10834. State Bank (St Louis, MO)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 5, 1878
Location
St Louis, Missouri (38.627, -90.198)

Metadata

Model
gpt-5-mini
Short Digest
c449f974

Response Measures

None

Description

Contemporary reports (Feb 5-6, 1878) state the State Bank of Missouri had suspended and was in the hands of a receiver and was being sued as insolvent. The articles do not describe a distinct depositor run on this specific bank (they discuss runs generally in St. Louis), so this is classified as a suspension that led to permanent closure/receivership.

Events (2)
1. February 5, 1878 Receivership
Newspaper Excerpt
The State Bank of Missouri is now in the hands of a receiver. / AN INSOLVENT BANK SUED... entered suit to-day against the National Bank of the State of Missouri for the recovery of $1,500,000.
Source
newspapers
2. February 5, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent; large outstanding loans/continuing loan and claims against the institution leading to suspension and receivership (sued for $1,500,000).
Newspaper Excerpt
The State Bank of Missouri is now in the hands of a receiver.
Source
newspapers

Newspaper Articles (7)
1. July 16, 1877 The Sun New York, NY
Article from The Sun, July 16, 1877

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Article Text

The people of St. Louis seem to be thoroughly alarmed by the recent suspension of several of their oldest and most trusted financial institutions. On Saturday the Butchers' and Drovers' Bank failed. with liabilities amounting to nearly one million of dollars. This, following closely upon the failure of the State Bank of Missouri. the exposure of the rottenness of the Commercial Insurance Company. and the suspension of several financial concerns of less note, caused a panic, and a general run upon banks. Several of the banks took advantage of the sixty days' notice clause in their charters, while others braved the run. and trusted that it would soon subside. To-day will probably determine whether the panic is or is not a serious one. A run upon a bank is, as a rule. as senseless as it is selfish, and is only justiflable when, as in the case of the Third Avenue Savings Bank in this city, both the bank officials and the State authorities refuse to do their duty. At the same time it must be acknowledged that recent developments both East and West, go to show that there has been much raseality and laxity in the management of not a few institutions to which the capital of the business man and the savings of other men have been committed. To fully restore public confidence it is necessary that every weak or rotten concern be weeded out, and every thief, however respectable his connections, be consigned to the penalty of a thief.

2. February 5, 1878 Evening Star Washington, DC
Article from Evening Star, February 5, 1878

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Article Text

A Big Bank Suit. 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 a million and a half of dollars. 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 one million dollars in the form of a continuing loan. On 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 in the sum of $500,000 for moneys paid on its account up to the date of its suspension. Another half million dollars is claimed for money loaned in the course of banking accommadations to the date of the suspension. The State Bank of Missouri is now in the hands of a receiver.

3. February 6, 1878 New-York Tribune New York, NY
Article from New-York Tribune, February 6, 1878

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Article Text

SUIT FOR A MILLION AND A HALF DOLLARS. ST. LOUIS, Mo., Feb. Representatives of 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 $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 a 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 in the sum of $500,000 for moneys paid on its account up to the date of its suspension. Another $500,000 18 claimed for money loaned in the course of banking accommodations to the date of its suspension. The State Bank of Missouri IS now in the hands of a receiver.

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

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Article Text

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.

5. February 6, 1878 The Sun New York, NY
Article from The Sun, February 6, 1878

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Article Text

A Sult for $1,500,000. ST. LOUIS, Feb. .-Representatives of the National Bank of Dommerce of New York entered suit today against the National Bank of the State of Missouri for the recovery of $1,500,000. The petition recites an agree ment entered into by the two institutions on Dec. 26, 1862. whereby the hrst-named bank loaned the other $1,000,000 in the form or a continuing loan. or this amount $40,000, with interest, is still due. It is turther cisimed that the St. Louis bank is indebted to the New York bank in the sum of $500,000 for moneys paid on its account up to the date of its suspension. Another hall million dollars is claimed for money loaned in the course of banking accominodations to the date or the suspension. The State Bank of Missouri is in the hands of a receiver.

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

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Article Text

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.

