German Savings Bank (Des Moines, IA)

Episode Information

Episode UID
33001571165
Episode Type
Run β†’ Suspension β†’ Reopening
Bank Type
savings
Bank ID
3300157 routing
Routing Number
33-0015
Start Date
January 21, 1897
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
55975c4690c3bd2a

Response Measures

None

Description

Bank suspended/assigned on opening day (Jan 21, 1897) and later reorganized and reopened by mid-1897.

Events (4)
1. January 21, 1897 Receivership
Newspaper Excerpt
On petition of J. W. Geneser, ex-Cashier H. T. Blackburn was named receiver of the German Savings Bank by Judge Holmes.
Source
newspapers
2. January 21, 1897 Run
Cause
Bank Specific Adverse Info
Cause Details
Bank had loaned too closely and could not collect from borrowers, leaving very little cash on hand and triggering immediate withdrawals.
Measures
Closed doors and assigned to an assignee; Clearing House refused extension; assignment to H. T. (Harry) Blackburn.
Newspaper Excerpt
Very little money came in, and when William Musson presented a check for $1,000 there was not enough to pay it, so the bank closed its doors.
Source
newspapers
3. January 21, 1897 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension/assignment prompted by insolvency from inability to collect loans and too little cash on hand.
Newspaper Excerpt
The German Savings bank of this city has assigned to H. T. Blackburn... The bank suspended payment after having opened this morning with only $5,000 on hand.
Source
newspapers
4. September 22, 1897 Reopening
Newspaper Excerpt
The German Saving of Des Moines has been reorganized and reopened.
Source
newspapers

Newspaper Articles (20)
1. January 21, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 21, 1897

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Article Text

TWO CENTS. THE BANK COULDN'T PAY. The German Savings Bank of Des Moines Assigns. Des Moines, Ia., Jan. 21.--The German Savings bank of this city has assigned to H. T. Blackburn. The bank's capital is $75,000; assets, $611,000; undivided profits, $11,000; deposits, $540,000. The bank suspended payment after having opened this morning with only $5,000 on hand. Very little money came in, and when Wm. Musson presented a check for $1,000 there was not enough to pay it, SO the bank closed its doors. The depositors will be paid in full, but the capital stock will be wiped out entirely and an assessment will be made. The failure was caused by inability to collect from borrowers, most of whom were small traders and merchants. No other banks here are affected.

2. January 21, 1897 Daily Camera Boulder, CO
Article from Daily Camera, January 21, 1897

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Article Text

THE CUPBOARD WAS BARE. Assets Were Big, but There was Only S1,000 on Hand. Des Moines, Jan. 21.-The German Savings bank suspended today, capital $75,000. It's assets were $611,000, deposits $540,000 but there was less than $1,000 cash on hand when the doors closed.

3. January 21, 1897 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, January 21, 1897

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William Musson's Check at Des Moines. SWAMPS GERMAN SAVINGS. Could Not Meet a $4,000 Claim. Big Miners' Strike-Gage for the Treasury. Des Moines, Jan. 21.-The - German Savings bank has assigned. Itscapital was $75,000. The assets are $611,000; undivided profits, $11,000; deposits, $540,000. The bank suspended after having opened this morning with only $5,000 in cash. Very little money came in, and when William Musson presented a check for $4,000 there was not enough money to pay it, so the doors were closed. The depositors will be paid in full, but the capital stock will be wiped out and an assessment made. The failure is due to the inability to collect from borrowers, most of whom are small traders and merchants. No other banks here are af. fected.

