18565. Clearfield bank (Clearfield, PA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 1, 1891
Location: Clearfield, Pennsylvania (41.021, -78.439)

Metadata

Model: gpt-5-mini
Short Digest: 19dee56b

Response Measures

Full suspension, Books examined

Other: Receivers appointed for Houtzdale; bank examiner took possession of Clearfield bank; arrests for embezzlement.

Description

Newspaper accounts (Oct 1–6, 1891) report heavy withdrawals and clamoring depositors (a run), then Bank Examiner Miller taking possession of the Clearfield bank and arrests of President Dill for embezzlement. Houtzdale had receivers appointed; Clearfield was placed in custody of the bank examiner and treated as a failed/closed institution. Cause attributed to bank-specific malfeasance (embezzlement) and resulting loss of confidence. No evidence Clearfield reopened.

Events (3)

1. October 1, 1891 Run

Cause: Bank Specific Adverse Info
Cause Details: Depositors alarmed after disclosures about the Clearfield/Houtzdale banks and reports suggesting large shortages and likely heavy losses; subsequent revelations of embezzlement by President Dill.
Measures: Police guard placed around the bank to keep back clamoring depositors; bank examiner later took possession.
Newspaper Excerpt: Men and women clamored at the doors in vain...the tide and pressure before the doors becoming so great, a strong guard of policemen was finally placed there
Source: newspapers

2. October 1, 1891 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Investigation uncovered irregular accounts and arrests of President Dill on embezzlement charges; loss of depositor confidence led to suspension and examiner taking control.
Newspaper Excerpt: Bank Examiner Miller took possession of the Clearfield bank.
Source: newspapers

3. October 2, 1891 Other

Newspaper Excerpt: President Dill, of the defunct Houtzdale and Clearfield banks, was arrested...charging him with embezzling $85,000.
Source: newspapers

Newspaper Articles (13)

1. October 2, 1891 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, October 2, 1891

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BUSTED BANKS. Pennsylvania and Illinois Depositors Fare III. HOUTZDALE, Pa., Oct. 1.- The excitement over the suspension of the Clearfield and Houtzdale banks continues. When depositors were informed they were likely to receive less than 50 per cent of their money, the lower classes formed in squads, and shouted execratiens and threats against the officers that would have certainly been put in execution had they been found. A large delegation of Houtzdale citizens called on President Dill at Clearfield to-night and demanded and pleaded with him that he make some satisfactory statement. They pointed out that the two towns were actually threatened with financial ruin, and other disasters in the future were to be feared unless he made some sort of statement showing what he could and would do in paying the vast army of depositors in the two banks. To all these pleadings President Dill returned the answer that he was all right and the banks were all right, and if the depositors stood by him they would be all right. This afternoon Judge Krebs appointed George W. Dickey and John Boyer receivers of the Houtzdale bank and they now have charge of the insti-

2. October 2, 1891 St. Paul Daily Globe Saint Paul, MN

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tution. Bank Examiner Miller took possession of the Clearfield bank. At the time of the suspension the Houtzdale bank had deposits of $200,000, but there was less than $60,000 in the vaults. To-night affairs have become alarming, the financial clouds becoming darker every hour with every new development. Men and women clamored at the doors in vain. The tide and pressure before the doors becoming SO great, a strong guard of policemen was finally placed there and ordered to beat the howling depositors back with their clubs, as it was feared the bank would be demolished and looted. President Dill and Cashier McGrath were arrested to-night upon the petition of one of the depositors, and gave bail in the sum of $2,000. President Dill is condemned in the strongest terms, but all have kindly words for Cashier McGrath who is confined to his bed by nervous prostration. Mr. McGrath stated this evening that although he had been talking by telephone with Mr. Dill just before banking hours yesterday, he had no intimation that the Clearfield bank was in serious trouble until at a later hour he was notified of the fact by telephone. "We have no losses in our business and the only money uncollectable is due from the Clearfield bank." Cashier McGrath estimates the liabilities at about $200,000, and says that in case thev get nothing from Clearfield they will be able to pay 50 cents on the dollar. As Dill was leaving the court house a half drunken Hungårian, whose money is locked up in the bank, grabbed him roughly by the arm. Five other Huns jumped into the fray, quickly followed by many officers. Dill was roughly handled before he escaped to his house. The house is guarded by police officers who are kept busy in driving the half-drunken Huns away. An order has been issued to close all saloons in order to prevent the furious Huns from obtaining liquor. PARIS, III., Oct. 1.-Developments in the Chrisman bank failure not only confirm first reports but makes the situation even more serious than was supposed. It is now stated on competent authority that the loss will not be less than $150,000. and will probably exceed that sum. The assets will not exceed $10,000.

