4329. Columbian National Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Start Date: May 12, 1893
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 23131872

Response Measures

Full suspension, Books examined

Other: Receiver appointed; attempted resumption announced then receiver actions in June.

Description

The Columbian National Bank experienced heavy withdrawals after the Chemical National Bank failure and circulating rumors; directors closed the bank May 12, 1893. A receiver was later appointed and the bank remained closed. Cause of initial run appears linked to distress of other local Chicago banks and consequent loss of confidence.

Events (3)

1. May 12, 1893 Run

Cause: Local Banks
Cause Details: Runs and heavy withdrawals followed the recent failure/suspension of the Chemical National Bank of Chicago and circulating rumors about the Columbian's condition.
Measures: Directors decided to close the bank's doors (suspended operations) in response to the constant run.
Newspaper Excerpt: Rumors that the institution was in trouble have been current for nearly a week. A constant run on the bank since the announcement of the Chemical suspension decided the directors to close its doors.
Source: newspapers

2. May 12, 1893 Suspension

Cause: Local Banks
Cause Details: Suspension was precipitated by heavy withdrawals tied to the fallout from the Chemical National Bank's failure and attendant loss of confidence; also reports of poor collections on loans and weak local securities holdings intensified the problem.
Newspaper Excerpt: The Columbian National bank of this city suspended yesterday. ... A constant run on the bank since the announcement of the Chemical suspension decided the directors to close its doors.
Source: newspapers

3. June 23, 1893 Receivership

Newspaper Excerpt: Action was begun by Receiver Niblack for the bank in the United States Circuit Court to-day. The amount claimed is $40,000. ... The Columbian National Bank of Chicago closed its doors and Mr. Sturgis, the bank examiner, is in charge. ... the concern held a lot of local securities, which had been raided to the danger point ... appointed a receiver / receiver in charge / action begun by Receiver Niblack ... (June 23 references).
Source: newspapers

Newspaper Articles (11)

1. May 12, 1893 Santa Fe Daily New Mexican Santa Fe., Santa Fe, NM

Article from Santa Fe Daily New Mexican, May 12, 1893

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Banks Go Down. INDIANAPOLIS, Ind., May 12. --The Capital National bank of this city has suspended. The state bank examiner is in charge, and a statement will be had soon. The closing of the bank's doors was made necessary by the closing of the Chemical National bank, of Chicago, last week, which institution owed the Capital some $100,000. The bank also carried a large amount of Premier Steel Works' paper. The latter concern was placed in the hands of a receiver Friday last. The bank is the depository for a number of building associations. The announcement of the suspension is the cause of a great shock to the people. Chicago.--The Columbian National bank of this city suspended yesterday. The bank had offices in the Insurance Exchange. The deposits are $1,400,000 and the capital $1,000,000. Rumors that the institution was in trouble have been current for nearly a week. The estimates of bankers intimate with its affairs make this showing: Assets, deposits, $1,000,000; discounts, $1,250,000; total, $2,250,000; liabilities, $1,500,000. A constant run on the bank since the announcement of the Chemical suspension decided the directors to close its doors. Wilmington, Del.-The announcement of the failure of R. R. Robinson & Co., bankers and brokers of this city, created a sensation yesterday. The liabilities are estimated at $300,000 and the assets $100,000. The sheriff has seized all property.