4. January 22, 1897 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, January 22, 1897

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Article Text

IOWA SAVINGS BANK CLOSES. "It Loaned Too Closely"-"Kept Too Little Cash for Emergencies." DES MOINES, IA., January 21.-The German Savings Bank, the second largest bank in the city in point of deposits, closed its doors this morning shortly before 11 o'clock. A notice posted on the door states that the bank is in the hands of the assignee, Harry Blackburn, who only two weeks ago became its cashier. Francis Geneser is the president, and his son, J. W. Geneser, cashier up to two weeks ago, is the vice-president. The bank's capital is $50,000, which it was about to increase to $75,000, as its deposits were up to the legal limit for its present capital. The bank owed depositors at its last report, on the 6th instant, $554,158.17, and its assets were $661,040.53. The failure was a great surprise. Chairman Martin, of the Clearing-House Association Committee, went over the German Savings Bank's affairs yesterday and this morning, and it was decided that it was not best to grant its application for aid, and the request was denied. The trouble was that the bank loaned too closely and kept too little cash for emergencies. The German Savings Bank was organized in 1893. At 6:15 this evening, on petition of J. W. Geneser, ex-Cashier H. T. Blackburn was named receiver of the German Savings Bank by Judge Holmes. The change was made by direction of the State Auditor, in order to facilitate the conduct of the bank's affairs. Mr. Blackburn said this evening that the bank would pay all depositors in full. J. G. Rounds, cashier of the Citizens' Naional Bank, who went to Chicago, representing the Des Moines ClearingHouse Association, wires that $275,000 of currency will reach here to-morrow for Des Moines banks. The ClearingHouse this evening decided to take advantage of the sixty-day clause to-morrow. None of the banks did so to-day, although several had considerable runs, the savings institutions especially. All demands were easily met, however. The movement for reorganization of the German Savings is taking definite form, and it is announced that the stockholders will meet in a day or two and arrange, if possible, to secure new capital and resume. The stockholders are almost all wealthy.

5. January 22, 1897 The News & Observer Raleigh, NC
Article from The News & Observer, January 22, 1897

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Article Text

ANOTHER BANK FAILED. Des Moines, Iowa, Jan. 21.-The German Savings Bank, of this city, has assigned to H. T. Blackburn. The bank's capital is $75,000; assets, $611,000; undivided profits, $11,000; deposits, $540,000. The bank suspended payment after having opened this morning with only $5,000 on hand. Very little money came in, and when Mr. Wm. Musson presented a check for $1,000 there was not enough to pay it, SO the bank closed its doors. The depositors will be paid in full, but the capital stock will bei wiped out entirely and an assessment will be made. The failure was caused by the ilpability to collect from borrowers, most of whom were small traders and merchants. No other banks here are affected.

6. January 22, 1897 The Bryan Daily Eagle Bryan, TX
Article from The Bryan Daily Eagle, January 22, 1897

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Article Text

Iowa Bank Assigns, DES MOINES Jan. 21.-The German Savings bank here has assigned to H. T. Blackburn. The bank's capital was $75,000;assets, $611,000 : undivided profits, $11,000; deposits, $540,000. The bank suspended after having opened this morning, with only $3000 on hand. Very little money came in, and when William Musson presented a check for $1000 there was not enough to pay it, so the bank closed its doors.

7. January 22, 1897 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, January 22, 1897

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Article Text

Savings Bank Suspends. DES MOINES, Ia., Jan. 22.-The / German Saving bank of this city has assigned to H. T. Blackburn. The bank's capital is $75,000; assets $611,000. Undivided profits, $11,000; deposits, $540,000. The depositors will be paid in full, but the capital stock will be wiped out entirely and an assessment will be made. No other banks here are affected.

8. January 22, 1897 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, January 22, 1897

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Article Text

Failure of an Iowa Bank. Des Moines, Ia,, January 21.-The German Savings bank was the second largost bank in the city in point of deposits. A notice posted on the doors states the bank is in the hands of an assignee, Harry Blackburn, who, only two weeks ago, became cashier. The bank's capital is $50,000 which it was about to increase to $75,000, as its deposits were up to the legal limit for the present capital. The bank owed depositor# at the last report January 6, $554,158. The assets were $661,040. There WHS no signs of runs on other banks.

