3388. Commercial National Bank (Dubuque, IA)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
1801
Charter Number
1801
Start Date
September 27, 1873
Location
Dubuque, Iowa (42.501, -90.665)

Metadata

Model
gpt-5-mini
Short Digest
d4c54ee9

Response Measures

Accommodated withdrawals

Receivership Details

Depositor recovery rate
57.0%
Date receivership started
1888-04-02
Date receivership terminated
1892-11-11
OCC cause of failure
Losses
Share of assets assessed as good
49.5%
Share of assets assessed as doubtful
48.2%
Share of assets assessed as worthless
2.2%

Description

During the Sept. 1873 panic there was a small run on Commercial National Bank of Dubuque but it continued to pay out as usual and did not suspend. The Merchants' National Bank in Dubuque did suspend, which likely triggered local nervousness and the small run on Commercial National.

Events (3)

1. March 11, 1871 Chartered
Source
historical_nic
2. September 27, 1873 Run
Cause
Local Banks
Cause Details
Run occurred amid local panic after Merchants' National Bank in Dubuque suspended because it could not procure currency; news of that suspension and general currency scarcity spurred withdrawals.
Measures
Continued to pay out as usual; met withdrawals (deposits nearly equalled withdrawals).
Newspaper Excerpt
The Commercial National of the same place continued to pay out as usual, and though there was something of a run on it during the day their deposits nearly equalled the withdrawals.
Source
newspapers
3. April 2, 1888 Receivership
Source
historical_nic

Newspaper Articles (3)

Article from The Wheeling Daily Intelligencer, September 27, 1873

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among those who passed the Clearin House day, that it is.feared_will have to succumb to the same influences that closed their fellow banks. There has been during the day much cooler and more hoperul feeling among the business men than could have been expected, based doubtless upon the firm stand taken#by many of the strongest banks and by the more encoursging reports from New York, there is also a fair amount of currency coming in An aggregate of some $600,000 having been received by the different express companies -day Private advices from New Yorkalso state that currency is being shipped West, and banks are being advised that they may draw upon their balances. The action the Board of Trade in stopping option sales for the present, and the conservative action of the members for the past few days in involuntarily abstaining from trading in options, has put the grain trade in a condition to meet the worst. There is considerable currency coming in from the country-to investment in grain, which will go to aid the stringency. There is, however, an anxious feeling for the future, and intense interest is felt in the possible developments of to morrow: A dispatch from Dubuce, Iowa, says that the Merchants National Bank of that city closed its doors this morning, giving as a reason the impossibility to procure currency from Chicago. The Commercial National of the same place continued to pay out as usual, and though there was something of a run on it during the day their deposits nearly equalled the withdrawals. A meeting of the Clearing House As. sociation is being held to-night, but up midnight had not adjourned and the proceedings cannot be learned. The Situation in St. Louis. ST. LOUIS, Sept Mayor Brown sent a message to the city council, recommending that, in view of the fact that the temporary suspension of the banks had locked uy the funds of the city, Treasury warrants on tax certificates to the amount of $300,000 be issued, where with to pay the current expenses of the city. An ordinance authorizing such issue was introduced, and referred to the Committee on Ways and Means, and will pass without opposition. The day has passed without any excitement, but there is deep anxiety as to the result of the present disturbed condition of affairs, and men of all classes are filled with apprehension. Affairs have been quiet among the banks. The non-payment of currency, a plan adopted last night, has worked well 80 far, and has met with general approval. There have been no runs worthy of mention Most of the Savings Banks have met all demands, and their deposits have exceeded the amounts paid out. Many depositors who withdrew their accounts, deposited again during the day, and confidence was largely restored. The volume of business at the regular banks decreased some what, but no one-has suffered for the want of money. Deposits of those banks have been in excess of the amount paid out altogether. The day closed with an improved feeling and a brighter hope for the future. To-Day's N. Y. Times' Money Article ENCOURAGING SYMPTOMS. NEW YORK, Sept. 27.-The Times' financial article states that for the first time since the panic set in prime merchant paper outside of bank has been negotiating at 12 and 15 per cent, and a considerable amount of short produce bills from the west have been discounted at bank without settlements of stock exchange. The contracts have proceeded 80 far that it is now believed that the Exchange will be reopened at an early day. A number of banks have so far reconsidered their purpose to refuse greenbacks or bank notes for moderate checks, that they are now accommodating dealers, and an up -town bank officer believes that there will be no difficulty in furnishing notes for the payment of laborers to-morrow. The Clearing House Association hassent into the Sub Treasury all their $500 and $1,000 certificates, for the payment which greenbacks were reserved in the Treasury, except about $5,000,000, and have received notes therefor. How much legal tender the banks will close with to-morrow, there are now no means of knowing to-night. After the re-open ing of the Stock Exchange next week, most of the Banks will insist upon being relieved of the dangerous burden of certifying brokers' checks. No Panic Yesterday at Memphis. MEMPHIS, Sept. 26. The financial panic was not resumed to-day. At meeting of the stockholders of the First National Bank, the bank was shown to have abundant first-class assets, and measures were taken to set the bank on a better basis than before The London Times of this Morning on the American Panic. LONDON, Sept. 27-5 -The London Times this morning in a leader says "In view of the great fact that the mercantile class of the United States are still, unharmed if means are devised to check the utterly groundless decline in rates of Exchange, so as to permit a continuation of legitimate commerce, the solid interests of the country will remain free from peril, and there will consequently be no contagion from the disas. ter in England.' Fatal Affray Near Franktort, Ky. LOUISVILLE, Sept. 26.-A special to the


