Des Moines National Bank (Des Moines, IA)

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Episode Information

Episode UID
258301294
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
25830 national
Charter Number
2583
Start Date
October 28, 1907
Location
Des Moines, Iowa (41.601, -93.609)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2d427dcecf31aa6a

Response Measures

None

Description

Measures described are clearing-house imposed limits and 60-day notice for savings, a precautionary suspension of normal cash payments.

Events (2)
1. November 4, 1881 Chartered
Source
historical_nic
2. October 28, 1907 Suspension
Cause Details
Des Moines Clearing House issued certificates and agreed to limit cash payments; savings banks to require 60 days' notice to protect currency supply
Newspaper Excerpt
Members of the Des Moines clearing house were in session almost all day yesterday and decided to resort to the issue of clearing house certificates ... Des Moines savings banks should temporarily require their depositors to give sixty days' notice of their intention to withdraw their deposits
Source
newspapers

Newspaper Articles (5)
1. October 31, 1907 The Oskaloosa Herald Oskaloosa, IA
Article from The Oskaloosa Herald, October 31, 1907

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Article Text

# BANKS PLACE IOWA ON A SOUND BASIS DES MOINES CLEARING HOUSE FOLLOWS EAST. # AID DEPOSITORS IN THEIR AIM Clearing House Certificates to Make Their Appearance Today-Conditions in Iowa Were Never More Favorable, Des Moines, Oct. 28.-Members of the Des Moines clearing house were in session almost all day yesterday and decided to resort to the issue of clearing house certificates as a means of protecting the banks of Des Moines and Iowa and their depositors. It has been suggested that the banks in Iowa towns and cities where there are no clearing houses take similar action to that of the Des Moines and other clearing houses; that is, that they will limit the amount of cash payments until the present stringency of the money market is over. In this way, it is pointed out, the smaller banks and depositories throughout Iowa will tide over the situation and there will be no losers. With this action of the clearing house comes the assurance of every banker in Des Moines, as well as Auditor of State B. F. Carroll, that Iowa and Iowa banks were never in better condition than they are at present, but that New York, Chicago and other banks have taken similar action and in order to protect the Iowa depositors it is necessary for the Des Moines banks to refuse to lend money or issue currency in excess of any agreed amount. At the same time the decision was reached to issue clearing house certificates it was decided that Des Moines savings banks should temporarily require their depositors to give sixty days' notice of their intention to withdraw their deposits as required by the law. Action is Precautionary. This action is precautionary and was taken solely as a means to protect the cash of the depositors in the banks of Des Moines and Iowa. It will prevent a drain upon the currency supply in Des Moines by the country banks which, by immediately withdrawing their accounts, could take much money out of Des Moines, while the Des Moines banks, being unable to withdraw their funds from the banks of Chicago, St. Louis and other large banking centers, could not at this time replenish their supply. The action of the banks is not the result of any financial disturbance in Des Moines or Iowa. There is not a bank in the city that is the least distressed or even suspected of being so by the members of the clearing house committee. All of them are in sound condition. Those banks that are not members of the clearing house but clear through other banks will be furnished with clearing house certificates the same as members, and this means that every bank in Des Moines will stand behind every other bank and its depositors. Homer A. Miller and Arthur Reynolds of Des Moines went to Chicago and kept in touch with the Des Moines clearing house yesterday by long distance telephone. Effective Today. The action of the clearing house went into effect in Des Moines with the opening of business this morning. The clearing house resolutions in full follow: "Be it Resolved, That the president or vice president and the cashier or assistant cashier of this bank, be and they are hereby authorized and empowered to procure from the Des Moines Clearing House association, such clearing house certificates in such amounts as said officers may from time to time deem needful for the uses of this bank, and to make, execute and deliver to J. D. Whisenand, Homer A. Miller and G. E. MacKinnon, clearing house committee of said association, as trustees, the promissory note or notes of this bank for the amount or amounts of such clearing house certificates, and to pledge as collateral security for the clearing house certificates so procured, and said note or notes, such bonds, stocks, bills receivable, or other property or assets of this bank, as may be required by said trustees, to secure the payment of said note or notes, and certificates; said collateral to aggregate 33 1-3 per cent more than the amount of the clearing house certificates procured. It being understood that a pro rata amount of such collaterals shall be returned to this bank as said notes and clearing house certificates are paid by this bank; and be it further "Resolved, That said officers of this bank be further authorized and empowered to pledge and there is hereby pledged the credit of this bank for the security of any and all clearing house certificates issued by said Des Moines Clearing House association or under its direction, whether such certificates be issued to or for the benefit of this bank, or to or for the benefit of any other bank in the city of Des Moines, Iowa. And said officers are further authorized and empowered to execute in the name of this bank any and all contracts, agreements, and obligations required or deemed necessary to carry out the objects and purposes of these resolutions; and be it further