2. May 16, 1893 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, May 16, 1893

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# THE RECENT BANK FAILURES. THE trouble with the Western bucket-shop banks was that there wasn't any money in the buckets when the shops went broke.-Philadelphia Times. ZIMRI DWIGGINS is the Western banker whose several banks are at present somewhat under a cloud. Unfortunately there is not much in his name to restore confidence. Commercial advertiser. THE experience of the Dwiggins syndicate indicates that a wholesale banking business founded on a deficit is a risky venture. But is there no law to protect innocent depositors from such rotten financial structures?-St. Louis Globe-Democrat. THE mushroom banking system built up by the mushroom Columbia Bank was an excrescence on the sound banking system of the country, and its elimination is a help, rather than a hindrance, to the maintenance of full business confidence. Louisville Commercial. THEIR collapse means disaster and perhaps sore suffering to the people of their localities whose money they had on deposit, but it is unlikely to have any serious effect upon she general financial situation, except in so far as rapid succession of even unimportant bank failures tends to impair confidence.-New York World. He could not help his name, of course, but if Zimri Dwiggins had kept it a little more to himself instead of scattering it broadcast over the West, it would have been money in the pockets of a great many people, and perhaps in his own. His folks worked the vowel i for all it was worth, and he worked ou for still more.-New York Tribune. IT is the class to which Dwiggins belongs which will take advantage of the proposed change in our banking laws to establish at every cross-roads their bucket-shop banks, if the term is admissible, and proceed to the grinding out of paper promises to pay in a mighty flood, to the infinite damage of our business interests and the certain loss to the people.-New York Advertiser. Up to the present time the revelations concerning the manner in which Mr. Zimri Dwiggins organized Western banks have had a most demoralizing effect upon the reputation of such men as Napoleon Ives. Compared with the manner in which Dwiggins "promoted" things on no capital apparently but wind, their methods were decidedly amateurish. He had a regular corner in financial winds-Philadelphia Times. It appears that Zimri Dwiggins, the financial genius who developed this system of branch banks upon the capital stock of one small bank, was also the architect of its ruin. As president of the Columbian National Bank, of Chicago, Dwiggins not only drew out its funds to the full legal limit on his own account, but used ite money to sustain several speculative undertakings in which he was interested. -Philadelphia Inquirer. ORDINARILY such a series of bank failures as were reported from the West, yesterday, could happen only in a time of panic. But these failures have an aspect

3. May 16, 1893 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, May 16, 1893

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WILL PROBABLY PULL THROUGH. Embarrassment of a Minneapolis Concern Believed To Be Temporary. MINNEAPOLIS, Minn., May 15.-The Northwestern Guaranty Loan Company is embarrassed owing to the financial stringency. The company's stock is $1,250,000. It owns a two million dollar building in which its offices are located and holds as collateral and in fee simple a large amount of real property here, in Chicago and elsewhere. Its business is the loaning of commercial paper on sufficient collateral and guaranteeing of the paper. It has three millions of this paper. The refusal of its patrons to take up or renew notes precipitated the trouble. If the company suspends it will not do so for several days. It is believed in business circles that ultimately the company will pay in full. Denver Business Man in Trouble. DENVER, May 15.-William S. Mygatt, a well known banker and business man, assigned today. He places his assets at at $591,860; liabilities, $507,889. He says he will pay dollar for dollar, and that the assignment was caused by eastern banks with which he has dealt for a long time, refusing to take securities they previously desired. Fires Embarrassed This Concern. PITTSBURG, Pa., May 15.-Godfrey & Clark, paper manufaturers, announced their failure today. They are the largest paper manufacturers in western Pennsylvania. The firm was unfortunate in having several times been burned out. The manager says they are preparing a statement. The Columbian National. CHICAGO, May 15. - The directors of the Columbian National Bank today resolved to resume business at an early date.

4. May 16, 1893 Evening Star Washington, DC

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# The Examiners Report That the Situation is Much Better. State Bank Examiner Orlando Packard of Indiana last night said that his examination, together with United States Bank Examiner Young, into the condition of the Capital National Bank of this city showed thus far that the bank was in better shape than the report of President Wilson had made out, and if the Chemical of Chicago resumed there, would be no doubt of the resumption of the Capital here. Concerning the bank situation in Indiana he said it was decidedly better. There were runs Saturday reported from many places, all of which had been successfully met, and although the crisis might not be entirely over there was less danger to be feared this week. There have been in all ten failures of banks in the state as a result of the failure of the Columbian National of Chicago. It is announced by John W. Paris and J. Shannon Nave of Indianapolis that the banks in which they are interested will reopen within a few days. The Orleans Bank has been disposed of to Orleans capitalists and will, it is announced, resume business. The syndicate announces that it has about completed arrangements for the reopening of the other banks in its exclusive string. It is also stated that some of the banks operated by Dwiggins & Starbuck of the Columbian National will be reopened during the week.

5. May 18, 1893 The Somerset Reporter Skowhegan, ME

Article from The Somerset Reporter, May 18, 1893

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The Columbian National Bank of Chicago closed its doors May 12. It is said to be a bad failure and not much surprise was expressed in financial circles at the suspension. Some eighteen or twenty small banks and firms of bankers in Illinois, Ohio, Michigan and Indiana, connected with this Chicago bank have also suspended creating quite a financial flurry in those states. There were about forty banks connected with the Columbian bank combination.