7. January 9, 1879 The New York Herald New York, NY
Article from The New York Herald, January 9, 1879

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Article Text

their cordial sympathy and prompt and noble benefactions to the afflicted and distressed citizens of Tennessee during the late terrible epidemic. Governor James D. Porter, the outgoing Executive, to-day delivered his Message to the Legislature. On the subject of the State debt he said:The State has issued 49,393 bonds, amounting to $49,173,316 66; the number cancelled is 28,385, amounting to $28,163,016 66; the number now outstanding as a liability against the State is 20,219, amounting to $20,221,300. In ten years the State has paid three instalments of interest, seven are past due, amounting, after deducting $149,050 paid to educational and charitable institutions, to $4,052,717. making a debt of principal and interest of $24,274,000 17. The settlement of this debt is paramount to all questions of legislation that can engage the attention of the General Assembly; it involves the honor and good name of the State, the credit and honor of every one of its citizens. It is a liability that was voluntarily contracte 1, and whether it was wisely created or not cannot now be a question. In December, 1877, certain creditors of the State proposed to adjust that part of the debt held by themselves upon a basis of fifty cents for principal and past due interest, and offered assurances that the great body of the creditors would accept the same terms; this proposition was submitted to an extra session of the Fortieth General Assembly and its acceptance earnestly recommended. I am satisfied that the creditors making this proposition would still make the adjustment; settled at fifty cents the debt would amount to $12,137,000; the annual interest upon this sum, at six per cent would amount to $728,220. I do not hesitate to again urge the acceptance of this proposition. I cannot be mistaken in the opinion that the people of the State are anxious to be delivered from a further discussion of this question and from a longer postponement of its settlement. If this recommendation is adopted the Comptroller should be invested with authority, after a day to be fixed by law, to make publication, with notice to financial agents of the several counties, announcing the number of old bonds returned and cancelled, with the number of new bonds issued and the amount of revenue to be provided to meet the interest, with the amount assigned to each county; upon this publication and notice the county courts should be required to make the necessary levy to meet the interest without further legislation. MISSOURI FINANCES-THE CONTEST BETWEEL THE GOVERNOR AND STATE TREASURER IN REFERENCE TO THE MASTIN BANK FAILURE. Sr. LOUIS, Mo., Jan. 8, 1879. Governor Phelps' message to the Legislature is , lengthy document. It reviews the relations of the Governor with the State Treasurer, and the connection of the latter officer with the defunct Mastin Bank, which was one of the State depositories. It says the State Bank of Missouri, from its incorporation to its close, was the financial agent of the State. When it failed, a year and a half ago, there was no law prescribing where and how State funds should be deposited; nor was there any law giving the Governor or Auditor any supervising power over the matter. The Treasurer was simply required to give account to the Auditor of receipts and expenditures. The constitution requires the State's money to be deposited in a bank selected by the Treasurer and approved by the Governor and Attorney General, but the passage of a law was necessary to give force to this requirement, and the Legislature failed to pass such a law. In this condition of things, if the surety of a Treasurer became insolvent or removed from the State, neither the Governor nor any other official had power to demand another bond; neither did, nor does, the Governor possess power to remove a Treasurer for neglect of duty. Before the failure of the Mastin Bank the State Treasurer had no understanding with Governor Phelps as to the deposit of the State's moneys. When the Mastin Bank failed State Treasurer Gates had about half a million of the State's funds in it. The Treasurer had the bond of the bank for $1,000,000, also some valuable securities, the sale of part of which has realized $220,000, leaving in the Mastin Bank about $280,000. Last fall the Bank of Commerce, of St. Louis, and the Exchange Bank, of Jefferson City, were made depositories of State funds under the law, both giving satisfactory bonds and depositing in the hands of trustees in New York securities of the United States and of this State for the faithful performance of their contract. State Treasurer Gates brougat suit against the Mastin Bank and its bondsmen immediately after its failure for the recovery of the State funds. No legal proceedings have been instituted by Governor Phelps against the State Treasurer or his bondsmen, as it is thought the State has no right to sue until the Treasurer is forced to give a new bond. The State Treasurer was indicted at the October term of the Criminal Court of Jackson county for alleged criminal transactions with the Mastin Bank. Governor Phelps immediately instructe the Attorney General to assist the Circuit Attorney of Jackson county in prosecuting the State Treasurer, as well as his predecessor, who was also indicted. The State could not proceed in the case at the last session of the Court on account of the absence of witnesses. The Governor says if the State Treasurer is guilty he should be punished. The Executive will protect no one from punishment. The law must be executed against all, without distinction, but as an act of justice to the State Treasurer, the Governor says, he has demanded a speedy trial.