3. October 2, 1891 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, October 2, 1891

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ANGRY DEPOSITORS. The Excitement Over the Clearfield Bank Failure Continues-The Lower Classes Formed in Squads and Uttered Execrations-A Police Guard Placed Around the Bank. HOUTZDALE, Pa., Oct. 1.-The excitement over the suspensions of the Clearfield and Houtzdale banks continues. When depositors were informed they were likely to receive less than 50 per cent. of their money the lower classes formed in squads and shouted execrations and threats against the officers that would certainly have been put in execution had the latter been found. A large delegation of Houtzdale citizens called on President Dill at Clearfield tonight and demanded and pleaded with him that he make some satisfactory statement. They pointed out that the two towns were actually threatened with financial ruin and other disasters in the future from private individuals were to be feared unless he made some sort of a statement showing what he could and would do in paying the vast army of depositors of the two banks. To all these pleadings President Dill returned the answer that he was all right, and if the depositors stood by him they would be all right. This afternoon receivers for the Houtzdale bank were appointed and they are now in charge. Bank Examiner Miller took possession of the Clearfield bank. At the time of the suspension the Houtzdale bank had deposits of $200,000, but there was less than $60,000 in the vaults. This afternoon and to-night affairs have become alarming. Men and women clamored at the doors in vain. The tide and pressure before the doors becoming so great, a strong guard of policemen was finally placed there and ordered to beat the howling depositors back with clubs, as it was feared the bank would be demolished and looted. President Dill and Cashier McGrath were arrested to-night upon the petition of one of the depositors, and gave bail in the sum of $2,000.

4. October 3, 1891 The Helena Independent Helena, MT

Article from The Helena Independent, October 3, 1891

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The Scoundrelly Bankers. CLEARFIELD, Pa., Oct. 2.-President Dill, of the defunct Houtzdale and Clearfield banks, was arrested again to-night, making the third time to-day. The last arrest was made on a warrant sworn out in Houtzdale charging him with embezzling $85,000. He secured bail for the other charges, but has not been able to secure another dollar bail and is now at his home closely guarded by officers. It is believed that he will go to jail some time to-night, but the officers say they will try and keep him in the house until the arrival of United States District Attorney Lyon and United States Marshal Darrah to-morrow morning. When the news spread that Mr. Dill was arrested trouble with the depositors broke out anew, and the excitement to-night is almost as great as when the banks first failed. It was generally thought that no arrests would be made, at least until later on, and the bank examiner who is in charge of the Clearfield bank, and Receivers Byers and Dickey, of Houtzdale, were allowed to go quietly on with their work of investigating the books of the bank, when they stumbled on the accounts and entries which caused their arrest. The Huns and Slavs are still wild over their losses and to-night late President Dill was burned in effigy.

5. October 3, 1891 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, October 3, 1891

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Banker Dill Arrested for Embezzlement. CLEARFIELD, Pa., Oct. 2.-President Dill, of the defunct Houtzdale and Clearfield banks, was arrested again to-night, making the third time to-day. The last arrest was made on a warrant sworn out in Houtzdale, charging him with embezzling $85,000. He secured bail for the other charges, but has not been able to secure another dollar of bail, and is now at his home closely guarded by officers. It is believed he will go to jail some time to-night, but the officers say they will try and keep him in the house until the arrival of United States District Attorney Lyon and United States Marshal Barrah to-morrow morning. When the news spread that Mr. Dill was arrested trouble with the depositors broke out anew, and the excitement to-night is almost as great as when the banks first failed. It was generally thought no arrests would be made, at least till later, and the bank examiner who is in charge of the Clearfield bank and Receivers Byers and Dickey, of Houtzdale, were allowed to go quickly on with their work of investigating the books of the bank, when they stumbled on accounts and entries which caused their arrests. The Huns and Slavs are still wild over their losses, and to-night late the president was burned in effigy.