Article from Chicago Daily Tribune, September 27, 1873

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intention of suspending. They are well supplied with currency, and ready for any emergency. Beveral of them kept open until 5 o'clock this afternoon. There was no general run upon any of them, and n fow depositors withdrew their money. The universal fooling is that the banks are sound. The Savings Bank had a grenter demand upon it of any others, but met all the demands promptly. Special Dispatch to The Chicago Tribune. EAST BAGINAW. EART BAGINAW, Sept. 26.-At the opening of the banks this morning, a run was commenced on the Second National, the People's Savings Bank, and Thomas P. Sheldon & Co. The run was heaviest on Sheldon & Co., who do & savings business In connection with private banking business. An many as one hundred depositors, mostly of the poorer class, presented their claimn at once. It was rumored, during the afternoon, that the bank had suspended, but it kept open doors until the usual time of closing. In the afternoon, a meeting was held nt the Bancroft House, at which seven banks from East Saginaw, two from Baginaw City. four from Bay City, and one from Flint were represented. After a full discussion a series of resolutions were adopted, to which all the banks present acceded. The following resolutions embody the sense of the meeting : Resolved, That DA the views of the persons present that the boat interests of the country will be best promoted by bankers declining to pay currency pending the present crisis, beyond the actual necessities of business; banks and bankers to certify checks drawn against actual deposits when desired, such checks to be used, 80 far as the samemay be availablo, in the ordinary bustness of the country. Resolved, That we recommend to all savings banks to avail themselvos of the right of giving notice before paying depositors until the present excitement shall die away. MATTOON. Special Dispatch to The Chicago Tribune, MATTOON, Ill., Sept. 20.-Our banks here, the First National and Farmers' & Merchanica', are regarded by all our business men as financially sound, but on account of the action of the banks they refuse to pay any but small deposits. DUBUQUE. DUBUQUE, In., Sept. 20.-There has been more OXcitement here to-day than has been seen for a long time, At o'clock this morning, notice was posted on the door of the Merchante's National Bank that it would not be open for the transaction of business. The notice road as follows: This bank is temporarily suspended, BR it is impossible to procure currency for the transaction of business. By order of the Board of Directors. F. W. II. Shefield, President . A. Babbage, Cashier." This notice, of course, produced a commotion, and the nows spread through the town like wildfire. The Merchants' is the leading bank here, having the largest amount of depositors, doing mostly a commercial business, and it has preserved the unlimited confidence of the community. The immediate cause of its suspension hns been its inability to procure currency from Chicago, where a large balance is due. Its loans are of the best, and no one entertains n doubt but business will be resumed in a fow days. A meeting of the Directors will be held to-morrow to determine upon its futuro course, and will no doubt open as soon as the flurry is over. The First National Bank to-day pursued the same course as that adopted in Chicago, paying only email checks of $100 and less. This bank has a largo amount of balances in Chicago, Milwaukee, and other places, but none of it can be made available. The bank, consequently, pays small checks, and offers to depositors a choice out of its bills receivable to make them good, the bank indorsing them. The Commercial National Bank is paying everything in full, and say they will go through all right, as they have enough to meet all domands that can possibly be made agaist them. There was n emall run on them during the day, but at 3 o'clock their cash out was only $1,000 less than deposits mado in the course of the day. There has been a run on the Gorman Savings Bank all day, this bank having a largo number of depositors among poor people, but every dollar has been promptly paid, and the oflicers Bay they can meet every cent. In fact, they rather court a run to show how strong they are. The bank is certainly doing splendidly. A small run has been made on the Peoples' Savings Bank, but all papor due is promptly paid, and oven some not yet due. Deposits here, however, are quite equal to the amount paid out,


Article from The Rutland Daily Globe, September 29, 1873

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CHICAGO, Sept. 27-Midnight. The action of the board of trade in stopping option sales for the present and the conservative action of the members for the past few days for voluntarily abstaining from trading in options, have put the grain trade in condition to meet the worst. There is considerable currency coming in from the country for investment in grain, which will aid to lessen the stringency. There is, however, anxious feeling for the future, and intense interest felt in developments of to-morrow. Dis. patches from Dubuque, Iowa, say the Merchants' National bank of that city closes its doors this morning, giving as a reason the impossibility of procuring currency from Chicago. The Commercial National bank of the same place continued to pay out as usual, and though there was something of a run during the day their deposits nearly equaled withdrawals. MEASURES OF BOSTON BANKERS. BOSTON, Sept. 27. At a meeting of the bank presidents of this city, this morning, it was decided to adopt the New York plan, that is to make only small currency payments and to issue ten million dollars of loan certificates.