dea8fae6Accommodated withdrawals, Public signal of financial health, Partial suspension
Other: Directors waived time clause initially to pay depositors; later trust companies enforced 30/60-day notice and refused early payment of CDs.
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Receiver for Ohio Company. St. Louis: Circuit Judge Wood Monday appointed the Mercantile Trust Company auxiliary receiver for the Missouri assets of Aultman, Miller & Co., of Akron, O. The company manufactures agricultural implements and its capital is $1,000,000.
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POLICE AT BANK RUNS IN ST. LOUIS Depositors Rush to Mississippi Valley and Mercantile Trust Companies on Rumors of Trouble Not Explained. ST. LOUIS, Oct. 27.-There was excitement in financial circles here to-day when for some unaccountable reason runs were started on two of the strongest banking institutions in the city. The first was against the Mississippi Valley Trust Company, which ranks with the highest financial houses in the country. It has Rockefeller connections, and is declared thoroughly sound. Disquieting reports said to have emanated from Chicago started the run, however, but as fast as the depositors appeared they were paid. The people flocked to both places in such numbers that the police had to keep order. While the throng was at the Mississippi Valley Trust Company David R. Francis, President of the Louisiana Purchase Exposition Comapny and a director of the trust company, made a short speech in which he tried to reassure them. He said that a committee of three disinterested persons had only recently gone over the books of the company and had not found anything that should cause apprehension as to the stability of that institution. There were no bad investments or loans. (He hoped that those who had money in the company's vaults would be calm and reconsider their desire to pull out and not cause any apprehension on the part of the general public. The Mississippi Valley Trust Company, he said, was willing and able to pay all who wished their money, and walved its right to take advantage of the sixty dayp clause. "The eyes of the world are on St. Louis," said President Francis. "and I hope you will do nothing to cause discredit to fail on the city and its institutions." Second Vice-President John D. Davis, discussing the matter. said: "We do not know how the rumor that we were in financial straits got started. but it probably began in the department stores among the hundreds of clerks who have savings in our bank. W appreciate the confidence of those who have allowed their deposits to remain with us. but we certainly want those who have lost confidence to withdraw their money. The bank is perfeotly safe and we do not fear a run." The readiness with which all demands were met checked the run to some extent. and as quiet was being restored a run was started against the Mercantile Trust Company. People suddenly thronged the corridor and in & flew moments a line had been formed from the bank window out to the street. Policemen hurried to the scene and prevented disorder. while within the bank officials mingled with the crowd and assured everybody that depositors would be speedily paid. President F. J. Wade said. "I do not know why this run was started. It came like a flash. but the only result will be that the people will get their money. They will get it just as fast as they call for it. We have no for the bank.
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CAUSED BY DISQUIETING RUMORS Both Banks Concerned Have Big Surplus and Undivided ProfitsAsk No Help. St. Louis, Oct. Runs are in progress at noon on the Mississippi valley and the Mercantile Trust company banks, the two largest financial institutions in the city. The runs are due, it is said to rumors from Chicago and New York, that the concerns are embarrassed. The clearing house association at noon took steps to protect the institutions if needed. Both, however, ask no aid and are paying all obligations as fast as they can count the money. The capital of the Mississippi valley bank is $3,000,000 and its surplus and nudivided profits exceed $5,000,000. The capital of the Mercantile Trust company's bank is $3,000,000, with $6,800,000 surplus and undivided profits.
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RUN ON BIG BANK AT ST. LOUIS TODAY Officers of Mississippi Valley Trust Company Do Not Fear Result. St. Louis, Oct. 27.-As a result of disquieting rumors a run was started today on the Mississippi Valley Trust company, but as fast as depositors poured in they were given their money without hesitation. The bank offieials say the bank is perfectly safe and do not fear the run. A run was started on the Mercantile Trust company this afternoon by savings depositors. The people suddenly thronged the corridors and in a very few moments a line had been formed from the bank window to the street. A policeman hurried to the scene to prevent disorder, while within the bank an official mingled with the crowd and assured everybody the deposits would be speedily paid. President Wade said he did not know the cause of the run and that everybody would be paid in full and he had no fear for the bank.
