Home Savings Bank - St Louis, MO

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: January 1, 1874*
Location: St Louis, Missouri (38.627, -90.198)

Metadata

Model: gpt-5-mini
Short Digest: cb6fae2c

Response Measures

None

Description

Article (Chicago Daily Tribune, 1876-08-21) reports Home Savings Bank in St. Louis closed its doors about two years earlier (circa 1874) due to bad management, worthless collateral, and heavy losses. No run is described; the bank appears to have failed/closed permanently and depositors/stockholders had not received anything.

Events (1)

1. January 1, 1874* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Persistent bad management, loans on worthless collateral, heavy losses and speculative operations; led to closure around 1874 according to 1876 article.
Newspaper Excerpt: It closed its doors about two years ago, and nothing has yet been received by depositors or stockholders.
Source: newspapers

Newspaper Articles (1)

1. August 21, 1876 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, August 21, 1876

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Article Text

THE MANUFACTURERS' AND SECURITY BANKS must be mentioned together. Neither had been doing a paying business while running separately. The Manufacturers was once conducted under the name of the Benevolent Loan Association, and then made some very serious losses. The Security Bank suffered in the same way, until finally it invested $10,000 in the stock of the Gravvis Road, upon which only $6,000 or $7,000 was realized. This, combined with its numerous other losses, so weakened the bank that it was deemed expedient to close. The assets were bought up by the Manufacturers, which has since been doing very well. THE HOME SAVINGS BANK was a speculative concern, started in a part of the city which was already well supplied with banks. It had a capital of $100,000, only 20 per cent of which was paid in. Its entire career was marked by bad management on the part of the Cashier and the Directory. Gross carelessness was exhibited in making loans upon worthless collateral resulting in heavy losses by the bankruptcy of the parties accommodated. It closed its doors about two years ago, and nothing has yet been received by depositors or stockholders. In addition to these fourteen failures, a movement is now on foot to consolidate six of the remaining banks, viz.: the Lucas, Iron Mountain, Empire, Lafayette, and Valley National. Should this project fail a portion of these banks will be forced to retire. I have heard the prediction made by a leading banker here that at least a dozen banks will be closed before January next. Consolidation is the only other recourse, and that is popular because it cuts down the number of salaried and ornamental officials. OFFICERS OF SOUND BANKS deplore the effect of these repeated failures. They say that the number of their depositors is growing less every day. Surplus money is being withdrawn and invested in Government bonds. Several banks have recently reduced their capital, as they cannot employ it profitably. The Bank of Missouri has reduced its capital from $3,240,000 to $2,500,000, and others are