Kinsley Exchange Bank

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: June 1, 1893*
Location: Kinsley, Kansas (37.923, -99.410)

Metadata

Model: gpt-5-mini
Short Digest: 4ac3918a

Response Measures

Full suspension, Books examined

Other: Receiver appointed and bank placed in receivership; dividends paid later from receivership funds.

Description

Kinsley Exchange Bank closed its doors in mid-June 1893 and a receiver (Scott Yeatman) was immediately appointed. Articles report an unforeseen withdrawal of deposits tied to reports of insecurity and wider financial panic and poor crop prospects. A receiver distributed a 10% dividend in April 1894, consistent with permanent closure/liquidation. I mark the cause as rumor_or_misinformation because the paper attributes withdrawals to reports of the insecurity of the bank rather than fraud or correspondent failure. Bank type not stated in articles; name does not include 'National'/'State'/'Trust'.

Events (4)

1. June 1, 1893* Run

Cause: Rumor Or Misinformation
Cause Details: Unforeseen withdrawal of deposits over the prior month prompted by reports about the bank's insecurity amid the national panic and slow note collections.
Measures: None reported specifically to stem withdrawals prior to closure; receiver later appointed.
Newspaper Excerpt: As near as we can learn the failure of the bank was caused by the unforeseen withdrawal of deposits within the last month, caused by reports of the insecurity of the bank
Source: newspapers

2. June 17, 1893 Suspension

Cause Details: Bank closed its doors and a receiver was appointed after heavy withdrawals and inability to meet demands; tied to the preceding run and broader financial panic.
Newspaper Excerpt: Last Saturday morning shortly after the doors had been opened for business, the Kinsley Exchange Bank closed its doors, and within a few hours Scott Yeatman was appointed receiver by the district judge
Source: newspapers

3. June 23, 1893 Receivership

Newspaper Excerpt: Scott Yeatman was appointed receiver by the district judge on the application of one of the stockholders. The receiver immediately took possession of the books, papers and assets of the bank, and has been busy ever since going over the books, preparatory to making a statement of the condition of the bank for the benefit of all parties interested. (pub. 1893-06-23).
Source: newspapers

4. April 5, 1894 Other

Newspaper Excerpt: On April 5th, 1894, I will pay to the creditors of the Kinsley Exchange Bank a dividend of Ten (10) per cent, payable at the Kinsley Bank. 4-16 SCOTT YEATMAN, Receiver. (pub. 1894-03-30).
Source: newspapers

Newspaper Articles (6)

