10797. National Bank of the State (St Louis, MO)

View Charter #1665 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1665
Charter Number
1665
Start Date
June 20, 1877
Location
St Louis, Missouri (38.627, -90.198)

Metadata

Model
gpt-5-mini
Short Digest
e689d0f3

Response Measures

None

Description

The articles describe a voluntary suspension (directors voted to wind up business) due to bad/speculative investments and shrinkage in real-estate values; a receiver (W. P. Johnson/Johnstone) was appointed days later. No run is reported. Thus the bank suspended and then was placed in receivership (closure).

Events (2)
1. June 20, 1877 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors voted to wind up business after examination; large losses from speculative investments (bridge stock, jetties, Merchants' Exchange building) and shrinkage in real-estate and other values; alleged fraudulent/unsafe loans to directors/officers noted later by examiner.
Newspaper Excerpt
The suspension was voluntary...the affairs of the bank were examined...the vote is unanimous to wind up the business.
Source
newspapers
2. June 25, 1877 Receivership
Newspaper Excerpt
W. P. Johnson, of Washington, has been appointed receiver of the National Bank of the State of Missouri.
Source
newspapers

Newspaper Articles (22)
1. June 21, 1877 New-York Tribune New York, NY
Article from New-York Tribune, June 21, 1877

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NO LOSS TO DEPOSITORS BY THE ST. LOUIS SUSPENSION. ST. LOUIS. Mo., June 20.-It is stated that the deposits in the National Bank of the State of Missouri were yesterday $2,000,000. In this amount is included $240,000 belonging to this city, and $130,000 officially placed by assignees, registers, and Master 111 Chancery, all secured by bonds. It is claimed that the depositors will receive payment in full, of which 50 cents on the dollar will be paid very soon, the assets of the bank being amply sufficient for that purpose. The suspension was voluntary, an examination of the condition of the bank resulting in an unanimous vote to wind up the business. No new business has been taken by the bank since that vote. The great shrinkage III real estate and other values is one of the causes of the suspension.

2. June 21, 1877 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, June 21, 1877

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. The National Bank of Missouri. Sr. Louis, June 20.-Itis said that the deposits in the National Bank of the State of Missouri were yesterday $2,000,000, including in this were $240,000 belonging to the city and $130,000 officially placed there by the assignees, Registers and Mas. ters in chancery; all secured by bonds. It is claimed that the depositors will be paid in full, of which fifty cents on the dollar will be paid very soon, the assets of the bank being amply sufflcient for this purpose. It is also said that the affairs of the bank were examined by the special examiners front the Treasury Department a few weeks ago, which resulted in the election of a new board of directors; four new men were elected, and at the next-meeting of the board an examination of the condition of the bank was voted to wind up the business; and since then no new business has been taken up by the bank. Great shrinkage in real estate and other values is one of the principal causes of the suspension. LOSES NOTHING. NEW YORK, June 20.-The National Bank of Commerce, of this city, a correspondent of National Bank of the State of Missouri, loses nothing by the suspension, although it is surprised at it.

3. June 21, 1877 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, June 21, 1877

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Bank Suspension. ST. LOUIS, June 20.-It is said that the deposits in the National Bank of the State of Missouri were yesterday $2,000,000. Included in these were $240,000 belonging to this city and $130,000 officially placed by assignees registers and masters in chancery, all secured by bonds. It is claimed that the depositors will be paid in full, of which fifty cents on the dollar will be paid very soon, the assets of the bank being amply sufficient for this purpose. It is also said the affairs of the bank were examined by special examiners from the Treasury Department a lew weeks ago, which resulted in the election of a new board of directors, and at the next meeting of the board on examination of the condition of the bank it was voted to wind up the business. Since then no new business has been taken in by the bank. Great shrinkages in real estate and other values are the principal causes of suspension. ST. LOUIS, Jvne 20.-The committee appointed yesterday by the board of directors of the National bank of the State of Missouri reported to the board to-day that the result of their correspond ence with the comptroller of the currency was that J. T. Howenstein, Bank Examiner, was directed to make a thorough examination of the bank at once. He commenced labor at once and until he concludes his investigation the bank will take no further action toward winding the business up then already taken. Very few real facts can be obtained regarding the liabilities or assets of the bank at present

