3543. German State Bank (Le Mars, IA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
August 18, 1893
Location
Le Mars, Iowa (42.794, -96.166)

Metadata

Model
gpt-5-mini
Short Digest
8d8e77e4

Response Measures

Full suspension, Books examined

Other: Banks posted notices they would pay depositors in full when assets could be realized; state auditor authorized resumption.

Description

Multiple contemporaneous articles report heavy withdrawals that led the four Le Mars banks (including the German State Bank) not to open on Aug 18, 1893. This is described as closure by directors 'owing to the constant withdrawal of deposits' after the Le Mars National told others it would be unable to open. The German State Bank later reopened (reports Aug 27–30, 1893). Cause classified as distress spreading from a local bank (local_banks).

Events (3)
1. August 18, 1893 Run
Cause
Local Banks
Cause Details
Constant withdrawals/panic triggered after Lemars National informed other banks it would be unable to open, producing steady cash withdrawals.
Measures
Posted notices on doors stating closure by order of directors; banks closed as self-protection; directors promised to pay depositors when assets realized; examiners awaited.
Newspaper Excerpt
owing to the constant withdrawal of deposits this bank is .closed by order of the directors
Source
newspapers
2. August 18, 1893 Suspension
Cause
Local Banks
Cause Details
Banks suspended operations because of inability to get cash after heavy withdrawals and inability to realize on collateral; Lemars National's failure to open precipitated the others.
Newspaper Excerpt
On the door of each was posted a notice stating that owing to the constant withdrawal of deposits this bank is closed by order of the directors
Source
newspapers
3. August 27, 1893 Reopening
Newspaper Excerpt
The German State Bank Is Now Open for Business. A telegram from the state auditor yesterday authorized them to resume business.
Source
newspapers

Newspaper Articles (11)
1. August 19, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, August 19, 1893

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Article Text

NEW PASSENGER RATES. CHICAGO, Aug. 18.-The Union Pacific to-day gave notice that on next Sunday it would put into effect $25 first-class and Ssecond-class rates from Missouri River points to Butte, Helena, Portland and Spokane. The same first-class rate will apply to East-bound. The California Rate Committee has submitted a proprosition to the Western roads to make $70 the selling aud $65 the basing rate from California to the Missouri River. This would make the rate to Chicago a trifle under $80. BANK DOORS CLOSED. Four Institutions at Lemars, Iowa, Suspend Business. LEMARS (Iowa), Aug. 18.-Four banks of Lemars did not open for business this morning. On the door of each was posted a notice stating that owing to the constant withdrawal of deposits this bank is .closed by order of the directors, and all depositors will be paid in full. The Lemars National Bank informed the other banks last night that it would be unable to open this morning, and as a means of self-protection the other banks closed. The assets of all the banks are far in excess of the liabilities. The Lemars National was the oldest bank in the city, and has a capital of $100,000, with $20,000 surplus. The others are the First National, capital of $100,000; German American Savings, $50,000 capital; German State Bank, $50,000. All have a large suplus of accounts, and have been ranked among the best institutions in the State. They closed because of the impossibility of getting cash. All are in good condition for ordinary times, but the withdrawals of cash have been steady, and the collaterals could not be realized. The action of the banks was a complete surprise, and caused a panic in town. The officers of the banks say they will pay every dollar when they can liquidate advantageously. The Bank Examiners are expected in a day or so, and the banks all expect to resume business again,

2. August 19, 1893 The Helena Independent Helena, MT
Article from The Helena Independent, August 19, 1893

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Article Text

LEMARS, Iowa, Aug. 8.-Four - banks at this place failed to open their doors this morning. They are the First National, capital $100,000; Lemars National, same capital; German-American Savings. $50,000, All and the German State bank, $50,000. have large surplus accounts and have been ranked among the best institutions in the state. They closed because of the impossibility of getting cash. The notion of the banks WAS R complete surprise and has caused a panio in the town. Officers of the banks say they will pay every dollar when they can liquidate advantageously.