9. January 22, 1897 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, January 22, 1897

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Article Text

Banks Prepared for a Run. DES MOINES, Ia., Jan. 21.-The banks of Des Moines have all fortified themselves against dangers of a run tomorrow, following the failure of the German Savings bank. Fully $500,000 will be received tomorrow from Chicago and other points.

10. January 22, 1897 The Herald Los Angeles, CA
Article from The Herald, January 22, 1897

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PREPARING FOR TROUBLE. DES MOINES, Iowa, Jan. 21.-The banks of Des Moines have all fortified themselves against all dangers of a run tomorrow, following the failure of the German Savings bank. Fully $500,000 will be received tomorrow from Chicago and other points.

11. January 22, 1897 Marietta Daily Leader Marietta, OH
Article from Marietta Daily Leader, January 22, 1897

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CONDENSED NEWS Outhored From All Parts of shing Country by Telegraph. Wednesday the New York custom house bill was taken up in the senate and passed. The official returns of the output of the gold mines of British Guiana for the year 1896 show that it was in excess of $2,250,000. Storm signals just ordered hoisted along the entire Atlantic coast Thursday. Incoming vessels report heavy seas, ice floats and trouble. In the senate Wednesday Mr. Perkins (rep., Cal.) introduced a joint resolution for the apointment of a commission to collect statistics on mines and mining. C. F. Howe, vice-president of the First national bank of Buchanan, Mich., and an extensive farmer, has made an assignment with liabilities of $40,000 and nominal assets of $60,000. A bill reported to the senate Thursday authorizes the erection of a life saving station at or near Point Areno, Mendocino county, Cal., and a quaranteen station at or near Astoria, Oregon. A meeting was held in Birmingham early Wednesday to perfect arrrangements for a suitable celebration of the signing of the general arbitration treaty between the United States and Great Britain. Reports that President Blair, of the Wheeling & Lake Erie Ry. Co., is in New York city, arranging a reorganization scheme, is denied by members of the reorganization committee. Mr. Blair is still in the west. No action has been taken yet by the committee. Owing to the inclement weather the launching of the United States revenue cutter Daniel Manning, which was to have taken place at the ship yard of the Atlantic works in east Boston at noon Thursday has been postponed until the conditions are more favorable. The New York senate Wednesday passed Senator Lexow's resolution providing for the appointment of a committee of three senators and four assemblymen to investigate trusts and report remedial legislation. The resolution now goes to the assembly for concurrence. The German Savings bank, the second largest bank in Des Moines, Ia, closed its doors shortly before 11 o'clock Thursday. A notice posted on the door stated that the bank was in the hands of the assignee, Harry Blackburn, who, only two weeks ago, became its cashier. The Ohio delegation in congress will give a banquet in honor of Senator Sherman during the last week in February. The moving spirits in the affair are some of the present members in the house, but it will be well attended by the entire delegation irrespective of party affiliations. The Metropolitan West Side Elevated railroad, Chicago, joined its only running mate, the Alley L, by going into the hands of a receiver appointed by the federal court Wednesday afternoon. The New York holders of $15,000,000 of the company's mortgage bonds forced the receivership, which has been expected on the street for some time. At Chicago Charles H. Rathman, the billiard hall proprietor, was sentenced to jail for 60 days Wednesday by Judge Freeman for sending his honor $100, and his case will be taken before the

12. January 22, 1897 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, January 22, 1897

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Inability to Collect DES MOINES, Ia,, Jan. 21.-The Germans Savings bank of ehis city has assigned to H. T. Blackburn. The cadital is $75,000, assets $611,000; undivided profits, $11,000: deposits, $540,000. The bank opened with only $5,000 on hadd. Very little money came in at d when William Musson presented a check for $1,000 there was ,not enough to pay it, so the bank closed its door