1. June 23, 1893 The Kinsley Graphic Kinsley, KS

Article from The Kinsley Graphic, June 23, 1893

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Article Text

Highest of all in Leavening Power.-Latest U.S. Gov't Report. Royal Powder Baking ABSOLUTELY PURE THE EXCHANGE BANK FAILURE, of the failure." The boom occurred in 1887 and the republican bank examThe people of Edwards county are iner hac the entire period during which now feeling the effects of the financial he held office, two years prior to March panic that is sweeping over the coan'93, to discover the fact which the Mertry, and are able to understand the cury says caused the failure, yet he failinsufficiency and insecurity of our presed to make the discovery. There are ent banking system, and the advantaover 400 state banks in the state and ges of the system of government banks Mr. Briedenthal has been busy examthat is in successful operation in other ining banks whose shaky condition has countries. been called to his attention ever since Last Saturday morning shortly after he entered the office. There is noththe doors had been opened for busiing in the statement published by the ness. the Kinsley . Exchange Bank Exchange Bank to show that the bank closed its doors, and within a few would not be able to meet any hours Scott Yeatman was appointed demands that would be made in the receiver by the district judge on the ordinary course of business, and every application of one of the stockholders. well-informed business man knows The receiver immediately tock posthere is not a bank in the state that session of the books, papers and assets could pay its depositors in full if they of the bank, and has been busy. ever should all demand their money on the since going over the books. preparatory same day. to making a statement of the condiWe have no hesitation whatever in tion of the bank for the benefit of all saying, from authentic information, parties interested. We are informed that if the Exchange Bank had been that a statement will be prepared next examined six months ago or two week in time for publication in our months ago, the bank commissioner next issue. would not have been warranted in A number of the depositors desiring closing the bank. Instead of being that an examination of the affairs of heavily loaded with real estate, as the bank should be made by Bank Comstated by the Mercury, the value of the missioner Briedenthal, he was telereal estate owned by the bank is less graphed for Monday and arrived here than $14,000, and that includes the Wednesday noon. With the assistequity in the building on the corner ance of the receiver he examined the of Sixth street and Marsh avenue. affairs of the bank during the afterThe bulk of the assets are loans noon, and afterwards made an informsecured by real estate and chattel al statement of the condition of the mortgages, most of which under ordinbank as be found it, to a number of ary circumstances would be collectable the depositors. From the information and which, it is believed, will be ample obtained from him and from other to pay all creditors in full if properly sources, we think that there is a strong handled. probability that the depositors will If this financial panic continues receive H large per cent. if not all, of much longer and the people generally their money in time, unless crop conlose confidence in all banks, there will ditions are such that a very great be very few banks in the state that depreciation occurs in the value of the will not be compelled to close temporbank assets. The nominal assets are arily, no matter how much their about $54,000 and the liabilities about assets may exceed their liabilities. $22,000, $14,000 of which are deposits. The assets consist of notes secured by Since the above was written the first mortgages on real estate and daily papers have came to hand con chattel mortgages, real estate owned taining dispatches giving accounts of by the bank. tax certificates, and other the failure of four large banks in Los miscellaneous property. Angeles, California, yesterday. One, Of course it will take some time for the First National, having paid out the receiver to collect the notes due $600.000 to depositors before closing the bank and to turn the other propits doors, and whose assets greatly erty into cash, and it is impossible for exceed its habilities. Could the bank any one, at this time, to determine commissioner have prevented that accurately how much can be eventually failure? realized from the assets, as the value Quite a number of national banks of the assets will materially depend on have failed since the panic commenced the crops raised this season in this and they are supposed to be examined county. very frequently by government inspectWe believe that Mr. Yeatman will tors. act honestly and diligently for the A national bank at Arkansas City, benefit of the creditors, and that everyKansas, failed a few days ago havthing will be done by him that is posing $600,000 deposits, and yet that sible to realize the full value of the bank had presumably been examined bank assets, and to distribute the proby the government examiners, under ceeds among the creditors with as litthe system that is praised so highly by tle delay as possible. the republicans. can loam the failure

2. June 23, 1893 The Kinsley Graphic Kinsley, KS

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Article Text

THE EXCHANGE BANK FAILURE, The people of Edwards county are now feeling the effects of the financial panic that is sweeping over the coantry, and are able to understand the insufficiency and insecurity of our present banking system, and the advantages of the system of government banks that is in successful operation in other countries. Last Saturday morning shortly after the doors had been opened for business. the Kinsley Exchange Bank closed its doors, and within a few hours Scott Yeatman was appointed receiver by the district judge on the application of one of the stockholders. The receiver immedi itely tock possession of the books, papers and assets of the bank, and has been busy ever since going over the books. preparatory to making a statement of the condition of the bank for the benefit of all parties interested. We are informed that a statement will be prepared next week in time for publication in our next issue. A number of the depositors desiring that an examination of the affairs of the bank should be made by Bank Commissioner Briedenthal, he was telegraphed for Monday and arrived here Wednesday noon. With the assistance of the receiver he examined the affairs of the bank during the afternoon, and afterwards made an informal statement of the condition of the bank as be found it, to a number of the depositors. From the information obtained from him and from other sources, we think that there is a strong probability that the depositors will receive a large per cent. if not all, of their money in time, unless crop conditions are such that a very great depreciation occurs in the value of the bank assets. The nominal assets are about $54,000 and the liabilities about $22,000,$14,000 of which are deposits. The assets consist of notes secured by first mortgages on real estate and chattel mortgages, real estate owned by the bank. tax certificates, and other miscellaneous property. Of course it will take some time for the receiver to collect the notes due the bank and to turn the other propinto and it is impossible for at this time, to any erty one, cash, determine accurately how much can be eventually realized from the assets, as the value of the assets will materially depend on the crops raised this season in this county. We believe that Mr. Yeatman will act honestly and diligently for the benefit of the creditors, and that everything will be done by him that is possible to realize the full value of the bank assets, and to distribute the proceeds among the creditors with as littie delay as possible. As near as we can learn the failure of the bank was caused by the unforeseen withdrawal of deposits within the last month, caused by reports of the insecurity of the bank, and the inability of the bank to collect its notes rapidly enough to meet the demands of the depositors. Nothing has appeared toshow that the bank officers have been guilty of any fraudulent acts, or that they have been incompetent or careless in their management. The failure results from conditions that could not well be foreseen or avoided. If the financial panic that is wrecking banks all over the country had not occurred, and this county had raised a good crop of wheat the bank would have undoubtedly been in good condition. As far as our knowledge extends the bank business has been conducted cantiously and conservatively. on sound banking principles, and the failure results wholly from unfavorable financialand crop conditions that could not be guarded against, under our present vicious banking system.