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Continuous Line of Depositors Draw Savings from St. Louis Banks. INSTITUTIONS ARE ALL SOLVENT Incipient Scare Believed Over-Report Said to Have Come from Chicago. Corridors and Street Filled With People Eager to Withdraw Money. St. Louis, Oct. 28.-From shortly before 1 o'clock Tuesday until the closing hour, 3 o'clock, runs were made on the savings departments of three banks in St. Louis, and at the same time more than the ordinary amount of withdrawals by savings depositors were noticeable in the other banking institutions. The run, SO far as it can be traced, was started by a disquieting rumor from the outside that seemed to strike St. Louis shortly after noon, to the effect that the savings institutions here were unsound. With a rush the corridors of the Lincoln Trust company, the Mercantile Trust company and the Mississippi Valley Trust company were filled with men and women, all eager to withdraw their money. Scene Duplicated in Other Banks. The scene in any one bank was duplicated in the other two. A line of people with bank books in their hands and faces eagerly scanning the little barred windows of the bank tellers stretched out into the street, and intermingled were policemen and bank officials counseling calmness and giving assurances of solvency. It is stated that the rumor that started the run came from Chicago and was to the effect that two directors of the Mississippi Valley Trust company had recently endeavored to negotiate a loan of $2,000,000 in that city and had been refused. This rumor was pronounced an absolute canard by the directors concerned. As soon as the runs started all other business was laid aside and every facility was afforded for the prompt payment of deposits. The clauses which give the banks privilege of withholding payment until 10 days after notification was waived and amounts were paid rapidly, regardless of their size. No Disorder Manifested. There was no disorder manifested at any of the institutions, and in many cases depositors who had hurried to withdraw amounts departed without their money after having conversed few moments with the officials and been made confident that the bank would continue to do business. At the Missouri Trust company a number of depositors had collected to demand payment, but the crowd soon thinned out and before 3 o'clock the incipient run had ceased. Presidents of the 'different national banks assembled during the afternoon and issued a statement in which they announced that the banks of St. Louis are all perfectly solvent and amply able to liquidate all demands. All the banks closed at 3 o'cock, the usual closing hour, and announcement was made that they would open this morning at the usual hour, 10 o'clock, and will meet all demands made. The directors of the different trust companies have decided to enforce the 30 and 60-day notification clause, and this, it is believed, will doubtless stop all tendency to a continuation of runs.
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BANKS WERE READY. Absurd Rumors Created a Temporary Flurry at St. Louis. St. Louis, Oct. 27.-From shortly before 1 o'clock today until the closing hour, 3 o'elock, runs were made in the savings departments of three banks of St. Louis, and at the same time more than the ordinary amount of withdrawals by savings depositors were noticeable in the other banking institutions. The run, so far as It can be traced, was started by a disuieting rumor from the outside that seemed to strike St. Louis shortly after noon, to the effect that savings institutions here were unsound and like a prairie fire, it spread in a flash through the streets and different mereantile house whose employes represent the majority of savings depositors. with a rush the corridors of the Lincoln Turst company. the Mercantile Trust company and the Mississippi Valley Trust company were filled wth men and women all eager to withdraw their money. The scene in any one bank was duplicated in other two. A line of people with bank books in their hands and faces eagerly scanning the litthe barred windows of the bank tellers stretched out into the street and intermingled were policemen and bank officials counseling calmness and giving assurances of solvency. It is stated that the rumor that started the run came from Chicago and was to the effect that two directors of the Mississipi Valiey company had recently endeavored to negotiate a loan of $2,000,000 in that city and had been refused. Today this rumor was pronounced as absolute canard by the directors concerned. As soon as the runs started all other business was laid aside and every facility was afforded for the prompt payment of deposits. The clause which gives the bank the proivilege of withholding payment until sixty days after notification was waived. and amoûnts were paid rapidly regardless of their size. At other trust companies depositors had collected to demand payment but before 1 o'clock the run had ceased. The residepts during the afternoon issued a statement that the banks of St. Louis are fully solvent and fully able to satisfy all demands. The banks closed at 3 o'clock, the usual closing hour and gave out word that they will open tomorrow morning at the usual hour at 10 o'clock and will meet all demands.