4. June 21, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, June 21, 1877

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THE MISSOURI BANK. People Not Much Surprised at Its Explosion Tuesdny---More Trouble Brewing. Special Dispatch to The Tribuna. Sr. Loris, Mo.. June 20.-The suspension of the National Bank of the State of Missouri has been the absorbing topic of discussion In commercial circles to-day. but among bankers there was not evinced a great degree of surprise, as it is alleged by them that they were fully prepared for such an event. It appears that the Missouri Bank has been considered shaky so long that its paper has not been received In the ClearingHouse for several months, other bankers collect. Ing by Immediate presentation of any checks that might come into their hands. All the leading bankers have been Interviewed to-day. and they agree in the assurance that the suspension will not affect any other St. Lonis In. stitution. They claim that the embarrassments of the Missouri Bank have been brought about, not by the general stringency of the times or shrinkage of values, but by the poculiar character of the investments made by the bank-for instance. such as $500,000 In St. Louis bridge stock: nearly $1,000,000 in the Jettles: 0,000 In the Merchants' Exchange Building, etc., stocks commanding a premium at the time of purchase, bnt now comparatively worthless. Several injudicious Investments in real estate were also made. A build. ing and lot purchased at $175,000 two years ago they have vainly endearored to sell, bnt could not get a better offer than $100,0 The bank has gradually accumulated these chips and whetetones nntil It found the greater part of Its capital absorbed In valueless property, making it Impossible to carry on the business any longer. The bridge stock. which they bought when It was quoted at 30 cents premium, la now not worth a cent on the dollar. Very few poor mon or small merchants were depositors at the Bank, and, consequently, there has been no excitement among that class of people, and consequent run on banks where the have money. The deposits, exceeding $2,250,000 were chiefly by the State, the City of St. Louis, various corporations here and thronghout th. State, Assignees in Bankruptcy. Registrare, and by private Individuals of large means who can af. ford to take the matter coolly and wait until the money is realized on sencis to pay deposits. There does not seem to be any doubt that all depositors will finally be paid. It is now said that 50 per cent will be paid in thirty days, and the balance within six months. The Bank Examiner is now preparing a statement which will be ready for publication Satur. day. It is announced to-night that a Receiver has been appointed and willtake charge of the bank's atfairs within a day or two, although none of the bankers. to far as can be ascertained, give evidence of alarm. Bank Examiner Henenstein, who has excellent facilities for knowing whereof he speaks, says there will be some more thunder next week, and explains the Intimation by saying that It will be surprising If certain other banks do not go under in a very brief time. It was ramored to-day that the New York National Bank of Commerce would be compelled to follow in the wake of the Missouri Bank, as it was an equally largo investor in such securities as the St. Louis Bridge and the jettics. The New York Directors of the Missouri Bank are also Directors of the New York bank. The general feeling here is, that If some false roport does not arise to cause a run on the banks by small depositors. there will be no further trouble; but there are, nevertheless, many merchants who fear that there in worse to come. Telegrame have ponred in all day from bankers and basiness men addressed to their correspondente here asking for reliable information on the subject. To the Western Associated Press. New Yonk. June 20.-The National Bank of Commerce of this city. the New York correspond. ent of the suppended National Bank of the State of Mismouri, losen nothing by the suspension, al. though surprised at It.

5. June 23, 1877 The New York Herald New York, NY
Article from The New York Herald, June 23, 1877

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MISSOURI'S INTEREST. ST. Louis, June 22, 1877. To allay any fears growing out of reports or intima tions that the suspension of the National Bank of the State of Missouri will prevent the payment ot the July interest on the State bonds it may be stated positively that there will be no default, as ample means will be in New York to meet the interest on the July coupons.