2. November 28, 1907 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, November 28, 1907

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It Will Cost Millions and Much Time to Regain It. BANKERS BLAME IT FOR PANIC Westerners Believe New York Sought to Protect Itself Only. FORGAN BACK FROM WASHINGTON Three Hundred Bankers in Mid-West Write that They Are Ready to Do Business on Cash Basis. Nov. 27.-Former Secretary Leslie M. Shaw, of NEW the Treasury YORK, president returned Carnegie Trust company, York yesterday from conferred with many of to where the New he Chicago, bankers In disregarding the financial gituation. cussing conditions, he said: west has lost confidence in the will cost us here of we regain the east. dollars "The It before prestige millions The men and relationship of the past. west say that refor the financial of cordial sponsible the New stringency; York is that came the to clearing York when the resorted squeeze banks house of of certifi- New the cates first and forced the rest country to do the same. The bankers of western cities have no love now for the bankers of New York. They had placed their money on deposit here, but when they asked for it they were refused. They say New York sought to protect only itself and tied up everything so that all the rest of the country was forced to adopt urgent measures to save itself. Lazard Freres announced the engagement of $1,000,000 in gold today. This brings the total during the present movement to $88,400,000. Forgan Back from Washington. CHICAGO, Nov. 27.-James B. Forgan, president of the First National bank, returned yesterday from Washington. where he had a conference with President Roosevelt regarding the financial situation. "I was a busy man during the three and a half hours I spent in Washington," said Mr. Forgan. "The president asked many questions concerning the financial situation in Chicago and other western cities and I gave him my views. I told him matters were improving every day and I was hopeful that normal currency payments would be resumed before long. He seemed glad to receive this information." Nearly 700 letters were received yesterday from western bankers by the Chicago Clearing house committee in response to the letter sent out asking their views on the resumption of normal currency payments. Most of the letters indicated that the bankers were ready and desirous of resuming currency payments. The letters are from bankers in Illinois, Iowa, Michigan, Kansas, Nebraska, Minnesota, Wisconsin and Missouri. Bankers in the far west have not had time to reply. Washington Situation Better. WASHINGTON Nov. 27. .-The situation at the treasury was so far relaxed this afternoon that Secretary Cortelyou was able to leave early to attend the wedding of Miss Rott and Lieutenant Grant. There is no longer any doubt felt among treasury officials of the success of both the loans-the Panama canal bonds and the one-year treasury certificates. If considerably lless than $1,000,000,000 is alloted in the certificates it will not be because the subscriptions are not more than sufficient to cover the amount. It will be because so large an issue 18 no longer felt to be necessary to restore the situation. Calculations are already being made as to the probable conditions in the money market next spring and the ability to call in part of the certificates. If the amount issued should be only $50.000.000 and half of these should be paid off in six months, the interest charges would fall materialy below the $3,000,000 originally calculated upon the full issue for one year. The sum of $25,000,000 for six months would draw interest to the amount of $375,000 and an additional amount of $25,000,000 for one year would draw $750,000. making a total of $1,125.I 000. This would be at the rate of less than 1 1/2 cents per capita for the people h of the country, and it is argued that this would be a cheap means of escape from difficulty even for the humbleat citizen, 1 whose labor might be affected by the con) tinuance of the crisis. Des Moines is Ready. 1 DES MOINES, Nov. 27.-A circular to I the banks of Iowa has been sent out by ) the Des Moines clearing house committee urging them to aid in an effort to get currency in circulation so that Des Moines banks will be ready to follow the lead of Chicago and New York and resume currency payments in full in two weeks. ASSIST THE FARMERS

3. December 5, 1907 Audubon Republican Audubon, IA
Article from Audubon Republican, December 5, 1907

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# Help Asked of Iowa Banks. The Des Moines banks, through the clearing house association, has taken steps to arrange for the early resumption of currency payments. This action was in accord with a letter from the Chicago Clearing House association asking the views of the Des Moines bankers as to the best time and the best method of restoring currency payments or the cash business basis. The Chicago letter was answered with the statement that Des Moines would be glad to co-operate in any movement to bring about the restoration, but before any details could be given it would be necessary to consult the country correspondent banks. The outlook is ever so much brighter and it is believed that currency payments will be resumed within a short time if the co-operation of the people can be secured. This will, it is believed, put an end to the "rich man's panic" as many have termed it.

