gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
142128cf459474a9
Response Measures
Accommodated withdrawals, Full suspension, Books examined
Other: The bank closed its doors after a run left it with less than $1,000 in cash. Local business men met and signed an agreement to continue business with other banks to prevent the panic from spreading.
Receivership Details
Depositor recovery rate
88.4%
Date receivership started
1897-01-20
Date receivership terminated
1900-09-05
OCC cause of failure
Losses
Share of assets assessed as good
14.2%
Share of assets assessed as doubtful
52.8%
Share of assets assessed as worthless
32.9%
Description
The bank initially hoped to reopen within three weeks, but later articles confirm it remained in receivership through 1898.
Events (6)
1.December 19, 1882Chartered
Source
historical_nic
2.November 23, 1896Receivership
Newspaper Excerpt
Examiner Zimmerman was notified to take charge.
Source
newspapers
3.November 23, 1896Run
Cause
Correspondent
Cause Details
The trouble resulted from demands by eastern correspondents and a heavy run that depleted cash reserves.
Measures
The bank closed its doors after cash reserves fell below $1,000.
Newspaper Excerpt
The Dakota National Bank has closed its doors on account of a heavy run, which left less than $1,000 in cash on hand.
Source
newspapers
4.November 23, 1896Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy run and depletion of cash; bank was also noted to be heavily loaded with depreciated real estate.
Newspaper Excerpt
The Comptroller of the Currency this morning was advised that the Dakota National Bank of Sioux Falls, South Dakota, had closed its doors.
Source
newspapers
5.January 20, 1897Receivership
Source
historical_nic
6.April 21, 1897Other
Newspaper Excerpt
mission there is to have Receiver Zimmermann of the Dakota National bank ousted from his position
Source
newspapers
Newspaper Articles (22)
1.November 23, 1896Santa Fe Daily New MexicanSanta Fe., Santa Fe, NM
Click image to open full size in new tab
Article Text
BUSINESS DISASTERS. Blanket Mortgage Filed on Detroit's Leading Clothing House-Collapse of a National Bank in Dakota. Detroit, Nov. 23.-Mably & Co., one of the leading retail clothing firms of this city, filed a chattel mortgage for $150,000 to the Union Trust company, as trustees for the creditors. A blanket mortgage, covering the entire stock, was made to the Union Trust company. Judge Donovan has appointed the Union Trust company receiver to carry on the business in accordance with the chattel mortgage. The indebtness is little less than $400,000. BANK FAILURE IN DAKOTA. Washington. - The comptroller of the currency has received information of the failure of the Dakota National bank of Sioux Falls, S. D. The bank has a capital of $50,000; surplus, $50,000, and liabilities, $230,000.
2.November 23, 1896Alexandria GazetteAlexandria, VA
Click image to open full size in new tab
Article Text
when asked about it, is that he hopes the convention will be sure its nominee will remain with the party until the expiration of his term of office. Colonel Brady, of Virginia, has been engaged as counsel by all the republican contestants for seats in the next Congress, even Mr. Thorp, to whose nomination he was opposed. General Fitzhugh Lee is here today, and with his wife and daughter is stopping at a boarding house in the northwest part of the city. He still declines to talk about the recent election in his State. Marcus A. Smith has resigned as U. S. district attorney for the district of Arizona. He is the delegate-elect to the next Congress. During the recent campaign the department of justice took the position that officials under the department who were active in the campaign as candidates for office should sever their connection with the judicial branch and in carrying out this policy several district attorneys were summarily removed, they having been given opportunity to resign but failing to respond to the invitation. The candidacy of Mr. Smith was called to the attention 01 the department and an effort was made to reach him. Mr. Smith was then in some inaccessible part of the territory. The election rolled around with him still on the rolls. He was successful in his fight for Congress, the department now has his resignation and peace again prevails. Franklin Tenney, who was proprietor of the National Hotel in this city for nearly forty years, died here at his residence last evening. He retired from the National a few years ago and was proprietor of the Hotel Varnum near the Capitol at the time of his death. Col. Tenney was nearly 90 years old: a native of New Hampshire and had always voted the republican ticket at his old home. The Comptroller of the Currency was this morning advised that the Dakota National Bank of Sioux Falls. S. D., had closed its doors. No reason was assigned. The October report shows the capital stock to be $50,000, surplus $50,000, due other banks $32,000, due depositors $175,000, borrowed money $22,280.