6. June 25, 1877 The New York Herald New York, NY
Article from The New York Herald, June 25, 1877

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BANK. NATIONAL MISSOURI THE REPORT OF THE BANK EXAMINER-BAD PROSPECTS FOR THE CREDITORS. [BY TELEGRAPH TO THE HERALD. ] ST. LOUIS, June 24, 1877. The bank examiner in this city, who has been inves. tigating the affairs of the suspended National Bank of the State of Missouri, forwarded his report to Washington this evening, and the document shows the affairs of the bank to be in a deplorable condition so far as the stockholders are concerned. POOR PROSPECTS. It 18 thought now they will be called on to pay ndditional sums to that invested in stock under the terms of the National Banking act making them liable for double the amount of stock. There is not enough cash 14 in the vaults to pay a respectable percentage on the deposits, and the prospects are it will be six months before any part of them is paid. The examiner thinks the deposits and float. ing debts will be floally paid, but that it will take two or three years to accomplish that result. VIOLATION OF LAW. The revelation IS also made that the five directors, in violation of law, have been borrowing from the bank and that the sums borrowed will reach an aggregate of nearly $1,000,000. W. P. Johnston. of Washington, will take possession of the bank to-morrow as a temporary receiver.

7. June 25, 1877 The Sun New York, NY
Article from The Sun, June 25, 1877

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The old National Bank of the State of Missouri has concluded to wind up its business. on the ground that reasonable profits cannot be expected from its continuance. The directors wisely acted upon their resolution before the funds of the city of St. Louis, to the amount of three-quarters of a million of dollars. had been placed on deposit there, in accordance with the intention of the municipal Government. Had this money been poreived before the suspension, considerable embarrassment would have been caused. as the amount was to be used for the current expenses of "the city, The deposits of the bank amount to about two millions of dollars. and the depositors will probably be paid in full, though they will have to wait a long time for the assets to be realized upon. The sto kholders will. no doubt, lose the capital of $200,000. and have to make up a deficit The bank is one of the oldest in the West.

8. June 25, 1877 The Sun New York, NY
Article from The Sun, June 25, 1877

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- - - of its Directors. From the St. Louis Globe-Democrat. The Directors of the National Bank of the ate of Missouri voted. yesterday morning to p business and to take such action as to satisthe claims of creditors without loss to them. eh as might have been involved if the doors the bank had been kept open longer. Six or ght weeks ago the affairs of the bank were exnined by a special examiner from the Treasy Department at Washington. Because of is examination, the bank was required to use 11 new election of directors, which election id been passed for three years. At this elecn. in May, four new members were chosen, insisting of the Hon. John B. Henderson, N. 8. nouteau. Web. M. Samuel, and H S. Mills. At e next meeting of the board after the election. ordered an examination of the affairs of the ink, and the result was that the vote 18 unanimous to wind up business, ther by securing the appointment of a reiver by the Comptroller of the Currency, or by aging the bank in voluntary liquidation. robabilities favor the latter course. Previous the vote of the directors yesterday the isiness of the bank had run along in regular utine. There was no drawing out by deposirs. no panic, no run. But as soon isthe resoluons to suspend were adopted no new business as transacted. Several new accounts were Tered. but were rejected by the bank officials 1st previous to the suspension vote. The deosits yesterday footed up at about $2,000,000. he depositors will be paid in full. The National Bank of the State of Missouri as one of our oldest banks. it was formerly nown as the bank of the State of Missouri. I 1866 it was organized as a national bank. At rst it had a capital of $5,000,000; but underthe ew organization it had $3,410,000, which was absequently reduced to $2,500,000. to escape nerous taxation, amounting to more than ree per cent. in State, county, and United lates taxes and taxes on deposits.

