3596. First National Bank (Marshalltown, IA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
411
Charter Number
411
Start Date
February 1, 1872*
Location
Marshalltown, Iowa (42.049, -92.908)

Metadata

Model
gpt-5-mini
Short Digest
102486b4

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Other: Stop payment but tendered custom exchange; paper protested; examiner appointed by Comptroller.

Receivership Details

Depositor recovery rate
83.5%
Date receivership started
1928-06-11
Date receivership terminated
1932-12-31
Share of assets assessed as good
49.3%
Share of assets assessed as doubtful
43.8%
Share of assets assessed as worthless
6.9%

Description

An organized run occurred in early February 1872. The bank 'stopped payment' (suspension) but immediately received aid ($40,000 from Grinnell and $10,000 from Des Moines) and did not permanently close. A Treasury examiner was later assigned to investigate minority stockholder charges. Cause appears to be a maliciously organized run by a stockholder (rumor/malicious campaign).

Events (6)

1. May 3, 1864 Chartered
Source
historical_nic
2. February 1, 1872* Reopening
Newspaper Excerpt
Before night, the bank received $40,000 from Grinnell, and $10,000 from Des Moines, but its paper was protested, and both sides claim the victory.
Source
newspapers
3. February 1, 1872* Run
Cause
Rumor Or Misinformation
Cause Details
Organized, well-prepared run inspired by the malice of a stockholder aiming to break down the bank's credit.
Measures
Bank tendered custom exchange for checks; solicited and received aid from neighboring banks (Grinnell $40,000; Des Moines $10,000).
Newspaper Excerpt
An organized 'run' was made on the First National bank of Marshalltown last week.
Source
newspapers
4. February 1, 1872* Suspension
Cause
Rumor Or Misinformation
Cause Details
Large, organized withdrawals (maliciously inspired) caused the bank to stop payment and tender exchange instead of cash.
Newspaper Excerpt
$50,000 was drawn out of the bank in two hours, when it stopped payment, tendering however, custom exchange for the checks.
Source
newspapers
5. May 16, 1872 Other
Newspaper Excerpt
Examiner to investigate the affairs of the First National Bank at Marshalltown ... with reference to certain charges made by a minority of the stock holders that the management ... failed to meet the requirements of the currency law.
Source
newspapers
6. June 11, 1928 Receivership
Source
historical_nic

Newspaper Articles (3)

Article from The Weekly Ottumwa Courier, February 8, 1872

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Article Text

STATE NEWS. Col. Faniord begins his trip round the world at Des Moines on the 14th. Three prisoners broke jail at De Witt last week and have not been i ) heard from. Teeling, clerk of Floyd county has 3 been convicted of fraud, and deposed from office. An organized 'run' was made on ) t the First National bank of Marshalltown last week. It didn't succeed. Mount Pleasant is making efforts to secure the location of the German Methodist College at that place. The Marshal Republican says that if a man wishes to 'see himself as others see him,' he should run for office. Teachers in Center township, Guthrie county, are paid in 6-20's; that is, the orders draw six per cent and run twenty years. The Postmistress of Fairfield is said to conduct the business of the office with more dispatch and business propriety than any postmaster the town ever had. A few evenings since because of the explosion of a kerosene lamp,t office of the La Porte City Progress,was burat. Loss $2,500. No insurance. Tuesday morning, about forty miles east of Clinton, on account of a broken rail, thirteen frieght cars were thrown from the track and down a declivity, and one man was killed and three seriously injured. A fire at Osage, Iowa, caused by the explosion of a kerosene lamp, destroyed the drug store of J. F. Daley, the Hitchcock blook, containing three stores and five frame buildings, and the Miohell County News office, The total loss is $50,000. Insurance only $3000. What does it mean ? The Salem, Henry county, Register says "Cyrus C. Carpenter who has just been vaca ted to a seat in the U. S. Senate, in his inaugral address, before the House of Representatives, comes out very plainly and briefly." A test liquor case will be tried in February in Des Moines, under the State temperance law passed in 1865. Mrs. Anna Priestly sues J. Hierb, a liquor dealer of that city, for selling liquor to her husband. She lays her damages at $5000. A servant girl in Davenport saw a man in the house coquetting with the spoons. She went and told the owner thereof. He went and got a revolver and a policeman. The robber went and got out of the window, The owner and policeman went and searched the house. They found a boarder in his own bed-room. In the dark the policeman knocked down the boarder with his club, the owner drew his revolver and shot the policeman thro' the shoulder, the boarder knocked down the owner with a chair, and then they found out it wasn't any of them.


Article from Buchanan County Bulletin, February 9, 1872

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Article Text

situation: "Your jury now would beg to say That as a virdict they declare; Six decide for 'Pete' McStay And six as firmly vote for Ware." - Marshalltown has had a local sensation in the shape of a formidable and well organized run on the Frst National Bank. The effort to break down the credit of the institution was inspired by the malice of n stockholder, and having been secretly in preparation for several months, and skilfully managed, was partially succesful. $50,000 was drawn out of the bank in two hours, when it stop ped payment, tendering however, custom exchange for the checks. This was refused, and the paper of the bank went to protest. But before night, the bank received $40,000 from Grinnell, and 10,000 from Des Moines, but its paper was protested, and both sides claim the victory. -Bro. Lucas, of the Waverly Independent, in his last issue, tells, with appreciative minuteness of detail, how he was roped in the third time to the tune of half a dollar by a coarse, slatternly specimen of femininity in green goggles and untidy attire, who introduced herself as Mrs. F. P. Sigel, the wife of an unfortunate blind soldier, for whose transportation from St. Louis to St. Paul, she was appealing to the sympathies of the public. We have a distinct reccollection of this saine stalwart female, and of the stand and deliver air with which, more than four years ago, she extracted a half a dollar from our pocket for the self-same purpose. The patriotic glamor surrounding the name of Sigel rendered us unwary, and we really thought that the poor fellow had reached St. Paul long ere this. Blind as he is, he had better start alone.


Article from The Tipton Advertiser, May 16, 1872

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Article Text

From the the Treasury Department at Washington, Hom. Win. ₽. Wolf has just received a Commission as Examiner to investigate the Albin of the First National Bank at Marshalltown, Iowa, with reference to certain charges made by a minority of the stock. holders that the management of the bank had in certain particulars failed to meet the requirements of the currency law. It will be remembered that a combination made a very severe run on this bank last winter, which was only successfully met by an appeat for aid to the banks of neighboring towns. The charges would not seem to involveany financial unsoundneas, as the Comptroller of the Currency informs Mr. Wolf that the ser. vices of a lawyer rather t'an an accountant are required in the investigation. However this may be, in committing the examination to Mr. Wolf, the matter is placed in reliable and capable hands.