6. October 4, 1891 Telegram-Herald Grand Rapids, MI

Article from Telegram-Herald, October 4, 1891

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Thursday night on the charge of embezzlement, entered bail Friday morning. Mr. Dill was at once rearrested on a warrant sworn out by National Bank Examiner Miller, who is in charge of the First national bank, and held in $25,000 bail. He has as yet been unable to secure bondsmen. The report that Mr. Dill has made an assignment is incorrect, but judgments aggregating $80,000 have been entered against him. Twenty-six thousand dollars of these judgments are held in trust for his wife. President Dill was arrested again Friday night, making the third time for the day. The last arrest was made on a warrant sworn out in Houtzdale, charging him with embezzling $85,000. He had just secured bail for the other charges, and the new suit created & panie among the bondsmen. He has not yet been able to secure another dollar of ball. When the news spread that Mr. Dill was arrested the trouble with the depositors broke out anew and the excitement is almost as great as when the banks first failed. It was generally thought that no arrests would be made, at least till later on, and the bank examiner, who is in charge of the Clearfield bank, and Receivers Byers and Dickey, of Houtzdale, were allowed to go quietly on with their work investigating the books of the bank, when they stumbled on accounts and entries which caused the arrest. The Huns and Slavs are still wild over their losses, and Friday night the late president was hung in effigy.

7. October 4, 1891 Daily Yellowstone Journal Miles City, MT

Article from Daily Yellowstone Journal, October 4, 1891

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te cu BROKEN BANKS. ti le th The Depositors of Two Pennsylfo m vania Banks Excited Over w Their Failure. O t n More Contradictory Evidence in t the Penrose Case-Norwood's 8 Great Scheme. E b C Furious Depositors. I HOUTZDALE, Pa., Oct. 1.-Excitement over the suspension of the Gar field and Houtzdale banks continues. When the depositors were informed that they were likely to receive less than 50 per cent. of their money the lower classes formed in squads and shouted execrations and threats against the officers that would certainly have been put in execution had the latter been found. A large delegation of Houtzdale citizens called on President Dill at Clearfield tonight and demanded and pleaded with him that be make some satisfactory statement, They pointed out that the two towne were actually threatened with financial ruin, and other disasters in A the future from private individuals were to be feared unless be mades me statement, showing what he could and would do towards paying the vast r. army of depositors of the two banks. To all these pleadings President Dill returned answer that he was all right and the banks were all right, and if the depositors stood by him they would be all right. This afternoon receivers for the Houtzdale bank were appointed and they are now in charge. Bank Examiner Miller took possession of the Clearfield bank. At the time of suspension the Houtzdale bank bad deposite of $200,000. but there was less than $60,000 in the vaults. Thisafter noon and tonight affairs have become alarming. Men and women clamored at the door; became so great that à strong guard of policement was finally placed there, and ordered to beat th bowling crowa back with clubs, as i was feared the back would be demol ished and looted. President Dill an Cashier McGrath were arrested to night upon petition of one depo-ito and gave bail in the sum of $2,000.

8. October 6, 1891 The Helena Independent Helena, MT

Article from The Helena Independent, October 6, 1891

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WILL GO INTO LIQUIDATION. Run on Another Pennsylvania Bank, With Unfortunate Results. PHILLIPSBURG, Pa., Oct. 5.-The Phillipsburg bank closed its doors to-day, anneuncing that on account of the continued demand from depositors it was deemed best to suspend payment and go into liquidation. The cashier stated that he believed all deposits would be paid in full. Phillipsburg is only a short distance from Clearfield and Houtsdale. Ever since the Clearfield bank was closed and the Houtsdale bank failed, the Phillipsburg institution has experienced an unprecedented run. Minors and their friends first took alarm from reports from Houtsdale and began an open onslaught on the local bank, gathering there in line and steadily drawing deposits of $500 to $1,000, without a word of comment from either side. The bank stood the pressure easily and paid out thousands within the last three banking days. Then the heavy depositors took fright and the result was the announcement to-day. The president of the bank is Jonathan Boynton, father-in-law of President Dill, of the Houtsdale and Clearfield banks.

