1.
January 21, 1897
The Topeka State Journal
Topeka, KS
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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
Las Vegas Daily Optic
Las Vegas, NM
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Savings Bank Closes. DES MOINES, Iowa, January 21.The German Savings Bank closed its doors, this morning. The bank owed depositors, at last report, $554,000; the assets were stated at $661,040 The failure was a great surprise, the bank being under conservative management. A great crowd surrounds the doors, but there are no sign of runs on the other banks. MINNEAPOLIS, Minn., January 21.The Russell Milling Co., of West Superior, Wis., which assigned, to-day, is an extensive concern, having a daily mill capacity of 3,000 barrels at West Superior. They have smaller mills at Valley City, Mandan and Jamestown, North Dakota. The assets and liabilities are not yet known.
3.
January 21, 1897
El Paso Daily Herald
El Paso, TX
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Savings Bank Closed. DES MOINES, Iowa, January 21. The German Savings bank of this city closed its doors this morning. The German Savings bank owed depositors at last report $554,000; assets stated to be $661,000. The failure was a great surprise, the bank being under a very conservative management, A great crowd surrounds doors but there are no signs of a run on other banks.
4.
January 21, 1897
The Jersey City News
Jersey City, NJ
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SAVINGS BANK SUDDENLY CLOSED DES MOINES, Iowa, Jan. 21, 1897.-The German Savings Bank, the second largest bank in the city in point of deposits, closed its doors shortly before eleven o'clock. A notice posted on the door states that the bank is in the hands of the assignee, Backburn, who only two week ago became its cashier. Francis Geneser is President and his son, J. W. Geneser, cashier up to two weeks ago, is 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 legel limit for precent capital. The bank owed depositors at its last report on the 6th instant $554,153.17. and its assets were $661,040.53. The failure was a great surprise. Great crowds surround the door of the bank, but there are no signs of runs on other banks.
5.
January 21, 1897
Rock Island Argus
Rock Island, IL
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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.
6.
January 21, 1897
Evening Star
Washington, DC
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COULDN'T CASH THE CHECK. The German Savings Bank at Des Moines Closed. DES MOINES, Iowa, January 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. 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.
7.
January 22, 1897
Richmond Dispatch
Richmond, VA
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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.
8.
January 22, 1897
The News & Observer
Raleigh, NC
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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.
9.
January 22, 1897
The Morning News
Savannah, GA
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LOANED TOO MUCH MONEY. One of DesMoines Big Banks Goes Under For Want of Cash. Des Moines, la., Jan. 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 president and his son, J. W. Geneser, cashier up to two weeks ago, is 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 present capital. The bank owed depositors, at its last report, on the 6th instant, $554,158, and its assets were $661,040. The failure was a great surprise. Chairman Martin of the clearing house association gave out the following statement: The clearing house committee went over the German 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 as 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 will pay all depositors in full. J. }. Rounds, cashier of the Citizens National, who went to Chicago representing the Des Moines Clearing House Association, wires that three-quarters of a million of currency will reach here to-morrow for the Des Moines banks. The clearing house has decided to take advantage of the sixty days clause. None of the banks did so, 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.
10.
January 22, 1897
The Copper Country Evening News
Calumet, MI
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Des Moines Bank Assigns. Des Moines, Ia., Jan. 22.-The German Savings bank of this city assigned to H. T. Blackburn Thursday. The capital of the concern is $75,000; assets, $611,000; undivided profits, $11,000; deposits, $540,000. The bank suspended payment after having opened Thursday morning with only $5,000 on hand. 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. Depositors will be paid in full.
11.
January 22, 1897
The Seattle Post-Intelligencer
Seattle, WA
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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.
12.
January 22, 1897
The Herald
Los Angeles, CA
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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.
13.