3.November 24, 1896The San Francisco CallSan Francisco, CA
Click image to open full size in new tab
Article Text
Failure of a National Bank. WASHINGTON, D. C., Nov. 23.-The Comptroller of the Currency this morning was advised that the Dakota National Bank of Sioux Falls, South Dakota, had closed its doors. No reason is assigned. Examiner Zimmerman was notified to take charge.. The October report shows capital stock $50,000, surplus $50,000, due other banks $32,000, due depositors $175,000, borrowed money $22,500.
4.November 24, 1896The Madison Daily LeaderMadison, SD
Click image to open full size in new tab
Article Text
THE CITY. LOCAL BREVITIES. Wheat 64; flax 55. Arrivals from the west to-day were G. R. Farmer and E. V. Coon. Geo. Simpson returned last evening from Pipestone with his invalid father. Weather report: Cloudy with rising temperature to-night and Wednesday. John LaRue departed this morning for Tennessee via, St. Louis and Nashville. Arrivals on the evening train were Wm. Tobin, J. F. Stahi, A. A. Abbott, J. Leslie Thompson. Hugh Neill and wife of Marshall, Minn., arrived on a visit to the former's brother, Henry Neill. Landlord Poole of the Poole House, Lake Preston, is sojourning in the city while taking Medical treatment. The regular mothers meeting which was to have been to-morrow afternoon, has been postponed to Thursday of next week. Clerk Preston proved up to-day Jas. McLellan of Orland on his homestead quarter, section 23-105-54 and Ed. O'Connell of thesame town on quarter, section 15-105-53. A patent has also arrived at the office for Thos. W. SulliVED on the sw1/4 section 11-108-54. The "Brownies in Fairyland," will be presented at the opera house next Monday evening, Novembey 30. The mnsic will be under the direction of Prof. Ireland and the orchestra will be in attendance. No one should miss this rare treat. The weather clerk in the Palace Drug Store has received a new set of signals from the government weather bureau and says he will now make us some good weather. The only new flag he did not need was a "blizzard" flag. The latter is used so seldom in South Dakola that one would last a hundred years. Sioux Falls dispatch, 23: No receiver will be appointed for the Dakota National as the bank expects to pay every depositor in full in three weeks and to resume business. The statement of Oct. 6 show deposits of $175,592; capital $50,000; surplus 50,000; loans and discounts $186,000. The trouble resulted from demands by eastern correspondents and by a series of unfortunate coincidents, not resulting from lack of contidence in the bank. Sixty business men last night signed an agreement to continue their business with the other banks in the ordinary way, and the trouble cannot affect the other banks, which are in exceptionally good shape, A visit to Sheriff Fex's bastile reveals eight jail birds in the two cages at this time and the amount of "grub" the officer has to poke into these cells in the course of a day is quite amazing. The register gives the record of the inmates as follows: Peter Beucher, selling intoxicating liquor, awaiting trial in February. When Peter went into the liquor selling business he was assured that if he ran up against the stone wall he would be bailed out, but the bail has never come. Thos. Farrell, petit larceny, 25 days. John Wilson, petit larceny, 16 days. Jas. Miller, petit larceny, 16 days. Harry Young, Petit larceny, 16 days. Jas. Smith, petit larceny, 17
5.November 25, 1896The Indianapolis JournalIndianapolis, IN
Click image to open full size in new tab
Article Text
Business Embarrassments SIOUX FALLS. N. D., Nov. 24.-The Da. kota National Bank has closed its doors on account of a heavy run, which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank. printed Oct. 8, showed $176,000 deposits and loans and discounts of $198,000. STREATOR, III., Nov. 24.-The Streator Street-railway Company has ceased operating its plant and is now in the hands of a receiver. The road was built in 1890. at a cost of $250,000. The plant has not paid expenses the past three years, An order will shortly be issued by the Federal Court for the sale of the road. GALLATIN, Mo., Nov. 24. - The Davies County Savings Association. an old and supposed to be reliable banking institution, closed its doors to-day. The failure is said to be due to heavy withdrawals. No state. ment of the assets and liabilities is given.