9. October 6, 1891 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, October 6, 1891

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ANOTHER BANK FAILURE. The Phillipsburg Bank Could Not Stand a Run Cansed by the Closing of Two Others. PHILLIPSBURG, PA., Oct. 5.-The Phillipsburg Bank closed its doors to-day, announcing that on account of the continued demand from the depositors, it was deemed best to suspend payment and go into liquidation. The cashier stated that he firmly believed all deposits would be paid in full. Phillipsburg is only a short distance from Clearfield and Houtzdale. Ever since the Clearfield bank closed and the the an institution Houtzdale bank has experienced failed, Phillipsburg unprecedented run. The miners and their friends first took alarm from reports from Houtzdale, and began an onon local their there slaught in line the and steadily bank, drawing gathering open deposits of $500 to $1,000 without aword of comment from either side. The bank stood this pressure easily and paid out thousands within the last three banking days. Then the heavy depositors took fright, and began a quiet checking of their balances which resulted in the announcement to-day. The president of the bank is Jonathan Boynton, fatherin-law of President Dill, of the Clearfield and Houtzdale banks. The effect of the suspension cannot now be estimated. Distrust is everywhere, and confidence nowhere. This being the center of coal interests in the region. a great amount of cash is required daily, and nn unprecedented stringency is now reported on every side. It is feared many private individuals and concerns will go down in the general crash that seems imminent here. The closing is only temporary. There is but little excitement, now that the first fear has quieted down, and even the Huns and are quiet all of the Slays the results to-night, present investigation awaiting into the affairs of the banks now closed.

10. October 6, 1891 Wheeling Register Wheeling, WV

Article from Wheeling Register, October 6, 1891

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ANOTHER BANK Suspends Payment, Closes Its Doors and Liquidates, BECAUSE OF A VERY HEAVY RUN Three Days-The Failure of the Houtsdale and Clearfield Banks Caused All the TroubleNothing Crooked is Charged, but There is & Great Lack of Confidence Other Bank Matters. PHILLIPSBURG, PA., October 5.-The Phillipsburg bank closed its doors today, announcing that on account of the continued demand from the depositors it was deemed best to suspend payment and go into liquidation. The cashier stated that he firmly believed all deposits would be paid in full. Phillipsburg is only a short distance from Clearfield and Houtzdale. Ever since the Clearfield closed and the Houtzdale bank failed the Phillipsburg institution has experienced an unprecedented run. The miners and their friends first took alarm from reports from Houtzdale, and began an open onslaught on the local bank, gathering there in line and steadily drawing their deposits of $500 to $1,000 without & word of comment from either side. The bank stood this pressure easily and paid out thousands within the last three banking days. Then the heavy depositors took fright and began a quiet checking of their balances which resulted in the announcement of to-day. The President of the bank is Jonathan Boynton, father-in-law of President Dill, of the Clearfield and Houtzdale banks. The effect of the suspension cannot now be estimated. Distrust is everywhere and confidence nowhere. This being the center of coal interests in the region, and a great amount of cash is required daily and an unprecedented stringency is now reported on every side. It is feared many private individuals and concerns will go down in the general crash that seems imminent here. There is but little excitement now that the first fear has quieted down, and even the Huns and Slavs are quiet to-night, all awaiting the results of the present investigation into the three banks now closed.

