises were widely cirenlated, but when Mercer's term ended, the same combination of politicians and bankers managed to nominate Mr. Gates, the present Treasurer. As part of the money in the treasury, Mercer turned over to him a check for $297,000 upon the Mastin Bank, with the sanction of the Democratic auditing committee. This check has never been met, though it was given about January 1, 1877, but Mr. Gates has continued bis intimate relations and heavy deposits with the bank. Now it is proposed by the State authorities to sue Mercer and his bondsmen on the check, but they will of course show formal quittance of responsibility by the auditing committee. Treasurer Gates has not only continued to

16. August 23, 1878 Brenham Weekly Banner Brenham, TX

Article from Brenham Weekly Banner, August 23, 1878

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THE Mastin Bank, at Kansas City, suspended with $506,000 belonging to the State of Missouri. State Treasurer Gates thinks the bank's securities are good and that not a dollar will be lost.

17. September 20, 1878 The State Journal Jefferson City, MO

Article from The State Journal, September 20, 1878

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Indicted. Kansas City, Mo., Sept. 10.-John J. Mastin, cashier of the Mastin bank. Howard M.Holden, president, and E. H. Alien, vice-1 resident of the First National bank, both suspended, were arrested this morning to answer indictments by the grand jury nnder the state law making it a felony for banks to receive deposits when in a failing condition. They gave bonds for tuture appearance. Considerable excitement was created in the city this morning by the announcement of these indictments. The parties were notified last night by county marshal Ligget of the action of the grand jury, and informed that he would expect to meet them this morning at eight o'clock to go to Independence. John J. Mastin was at the depot as was Holden, the former going to Independence and &ppearing before Judge White, where bail was furnished in the amount of $7,000. Holden arranged bond for himself and Allen,vice-president of the First National, for the same amount as in the case of Mastin. The prosecution against Mastin is based upon two claims amounting to $3,000 held by a Mrs. Ford. and Bullene, Moore and Emery. The indictments were found under the new banking law passed at the last session of the legislature, providing that "if any president, director,manager. cashier or other officer of any banking in. stitution doing business in this State shall receive or assent to the reception of any deposit of money or other valuable thing in such bank or banking institution; or if any such officer or agent shall create or assent to the creation of any debts or indebtedness by any such bank or banking institution in consideration or by reason of which indebtedness any money or valuable property shall be received into such bank or banking institution after he shall have had knowledge of the fact that it is insolvent or in failing circumstances, he shall be deemed guilty of larceny and upon conviction thereof shall be puinshed in the manner and to the same extent as provided by law for stealing the the same amount of money deposited or valuable thing if loss occurs by reason of such deposit." Mastin says he will meet the issue without fear. Holden, president of the late First National, is also president of the board of trade. Allen was mayor of the city for two years. and has always stood high in public estimation. He is a relative of Henry Ward Beecher by marriage. John J. Mastin has been at his post all Jay and goes about his duties regularly.