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The St. Louis Banks, St. Louis, Oct. 28.-When the doors of the Mississippi Valley Trust and Mercantile Trust Companies were opened this morning, lines of depositors were in waiting, anxious to withdraw their funds, as a result of the scare resulting from Tuesday's run. Most of those in line were working men and women. Each was told that thirty to sixty days' notice to withdraw deposits would be required. No money was, paid out but declaration of intention to withdraw was made by many. The trust companies also have decided not to pay certificates of deposit before maturity. Small crowds were assembled in front of the other banking itstitutions. By 11 o'clock the crowd has increased to such an extent that a platoon of police was totally unable to control it and the officers stationed at the doors were swept away from their statlons almost as rapidly as they could regain them. There is much excitement.
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FINANCIAL PANIC IN ST. LOUIS Heavy Runs on the Savings Departments of Three Banks and Withdrawals of Savings Noticeable in other Banking Institutions. T. LOUIS, Mo., Oct, From shortgives the bank the privilege of withholding payment until sixty days after ly before 1 o'clock today until the S notification was waived and amounts closing hour, 3 o'clock, runs were were, paid rapidly regardless of their made in the savings departments of size. There was no disorder manifested three banks of St. Louis, and at the at any of the institutions, and in many cases depositors who had hurried to same time more than the ordinary withdraw amounts departed without amount of withdrawals by savings detheir money after having conversed a positors were noticeable in the other few minutes with the officials and been banking institutions. The run, so far made confident that the bank would as it can be traced, was started by a continue to do business disquieting rumor from the outside the Missouri Trust company a that seemed to strike St. Louis shortly number of depositors had collected to after noon, to the effect that the savdemand payment, but the crowd soon ings institutions here were unsound thirned out and before 3 'clock the inand, like a prairle fire, it spread in a cipient run had ceased. Presidents of flash through the streets and different the different national banks assembled mercantile establishments whose emduring the afternoon and issued a stateployes represent the majority of savment that the banks of St. Louis are ings depositors. With a rush the corriperfectly solvent and amply able to dors of the Lincoln Trust company, the liquidate all demands. Mercantile Trust company and the MisAll the banks closed at 3 o'clock, the sissippi Valley Trust, company were usual closing hour, and gave out word filled with men and women, all eager that they will open tomorrow morning to withdraw their money. The scene at the usual hour, 10 o'clock, and will in any one bank was duplicated in the meet all demands made. other two. A line of people with bank The directors of the different trust books in their hands and faces eagerly companies at meetings tonight decided to scanning the little barred windows enforce the thirty and sixty-day notitication clause tomorrow and this, it is the bank tellers stretched out into the believed, will stop all tendency to a constreet and intermingled were policemen tinuation of runs. and bank officials counselling calmness The following statement was given out and giving assurances of solvency. tonight after a meeting of the representatives of the asociated banks: Came From Chicago. "The representatives of the associated banks of St. Louis, at a meeting held toIt is stated that the rumor that startnight to consider the local situation and ed the run came from Chicago, and was the demands made upon the trust comto the effect that two directors of the panies of the city, invited the presidents Mississippi Valley company had reof those organizations to confer with cently endeavored to negotiate a loan them for the purpose of taking such action as the situation seemed to require of $2,000,000 in that city and had been It was ascertained in this conference refused. Today this rumor was prothat no trust company was in need of asnounced an absolute canard by the disistance of any character, but each felt rectors concerned. assured of its ability to protect its obligations and maintain itself without As soon as the runs started all other calling on the banks for aid. business was laid aside and every fa"The action of the trust companies, recility was afforded for the prompt payquiring the legal notice of withdrawal of ment of deposits. The clause which savings deposits, was approved."