6.November 25, 1896The HeraldLos Angeles, CA
Click image to open full size in new tab
Article Text
ANOTHER BANK GONE SIOUX FALLS, S. D., Nov. 24.-The Dakota National bank has closed on account of a heavy run. The bank is heavily loaded with real estate of a depreciated nature. The officers hope to reorganize and resume. The last statement showed $816,000 deposits, loans and discounts $198,000.
7.November 25, 1896The Bryan Daily EagleBryan, TX
Click image to open full size in new tab
Article Text
Failure Caused by a Run. SIOUX FALLS, Nov. 24.-The Dakota National bank closed its doors on account of a heavy run which left less than $1000 in cash on hand. The bank was heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank printed Oct. 8, showed $176,000 deposits, and loans and discounts $198,000.
8.November 25, 1896New Ulm ReviewNew Ulm, MN
Click image to open full size in new tab
Article Text
Sioux Falls Bank Suspends. W ASHINGTON, Nov. 24.-The comptroller of the currency has received information of the failure of the Dakota National bank of Sioux Falls, S.D. The bank has a "capital of $50,000, and at the time of the last report it had a surplus of $50,000, and liabilities amounting to $230,000, exclusive of stock. Bank Examiner Zimmerman has been placed in charge.
9.November 25, 1896The Madison Daily LeaderMadison, SD
Click image to open full size in new tab
Article Text
Suspension Followed a Run. Sioux FALLS, S. D., Nov. 25.-The Dakota National bank has closed its doors on account of a heavy run, which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank, printed Oct. 8, showed $176,000 deposits, and loans and discounts of $198,000.
M'KINLEY TIMES IN DAKOTA. Sioux Falls, S. D., Nov. 24.-The Dakota National Bank has closed its doors on account of a heavy run which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank, printed October 8, showed $176,000 deposits and loans and discounts of $198,000.
11.November 26, 1896Union County CourierElk Point, SD
Click image to open full size in new tab
Article Text
Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls,did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,593. The bank's embarrassment resulted from demands by easiern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.
12.November 26, 1896The Guthrie Daily LeaderGuthrie, OK
Click image to open full size in new tab
Article Text
A South Dakota Bank Falls. SIOUX FALLS, S. D., Nov. 25.-The Dakota National bank has closed its doors on account of a heavy run which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate.
A New Elevator. Vermillion, Nov. 25.-McKaull, Webster & Co. have begun the constructio: of a large elevator to be used by them for buying grain. It is being built on the Austin lot in the same place that the Newton elevator stood before the flood of 1881. The Newton elevator was first built in this city in 1873. The farm ers are very much in hopes of better prices for grain, as there is likely to be close competition between this new firm and the Thompson & Lewis company, who have been the sole buyers for a number of years. The Milwaukee company has cut down its freight train service from daily to semi-weekly. It inconveniences the cattle and grain buyers to a great extent. A kerosene oil stove overflowed while burning yesterday in the home of J. W. Grange. The stove was in the bedroom in the second story and was not discovered until it had gotten a pretty fair start. In the room was stored several hundred dollars' worth of dresses, all of which were more or less damaged by the smoke and oily soot. The fire was discovered before much damage was done. The Missouri river crossing is in ex. cellent condition. Nebraska farmers are marketing their grain and hogs at the Vermillion markets. Carr Had Flown. Miller, Nov. 25.-When Sheriff Streif went to arrest Herbert Carr, on the charge of rape, he found he had left for England with money furnished by his wife. Carr was also recently held for adultery and his bondsmen will have to put up. A Dakota Bank in Trouble. Sioux Falls, S. D., Nov. 23.-The Dakota National bank, one of the oldest banking institutions in the state, went into the hands of the bank examiner this morning. No receiver will be appointed as the bank expects to pay every depositor in full in three weeks and to resume business. The statement of October 6 shows deposits of $175,592, capital $50,000, surplus $50,000, loans and discounts $186,000. The trouble resulted from demands by eastern correspondents and a series of unfortunate coincidents not resulting from lack of confidence in the bank. Sixty business men last night signed an agreement to continue business with the other banks in the ordinary way, and the trouble cannot affect the other banks which are in exceptionally good shape.