13. January 22, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, January 22, 1897

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FOREIGN FINANCIAL. NEW YORK, Jan. 21.-Evening Post's London financial cablegram: The change in the Bank of England's rate of discount today had little effect on the markets. Home rails were favorably affected by their dividends and investment stocks were steady. Argentines were better. Americans were lifeless and dull. The West Australian loan of Β£1,000,000 is believed to have gone badly. There is much interest as to whether the fall in the bank rate is going to stimulate a gold demand. The Bank of England returns today were very strong. fully justifying the reduction in the rate. The market was, however, completely puzzled by some of the items, especially by the rise of Β£68,000 in "other securities.' These were generally expected to show a reduction as a result of further repayments by the market on bills discounted. Apparently, therefore, the banks have been investing considerably. The coin and bullion were up Β£817,000, all from internal eΟ€rculation, no imports or exports of gold taking place during the week. The reserve is up Β£1,000,000. Following the reduction in the Bank of England's rate, other banks and discount houses reduced their deposit rates by half per cent. The Paris market was irregular. Spanish securities were weak. The Berlin market was steady. BANKS ABROAD. LONDON, Jan. 21.-The weekly statement of the Bank of England, issued today, shows the following changes as compared with the previous account: Total reserve, increase Β£1,081,000; circulation, decrease Β£264,000; bullion increase, Β£807,216; other securities, increase Β£68,000; other deposits, decrease Β£1,014,000: public deposits, increase Β£1,449,000; notes reserve, increase Β£959,000; government securities, decrease Β£700,000. The proportion of the Bank of England's reserve to liability which last week was 50.50 per cent, is now 52.14 per cent. Paris, Jan. 21.-The weekly statement of the Bank of France shows the following changes: Notes in circulation, decrease 15,425,000f; treasury accounts current, increase 2,250,000f; gold in hand, increase 2,450,000f; bills discounted, decrease 24,225,000f; silver in hand, increase 2,900,000f. ENGLISH BANK RATE. LONDON, Jan. 21.-The Bank of England's rate of discount has been reduced from 4 to 3Β½ per cent. BANKING LAW VIOLATION. LOUISVILLE, Ky., Jan. 21.-National Bank Examiner James Escott has sworn out a warrant for the arrest of James M. McKnight, president of the German National bank, which was closed Monday by order of Comptroller Eckels. The warrant charges a violation of the national banking law. SAVINGS BANK ASSIGNS. DES MOINES, Io., Jan. 21.-The German Savings bank of this city has assigned to H. T. Blackburn. The bank's capital is $75,000; assets, $611,000; undivided profits, $11,000; deposits, $540,000. The bank suspended payment after having opened this morning, with only $5,000 on hand. Very little money came in, and when William Mason presented a check for $1,000, there was not enough to pay it, SO the bank closed doors. The depositors will be paid in full, but the capital stock will be wiped out entirely, and an assessment will be made. BANK CLEARINGS. St. Paul-$804,786.47. Minneapolis-$929,460.58. New York-Clearances, $97,889,983; balances, $5,837,894. Boston-Clearings, 16,864,555; balances, $1,860,160. NEW YORK MONEY. NEW YORK, Jan. 21.-Money on call easy at 1Β½2 per cent; last loan, 1Β½, closed at 1Β½ 2 per cent. Prime mercantile paper, 3Β½1/2 per cent. Sterling exchange steady, with actual business in bankers' bills at $4.841/4@ 4.841/2 for demand, and $4.841/2@4.85 for sixty days. Posted rates, $4.861/2@4.83/2. Commercial bills, $4.843/4. Silver certificates, 65@651/4c. Bar silver, 643/4c. CHICAGO MONEY. CHICAGO, Jan. 21.-Money steady and unchanged; New York exchange, 50c discount. Foreign exchange steady; demand, $4.871/4; sixty days, $4.843/4. TREASURY STATEMENT. WASHINGTON, Jan. 21.-Today's statement of the condition of the treasury shows: Available cash balance, $228,479,656; gold reserve, $142,811,118.