3. August 19, 1893 The Anaconda Standard Anaconda, MT
Article from The Anaconda Standard, August 19, 1893

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Article Text

IN THE BUSINESS WORLD. All Four Banks at Lemars, Iowa, Suspend-Gold suit 1. Coming. LEMARS, Iowa. Aug. 8.-The four banks of Lemars did not open for business this morning. On the door of each was posted a notice stating that owing to the constant withdrawal of deposits this bank was closed by order of the directors and all depositors will be paid in fall. The Lemars National bank informed the other banks last night that it would be unable to open this morning. and as a means of self protection the other banks closed. The assets of all the banks will be far in excess of the liabilities. The Lemars National bank is the oldest bank in the city and has a capital of $100,000. with $20,000 surplus. The others are the First National, capital $100,000; German American Saving. $50,000 capital: German State bank. $50,000. All have a large surplus of accounts, and have been ranked among the best institutions in the state. They closed because of the impossibility of getting cash. All are in good condition for ordinary times, but the withdrawals of cash have been steady and collaterals could got be realized. The action of the banks was a complete surprise and caused a panic in the town. The officers of the banks say they will pay every dollar when they can liquidate advantageously. Bank examiners are expected in a day or so, and the banks all expect to resume business again. NEW YORK, Aug. 8.-The clearing house commission issued $500,000 certificates to-day. The Furst Bismarck arrived last night with £883,037 of gold. The steamer Campaignia sails from Liverpool to-morrow with £300,000, and the Elb with £2,300,000. The premium on currency this morning is 3 per cent. NEW YORK, Aug. 18.-Eppinger & Russell, lumber dealers, have assigned; liabilities $400,000.

4. August 19, 1893 The Herald Los Angeles, CA
Article from The Herald, August 19, 1893

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Article Text

SURPRISED THE TOWN. The Four Banks at Lemars, Ia., Temporarily Suspended. LEMARS, Ia.. Aug. 18.-The. four banks of Lemars did not open for business this morning. On the door of each was posted a notice that "owing to the constant withdrawal of deposits this bank is closed by order of the directors; all depositors will be paid in full." The Lemars National bank informed the other banks last night that it would be unable to open this morning, and as a means of self protection the other closed. The assets of all the banks are far in excess of the liabilities. The Lemars National is the oldest bank in the city and has a capital of $100,000, with $20,000 surplus. The others are First National. capital $100,000; the German American savings, $50,000 capital; German State bank,? $50,000. All have surplus accounts and have been ranked among the best institutions in the state. They closed because of the impossibility of getting cash. All are in good condition for ordinary times, but the withdrawale of cash have been steady and collaterals could not be realized on. The action of the banks was a complete surprise and caueed a panic in town. The officers of the banks say they will pay every dollar when they can liquidate advantageously. Bank examiners are expected in a day or 80 and the banks all expect to resume business again.