9. June 26, 1877 The Dallas Daily Herald Dallas, TX
Article from The Dallas Daily Herald, June 26, 1877

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HERE AND THERE. The Abdnetress of Mary Masterson Sentenced to Five Years in the Penitentiary. PHILADELPHIA, June 25.-Fannie Brown, arrested in St. Louis, was brought here on a charge of abducting Mary Masterson, aged ten years. She plead guilty and was sentenced to five years' imprisonment in the penitentiary. Captain Lowe, of the Navy, Crosses to the Other Shore. PHILADELPHIA, Pa., June 26.-Caps tain William M. Lowe, of the United States navy, is dead. Death of Robert Dale Owen. TROY, N. Y., June 25.-A dispatch from Lake George, announces the death of Robert Dale Owen. Receiver of the National Bank of Missouri. ST. LOUIS, June 25.-W. P. Johnstone, of Washington, has been appointed receiver of the National Bank of the state of Missouri.

10. June 26, 1877 The New Orleans Daily Democrat New Orleans, LA
Article from The New Orleans Daily Democrat, June 26, 1877

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Receiver of the National Bank of the State of Missouri. [Special to the Democrat.) ST. LOUIS, June 25. W. P. Johnson, of Washington, has been appointed receiver of the National Bank of the State of Missouri.

11. June 26, 1877 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, June 26, 1877

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Sr. LOUIS, June 25.-The Globe. Demo. crat says W. P. Johnson, of Washington, has been appointed receiver of the National Bank of the State of Missouri.

12. June 28, 1877 The Manitowoc Pilot Manitowoc, WI
Article from The Manitowoc Pilot, June 28, 1877

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The old National Bank of the State of Missouri has concluded to wind up its business, on the ground that reasonable profits cannot be expected from its continuance. The directors wisely acted upon their resolution before the funds of the city of St. Louis, to the amount of three-quarters of a million of dollars, had been placed on deposit there, in accordance with the intention of themunicipal Government Had this money been received before the suspension, considerable embarrassment would have been caused, as the amount was to be used for the current expenses of the city. The deposits of the bank amount to about two millions of dollars, and the depositors will probably be paid in full, though they will have to wait a long time for the assets to be realized upon. The stockholders will, no doubt. lose the capital of $200,000, and have to make up a deficit. The bank is one of the oldest in the West.

13. August 4, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, August 4, 1877

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our citizens on the Rio Grande: that our troops must be all. wed to follow the robbers and raiders as long us they could keep them In might without worring themselves overmuch ab ut boundary lines. and that Gen. Trevino regards himsell as having won a complete diplomatic victory over the American General and the American Government. PATENT REFUSED. Gen. Spear. Commissioner of Patents, has refused to graut n patent to James Sargent, of Sargent it Greenlcaf. to cover the employment of time-locks in connection with inder endent combination locks used upon safe and vault doors. The application of Mr. Fergent was a feature of the noted time-lock context that nas been pendine in the Patent-Olive for years. tien. Spear's action is based principally upon the fact that tl.c suit Instituted by the Yale Lock Company in the Sureme Court of the District of Columbia is being prosecuted to determine de more the right of using the time lock in controversy. The Hall Safe & Lock Company of Chicago and Cinclunati, and about 3,000 banking institutions throughot the country, are Interested in the result of the suit. RESPENDED After an Investigation at the Interior Department. (len. Kimball, the Surveyor-General of Utah, has been suspended. Great efforts have been made for his reinstatement by influential politicians, tho most prominent of whom is Attorney-General Deveus, but the Secretary of the Interior is said to be unalterably opposed to his retention. The Government has moved to dismiss the suit of the Lee heirs to recover the Artington [leights Cemetery on the ground that the Goverminent has prossession of the proberty under title of record. DIVIDENDS. To the Wetern Associated Press. WARNINGTON, D. C., Aug. 3.-The Comptrollcr of the Currency declared a dividend of 15 per cent In favor of the creditors of the National Bank of the State of Missouri. St. Louis, and a second dividend of 10 per cent In favor of the creditors of the First National Bank. Duluth. The dividends are payable as soon as the tiecessary schedule can be prepared. NATIONAL BANK SECURITIES. The total amount of United States bonds held as security for the circulating notes of National Banks is $337,528,100. CALL FOR RONDS. The Secretary of the Treasury to-day issued the lifty-fourtli call for the redemption of ten millions of 5-20 bonds of 1805, seven millions of coupon and three millions of registered bonds, as follows: Coupons-$50. Nos. 40,001 to 44,000; $100. Nos. 66,001 to 76,000; $300, Nos. 50,001 to 57.000; $1,000, Nos. 85,001 to 90,000. Registered-8:00 Nos. 1.40L to 1,000; $100, Nos. 11,001 to 13,100; $500, Nos. 7,751 to 8.300: 81.000, Non. 25,101 to 27,400; $5,000, Nos. 7,301 to 7,050; $10,000 Nos. 11,751 to 13,550. CABINET MEETING. The Cabinet session to-day was short, and no business of importance was done. There was a discussion of Utah mattere, and the Indletment of certain Mormon leaders In connection with the Mountain Meadow maseacre, the labor troubles, and matters pertaining to appointments in the territories. RELEASED. Ex-Detective Bell, arrested last night on a requisition from the Governor of Texas on the charge of murder, was released to-day by Judge Humphrics, of the District Supreme Court.