11. October 6, 1891 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, October 6, 1891

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ONE MORE BANK DOWN. A Continued Run Causes Temporary Suspension. PHILLIPSRURG, Pa., Oct. 5.-The Phillipsburg bank closed its doors today, announcing that on account of the continued demand from the depositors it was deemed best to suspend payment and go into liquidation. The cashier stated that he firmly believed all deposits would be paid in full. Phillip Sburg is only a short distance from Clearfield and Houtzdale. Ever since the Clearfield bank closed and the Houtzdale bank failed the Phillipsburg institution has experienced an unprecedented run. The miners and their friends first took alarm from reports from Houtzdale, and began an open onslaught on the local bank, gatheriug there in line and steadily drawing their deposits of $500 to $1,000 without a word of comment from either side. The bank stood this pressure easily and paid out thousauds within the lastithree banking days. Then the heavy depositors took fright and began a quiet checking of their balances which resulted in the announcement to-day. The president of the bank is Jonathan Boynton, father-in-law of President Dill, of the Clearfield and Houtzdale banks. The effect of the suspension cannot now be estimated. Distrust IS everywhere and confidence nowhere. This being the center of coal interests in the region. a great omount of cash is required daily, andfan unprecedented stringency is now reported on every side. It is feared many private individuals and concerns will go down in the general crash thatseems imminent here, The closing is only temporary. There is but little excitement, now that the first fear has quieted down, and ven the Huns and Slavs are quiet to-night, all awaiting the results of the present investigation into the affairs of the three banks now closed.

12. October 6, 1891 The Evening Herald Shenandoah, PA

Article from The Evening Herald, October 6, 1891

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IT HAD TO GO UNDER Phillipsburg Bank Also a Victim to President-Dill. HOPES OF PAYING ALL CLAIMS. The Failures at Clearfield and Houtzdale Caused a Great Run on the Bank. The President of the Bank the Fatherin-Law of Dill-He Had Drawn Out a Large Amount to Assist His Son-in-Law. A Panto Imminent, and Fears that Many Individuals Will Go Down. PHILLIPSBURG, Pa., Oct. 6.-This community was greatly excited yesterday by the following announcement which was posted on the doors of the Phillipsburg Bank, supposed to be one of the strongest private institutions of the State: OCT. 5, 1891. The continued demand of our depositors is greater than we can meet at once. We deem it best for all their interests to suspend payment and liquidate our affairs. We firmly believe we can pay every depositor in full. O. PERRY JONES, Cashier. Ever since the Clearfield bank closed and the Houtzdale bank failed the Phillipsburg institution has experienced an unprecedented run. The miners and their friends became alarmed and began a run, steadily withdrawing their deposits of $500 to $1,000, and many M thousand dollars were thus paid out during the last three days. Then the heavy depositors took fright, and began a quiet checking of their balances, which resulted in the announcement. The officers of the bank had feared a run and made every preparation for the worst, but with every check paid out there seemed to be two more coming in = and they decided to no longer attempt to stem the current. On Saturday confidence was somewhat restored by the gold and currency visible on the counters. At the last moment two heavy checks from lumber and coal mining firms overthrew the balance, and a hasty meeting of bank officials was called for 8 o'clock yesterday morning. At 9 o'clock the notice was posted. The secret of the closing lies in the fact that Jonathan Boynton, of Clearfield, is president of the bank. Boynton is the father-in-law of President Dill of the Clearfield and Houtzdale banks, now in jail. The statement has been made here and in Clearfield that Mr. Boynton, only a few days ago, had drawn out $20,000, which he loaned to his son-in-law to assist him in his troubles, and this, th rumors that Dill had previously a borrowed anormous sums from Mr. Boynton, caused a feeling of uneasiness. The effect of closing the Phillipsburg bank can hardly be estimated. This city lies close to Houtzdale, while Clearfield is not far away, and as all depend for their prosperity largely upon mining and lumber, the panic cannot be fully measured. It is feared that many individuals will go down in the crash that seems imminent here. Cashier Jones made a statement yesterday that every dollar would be paid in full as soon as the bank had time to negotiate the collateral security it has on hand. He also said that President Boynton only owned $10,000 worth of stock in the bank, and that he was merely a figurehead. President Boynton has not spent a week in the bank for the last five years.

13. October 9, 1891 Daily Tobacco Leaf-Chronicle Clarksville, TN

Article from Daily Tobacco Leaf-Chronicle, October 9, 1891

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Bank failures have become epidemic in Pennsylvania, the panic spreading from town to town. One goes down and carries another ; people become alarmed and the money stringency presses every one. Since the heavy failure in Philadelphia, Clearfield, Houtzdale and Phillipsburg banks have followed. Distrust prevails everywhere and depositors are drawing their money. This seems to be the situation in the most highly favored, protected, run-mad Republican State in the Union.