5. August 19, 1893 The Morning Call San Francisco, CA
Article from The Morning Call, August 19, 1893

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Article Text

FOUR BANKS FAILED. Went Down Like a Row of Bricks Set on End. One Closed Its Doors and Then the Others Could Do No More Business. Special to THE MORNING CALL LEMARS, Iowa, Aug. 18.-The four banks of Lemars did not open for business this morning. On the door of each was posted a notice slating that owing to the constant withdrawal of deposits the bank would close by order of the directors, and depositors would be paid in full. The Lemars National Bank informed the other banks last night that it would be unable to open this morning, and as a means of self-protection the other banks closed. The assets of all the banks are far in excess of their liabilities. The Lemars National is the oldest bank in the city, and has a capital of $100,000, with $20,000 surplus. The others are the First National, capital $100,000; German-American Savings, $50,000 capital, and German State Bank, $50,000. All have large surplus of accounts. and have been ranked among the best institutions in the State. They closed because of the impossibility of getting cash. All are in good condition for orginary times, but the withdrawals of cash have been steady, and collaterals could not be realized upon. The action of the banks was a complete surprise and caused a panic in the town. Officers of the banks say they will pay every dollar when they can liquidate advantageously. The Bank Examiners are expected here in a day or 80 and the banks all expect to resume business. NEW YORK, Aug. 18.-The Fuerst Bismarck arrived last night with £889,037 in gold. The steamer Campagnia sails from Liverpool to-morrow with $300,000 in gold and the Elb with $2,300,000. The premium on currency this morning 18 3 per cent. The Clearing-house Committee issued $500,000 in additional certificates to-day. Chairman Magoun of the Santa Fe Railway board announces the extension of the guarantee fund notes to November. The amount is $9,000,000. Eppinger & Russell, lumber-dealers, have assigned. Liabilities $400,000. Eppinger & Russell, who are among the heaviest operators in yellow pine in the United States, have assigned. The liabilities are between $350,000 and $400,000 and the assets considerably more. Inability to realize on the assets is the cause of the trouble. DALLAS, Tex., Aug. 18.-The Southern Distilling Company, manufacturers and wholesale dealers in wines and liquors, filed a chattel mortgage today to secure claims aggregating $68,500. BROOKLYN, Aug. 18.-All the large oil refineries in Brooklyn, except two, those of Matthiessen and Mollenhauser, have closed temporarily. This is said to be one of the periodical shut downs ordered by the trust.

6. August 19, 1893 The Daily Morning Astorian Astoria, OR
Article from The Daily Morning Astorian, August 19, 1893

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Article Text

FOUR SOLID BANKS GONE. Le Mars, Iowa, Aug. 18.-Four banks at this place failed to open their doors this morning. They are the First National, with a capital of $100,000, the Le Mars National with the same cap. ital, the German American Savings Bank, with $50,000 capital and the German State Bank, with $50,000. All have large surplus accounts and have been ranked among the best institutions in the state. They closed because of -the impossibility of getting cash. All were in good condition for ordinary times, but withdrawals of cash had been steady and collaterals could not be realized on. The action of the banks was a complete surprise and has caused a panic in town. The officers of the banks say that they will pay every dollar when they can liquidate advantageously.

7. August 19, 1893 New-York Tribune New York, NY
Article from New-York Tribune, August 19, 1893

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Article Text

COULD NOT REALIZE ON THEIR ASSETS. SUSPENSION OF THE FOUR BANKS OF LEMAR. IOWA-OTHER BANK TROUBLES. St. Louis, Aug. 18.-A dispatch from Lemar. Iowa, says: The four banks at this place failed to open their doors this morning. They are the First National. capital $100,000; Lemar National, same capital; German-American Savings, $50,000 capital and German State Bank. $50,000. Each has a large sur plus of accounts, and the four have been ranked among the best institutions in the State. They closed because of the impossibility of getting cash. All were in good condition for ordinary times, but withdrawals of cash had been steady and collaterals could not be realized on. The action of the banks was a surprise. and has caused a panic in the town. Officers of the banks say they will pay every dollar when they can liquidate advantageously. Aurora. III., Aug. 18.-The Kendall County Bank. a private concern owned by M. R. Cornell at Yorkville, III., closed its doors yesterday. owing to Inability to realize on assets. The assets are placed at $70,000 and the Habilities at $65,000. Washington, Aug. 18.-Controller Eckels WaS to day informed that the People's National Bank of Winston, N. C., capital $100,000, had suspended.

8. August 19, 1893 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, August 19, 1893

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Article Text

FOUR BANKS CLOSE. Every Bank in Lemars, Ia,, Fails to Open Yesterday. LEMARS, Ia., Aug. 18.-Four banks at this place failed to open their doors this morning. They are the First National, capital $100,000; Lemars National, same capital; German-American Savings, $50,000 capital; and German State bank, $50,000. All have large surplus accounts and have been ranked among the best institutions in the state. They closed because of the impossibility of getting cash. All were in good condition for ordinary times, but the withdrawals of cash had been steady and collaterals could not be realized on. The action of the banks was a complete surprise, and has caused a panic in town. Officers of the banks say they will pay every dollar when they can liquidate advantageously. On the door of each was posted a notice stating that "owing to the constant withdrawal of deposits this bank is closed by order of the directors and all depositors will be paid in full." The Lemars National bank informed the other banks last night that it would be unable to open this morning, and as a means of self-protection the other banks closed. Bank examiners are expected in a day or so and the banks all expect to resume business again.