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RUN IS CONTINUED. Saving Banks Enforce the Time Clause. Louis, Oct. 28.-Just before depositors the hour St. today the lines of doors of of opening away from the closed stretched Mississippi Valley Trust Company, the Lincoln Trust Company, the Missouri Mercanthe Trust Company and the Small before the doors of sembled tile Trust Company. crowds observed the were other that asinstitutions. It was savings of those in line were working people and most many of them women, whose savings were Owing not to heavy the action taken last night by officials of the eight trust companies the business in St. Louis enforcing doing and sixty days' notice of Intention were thirty withdraw funds, the depositors to able to get any money. All they could not do was to declare their intentions end of withdrawing their deposits at the of the time taken advantage of by the companies under their rules. The trust companies decided not to pay certificates of deposit before maturity. crush was the Mercantile Trust 9 and Locust doors The of greatest streets. before Company At the the doors were opened the at o'clock Eighth that and swept crowd surged in with a force aside the lines of police and bank em- line ployes formed to preserve a regular of to the windows of the paying tellers the time accounts. policemen were unable to handle the Festus Wade, mounted a chair crowd company, The and president and of an- the unless the depositors formed in would be ejected from said it was to line ing. nounced they He impossible in the crowding build- wait them if they insisted \upon in such a manner. This had the effect and some semblance of order was restored. As many of the persons as could be at the banking rooms had two lines, and accommodated formed in further the admis- first refused until some of had left by a separate were admitted and to comers sion then was others entrance; forced they in line and leave as soon as their the crowd the had keep By transacted 10 o'clock business. around building had extent that the trust to such company's an police increased the were ofunable to control it, and stationed at the doors were their stations as rapcould resume ficers away totally from almost them. Women swept a large per constituted idly as they centage the of jam. the crowd, and were erushed in knockMany dresses were torn and hats ed off. The policemen in trying to handle the crowd pushed many of them into personal the gutter. and in several instances fights were narrowly averted. When the doors of the Mercantile Trust the were opened just across Company east of the building it was packed, street the street to the west. and Eighth while Street, both to the north and south. were comparatively clear. an hour later. however, both of Half, were crowded for a distance to several streets hundred feet. and all efforts abanthem clear were practically keep the police directing their degree efforts chiefly doned, towards maintaining some of order at the doors. E. Davis, second vice-president Company, of John Mississippi Valley Trust to the the the morning made his way adduring steps leading to the bank there and stone dressed the throng assembled as follows: anxiety expressed here by so many with"The is entirely uncalled for. and will lose out reason. of you Not one person money through this trust company in our any and we shal conduct our business regular manner is no change in our financial con- paid "There whatever. We have always dition should have to be paid to every- the one whatever and we are going to do so in future. accounts will be paid just There as 'All open they are presented here. soon as no delay. Every other account due. will be be paid just as soon as it falls will an account which is due today today in your turn. it If will you be have paid regular Your There is no reason for any worry. well invested and you can get want it at the money it back is if you contract. regular time provided for in your 'I tell you positively that no official of Mississippi Valley Trust Company has the to Chicago for money. We do not We are in g and everything is been need financially money. splendid prosperous of shape every I think the same is true in St. Louis. I S with trust us. company appreciyour anxiety and I assure you as of a gentleman ate and officer and stockholder this company that your fears are groundless, and that you will lose no money through this company. e Henry M. Meir, Vice-President of this the Missouri Trust Company. made e statement today: "Our institution has money in abund