14. February 5, 1878 Daily Globe Saint Paul, MN
Article from Daily Globe, February 5, 1878

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Suit for a Million and a Half Dollars. Sr. LOUIS, Mo., Feb. 4.-Parties representing the National Bank of Commerce, of New York, entered suit to-day against the National Bank of the State of Missouri for a million and a half dollars. The petitioner recites an agreement entered into Dec. 26, 1866, by the two institutions, whereby the former loaned the latter one million dollars in the form of a continuing loan. Of this amount $40,000, with interest, is still due. It is further claimed that the St. Louis bank is indebted to the New York bank for half a million dollars, for moneys paid on account up to the date of suspension. A third half million is claimed for money lent in the course of banking accommodation to the date of suspension. The State bank is in the hands of a receiver.

15. February 5, 1878 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, February 5, 1878

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Business Embarrasments PHILADELPHIA, February 4. - The Hestonville Passenger Railroad Company permitted notes to the value of $20,000 to go to protest. The appointment of a receiver is inevitable The total floating and funded debt is $461,000. CHICAGO, February 4.-Wm. Sturges, well known in railroad circles, filed a voluntary petition in bankruptcy late today. Secured debts $752,500, with securities valued at $141,000; unsecured debts $412,762. He is also liable on bills and accounts to the amount of $35,000. The assets consist of stock in the Crescent Iron Company to the amount of $250,000 and stock in the Leavenworth, Lawrence and Galveston railroad to the amount of $500,000. ST. LOUIS, February 4.-Parties representing the National Bank of Commerce, of New York, entered suit today against the National bank of the State of Missouri, for & million and a half of dollars. The petition recited an agreement entered into Dec. 26, 1866, by the two institutions, whereby the former loaned the latter one million of dollars, in the form of & continuing loan; of this amount, $400,000, with interest, is still due. It is further claimed that the St. Louis bank is indebted to the New York bank $500,000 for moneys paid on its account up to the date of suspension. A third half million is claimed for money lent in the course of banking accommodation to the date of suspension. The State bank is now in the hands of & re. ceiver

16. February 6, 1878 The Daily Clarion Jackson, MS
Article from The Daily Clarion, February 6, 1878

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MISSOURI. SUIT ENTERED. ST. LOUIS. Feb. 5.Parties representing the National Bank of Commerce of New York, entered suit, to-day, against the National Bank of the State of Missouri for the recovery of one and a half million dollars. The petition recites an agreement entered into by the two institutions on the 26th day of December, 1862, whereby the first named bank loaned the other one million dollars in the form of a contingency loan. In this amount $400,000, with interest is still due, and it is further claimed that the St. Louis bank is indebted to the New York Bank in the sum of $500,000 for money paid on its account up to the date of its suspension. Another half million of dollars is claimed for money loaned in the course of banking accommodations to the date of the suspension. The State bank of Missouri is now in the hands of a receiver.