9. August 29, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, August 29, 1893

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Article Text

SIX BANKS CLOSE. LE Mars, Iowa, Aug. 18.-All the banking institutions of this city-four in inumber-havesuspended. They are the First National Bank, with a capital of $100,000; Lemar National Bank, cap ital $100,000, German American Sav ings Bank, capital $50,000, and the German State Bank, which also has a capital of $50,000. AURORA, August 18.-The Kendall County Bank, a privateconcern, owned by M. E. Cornell, in Yorkville, Illinois. closed its doors yesterday owing to the inability to realize on assets. The as sets are placed at $70,000 and the lia bilities at $65,000. DENVER, Col., Aug. 18.-John B. Koetting, the absconding cashier of the South Side Savings Bank of Milwaukee, was captured in Denver last night. He arrived here August 5th and was recognized, but eluded the detectives, went directly to St. Anthony's Hospital, on the outskirts of the city, under the name of Herman and obtained a room, shamming illness. Only $200 of the $199,000 said to have been taken by him was found on him.

10. August 31, 1893 The Yellowstone Journal Miles City, MT
Article from The Yellowstone Journal, August 31, 1893

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BUSINESS ON A BOOM. Suspended Banks Opening Their Doors, and Money Pouring In. Fifty Manufacturing Establishments and: Twenty Banks Have Resumed in the Last Three Weeks. KANSAS CITY. Mo., August 30.-The statement issued today by the national banks of this city shows that since the height of the financial Hurry. which was reached July 19. deposits have increased 82.000.000. SAN FRANCISCO. August 30. The People's Home Savings Bank. which closed its doors June 23. opened for business this morning. The bank has deposits of 82.000.000. DENVER. Col., August 30. The German National Bank opened its doors for business at the regular hour this morning. This is one of the oldest banks in the city and one of the last to suspend during the July panic. Soon as the doors were opened County Treasurer Hart deposited 820,000. and other merchants 825.060. several others nearly as large amounts. while the list of smaller depositors reached to the street. The other two suspended banks expect to resume this week. WAUPACA. Wis.. August 30. - The County National Bank. of this city. reopened its doors for business yesterday after a suspension of less than a month. NEW YORK. August 30. -The World to-day prints a list of twenty banks which have resumed business, also a list of about tifty manufacturing establishments which have resumed operations since August 12. CANON CITY, Col.. August 30.-The First National Bank. which closed its doors about a month ago. was opened again this morning. LE MARS. la.. August 30.--The Ger. man State bank has opened its doors for business. and is now transacting the business of this town. The other three banks will be running before long.

11. September 2, 1893 Custer Weekly Chronicle Custer, SD
Article from Custer Weekly Chronicle, September 2, 1893

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Article Text

A LEMARS BANK RESUMES. The Garman State Bank Is Now Open for Business. LEMARS, Aug. 27.-It was with a sigh of relief that the people read the sign posted in the window Saturday of the German State bank, "This bank is open for business." A telegram from the state auditor yesterday authorized them to resume business. The German American has not gotten around to all its depositors yet, as they are more scattered than the other state bank. The examiners have gotten through with the national banks and they are open for collections. Both banks are pronounced perfectly solvent. The following notice has been posted on the First National bank's door: Since the suspension of the First National bank on Friday last, at the request of P. F. Dalton, the president, we, the undersigned, directors of said bank, have made careful and thorough examination of its assets and it is our opinion that the bank is perfectly solvent and more than able to pay all its liabilities and we would earnestly request all the depositors to extend the time of payment on deposits that the bank may resume at the earliest possible moment. M A. MOORE, C. D. HOFFMAN, J. WERNLL With the opening up of one bank much of the inconvenience of the past week will be relieved.