14. January 23, 1897 The Coeur D'alene Press Coeur D'alene, ID
Article from The Coeur D'alene Press, January 23, 1897

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DES MOINES SAVINGS BANK CLOSED. Ran Out of Funds and Couldn't Honor Checks. Des Moines, Iowa, Jan. 21-The German Savings bank of this city has assigned to H. T. Blackburn. Capital, $75,000; assets, $611,000; undivided profits, $11,000; deposits, $540,000. The bank opened this morning with only $5000 on hand. Little money came in, and when William Musson presented a check for $1000 there was not enough to pay it, so the bank closed its doors. Depositors will be paid in full, but the capital stock will be wiped out entirely and an assignment will be made. The failure was caused by inability to collect from borrowers, most of whom were small traders and merchants. Stockholders Disagreed. West Superior, Wis., Jan. 21.-A special from Madison to the Telegram says: Judge Bunn yesterday, on complaint of the Bellis Bag company of Superior, appointed John Russell of Valley City, N. D., and Arthur Miller of Superior receivers of the Russell-Miller company property in Supertor. The same receivers were appointed Tuesday by a North Dakota judge for their property there. Officials here say the receivership is not. on account of financial difficulties, but through disagreement of stockholders. The company was incorporated in 1893 with $400,000 capital. John Russell is president and Arthur Miller is vice president and manager. The company operates one of the largest plants in the city. The company's articles of incorporation were recorded at Madison, Wis., and Fargo, N. D., hence the necessity of apI plying to the courts of both states. Banker Arrested. Louisville, Ky., Jan. 21.-National Bank Examiner James E. Scott has sworn out a warrant for the arrest of James McKnight, president of the German National bank, which was closed Monday by order of Comptroller Eckels. The warrant charged violation of the national banking law. McKnight appeared at the office of United States Marshal Blackburn at 2 1o'clock and surrendered.

15. January 24, 1897 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 24, 1897

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May Reopen the Bank. DES MOINES, Jan. 23.-(Special Telegram.)-A petition was circulated today among depositors of the German Savings bank, the signers of which signified their willingness that the bank should be reorganized, provided the present stockholders will increase its capital to $100,000. The paper is already signed by a good number of leading depositors, and the movement for reorganization bids fair to result well. Depositors believe that a large proportion of the slow paper can' be collected If time is given, but that if a forced settlement 103 made under a receiver, they will lose heavily. Reports as to the value of the bank's assets are very conflicting, and until something more definite is reported the court and state auditor will not determine their course. A general meeting of depositors is likely early next week.

16. January 29, 1897 Hot Springs Weekly Star Hot Springs, SD
Article from Hot Springs Weekly Star, January 29, 1897

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COULDNTSTANDARUN DES MOINES BANK FORCED TO CLOSE ITS DOORS. Over Half a Million Dollars on Deposit-Less Than a Thousand in the Vaults When the Assignment Was Made-Other Items. Couldn't Stand a Run. At 10:30 Thursday the German Savings Bank at Des Moines closed and assigned to Henry T. Blackburn, eashier. The Clearing House Association made an OXamination Wednesday night and concluded that it was not in shape to warrant an extension of assistance. The bank had been involved in several recent failuresand had loaned too close. The statement given out shows $50,000 capital, $510,000 deposits and $457,000 assets, and it is stated the bank will pay in full, but the capital stock will be wiped out and assessments will have to be made. The bank opened Thursday morning with only $5,000 cash. A run began at once, and when William Musson presented a check for $1,000 there was not enough money to pay it, SO the doors were closed. The Clearing House Association has plenty of money on hand, and all the other banks will be taken care of. There have been considerable withdrawals from some of the other institutions, but the situation is not serious.