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DEPOSITORS ARE AGAIN IN HURRY St, Louis Bank Officials, However, Say Trouble is Over MANY OFFERS OF ASSISTANCE Expression of Confidence and Such Offers on Part of National Banks Has Helped-Long Lines of Depositors. St Louis, October 28 The statement of President Julius S Walsh of the Mississippi Valley Trust company, whose sentiments are produced in interview given to the Associated Press by other trust company officials of St. Louis that "the situation is thoroughly in hand, "the excitement has subsided, and "from this on we expect business will be conducted in the usual orderly manner, expressed the opinion that seems general tonight, concerning the unwonted financial conditions which prevailed here during parts of yesterday and today. Officers of all the trust companies state that voluntary offers of help were received from financial institutions in New York. Philadelphia, Chicago New Orleans, Kansas City, Boston and many of the smaller towns of Missouri and Illinois, but all were declined for the reason that they had sufficient cash with which to handle their business Expression of confidence and offers of aid on the part of the national banks and financial institutions of St. Louis, has helped to strengthen the situation and restore confidence Lines of Depositors. Just before the hour of opening today the lines of depositors stretched away from the closed doors of the Mississippi Valley Trust company, the Lincoln Trust company, the Mercantile Trust company and the Missouri Trust company Small crowds were assembled before the doors of the other savings institutions It was observed most of that those line were in working people and many of them women whose savings heavy Owing to the action taken last night by the officials of the eight trust companies doing business St. Louis enLoreing thirty and sixty days' notice of Antention to funds, the depositors were not able to get any money All they could do to declare their intentions of their deposits at the end of the time taken advantage of by the companie. under their rules. pay The trust companies decided not to certificates of deposit before maturity Crowd Serges In. doors The greatest crush was before the at of the Mercantile Trust company Eighth and Locust streets. o'clock the doors were opened and the crowd surin with force that swept aside the lines of police and bank employe formed to preserve regular line to the windows of the paying tellers of the time The policemen were unable to handle the crowd and Festus Wade, president of the company, mounted chair and announced unless the depositors formed in line they would be ejected from the building He said was impossible wait in upon them if they insisted in crowding such This had the effect and some semblance of order was restored be the could As as persons the banking rooms had admisformed in two lines, and further sion refused until some of the first entrance; comers had left by separate then others admitted and forced they keep in line and leave soon as to had transacted their business. Many Women in the Crowd. the By 10 o'clock the crowd around an such trust company's building had increased to totally extent that the police were unable to control it. and ficers stationed at the doors the of. away from their were swept stations almost as constituted ly as they could resume them. Women rapidlarge percentage of the Many and crushed in the knocked off dresses were torn and hats jam. crowd The policemen in trying to handle pushed many of the instances personal gutter and in several them into the lights were narrowly averted. opened company When the were doors of the Mercantile Trust street east of the building just across the the while the street it was packed. street, both to the west, and Eighth comparatively clear north and south, were an hour Half later, crowded for however, both streets them keep were clear hundred feet, and all efforts distance to of several ractically wards police directing their efforts abandoned chiefly the doors. the maintaining some degree of order toE. John Davis during the Mississippi Valley second vice Trust president of the morning, made his company, addressed stone steps leading into the way to the follows: the throng assembled bank there and as Bank Official Speaks. of The you anxiety is expressed here by out entirely uncalled for, so many reason. Not one person and withmoney through this trust will lose any shall conduct our business company, and our paid ular to condition "There manner. whatever is whatever. no should change We have in have to in financial our always regin the are going are just soon 'All everyone, open future accounts and will be to be do so paid as will Every other reguday will will paid no they delay. just paid presented which here. paid it falls account due There due. to. is for reason any lar turn. There today in your Your and money invested worry. at it want you in the conyour tract. of no that official positively the Valley Mississippi not do We been need to money. Chicago for money. Trust company We has financially with and everything are splendid shape us I think the is prosperous Lapanxiety preciate every trust your company in same St. Louis. true of that of gentleman this company and officer and assure stockholder you through groundless. :his company.- and you will your lose fears no money Henry M. Meir's of the Henry M. Meir, vice Statement. president
