6253. Bank of Rossville (Rossville, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
May 12, 1893
Location
Rossville, Indiana (40.417, -86.595)

Metadata

Model
gpt-5-mini
Short Digest
fa03c949

Response Measures

None

Description

Contemporary reports (May 12-14, 1893) state that the Paris & Nave concern ordered several small private banks, including the Bank of Rossville, to suspend/close after the failure of the Columbia (Dwiggins) national bank. Articles describe these as private banks and list them among those closed; no separate depositor run on the Rossville bank is described. Cause attributed to the collapse/contagion from the Columbia national bank and actions of the Paris & Nave controlling concern (classified here as correspondent/contagion).

Events (1)
1. May 12, 1893 Suspension
Cause
Correspondent
Cause Details
Paris & Nave ordered the small private banks they controlled, including Bank of Rossville, to suspend following reports of the Columbia (Columbian) National Bank failure — contagion from the reserve/central bank and their own connections to it.
Newspaper Excerpt
Paris & Nave ... upon the reports of the Columbian National bank failure, they concluded to suspend. ... The banks ordered to close by Paris and Nave ... include the Bank of Rossville
Source
newspapers

Newspaper Articles (4)
1. May 13, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, May 13, 1893

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Article Text

INDIANAPOLIS, May 12.-John W. Paris and J. Shannon Nave, under the partnership style of Paris & Nave, bankers, have from their quarters in the old Sentinel building, in this city, been conducting several small banks in the state. Upon the reports of the Columbian National bank failure, they concluded to suspend. Paris & Nave organized banks somewhat on the plan of Mr. Dwiggins, of the Columbia at Chicago; in fact, Mr. Paris was interested with Mr. Dwiggins in the Farmers' Bank of Greentown, which suspended today. Ex-Gov. Chase was also one of the founders of this Greentown bank. The banks ordered to close by Paris and Nave, of Indianapolis, include the Bank of Orleans, Bank of Rossville, Bank of Freeport, U., and Bank of Rockford, Mich. These banks were all private affairs and had no extensive patronage.

2. May 14, 1893 New-York Tribune New York, NY
Article from New-York Tribune, May 14, 1893

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Article Text

THE SITUATION IN INDIANAPOLIS. BRADSTREET'S MANAGER THINKS THE FAILURES WILL BENEFIT LEGITIMATE BANKS. Indianapolis, May 13.-Reports received here show that outside of the failures of the Dwiggins and Parts-Nave concerns, there Is no embarrassment of banks in this State. The list so fur includes the banks at Geneva, Dunkirk, Hebron. Morristown, MonFeeville, Walkerton. Knox, Rosseville, Greentown, Orleans, Greenwood. Russiaville and Boswell. The Dwiggins bank at West Lebanon is still running, and It is asserted that it will continue to run. The Morristown bank, It is believed. will resume. Henry Ertel, manager of the Bradstreet's Agency here, says that the failure of the Dwiggin S-Starbuck and Paris-Nave chains of banks is no reflection on the banking system of the State, and that the agency has received no intimation of embarrassment of any other concerns than the branches that failed yesterday. Mr. Ertel thinks the death of the banks in question will be of benefit to the legithmate banking interests, and that the other banking institutions are sound 1 1 1 and strong. Hugh Young, of Wellsboro, Penn., Special United States Bank Examiner, had a private conference with the directors of the recently failed Capital National Bank and the State Bank Examiner today. Mr. Young said during the conference that the question of the bank's resumption could not be discussed until he had made a thorough examination of the bank's affairs. Monroeville, Md., May 13.-The Citizens' Bank of Monreeville opened as usual this morning, but a run began, as a result of which the bank, at 10 o'clock, was obliged to close its doors.