6. May 18, 1893 The Stark County Democrat Canton, OH

Article from The Stark County Democrat, May 18, 1893

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PITH OF THE NEWS. The Grecian cabinet has been com. pleted. The Columbian National bank, Chicago, will resume business. Quimper and Lorient have been officially declared free from cholera. Chilean mine owners are anxious to im port World's fair machinery after the exposition is over. As a result of the lumber shovers' strike, the docks of Buffalo and Tonawanda are crowded with vessels. William B. Mygatt, a broker and business man of Denver, Col., failed for $507,+ 889:35. His assets are placed at $591,806. In a quarrel W. A. Bisbee, city treasurer of Jacksonville, Fla,, cut ands eriously wounded C. F. Warriners, a prominent a to secure citizen, An effort with relaxation is being penknife. of made the quarantine a permanent regulations of the port of New Orleans against British Honduras. Nehr & Carpenter, eastern managers of the Northwestern Guaranty Loan company of Minneapolis, which is somewhat embarrassed, made an assignment. Senator Sherman denounces as an "outrageous lie" the statement of Dwiggins that the senator had examined and indorsed Dwiggins' banking scheme. The Farmers' and Merchants' State bank of Minneapolis suspended payment. It is a small concern, its paid-up capital being $60,000, and its surplus $7,000. The general secretary of the Christian Endeavor societies has notified President Palmer of the World's fair, that 1,500,000 members will oppose the opening of the fair on Sunday. Captain Higginson has been removed from the cruiser Atlanta for dilatoriness in sailing from Greytown to Nicaragua, and has been ordered home. Captain Bartlett succeeds him. The private car in which President Lincoln made many journeys, will be exhibited at the World's fair, having been used for many years as the work car on the Colorado Central railroad. A convention has been signed between Brazil and France for the appointment of 'a mixed commission to settle the dispute between the two republics over the boun dary between Brazil and French Guiena Mrs. J. E. Clogh, wife of the well known Baptist missionary, inet with a in a which closed killed frightful by death folding bed, Chicago. She upon was her, while her daughter stood by powerless to prevent. Members of the Indiana Civil Service Reform association have called the attention of the president and postmaster general to the disregard of civil service reform methods under the new administration of the been city a Consternation Terre of Valencia Haute has postoffice. by dynamite created outrage, in the apparently intended to strike terror into the aristocratic families of that city. The affair is attributed to the anarchists, who are once more becoming active in Snain

7. May 19, 1893 Iowa County Democrat Mineral Point, WI

Article from Iowa County Democrat, May 19, 1893

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Miss Mabel Soule, of Wautoma, had a narrow escape from losing the sight of her left eye a few days ago. She was using a pair of shears and in some manner they slipped, striking her in the eye and cutting it badly. The attending physician has hopes of saving the sight. On account of the suspension of the Columbian National bank, of Chicago, the Bank of Necedah was forced to suspend business. An assignment was made to W. L. Fuller for the benefit of the creditors, and it is thought that depositors will realize nearly in full.

8. May 20, 1893 Martinsburg Herald Martinsburg, WV

Article from Martinsburg Herald, May 20, 1893

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NATIONAL BANKS CLUSE. Trouble in Chicago and Indianapolis. The Failure of R. R. Kobinson & Co., Wilmington, Del. The Columbian National Bank of Chicago closed its doors and Mr. Sturgis, the bank examiner, is in charge. Its capital is $1,000000. The statement of its condition at the close of business on May 4th showed deposits of $1,458,000, loans and discounts $1,625,000, United States and other bonds, $341,000; cash and sight exchange, $616,000. The concern held a lot of local securities, which had been raided to the danger point. It was also carrying a lot of grain for local parties, and was said to be loaded with real estate. The concern had been in business about six years. It was formerly the United States National Rank, but changed its name, as it claimed then, in order to put it higher up in the alphabet in the bankers' directories, and thus get considerable business which would not come to-it further down the list. Zimri Dwiggins is the president. L. Everingham was formerly at the head, but retired about the first of the year. A great many board of trade firms carried accounts there, and the line of grain car ied by it will now go to other concerns. T. Everingham, the former president, had but a small account with the concern, and caused the announcement to be made from the gallery of the board that its embarrassment would not affect his firm in any way. The bank had offices in the Insurance Exchange. Rumors that the institute was in trouble have been current for nearly a week. It did business with small country banks, and was not in esteem with the other banking concerns in the city. As to the cause of the failure, those who should know say that collections on loans have been poor. -The New York correspondent of the Columbia National Bank is the First National Bank. The surplus and undivided profiss reported in January last were $91,769. INDIANAPOLIS BANK TROUBLE. INDIANAPOLIS, IND.-The Capital National Bank of this city, located on South Meridian street, suspended. The statement is made that the closing of the bank doors was made necessary by the failure of the Chemical National Bank of Chicago last week, which institution owed the Capital Bank $100,000. The bank also carried a large amount of Premier Steel Works' paper, a concern which was placed in the hands of a receiver last Friday. The bank is the depository fo a number of building associations. The announcement of the suspension of the bank came as a great shock to the people, especially in Meridian street, where the news was fist circulated. Some persons expressed the belief that the suspension would be only temporary. A general feeling of uneasiness, however, was manifest. FAILURE OF A DELAWARE FIRM. WILMINGTON, DEL.-The failure of R.R. Robinson & Co., bankers and brokers of this city, was announced. Rumors of the failure of the firm have been on the street for several days, and the business circles have been excited. The liabilities of the company are estimated at $300,000, while it is said the assets will not exceed $100,000. The sheriff has seized all the property of the firm.