14.December 3, 1896The Dakota ChiefGann Valley, SD
Click image to open full size in new tab
Article Text
Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls, did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,593. The bank's embarrassment resulted from demands by eastern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.
15.December 3, 1896Democratic Northwest and Henry County NewsNapoleon, OH
Click image to open full size in new tab
Article Text
THE ESSENCE OF THE NEWS OF THE WORLD IN A COLUMN. Important Rvents of the Week From All Sections of the Globe Condensed Into a Few Lines For Busy Newspaper Readers. Tuesday. Lady Scott or her friends are accused of lampering with the jury. The natives of the New Hebrides islands Rre being sold like sheep. The Dakota National bank of Sloux Falls, S. D., closed its doors. Joe Blackburn of Kentucky denies that be is out of the senatorial race. The system of allowing overtime claims of letter carriers is soon to be abolished. John Gorman was arrested in Cincinnati for embezzlement committed in New Haven. The steam launch Pilot exploded at Cal10, Ills., killing one man and Injuring another. The state board of canvassers of Virginia give the Democrats an additional congressman. Hon. George Emerson has been appointed judge of the supreme court of New. foundland. General Grosvenor says the Dingley bill should not be passed, as It might hinder proper tariff legislation. The president has appointed Judge Charles C. Mott chief justice of the court of claims at Washington. Wednesday. The official count of New Jersey's vote gives McKinley 87,602 plurality. A bronze tablet is to be erected in Baltimore where the Methodist Episcopal church was born. McKinley will get an elector from Vir ginia by reason of misnomer on the Demo eratic ticket. Kentucky silver Democrats have resolved not to allow gold Democrats to vote at silver primaries. Consul General Lee says he does not be lleve the Competitor prisoners have been secretly tried in Cuba. The dead body of Minnie Hazeibeck of New York, who disappeared Saturday, was found in a park atTrenton, N. J. The window glass troubles have been set tled, the workmen agreeing to 10 per cent less than that asked by the union. 1 Thursday. The Yale-Princeton football game at New York netted $28,364.27. t Two feet of snow fell in North Dakota and cattle are suffering. r Frank Doherty, murderer, in jail a Kingston, N. Y., suicided. The Metropolitan club scandal has bro r ken out anew in Washington. Without extensive alterations it 1 doubtful whether the battleship Texas car be again ordered to sea. Indications that Rev. James Miller found dead in' an alley in Bloemington Ills., committed suicide. Judge Gibbons in Chicago appointed the American Trust and Savings bank receive for Columbian liberty bell. Annual report of the board of visitor to the West Point Military academy rec ommends raising the requirements for ad mission. e Barn of W. W. Morton, a neighbor O President P. J. Berckmans of the Ameri can Pomological society, burned at mid night in Georgia. A letter has been received in Philadel phia from General Maceo in Cuba saying that there is no danger of the Spaniard ever winning the fight. Friday. Texas proved to be Bryan's banne 5 state. King Alexander of Servial called on th pope. The American colony in Rome floated th stars and stripes. Patrick Stanton was killed by the ao cidental throwing of a stone at Flint Mich. In the New Orleans road race Rober Kennedy collided with another wheelma and-was killed. The president and Mrs. Cleveland a tended Thanksgiving services at the Firs 20 Presbyterian church, at Washington The proposed celebration of the admis sion of Wisconsin into the Union at WI waukee in 1898 has been abandoned. 2 Suicide of Minnie Hausselbach at Trer ton, N. J., has been SO thoroughly estal d lished that the murder theory has bee abandoned. A rumor of revolution comes from Chile The granting of "dead-head" tickets ha 7 been denied the general passenger an freight agents. Saturday. 't Wheat advanced 6 cents during the weel Frank Erne of Buffalo whipped Georg Dixon in New York. Oil has been struck 15 feet under the su Clereland noor face
16.December 4, 1896Hot Springs Weekly StarHot Springs, SD
Click image to open full size in new tab
Article Text
Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls,did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,598. The bank's embarrassment resulted from demands by eastern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.