3. May 18, 1893 Iron County Register Ironton, MO
Article from Iron County Register, May 18, 1893

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Article Text

A COMPREHENSIVE FAILURE. Interesting Disclosures Promised in Connection with the Failure of the Columbia National Bank of Chicago The Ambitions Exploits of Hoosier Banker in the Windy City- Scores of Country Banks Go Down with the Columbia. CHICAGO, May 13.-Interesting dinclosures are promised in connection with the investigation into the Columbia national bank failure. The directors held a meeting yesterday to discuss the practicability of resuming, but the result of their deliberations was not given out. The affairs of the bank are in such a thorough mix thatitis not known just how matters stand. Zimri Dwiggins, president of the Columbia bank, was a banker in Attica, Ind., ten or twelve years ago, and at that time established close relations with W. Wiggs and J. M. Starbuck, who were running a system of bucketshops under the name of Wiley, Strawbridge & Co. They determined to start a bank, and organized the United States national bank with a capital of $50,000. The bucket-shop business was subsequently broken up under the bucket-shop law, the bank being left in Dwiggins' control, while Wiggs went to New Mexico. The stock of the United States bank wasswelled to $500,000, and Wiggs, who had discovered an alleged gilt-edge mine drew $300,000 to pay for it. The mine waste be sold to English investors. The mine was a "dead horse" and never pannedo Nothing daunted by the failure of the New Mexican scheme, Dwiggins and Starbuck undertook the establishment of a chain of country banks. It is not known how many were then organized, but after the Columbia was established they went at it with vim, and their connections are now more extensive than before. The scheme was to visit some well-known and wellto-do farmer in a town and secure his \services as cashier of a branch, the farmer taking a large block of stock. The money wasadvanced by the Columbia and some one put in control who was in sympathy with their interests. The country bank stock thus acquired was either used as collateral for loans by the Columbia national or bought outright. As the money sent out into the country soon came back to the reserve center the bank was not out of cash long and practically no capital vas required in the promotion business. The Columbia, however, finally got loaded up with country bank stock for which it had no special use, and then it was determined, it is said, to organize a company to take this stock. issue debenture bonds on them and sell the bonds. The United States Loan and Trust Co. was put in the field with Zimri Dwiggins as president, and incorporated under the laws of Indiana. The company is said to have represented that upon the basis of country bank stocks yielding 3, 10 and 12 per cent. dividends, 6 per cent. debenture bonds would be issued. To make the bond good the United States Loan and Trust Co. guaranteed the payment of principal and interest. The plan succeeded and it is known that at one financial concern's office $250,000 of the United States Loan and Trust Co.'s debentures had been registered. The approximate amount of bank stock held for this is said to be $450,000, and President Dwiggins is understood to have $500,000 more on hand. The assets of the United States Loan and Trust Co. are said to consist of about $1,000 in office furniture. The list of branches of the Columbia bank, more than a score of which closed their doors yesterday, is long one, extending over the states of Indiana, Michigan, Illinois and Ohio. An Indianapolis Concern that Did Business on the Columbia Plan. INDIANAPOLIS, Ind., May 13.-John W. Paris and J. Shannon Nave, under the partnership style of Paris & Nave, bankers, have, from their quarters in the old Sentinel building in this city, been controlling several small banks in the state. Upon the report of the Columbia national bank failure, Paris & Nave ordered the banks which they control to suspend. It seems that Paris & Nave organized banks somewhat on the plan of Mr. Dwiggins, of the Columbia national of Chicago-in fact, Mr. Paris was interested with Mr. Dwiggins in the Farmers' bank of Greentown, which suspended yesterday. Ex-Gov. Chase was also one of the founders of the Greentown bank. The banks ordered to close by Paris & Nave, of Indianapolis, include the Bank of Orleans, Bank of Rossville, Bank of Freeport, O., and the bank of Rockford. Mich. These banks were a private affairs and had no extensive patronage. The firm of Paris & Nave has only been in existence a short time, Mr. Nave joining with Mr. Parisin.thebasiness in January, 1892. Mr. Nave described the firm's business as a general brokerage one in addition to the banking end. He says the firm has been handling securities to a certain extent. The Dwiggins plan was followed in its general outline by Paris & Nave, in organizing these small private banks. An office would be opened and local parties interested in the scheme. It was the firm's ultimate end. said Mr. Nave, to convert these small institutions into national banks, after they had been puton a sound footing. None of the banks ordered closed by the firm same a capital stock Will Probably Have to Close