January 23, 1897
The Seattle Post-Intelligencer
Seattle, WA
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CONDENSED DISPATCHES. The house of the Texas legislature has passed a bill prohibiting Sunday baseball. Fire in the Occidental hotel of Lake City, Col., Thursday, caused a loss of $16,000. Andrew Carnegie was accorded a reception at Johnstown, Pa., Thursday evening. Since the first of January there has been a marked increase in the tide of immigration. General Manager Dickinson, of the Union Pacific. has returned to Omaha from an extended trip South. The gross earnings of the Union Pacific system for eleven months of 1896. amount to $13,206,698. an increase of $12,838. The blg dynamo of the Dynamo Toronto Electric Company was destroyed by fire Thursday morning. A duel over a girl was fought last week In Kentucky by John Dairy and Ben S. Dryman and both were killed. Some fifteen large land owners in the upper Sacramento valley are pressing to completion a big colonization scheme. German Savings Bank, Des Moines, has assigned to H. T. Blackburn. Capital, $75,000; assets, $611,000: undivided profits, $11,000; deposits, $540,000. The Marquis of Salisbury on October 20 proposed that the ambassadors at Constantinople should formulate reforms to be enforced by the powers. Mrs. Millie Gay, of Pueblo, Col., has caused the arrest of W. Burdette Gay. of Alameda, Cal., on a charge of bigamy. He is said to have four wives. The first steamer of a new company, the San Francisco and Yokohama Transportation Company. will leave Yokohama about February 5 for San Francisco. The second in the series of state dinners was given by President and Mrs. Cleveland at the White House Thursday night, the diplomatic corps being the guests. Norwegian bark Jabez went aground in the South Pacific ocean last November and was abandoned. The crew was picked up by a barkentine and taken to San Francisco. Francis Schlatter. supposed to be the healer, attempted suicide in Ogden Wednesday night. About 7:45 o'clock he went into the lunch room of the Union Pacific hotel. drank a cup of coffee and went out on the platform. Soon after he opened 1 pocket knife and cut his throat, severing the windpipe and most of the arteries, but missing the jugular vein.
14.
January 24, 1897
Omaha Daily Bee
Omaha, NE
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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.
15.
January 29, 1897
Twice-A-Week Plain Dealer
Cresco, IA
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From the State Capital. Whether it be for the purpose of currying favor with the taxpapers or from a genuine spirit of economy the state senate has done the right thing in reducing the number of clerks from forty to twenty. If it is a real desire to save the state funds why did they not think of it last sestion? Ex-Congressinan Walter I. Hayes, was elected from Clinton county to the vacancy occasioned by the death of State Representative N. A. Merrill. Last November, Mr. Hayes was the silver candidate for congress in that district and lacked about 1000 votes of carrying Clinton county. At this special election, less than three months after the goldbug victory, he carried the county by about 1000 majority, getting ebout two-thirds of all the votes. If straws show which way the wind blows, what does this indicate? It looks very much as though the people are sick of the way they allowed the election to go last tall and would be glad to try something different now if they but had an opportunity. If the same ratio holds good all over the state, and everything goes to show that it will, the reform forces will sweep Iowa next all by a tremendous majority. The McKinley wave of prosperity and restored confidence struck Des Moines in good shape last week. To ay nothing of several smaller failures he German Savings bank closed its loors. It was the most popular bank n the city and has plenty of assets to bay out but owing to the scarcity of noney, which the present powers re# 'uo uu make 07 esn could not realize on them and had to quit. The other banks were considerably scared for fear their depositors would want their money, knowng that a "run" would burst every one of them, but by publishing reorts that they had got all the money needed from Chicago and by taking advantage of the sixty day clause under which deposits cannot be withdrawn, other banks were prevented and depositors will continue to plod along in a state of uncertainty and ear, not knowing whether they will ever get their money or not. Depositors of the bursted bank are promised their money as soon as the business can be straightened out, but such promises are always madeand seldom fulfilled and they may get all and they may get very little. And still there are some people who refuse to believe that we need more and cheaper tem. money and a better banking sysNever before were there so many people In Des Moines in need of assistance. Not charity, but an opportunity to earn a living. In fact hundreds of thousands are becoming desperate. The monopoly-serving, anti-silver, Hanna-helping organ, the Register, is forced to admit that its ante-election promises of plenty of work at good wages as soon as McKinley's election was assured, was false and misleading and in depicting the present pitiable situation urges prompt action by the city government to prevent hundreds of families from starvation and says if immediate assistance be not forthcoming there will be so-called criminal acts to secure bread which under the circumstances, will be perfectly justifiable in the sight of God. Speaking of the destitute workingmen the Register says: "Now the savings have been expended, they are out of employment and out of food, and as a last resort they have gone to the city
16.
January 29, 1897
Hot Springs Weekly Star
Hot Springs, SD
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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
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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
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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
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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
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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.