12486. Second National Bank (Minot, ND)

View Charter #6429 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
6429
Charter Number
6429
Start Date
September 19, 1905
Location
Minot, North Dakota (48.233, -101.296)

Metadata

Model
gpt-5-mini
Short Digest
fc72e970

Response Measures

Accommodated withdrawals

Description

The articles report a small run on the Second National Bank of Minot triggered by news/rumor surrounding the Minot National's suspension/closure (Sept 19, 1905) and a later mistaken farmer's report (Oct/Nov 1905) that caused depositors to rush. The Second National paid out deposits promptly and did not suspend; no evidence it closed or went into receivership. The Jan 1906 foreclosure article involves the Second National as a plaintiff in a suit (receiver selling seized property) and is not evidence the bank itself failed.

Events (3)
1. September 18, 1902 Chartered
Source
historical_nic
2. September 19, 1905 Run
Cause
Rumor Or Misinformation
Cause Details
News/rumors of the Minot National's failure/closing prompted timid depositors to run on the Second National (small run; checks paid promptly).
Measures
Paid depositors' checks promptly
Newspaper Excerpt
The report of the closing of the Minot National started a run by the timid on the Second National and Union National bank today. All depositors were paid promptly.
Source
newspapers
3. October 1, 1905* Run
Cause
Rumor Or Misinformation
Cause Details
Misunderstood remark by a farmer led to circulation of a false impression that Second National was failing, producing a run of farmers who then found no cause for alarm.
Measures
Public reassurance / depositors discovered there was no cause for alarm (no suspension or closure mentioned)
Newspaper Excerpt
A farmer ... brot word ... that another bank 'was going up' in Minot, meaning that a third bank was to be organized. His hearers misconstrued the meaning and soon the word had gotten around the country that the Second National bank was on shaky pins and dozens of farmers hurried to Minot to learn that there was no cause for alarm.
Source
newspapers

Newspaper Articles (5)
1. September 19, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 19, 1905

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Article Text

MINOT NATIONAL CLOSES ITS DOORS Deposits Amounting to $115,000 Are Expected to Be Returned in Full. Special to The Journal. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business today, and a notice posted on the door reads: Closed pending the action of the controller of the currency.' For several weeks there have been rumors that the bank was in financial trouble, based on excessive and unreliable loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, SO report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and about a week ago A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal® mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank yesterday. This, in all probability, would have developed into a rush today and the closing of the institution was deemed prudent. The last statement showed the bank's deposit to be $115,000. It was capitaized at $500,000. The chief stockholders are J. A. and B. Erickson, Clarence Parker, A. F. Slocum and David Lloyd. The report of the closing of the Minot National started a run by the timid on the Second National and Union National bank today. All depositors were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar.

2. September 19, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 19, 1905

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Article Text

MINOT NATIONAL CLOSES ITS DOORS Deposits Amounting to $115,000 Are Expected to Be Returned in Full. Special to The Journal. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business today, and a notice posted on the door reads: 'Closed pending the action of the controller of the currency. For several weeks there have been rumors that the bank was in financial trouble, based on excessive and unreliable loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, SO report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and about a week ago A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal, mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank yesterday. This, in all probability, would have developed into a rush today and the closing of the institution was deemed prudent. The last statement showed the bank's deposit to be $115,000. It was capitaized at $500,000. The chief stockholders are J. A. and B. Erickson, Clarence Parker, A. F. Slocum and David Lloyd. The report of the closing of the Minot National started a run by the timid on the Second National and Union National bank today. All depositors were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar.

3. September 20, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, September 20, 1905

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Article Text

DAKOTA BANK GOES BROKE First National of Minot Closed Awaiting the Action of Comptroller of Currency. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business this morning. A notice posted on the door réad: "Closed pending the action of the comptroller of the currency." The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements. Some time ago it is reported the directors called attention of President Erickson to the extensive loans being made and instructed him to be more prudent. Rumors of financial trouble started a small run on the bank yesterday, which in all probability would have developed into a rush today, and the closing of the institution was deemed prudent. The last statement showed the bank's deposits to be $115,000. The report of the closing of the Minot National started a little run by the timid on the Second National and Union National banks this morning. All checks were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar. Washington, Sept. 19.-The August 25th statement of the suspended Minot National bank of Minot, N. D., showed that the loans and discounts were $124,208; cash and cash items, $11,941; capital, $25,000; deposits, $104,998.

4. November 1, 1905 The Ward County Independent Minot, ND
Article from The Ward County Independent, November 1, 1905

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Article Text

BANK DIDN'T BREAK. A farmer living near Des Lacs caused a good sized run on the Second National bank one day last week, unintentionally. He brot word to Des Lacs that another bank "was going up" in Minot, meaning that a third bank was to be organized. His hearers misconstrued the meaning and soon the word had gotten around the country that the Second National bank was on shaky pins and dozens of farmers hurried to Minot to learn that there was no cause for alarm.

5. January 11, 1906 The Ward County Independent Minot, ND
Article from The Ward County Independent, January 11, 1906

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Article Text

NOTICE OF FORECLOSURE SALE Notice is hereby given that by virtue of a judgmenturd decree rendered and given in the district court of Ward county, and dated the 30th day of October. 1905. in an action wherein the Second National Bank of Minot, a corporation. was plaintiff and Harry H. Hiener and Edwin A. Palmer were defendants. the amount of which judgment so docketed in said district court. including damages and costs. was the sum of six thousand two hundred seventy-nine dollars and seven cents, ($6279.07). and which said judgment. among other things. directs and commands the undersigned. as Receiver duly appointed by said court in said action. to sell at foreclosure sale the personal property in said judgment described. to satisfy the amount of said judgment. together with the costs and expenses of sale. a certified copy of which judgment and decree has been delivered to me. I will sell at public auction to the highest bidder for cash at the office of the Minot Optic. situated in the Nash Building on Main Street in the city of Minot. Ward county. North Dakota, on the 22d day of January. 1906. at the hour of 10 o'clock in the fore noon. the personal property in said judgment and hereinafter described, or NO much thereof as may be necessary to satisfy the amount which shall then be due upon said judgment. together with the costs and expense of said sale. The personal property so described in said judgment and decree and to be sold as aforesaid. is described as follows. to-wit: The newspaper business and property known as the Minot Optic. including all presses. type, bollers. paper stock. files. tables. desks, subscription lists. circulation and advertising contracts. typewriter, all job type and stock. all equity in the Mergenthaler Linotype machine now in use in the office of said Minot Optic and all other furniture. fixtures and appliances belonging with and used in the office of said newspaper, said property being now situated in the building located on lot 10 of block 3 in the original townsite of Minot within said county. Dated. January 16th. 1906. R. C. SANBORN, Receiver. GREENE & McGEE. 1-11-1-18 Attorneys for Receiver.