9. May 20, 1893 The Cecil Whig Elkton, MD

Article from The Cecil Whig, May 20, 1893

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WESTERN BANK FAILURES. Public attention has generally been directed to the failure of the Columbian National Bank of Chicago, as well as the closing of a number of small branches of that short lived establishment. Despatches from Chicago inform us, that the failures are attributable to the "inexperience of the officials in the conduct of banking affairs." If there had been no other reasonable explanation of these failures, the public might have understood the case. East as well as West, there are scores of men of varying ages and of very limited experience as financiers, conducting banks, who vainly imagine them selves expert banking men, and with some of whom rascality has supplied the place of experience. They are a speculative class of gentlemen, who establish banks which can be more properly designated "shaving shops" organized upon the get-rich quick principle, of which the Keystone Bank of Philadelphia and other kindred financial (?) institutions are notorious examples. In Chicago the speculative fever, always at the high est, has been wonderfully stimulated by the development of property in the vicinity of the World's Fair grounds, and these "inexperienced" speculative financiers have of course opened banks in that locality, which it hasn't taken the depositors very long to discover were of the truly speculative character. The despatches do not inform I'S in what direction the "inexperience" of the bank managers ran, but it seems that one depositor in the Columbian Bank "scented danger," and suspecting the true character of their inexperience (?) withdrew $100,000 from the bank in a lump, and although its nominal capital exceeded that amount many times, it appeared to have no other resources, and promptly closed its doors. The career of the Columbian Bank emphasizes the fact that in addition to individual honesty in its managers, to be a successful banker in these times, requires as careful an apprenticeship or training as any other avocation or profession. They seem to have imagined that anybody could run a bank, and to have made an experiment in that line, which was at least highly interesting to the depositors.

10. June 24, 1893 New-York Tribune New York, NY

Article from New-York Tribune, June 24, 1893

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OVERWHELMED IN THE WAVE. BUSINESS FIRMS FORCED TO SUSPEND BY THE PRESSURE FOR MONEY. Chicago, June 23 (Special).-Leroy Payne, whose livery. establishment in this city has been regarded as the foremost in the West, is unable to meet his obligations and his business is in the hands of a receiver. While the Columbian National Bank was solvent it stood behind Mr. Payne by certifying his checks. When the bank failed. the chattel mortgage given by the liveryman to secure the bankers passed into the hands of the receiver of the financial institution. Now that the affairs of the Columbian are being settled up, the receiver has found It necessary to tighten the grasp on Mr. Payne's assets, and the assignment of to-day is the result. Action was begun by Receiver Niblack for the bank in the United States Circuit Court to-day. The amount claimed is $40,000. Mr. Payne's assignment followed immediately in the form of an agreement to the appointment of a receiver. Samuel Baker was named as Payne's receiver, and it is understood that an effort will be made to secure for the liveryman such financial assistance as will enable him to continue in business. Mr. Payne was generally regarded as a wealthy man and his trouble comes as a surprise. Friedman & Friedman. wholesale clothing. failed today. Liabilities, $02.000; assets about the same. Kearney, Neb., June 23.-The Kearney Paper Mill Company assigned this morning. Anderson, Ind., June 23.-Judge Ellison yesterday appointed John R. Brunt receiver of the Anderson Iron and Bolt Company. which was organized three years ago with $150,000 capital. The liabilities are $34,000, and the estimated assets are $33,000. Inability to secure money to operate the plant is given as the cause of the failure. Cincinnati, June 23.-Samuel W. Coflin & Son, owners Cincinnati Dry Dock Company. assigned to-day liabilities to Val P. Collins and H. D. Peck. Assets and estimated at $50,000 each. Preferences by mortgage were given to A. J. Montgomery & Co., the Northern Bank of Kentucky and McIWaln & Spiegel. The failure was hastened by the assignment of the Crane Lumber Company. for which this firm had indorsed. Peru, Ind., June 23.-J. O. Cole, the millionaire of this city, is partner in the firm of Crane & C.A. which assigned Wednesday in Cincinnati. He states that he is responsible for the assignment. as. owing to difficulties with his partner, Clinton Crane, he wished continued to withdraw from the firm. The firm heavy purchases of lumber against the wishes and judgment of Mr. Cole. This is the principal cause for his action. lin gives liabilities at $150,000 and assets at $400,000. Mr. Cole is the principal creditor of the firm, being in possession of the notes amounting to about 875,000. Tipton, Ind., June 23.-D. B. Vice: Brother. ex. tensive merchants of Windfall, assigned last evening for the benefit of creditors. The assets and 1.c. bilities are not stated.