17. February 6, 1878 The New York Herald New York, NY
Article from The New York Herald, February 6, 1878

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AN INSOLVENT BANK SUED. ST. LOUIS, Mo., Feb. 5, 1878. Parties representing the National Bank of Com. merce, of New York, entered suit to-day against the National Bank of the State of Missouri, for the re. covery of $1,500,000. The petition recites an agreement entered into by the two institutions on the 26th of December, 1862, whereby the first named bank loaned the other $1,000,000, in the form of u continuing loan. or this amount, $400,000 with interest, IS still due. It IS further claimed that the St. Louis blank is indebted to the New York bank 16 the sum of $500,000 for moneys paid ou us account up to the date of its suspension. Another half million dollars 18 claimed for money loaned in the course of banking accommodations to the date of the suspension. The State Bank of Missouri is now in the bands of a receiver.

18. February 6, 1878 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, February 6, 1878

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General News. Jacobs M. Jacobs, aged one hundred years and two months, died at Oswego, N.Y., Monday evening. He was in the United States Naval service during the war of 1812. In the Ohio House, yesterday, the House joint resolution asking Congress to repeal the resumption act was adopted by a party vote-the democrats voting in the affirmative and the republicans in the negative. The National Bank of Commerce of New York has entered suit against the National Bank of the State of Missouri, at St. Louis, for $1,500,000 loaned and paid on account since 1862. The Missouri institution is in the hands of a receiver. The public school board imbroglio in Allegany county, Md., has been definitely setttled by the resignation of Judge Buchanan, which places the newly-appointed board in power, that board having also the official recognition of the comptroller of the treasury. Dr. Clemence S. Lozier, of New York, has failed, with $112,000 liabilities, of which $110,000 are secured by bond and mortgage on city property; nominal assetts $4,000, real $452. Downer, St. John & Co., drug brokes, New York, have failed with $172,000; assets $66,000.

19. February 6, 1878 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, February 6, 1878

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Missouri. SUIT AGAINST A NATIONAL BANK. ST. LOUIS, February 5.-Parties representing the National Bank of Commerce, of New York, entered suit to-day against the National Bank of the State of Missouri for the recovery of one and a balf million of dollars. The petition recites a broken agreement on the part of the Missouri Bank from 1862 for money loaned in the course of banking accommodation. The Missouri Bank is now in the hands of a receiver.

20. February 6, 1878 The New York Herald New York, NY
Article from The New York Herald, February 6, 1878

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AN INSOLVENT BANK SUED. ST. LOUIS, Mo., Feb. 5, 1878. Parties representing the National Bank of Commerce, of Now York, entered suit to-day against the National Bank of the State of Missouri, for the re. covery of $1,500,000. The petition recites an agreement entered into by the two institutions on the 26th of December, 1862, whereby the first named bank loaned the other $1,000,000, in the form of u continuing loan. or this amount, $400,000 WILD interest, IS still due. It IS further claimed that the St. Louis bluk is indebted 10 the New York bank 10 the sum of $500,000 for moneys paid ou ILS account up to the date of its suspension. Another half million dollars is claimed for money loaned in the course of banking accommodutions to the date of the suspension. The State Bank of Missouri is now in the bands of a receiver.

21. February 9, 1878 The New York Herald New York, NY
Article from The New York Herald, February 9, 1878

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IMPORTANT JUDICIAL RULING. Sr. LOUIS, Feb. 8, 1878. In the United States Circuit Court Judge Dillon today delivered an important ruling. The receiver of the National Bank of the State of Missouri brought suit against O. H. Laflin to recover the value of eighty-five shares of bank stock sold by him a short time prior to the suspension of the bank to James H. Britton, the president, on the ground that an officer of a national bank has no right to purchase the stock for the benefit of the bank. Laflin put the stock in the hands of a broker, from whom Britton bought. and entered It on the books of the bank as purchased by him as trustee. The Court held that Laflin was relieved of responsibility, it not being proved that he know Britton was buying as trustee, the presumption being that Britton purchased in bis individual capacity. 1 ne decision applies to a number of cases, involving a large amount of stock which was bought in by the bank. Notice of appeal so the Supreme Court was sewen.