17.December 8, 1896Twice-A-Week Plain DealerCresco, IA
Click image to open full size in new tab
Article Text
A Carload of Confidence. Mabley & Co., Detroit, fail for $362866 Monday. On the same day "Confidence" caused the Dakota National Bank at Sioux Falls to close with $200,000 liabilities; Judge Hilton's St n in New York assigned the A, T. Stewart business, liabilities $1,891,576; The Union Manufacturing Co., of Freeport, III. got to great a dose of confidence and quit; The Streeter, Ill., street railway company could not pay the freight on their carload of confidence and stopped; a wholesale grocery firm at Lexington went to the wall; and the First National Bank of LeMars took the same route. This was Monday this week. And confidence is restored.
18.April 22, 1897The Madison Daily LeaderMadison, SD
Click image to open full size in new tab
Article Text
THE CITY. LOCAL BREVITIES. F. L. Soper drives a new surrey and Harry Chales a new "trap." The Palace Drug Store soda fountain was in excellent taste to-day. The American "Carmencita" will be here next week with Carlton & Lord's Jolly Comedians. Hon. H. H. Blair of Elk Point, chairman of the new board of regents, spent the night in the city. Weather report: Generally fair tonight and Friday. Cooler to-night. Cooler west portion Friday. Ed. M. Lord, advance agent for Carlton and Lord's Comedy company, is in the city preparing to do business here all next week. John Wadden has beautified his residence grounds by planting a large number of evergreens, mountain ash and other ornamental trees. Mrs. Lance, sister of O. H. Bangs, returned from Iowa, Mrs. Wm. Howlett from Sioux City and Rev. W. J. Cleveland from Sioux Falls. Earl Bell, president: Notice is hereby given that all spectators will hereafter be excluded from the Juvenile band room during practice hours. Wm. Rae went to Sioux Falls to consult the architect in regard to plans of the new Masouic hall to be built as the third story of the new Smith-Fitzgerald block. The dance which was to have been given in the opera house last evening owing to the rehearsal for the play of Damon & Pythias, was postponed until to-morrow evening. Governor Andy Lee's proclamation for Arbor Day, May 3, is at hand and is the best of thekind we have yet read in this or anyother state. We will publish it to-morrow in full. Messrs Blair snd Haire of the state board of regents are in the city to look over the affairs of the State Normal school. Dr. Spafford of Flandrau another member is expected here also. Justice Holdridge run two victims through his legal mill this morningThos. Smith for vagrancy and Frank Wilson for drunkenness. Each was fined $10 and costs and in default of payment were committed to jail and hard labor on the streets for eight days. Argus-Leader 21: The wisdom of refusing to allow party politics to mix up in city affairs is now evident. The city has elected an excellent body of aldermen and school directors and has done it without the excitement and bitterness of feeling always engendered during a party fight. Sioux Falls Press, 21: A short time ago A. B. Kittredge left this city, ostensibly for Chicago, but as a matter of fact he was bound for Washington and it is reliably stated that his mission there is to have Receiver Zimmermann of the Dakota National bank ousted from his position and ex-President George H Brace appointed in his stead. Sioux
19.April 27, 1897The Madison Daily LeaderMadison, SD
Click image to open full size in new tab
Article Text
Ex-Bank Examiner, C.F. Zimmerman has closod up his bank at Iroquois and will remove with his family to Sioux Falls, where he is now receiver of the Dakota National bank.
ment as receiver of the Dakota National bank at the time of its failure, notwithstanding that he was then state treasurer and that his home is Deadwood. It will be remembered also that shortly after he was nominated for governor he came to Sioux Falls. The charges of the anti: machine republican delegates to the Mitchell convention were becoming public property. It was common talk everywhere and especially in Sioux Falls, that the Dakota National bank had paid Phillips interest on state deposits. Mr. Phillips came to Sioux Falls and had a long consultation with Mr. Zimmerman, receiver of the bank. If they talked of what nearly everybody else was talking they discussed the question of the evidence of Kirk Phillips having received interest on state money. But the Press leaves the record as it is. The books of the Dakota National Bank show that Kirk Phillips received interest on state deposits. Exofficials of the bank have repeatedly said that this was true. There is on file in the court the sworn testimony of one ex-official to that effect. The papers of the bank or a portion of them had been thrown about for many months as waste paper. Suddenly they were removed and hid. Now the bank receiver says they are so valuable that nobody can see them without permission from Washington. The bank books are closed to the public.-Sioux Falls Press.