11. June 24, 1893 The Sun New York, NY

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MINOR BUSINESS TROUBLES. Failures in Various Places and in Various Kinds of Business. CINCINNATI. June 23.-Samuel W. Coflin & Son. owners of the Cineinnati Dry Dock Company. assigned to-day to Val P. Collins and H. D. Peck. Assets and liabilities are estimated at $50,000 each. Preferences by mortgage were given to A. J. Montgomery & Co., the Northern Bank of Kentucky. and Mellvain & Spiegel. The failure was hastened by the assignment of the Crane Lumber Company. for which this firm had endorsed. HUNTINGTON. W. Va.. June 23.-The failure of Cincinnati's large lumber dealers. Crane & Co.. has affected some Huntington people. Crane & Co. had paper in several banks around here. notably in the Catlettsburg National Bank. Catlettsburg. Ky., which. it is said. has about $10,000 worth. An attorney started out from there yesterday to levy on timber and other property. H. Gordon of this city holds claims amounting to $15,000. The Bank of Huntington had about $3,000 of Crane & Co.'s paper. The claims about Huntington and along the streams emptying into the Ohio here will aggregate about $75,000. BOSTON. June 23.-Ata meeting of the creditors of the Magneso-Calcite Company. of which the missing Moody Merrill was President. the assignee said that the company issued $50,000 in bonds and placed them in the hands of Mr. Merrill. who represented that the bonds had never been put in circulation. Mr. Merrill's statements were untrue. Several persons have come forward with these bonds. amounting in the aggregate to $14,700. and the assignee said it was safe to assume that all the $50. 000 of bonds had been put into circulation by Mr. Merrill. The Evening Record says that Moody Merrill was seen to leave Boston on the Halifax steamer on May 27 last. DAWSON. Pa., June 23.-John S. Newmyer. the coke operator. is financially embarrassed. The liabilities will amount to nearly $100,000. He bought more coal than he could sell. He owned 2.000 acres of good coal territory. CHICAGO. June 23. Leroy Payne. one of the best known liverymen in this city, whose establishments have been regarded as the foremost in the West. is unable to meet his obligations. and his business is in the hands of a receiver. While the Columbian National Bank was solvent it stood behind Payne by certifying his checks. When the bank failed the chattel mortgage given by the liveryman to secure the bankers passed into the hands of the receiver of the financial institution. Action was begun by Receiver Niblock for the bank in the United States CircuitCourtto-day The amount claimed is $40,000. Payne was regarded AS a wealthy man. Friedman & Friedman. wholesale clothing dealers at 240 Adams street Chicago, confessed judgmentto day sumsaggregating $87,300. The other claims against the firm are estimated at about $25,000. making the total liabilities about $02,000. The assets are about the same amount. and the attorneys are of the opinion that the assets will pay all claims in full. The failure is attributed to the stringency of the money market. the firm being unable to negotiate its paper. NASHVILLE, June 23.-The well-known firm of B.S. Rhea & Son. grain dealers and commission merchants. in this city. has gone into liquidation. The debts of the firm. amounting to about $100,000. have been paid and secured by transfer of the assets and property of the firm on amounts satisfactory to the creditors. ANDERSON. Ind., June 23.-Judge Ellison yesterday appointed John R. Brunt. receiver of the Anderson Iron and Bolt Company. which was organized three years ago with $150,000 capital. The liabilities are $34,000. and the estimated Assets are $93,000. TIPTON. Ind.. June 23.-D. B. Vice & Bro., extensive merchants of Wind Fall. assigned last evening for the benefit of their creditors. The assets and liabilities are not stated. KEARNEY. Neb. June 23. - The Kearney Paper Mill Company assigned this morning.