17. January 29, 1897 The Columbia Herald Columbia, TN
Article from The Columbia Herald, January 29, 1897

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THE RECORD OF PROSPERITY, As Told in the Headlines of City Dailies. Out of business.-Upland Bank of Upland, Ill., closes its doors. Forced to the wall.-American Paper Box Co., of Nashville, makes an assignment. Liabilities, $11,600.69. German Savings Bank, of Des Moines, Iowa, makes an assignment. Deposits, $540,000. The Bennis Bay Company, of Madison, Wis., is in the hands of a receiver. The Russell-Miller Milling Co., of West Superior, Wis., which was incorporated in 1893 with $400,000 capital, has applied for a receiver. Receiver appointed for the First National Bank, of Newport, Ky.

18. January 31, 1897 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 31, 1897

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WANTS AN EXAMINER IN THE BANK. State Auditor McCarthy Asks the Court for Authority. DES MOINES, Jan. 30.-(Special Telegram.)-State Auditor McCarthy filed today in court a petition for authority to place a bank examiner in the German Savings bank and learn its true condition. In his application he made some serious charges. He states that a short time before the failure he ordered the stockholders to increase the capital from $50,000 to $75,000, because they were carrying deposits to the amount of over ten times their capital, which the state law does not allow. This the bank failed to do, and he wants to know why. He also states that the receiver has refused to allow him to examine the institution. He represents that there. were suspicious circumstances connected with the failure. One of these pointed out is that the bank's time deposits decreased over $100,000 in a few days, while demand deposits were practically unchanged. He charges that there is reason to believe money was borrowed by the bank and carried as time deposits instead of rediscounts, so that the report of January 6 made the bank appear to be in excellent condition, whereas it was really in) very bad shape. The court has not yet ruled on the petition. The movement to reorganize is meeting with poor success, the depositors not believing the plan is a safe one. They will probably hold a meeting in the near future and take steps to learn more definitely the condition of the bank.

19. September 22, 1897 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, September 22, 1897

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REPORT ON STATE BANKS OF IOWA. Show a Net Increase of Two in Number During the Year. DES MOINES, Sept. 21.-(Special Telegram.)-State Auditor McCarthy today issued his annual report to the legislature on the condition of state and savings banks for the year ended June 30 last. It shows that the number of savings banks was 166, and of state banks, 206. There has been a decrease of three in the number of savings, and an increase of five in the number of state banks. During the year six banks have failed: The Iowa Savings bank, Sioux City Savings bank and Commercial Savings bank, all of Sioux City; the German Savings of Des Moines, the Harlan State bank of Harlan and the Citizens' Savings of Ireton. Of these, the German Saving of Des Moines has been reorganized and reopened. The report says: "The present report indicates beyond question, not only the return of full confidence in our banking and financial institutions, but also an ease in the money market such as this state has not experienced in several years. The increase in available cash held by the banks over a year ago is $3,045,998.40, and the increase in deposits amounts to $1,476,100.37. The following shows the percentage of the deposits held by the banks as available cash for a series of years: 1892, 25 per cent; 1893, 19 per cent; 1894, 29 per cent; 1895, 21 per cent; 1896, 22 per cent; 1897, 28 per cent. It will be seen the banks now hold a larger proportion of available cash than at any time except in 1894, when the panic compelled them to fortify themselves with cash in order to prevent suspension on account of sudden withdrawals." The following statement is made for the 327 banks covered in the report:

20. December 2, 1897 Audubon Republican Audubon, IA
Article from Audubon Republican, December 2, 1897

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READY FOR CREDITORS. German Savings Bank of Des Moines to Make Payments. The German savings bank of Des Moines announces that it will pay all of the first certificates held by the deporitors at the time of the failure of the bank, last February. The prospects are that all the depositors will be paid 100 cents on the dollar. When the bank was reorganized certificates were issued on $410,000 of deposits, payable in six, 12, 15 and 18 months, each depositor's claim being divided into four portions. The money due after the first payment draws two per cent. interest. The bank has announced its willingness to pay the first certificates although they will not be due for 45 days. But few of the deposits have been withdrawn, showing that the effects from the only bank failure Des Moines had during the panic have been entirely eradicated, and the bank is once more on a sound financial footing.