Bank of Plankinton - Plankinton, SD

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 3, 1893
Location: Plankinton, South Dakota (43.716, -98.485)

Metadata

Model: gpt-5-mini
Short Digest: 45bdccc6

Response Measures

None

Description

Article (Reporter and Farmer, 1895-01-10) refers to the failure of the bank at Plankinton that contributed to a treasurer shortage discovered Aug 3, 1893. The text gives no description of a depositor run; it reports a bank failure (suspension/closure) prior to Aug 3, 1893. No reopening is mentioned. Date for the event is taken from the document context (Aug 3, 1893).

Events (1)

1. August 3, 1893 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Article states the bank 'failed' at Plankinton; insolvency/closure indicated, no run described in the text provided; failure contributed to treasurer's shortage discovered Aug 3, 1893. No mention of government receiver in this excerpt (closure inferred).,random_run:false,
Newspaper Excerpt: being short In his accounts about $11,000, caused in whole or In part by the failure of the bank at Plankinton.
Source: newspapers

Newspaper Articles (1)

1. January 10, 1895 Reporter and Farmer Webster, SD

Article from Reporter and Farmer, January 10, 1895

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Article Text

nke each or us in this same school fund, and I am sure you will recognize the necessity which exists for a change of this law. Let It be for the sure protection of the school fund, and at the same time do justice to the citizen. It would be well If the law were more specific, and fixed the time at which the land should be said to be delinquent for non-payment of interest. It is desirable that now while we have such a large amount of unsold land, our laws regulating Its control. and the use to be made of the proceeds should be made as plan and as perfect as shall be possible through the exercise of your wisdom, strengthened by the experience of older states, Section 9, chapter 144, Session Laws, 1893. needs amendment by striking out the word "county" in the last line of said section, and substituting therefor the words "state of South Dakota. All mortgages are made in the name of the state as mortgagee, and the sale ought to run to the state. Educational Institutions. The report of the regents of education herewith submitted will be found of unusual Interest. in some sense a new department has been taken in the government or our higher institutions or learning. The question arose early in the life or the present board or regents as to which in the meaning of the constitution was the governing board. The matter was referred to the attorney general. His opinion was given and will be found in his report. It is of especial interest in connection with this question. An unusual amount of work has devolved upon the regents during the past year, growing out of the Freudenfeld failure, what is known as the Brookings College difficulty, and a desire on their part to reduce the financial management of the different institutions to a business basis. That there has been much of unbusinesslike management in the past connected with our higher institutions of learning is well known to those who have been acquainted with the manage ment. Proper attention has not heretofore been paid to appropriations and expenditures, that is to say, the fiscal year has not been made to settle its own accounts. As a result, accounts have been left over unpaid to be taken out of subsequent appropriations, appearing to Increase the cost of maintenance for that period. The report of the regents shows that a large sum paid in the early part of the fiscal year 1893, and 1894, and charged as expenditures thereof, was in liquidation of ciaims justly chargeable to former years. It was the discovery of these things and the determination of the board of regents to hold each institution to striet accounability that led to apparent conflict in the case of the Brookings College, growing out of the dual system of government. which is, always has been, and always will be, found disastrous. Up to August 3. 1893, Mr. Joseph Frendenfeld, of Plankinton. had been the treasurer of Brookings College, having In charge fund belonging to that college, and the local fees collected for that and other schools. On this day he resigned, being short In his accounts about $11,000, caused in whole or In part by the failure of the bank at Plankinton. On August 4, Mr. Shannon, of the board of regents, and Mr. Larson. of the trustees, as per appointa ment of their respective boards, secured full statement of the amount of the liabilities of Mr. Freudenfeld and the funds of all descriptions in bis hands. In round numbers, the balance for which Freu lenfeld should account was $11,000 He turned over In cash. drafts, checks and vouchers for which he was entitled to credit. from which was realized $2,400. leaving a shortage of $8,600. Under the advice of the attorney general, suits were begun against Mr. Freudenfeld and his bondsmen for the balance. Investigation disclosed that the treasurer was not legally responsible for a considerable part of these funds Grave questions arose as to the validity of any part of the bonds. After much negotiation. very careful investigation of the assets from which we could hope to realize anything. and partieular advice of the attorney general as to the technical legal questions involved. the committee accepted an offer of the bondsmen to pay $3,900 in cash. conditioned that the attorney general dismiss the suits, and abandon to the bondsmen any claim in the assets of an assignment which Mr. Freudenfeld had made for the benefit of his creditors. The settlement was unanimously approved. This leaves Mr. Freudenfeld morally Indebted to the several schools $1,800. and to the state $2,900. making a total Indebtedness of $4,700 which It is supposed he Is entirely unable to pay. Of the $6,300 with which he is credited of the $11,000 for which he stood liable, $6,200 has been applied to make good funds for which the state Is regarded as liable and $100 remains in the hands of the treasurer awaiting the direction of the board. The entire shortage for which the state has any liability. is now In one fund and amounts to $2,900. This is being provided for by the savings accumulated from certain local funds from the agricultural college not specifically appropriated by the legislature. A large part of this money Is now on hand awaiting proper authority for Its transfer. Appropriations and expeditures for the five educational Institutions of the state running from July 1, 1892, to June 30, 1894, are as follows: Appropriations. Expenditures. $14.430 Agricultural College $14,402.09 Macison Normal 26,212.94 26,205.63 School of Mines 20,890.18 13,464.84 Spearfish Normal 25,481.30 25,447.70 Univers'y at Vermillion 46,547.74 45,623.01 Expenses of Regents 2,199.52 2.198.57 Expenses of Trustees 3,079.77 1,663.16 Balance covered back to treasury Making a total appropriation of $136,841.46, $9,836.40 and expenditures to the same amount. These appropriations and expenditures are given for each year In the report of the regents and are worthy of your careful attention. The appropriations for the current year to end June 30. 1895. amountInz to $73,325. gives to the agricultural college $7,700. to the Madison normal, $13,250: to the Spearfish normal, $13,050; to the school of mines, $10.625, to the university, 51.500 $25,950: for expenses of regents,