4. April 15, 1908 The Denison Review Denison, Dow City, IA
Article from The Denison Review, April 15, 1908

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JUDGE CHURCH SUSTAINED. In the Stepanek Case the Supreme Court Sustains Decision in Favor of Omaha Bank. There was an opinion handed down by the supreme court on Thursday morning last. that is of more than passing interest to many. It again brought to view that a chattle mortgage to be good must be so explicit as to allow no possibility of misunderstanding to what property is covered. It seems that during the career of H. S. Green, of Dow City, J. W. Stepanek made to him a note for $2000.00, and a mortgage securing the same, covering sixty-five head of three year old steers, each marked with round hole in the right ear. This note was subsequently sold by Mr. Green to the Des Moines National Bank, and carried with it the assignment of the mortgage. Later Mr. Stepanek made another note of $4000.00. to take up the first one, and borrowed money, and made to secure the payment of the same a chattel mortgage covering 100 head of three year old steers. marked with round hole in the right ear. This note, H. S. Geen sold to the Central Trust Company. a banking corporation. in Chicago, III., and the sale of the note carried with it, the assignment ot the mortgage. Subsequently Mr. Stepanek made another note for $3800.00, to take up the $4000.00 note, and executed a chatttel mortgage securing the payment of the same on 100 head of three year old steers, marked with round hole in the right ear. and this note was sold to the Merchants National Bank of Omaha. Neither of these parties obtained a written assignment of their respective mortgages, but allowed the same to stand of record in the name H. S. Green. who, before the making of the last named one, satisfied of record the one then held by the Des Moines National Bank, and the Central Trust Company. Following the Green failure. the Central Trust Co. of Chicago, and the Des Moines Bank practically united their forces, and sued to foreclose their mortgages and for the appointment of a receiver to take possession of the cattle found in Stepanek's possession. Mr. Meehan, the sheriff was appointed a receiver for that purpose, who took. shipped and sold the cattle, and received the proceeds thereof. Thereafter, a fund of something over $2000.00 was, by order of Judge Powers in Carroll released from the lien of the receivership; turned over to Stepanek. He in turn, paid it over to various parties, and the Central Trust Company. who had previously sued to foreclose its mortgage, commenced an action to get hold of the fund thus released, SO that the case was that of the Central Trust Company VS. Stepanke, Defendant; Merchants National Bank and others, Intervenors. The cause was tried to Judge Church, without a jury, and presented some nice legal points. It was contended by the Merchants National Bank of Omaha, that when the mortgage was made, claimed under by the Des Moines National Bank. Stepanek had something like one hundred eleven head of s'eers, each similarly marked, and sixty-five thereof covered by the mortgage held by this bank, and that when the mortgage was made. claimed under by the Central Trust Co. that Stepanek had one hundred one head of steers. some having died since the making of the mortgage claimed under by the Des Moines National Bank; and that therefore both these mortgages were void, because being too indefinite in description, it being impossible to identify the individual steers covered by either of these mortgages from the instrument itself. and such inquiries as it would suggest. When the mortgage under hich the Merchants National Bank claimed was made covering 100 head, the mortgagee had just 100 head. Judge Church believing that the law was on the side of the Merchant National Bank of Omaha, that the mortgages under which the Des Moines National Bank and the Central Trust Co., claimed were void for uncertainty in descrip tion: and that they by allowing the mortgages to remain of record in the name of H. S. Green, tacitly consented to his cancelling the same of record. held that the mortgage claimed under by the Merchants National Bank of Omaha was a senior and superior lien to that of either of the other mortgages, giving it priority as to the proceeds of the cattle

5. August 4, 1914 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, August 4, 1914

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# HEAD OF STATE BANKING DEPARTMENT FINDS FAULT WITH FINANCIERS. # CHICAGO INSTITUTIONS DO JUST THAT WHICH ALARMS Curtailment of Payments to Depositors Always Brings About Panicky Sentiment-Des Moines Banks Taking Drastic Measures, While Country Banks of State Are Not Alarmed. Special to Times-Republican. Des Moines, Aug. 4.-The banks of Des Moines are fortifying themselves as much as they can against any contingency that may arise because of the war troubles. They have done this much: Have ceased paying on personal checks but a small proportion. Have asked business men to curtail their demands at once. Have sought to prevent any unnecessary sending of money away from Des Moines or out of the state. Have prepared to resort to the clearing house certificates on short notice, if that is needed. The fact is that the banks here do not anticipate trouble for very long, but believe the financial situation will be relieved quickly enough. New Law to Help. "We ask all persons interested to hold off from important transactions as much as possible" said one banker. "We believe that the situation will force a completion of the plans for the federal reserve banking system, which will be in effect a new national banking system, and then with the issue of money which is authorized under that law the needs of the day will be realized. We ask that everyone hold off until the reserve system is organized. It would have been organized by August 1 if the right kind of men had been appointed to the board or had congress confirmed the appointees at once and without making so much fuss about it." Country Banks Not Alarmed. Country banks thruout Iowa have been communicating with Des Moines very freely the past two days. They are not alarmed, but want to know the exact situation. "It seems unfortunate," said Mr. Pennell, head of the state banking department, "that the Chicago banks should send out word advising the Iowa bankers to stop payments and take advantage of the time clause on savings accounts. If there is any one thing calculated to give the average man a panic it is just that kind of thing. Here in Iowa with our banks