22. June 25, 1931 The Holden Progress Holden, MO
Article from The Holden Progress, June 25, 1931

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MISSOURI HISTORY (By Floyd C. Shoemaker) In April, 1877, after publication June 21-27 of a statement which showed a Old Bank Suspended condition that was none too strong, June 23, 1877, is significant in the bank was investigated by the Missouri banking circles as the day treasury department. The treason which the National Bank of the ury examiner found that the bank State of Missouri at St. Louis was held much dead paper and about placed in the hands of a receiver 40% of the bank's capital was gone. by the comptroller of the U.S. The bank was not ordered closed, Treasury. but another and fuller investigaAlthough when it finally failed tion was planned. this bank was fundamentally Cable, in his book, "The Bank of changed from its organization at the State of Missouri," attributes its beginning in 1837. its failure the bad condition of the bank in marked the end of "one of Ameripart to the apathy of the stockca's great banks." In its early days holders. For three years before the then known as the Bank of the treasury investigaton, meetings State of Missouri. the official state had been called, but as a quorum bank, this bank had set standards never appeared, there was no elecof sound and conservative finance tion of officers. Dividends had been and had played a great role in the paid regularly, and the stockholddevelopment of all Missouri and ers did not take the trouble to inthe Mississippi valley. quire into the status of the bank. The state remained in the bankA ten day examination of the ing business through this banking house from 1837 until 1866, but in bank by a committee showed that the bank was hopelessly insolvent. that year it sold its stock to a syndicate of St. Louis headed by James The board of directors met June 19, B. Eads, and the bank was nation- 1877, and after an all day session. admitted insolvency and asked for alized. This firm continued to do busi- a receivership. ness until the bank was placed in There was little immediate effect the hands of a receiver in 1877. in St. Louis following the closing of the bank. The faiure was a surThe comptroller's report on the bank states that the cause of its prise to the people, but not unexfailure was fraudulent manage- pected to bankers. However, withment. excessive loans to officers in sixteen months, fourteen banks in St. Louis had closed and a total and directors and depreciation of of 25 banks in the whole state were securities. Although it was the undisputed closed during the same period. leader of Missouri banking affairs By 1879, Walter S. Johnson, rein 1866, and larger than any west- ceiver, reported that 70% dividends ern bank, having an authorized on approved claims had been paid. capital of $5,000,000 of which $3,- The affairs of the bank were finally 410,000 was paid up, the policy of closed in June 16, 1887, creditors the bank was changed by its new being paid 100% with interest owners. through Edgar T. Wells. who sucThe National Bank of the State ceeded Johnston as receiver in of Missouri, though considered by 1885. the public as still conservative, was known to banking circles as a Charles Wilkerson returned last "plunger" and a dealer in specula- week from Iowa City, where he had tive investments. Among the pro- studied the past year in Iowa Unijects financed by the bank were in- versity. He received his master's cluded the North Missouri Railroad, degree in English literature. Next the Eads Tunnel and Bridge, the year he will teach that subject in Eads Jetties, the Merchants Ex- DePauw University at Greencastle. change, and numerous real estate Ind. Charles is another of Holtransactions. den's boys who has made a mark The panic of 1873 was met by the for himself. National Bank of Missouri by reducing its capital, and cutting Mrs. Titsworth and Mrs. Marling down its circulation by retiring U. spent the week end with Mr. and S. bonds. Failure was avoided by Mrs. Elzy Lanning. this drastic method, but the bank had received a blow from which it never recovered.