21.November 2, 1898The Madison Daily LeaderMadison, SD
Click image to open full size in new tab
Article Text
Nothing further up to Tuesday of this week had developed in the Phillips in-vestigation in connection with the Dakota National bank. Receiver Zimmermann who is also a national bank examiner still remains and has given to the Argus-Leader a ridiculously falsified account of his refusal to allow an investi-gation of the books of the bank after ordered to do so by Comptroller Dawes.
But the impression is so strong in lead-ing political circles at Sioux Falls that he will be speedily removed from both his receivership and the position of bank examiner, that the republican state central committee has already endorsed E. B. Korns of Doland for the latter position. But even if for political reasons nothing further should be done at the present time with Zimmermann the whole affair was such an open bluff to conceal a crime that there is not a shadow of doubt of Kirk Phillips' guilt left.
country banks where the average balance was in excess of $1.000.
Q. Were the STATE TREASURER or county treasurer either directors, stockholders or interested in the bank?
A. No sir.
Q. If you know, state whether the other banks in Sioux Falls also paid interest on state and county deposits at the same rate? A. I can't answer that question, because I don't know whether they did or not.
Q. State whether the interest paid on the special accounts was paid because they were in any way interested in the banks as stockholders, directors or officers? A. No sir, they were not.
Q. Could you state what rate of in-t was paid on these special ac-s, to which you have referred? A. I remember exactly, but I think 2 per cent.
Q. State please how that was usually computed, on average dally balances on average month'y ba'ances?
A. ON THE AVERAGE DAILY BALANCES FOR THE MONTH.
Q. Was that in excess of some certain amount, or generally on whatever balance that happened to be in the bank?
A. On the average balance. The STATE TREASURER and courtytreasurer carried large balances. AND FOR THEIR ACCOUNTS THEY WERE ALLOWED INTEREST. THE INTEREST WAS ALLOWED TO GET THE DEPOSIT BECAUSE IT WAS LARGE
Q. During what years, if you can recall, did you pay the interest to the state and county treasurers on their balances?
A. IT WAS DURING THE LATTER PAPT OF THE TIME THAT I WAS THERE, but just how long I don't remember.
Q. It was customary, was it?
A. IT WAS ALWAYS DONE.
### CROSS EXAMINATION.
By Mr. Barnes.
Q. Mr. Gilkes, do you consider that the Dakota National bank of Sioux Falls was run as economically for the benefit of the stockho'ders as should have been to their interests, within twe years preceding its failure? Do you think it was run in the interests of the stockholders? A. I think it was run as well for the benefit of the stockho'ders as the conditions out there wou'd allow
Q. What do you mean by the conditions would allow in that community?
A. Well, that the bank necessarily hac to keep up a certain force to do what work was necessary to attend to its running business. The running business just then was not profitable.
Q. Do you not think that the salaries were rather large for the business the bank was doing, taking it from an economic standpoint at this time? A. No I don't think so.
Q. You think the business justified the expense in the way of salaries? A. Yes sir.
Q. Was it the custom of the banks in Sioux Falls to pay interest on average daily balances? A. No sir.
A. Did the Dakota National bank do so? A. No sir.
Q. It wasn't the general custom of this bank then, but it did so in isolated cases? A. "Yes sir.
Q. In these cases in which it did pay interest on balances, did not it pay a larger interest to the state treasurer on his balance than to other depositors who received interest on their balances!
A. No sir, it did not.
### RE-DIRECT EXAMINATION.
By Mr. Shuey.
Q. In what capacity are you now employed, in Chicago, Mr. Gilkes? A. Discount clerk for W. T. Rickords & Company.
Q. How many years' experience have you had in the banking business all-told? A. Ten years.
Q. Do you know of your own knowledge that no greater rate of interest was paid on the special accounts you have referred to on deposit than was provided for by the agreement, to which you have referred, among the Sioux Falls banks? A. No sir, there was not.
Q. Was this Mr. Gale, of whom you spoke, a director of the bank? A. Yes sir.
Q. Was it his custom to take out cer-
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