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CLAMOR FOR MONEY KEPT FORCES OF ST. LOUIS BANK. ING CONCERNS BUSY. MANY WANTED TO WITHDRAW THE SAVINGS THAT THEY HAD PLACED ON DEPOSIT. Trust Companies Took Advantage of the Time Limit Clause and Demanded Notice of Withdrawal. Aid Was Offered from Other Cities, but Declined-Oflicials Think the Unnecessary Panic Has Been Relieved-Greater Confidence Shown. St. Louis, Oct. 28.-The statement of President Julius S. Walsh of the Mississippi Valley Trust Company, whose sentiments are echoed by other trust company officials of St. Louis, that "the situation is thoroughly in hand, the excitment has subsided and from this on we expect business will be conducted in the usual orderly manner," expresses the opinion that prevailed to-night after the unwonted finacial conditions which prevailed here part of yesterday and to-day. Officials of all the trust companies state that voluntary offers of help were received from financial instiutions in New York, Philadelphia, Chicago, New Orleans, Kansas City, Boston and many of the smaller towns of Missouri and Illinois, but were all declined for the reason that they had sufficient cash with which to handle their business. Expressions of confidence and offers of aid on the part of national banks, financial and other institutions of St. Louis have helped to stregthen the situation and restore confidence. Long before 10 o'clock, the hour of opening, lines of depositors stretched away from the closed doors of the Mississippi Valley Trust Company, the Lincoln Trust Company, the Mercantile Trust Company, and the Missouri Trust Company. Small crowds were assembled before the doors of some of the other savings institutions also. It was observed that most of those in line were working people and many of them women, whose savings were not heavy. Owing to the action taken last night by the officials of the eight trust companies doing business in St. Louis, requiring thirty and sixty day notices of intention to withdraw funds, depositors were not able to get any money. All they could do was to declare their intention of withdrawing their deposits at the expiration of the time limit. Surged Into the Building. The greatest crush was before the doors of the Mercantile Trust Company on Eighth and Locust streets. At 9 o'clock the doors were opened and the crowd surged in with a force that swept aside the lines of police and bank employes formed to preserve a regular line to the windows of the paying tellers. The policemen were unable to handle the crowds and Festus J. Wade, president of the Mercantile Trust Company, mounted a chair and made a statement that unless the depositors formed in line they would all be ejected from the building. He explained that it was impossible to wait on them if they insisted on crowding in such a manner. This announcement had the desired effect, and some semblance of order was restored. By 10 o'clock the crowd around the trust company's building had increased to such an extent that the police were totally unable to control it, and the officers stationed at the doors were swept away from their stations almost as rapidly as they could regain them. Women, who constituted a large percentage of the crowd, were crushed in the jam, and in the struggle their dresses were torn and their hats knocked off. The policemen, in trying to handle the crowd, pushed many of them into the gutter, and in several instances personal fights were averted only by the interposition of cooler persons. Shortly after the doors of the Mercantile Trust Company were opened the streets were crowded for a distance of several hundred feet, and all efforts to keep them clear were practically abandoned, while the police directed their efforts chiefly toward maintaining some degree of order at the doors. Began to Grow Easy in Mind. At 1 o'clock in the afternoon the uneasiness of small depositors in the trust companies seemed to have been removed. At this hour there were only a few depositors withdrawing daily balance accounts or giving notice of withdrawal of saving deposits at the Mercantile and the Mississippi Valley companies. Many persons who withdrew money yesterday deposited it again to-day, and in some instances new savings accounts were opened. Officers of the different institutions made reassuring speeches to the depositors before their doors, and this helped to send others away. The arrival of several boxes of gold and silver in express wagons, guarded by armed offidegree
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ST. LOUIS, Mo., Oct. 28.-When the doors of the Mississippi Valley bank and the Mercantile Trust company's house were opened this morning. long lines of depositors stood waiting to withdraw their deposits. The banks took advantage of the 30-day notice of an attempted run. Small crowds stood in front of other banking institutions. The runs became so bad by noon, that the police were unable to handie the crowds. Men and women were trampled under foot, and the clothing torn from their bodles. The