4. December 27, 1893 The Representative Saint Paul, Minneapolis, MN
Article from The Representative, December 27, 1893

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Article Text

28. Cyclone: The town of Cisco, Tex., wiped out; 3) killed and 40 injured. Miscellaneous: International naval ship review in New York harbor and in the Hudson river. to. Fire: Woburn. Mass., Currying factory burned; loss, $175,000. 90. Miscellaneous: The National bank of Australasia failed for £7,500,000. MAY. 1. Miscellaneous: World's airopened at Chicago. 8. Fire: Steam and Electric Power company burned out at Louisville; loss, $300,000. 4. Obituary: Ex-United States Senator J. W. Patterson of New Hampshire, at Hanover, N.H. Personal: Dean William Lawrence chosen Episcopal bishop of Massachusetts to succeed Phillips Brooks, lately deceased. 6. Disaster: 10 killed and many injured in a wreck on the Big Four road near Lafayette, Ind. 7. Disaster: 12 killed, 7 injured by a boiler explosion on the steamer Ohio running on the Mississippi river. Obituary: Col. Ward H. Lamon, at one time Lincoln's private secretary, at Martinsburg, W. Va. The wife of Chauncey M. Depew, in New York city. 8. Fires: Frankford, Pa., Bromley & Burns' yarn dyeing mill destroyed; loss, $240,000. Chicago, the Shepard Hardware company burned out; loss, $200,000. Miscellaneous: H. H. Warner, the patent medicine manufacturer of Rochester, assigned; liabilities estimated $500,000. 9. Fire: Utica, N. Y.,J. B. Wells' dry goods store destroyed; loss over $250,000. Personal: James H. Blount appointed United States minister to Hawaii. Miscellaneous: The Bank of Victoria at Melbournesuspended, with 10. Obituary: Joseph Francis, the noted lifeboat inventor, at Otsego lake, New York. Dr. Charles Carroll Lee, president of the New York Medical society, in New York city: aged 54. 11. Fires: Spring Lake, Mich., half the village burned; loss, $80,000. Rochester, electric road plant destroyed: loss, 60,000. Pittsburg: loss, $180,000. Obituary: Gen. E. D. Townsend, adjutant general of the army, retired at Washington; aged 76. 12. Obituary: Gen. S. C. Armstrong, principal of Hampton Normal institute and Indian school, at Hampton, Va.; aged 54. Miscellaneous: The Sioux City Engine Works, Sioux City, Ia., suspended; liabilities, $200,000. The Cunard liner Campania reached Liverpool 5 days 17 hours 27 minutes from New York, breaking the east bound record. 13. Miscellaneous: Steel company at Belleville, Ills., placed in hands of a receiver. Kendall & Smith, grain dealers of Lincoln, Neb., failed for over $250,000. Bank failures at Orleans and Rossville, Ind., at Freeport, O., and Rockford, Mich. 14. Obituary: Rev. W. H. A. Bissell, bishop of the Protestant Episcopal diocese of Vermont, at Burlington; aged 80. Disaster: 10 miners killed by falling down a shaft at the Calumet and Hecla mine, Mich. The steamer City of Hamburg run down theship Countess Evelyn off the Cornish coast; 25 lives lost. 15. Sporting: Diablo won the Brooklyn handicap at Gravesend, N. Y. Miscellaneous: Erastus Wiman, New York capitalist, made an assignment. 17. Disasters: 25 lives lost in a storm on Lake Erie. 6 deaths by the explosion of a generator in a glucose factory at Geneva, Ills. 18. Personal: The Intanta Eulalie of Spain arrived in New York city. 19. Obituary: James E. Murdock, actor and elocutionist, at Cincinnati; aged 83. 20. Fire: Saginaw, Mich., 200 houses burned: loss over $1,500,000. 22. Miscellaneous: The cruiser New York surpassed the cruiser record of the world, making a speed of 21 knots an hour. 23. Fires: Reading, Mich., lost $150,000 by flames; 2 deaths. South Salem, Mass., tannery destroyed; loss, $132,000. 26. Obituary: Dr. Lyman A. Abbott, a New England cancerspecialist, at Malden,Mass.; aged 86. Miscellaneous: Ex-Secretary of the Treasury Charles Foster of Fostoria, O., assigned, with liabilities of nearly $1,000,000. 28. Fire: Balimore, sugar refinery destroyed; loss, $1,000,000. 29. Sporting: Jim Hall defeated Frank Slavin, 7 rounds, inLondon. 30. Disaster: Main's circus train wrecked at Tyrone. Pa.: 5 deaths. JUNE. 8. Fire: Omaha. Schinerick's furniture store set in flames by lightning; loss, over $200,000; 5 people killed by a falling wall. Disaster: 5 deaths in a burning flat in New York city. Personal: Mrs. James G. Blaine, widow of Secretary Blaine, sailed for England, where she will reside permanently. Sporting: Frank Ives defeated John Roberts at billiards in London. 5. Crime: 6 men raided the People's bank at Little Rock and secured $10,000. 6. Cyclone: The town of Woodington, O., nearly demolished by a storm of wind and rain; death. 7. Fires: Fargo, N. D., one-half the city destroyed and 3,000 people made homeless; loss over $3,500,000. Oshkosh, Wis., $200,000 blaze on the main street. San Francisco, a dozen fine residences destroyed; loss, $200,000; 4 deaths. Minneapolis, the Bradstreet-Thurber company's store damaged to the extent of $140,000. Personal: James Gordon Bennett, proprietor of the New York Herald, seriously injured by falling from a coach in Paris. Obituary: Edwin Booth, the eminent tragedian, in New York city; aged 60. Dr. J. E. Hendricks, a noted mathematician, at Des Moines; aged 79. 8. Fire: Montreal, the Ville Marie convent destroyed; loss, $1,000,000. Obituary: Rev. Dr. O. R. Blue, prominent in the Methodist church south, at Greensboro, Ala.: aged 70. 9. Disasters: The floors of Ford's old opera house, Washington, where Lincoln was assassinated, fell, carrying down hundreds of government clerks at work in the building: 22 deaths, over 50 injured. Riot: 3 men killed and several injured in a melee with strikers at Romeo, Ills. 11. Miscellaneous: Gen. Joseph A. Hall, a civil war veteran of Maine, died on board a New York Central train near Syracuse. 18. Disaster: 5 deaths in the burning of a "sweat shop" in New York city. 17. Miscellaneous: The Viking ship from Norway arrived in New York harbor. 20. Fire: Duluth, Minn., frame block destroyed: loss, $40,000; deaths. Disaster: 4 killed and 100 injured by the derailment of a train on the Long Island railroad at Parkville, N.Y. the Suburban Sporting: Lowlander won handicap at Sheepshead Bay. Miscellaneous: Lizzie Borden acquitted of the murder of her father and mother at New Bedford, Mass. 21. Disaster: Lightning struck a circus tent at River Falls, Wis., and killed people.