3. February 2, 1894 The Kinsley Graphic Kinsley, KS

Article from The Kinsley Graphic, February 2, 1894

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# DISTRICT COURT. District court is in session this week with attorneys Dunnett and Rose of Hutchinson, E. C. Cole of Great Bend, Cline and Vernon of Larned, Mike Sutton of Dodge, Smith, French, Beezley and Wilson of Kinsley, doing business before the court, and most all the inhabitants of Lincoln and Franklin township in attendance. The following cases were disposed of: Elizabeth Lightner vs. J. M. Ebersole, verdict set aside and a new trial granted. Scott Yeatman, receiver, vs. Kinsley Co-operative Cheese Co., judgment for plaintiff. L. F. Cline vs. Ellen Cline, divorce granted. Scott Yeatman, receiver Kinsley Exchange bank vs. W. II. Robb et al, judgment for plaintiff. H. B. Oliphant vs. A. T. & S. F. R. R. Co., judgment for $96 for plaintiff. M. E. Ingraham vs. M. J. Cudney et al. judgment for defendant. Peter Strasser vs. Wm. Sieglinger, judgment for plaintiff. In setting aside the judgment in favor of Elizabeth Lightner the court indulged in some very plain talk in relation to the testimony for the plaintiff, and closed by saying that holding the views he did as to the testimony he did not care to sit in the case againt and if a new trial was had the attorneys would have to agree on a judge protem.

4. March 30, 1894 The Kinsley Graphic Kinsley, KS

Article from The Kinsley Graphic, March 30, 1894

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NOTICE. On April 5th, 1894, I will pay to the creditors of the Kinsley Exchange Bank a dividend of Ten (10) per cent, payable at the Kinsley Bank. 4-16 SCOTT YEATMAN, Receiver.

5. September 7, 1894 The Kinsley Graphic Kinsley, KS

Article from The Kinsley Graphic, September 7, 1894

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irst Published Aug 24, 1894. # PUBLICATION NOTICE.-No. 1786. The Franklin Savings Bank, a corporation, plaintiff, VS James E Crane, Emily L Crane, his wife, L G Boies, L R Kead, V D Billings, G W Mil- ner, E Howland, The Kinsley Exchange Bank, Fcott Yeatman, receiver of the Kinsley Exchange Bank, Angelines Sulli- van and Alfred B Church, Executors of the estate of Patrick S Sullivan, de- ceased, Harvey Matteson and Harriet Dickerson, executors of the estate of Russell Dickerson, deceased, the Board of County commissioners of Edwards county, Kansas, defendants. The defendants, James E Crane, Emily L Crane, his wife, LG Boies, LR Read, Ange- line 8 Sullivan and Alfred B Church, execu- tors of the estate of Patrick & Suilivan, de- ceased, Harvey Matteson and Harriet Dick- erson, executors of the estate of Russell Dickerson, deceased, and E. Howland, will take not.ce that the said plaintiff did, on the 6th day of August, 1894, file its petition in said district court, within and for the county of Edwards, in the state of Kansas, against the said defendants, and that the said defend- ants, James E Crane, Emily L Crane, his wife, LG Boies, LR Read, Angeline S Sullivan and Alfred B Church, executors of the estate of Patrick Sullivan, deceased, Harvey Mattesor and Harriet Dickerson, executors of the estate of Russell Dickerson, deceased, and E Howland, must answer said petition filed as aforesaid, on or before the 4th day of Octo- ber, 1894, or said petition will be taken as true. and a judgment rendered in said action against the defendants, James E Crane and Emily L Crane, his wife, for the sum of $4,000, with interest on the same at the rate of 12 per cent per annum from August 1, 1888, less the sum of $520, paid as interest on said amount; and costs of suit. Aud for a fur- ther judgment against all of the defendants for the foreclosore of a certain imortgage up- ou the following described real estate, situat- ed in the county of Edwards, and the state of Kansas, te-wit: Lots 3 and 4 and south half of northwest quarter, and the southwest quarter, except 50 acres described as follows: Commercing at the northeast corner of lot 3, of section 4 township 25 range 19, thence w along section line 1150 feet, hence south parallel with east line of said section 1894 feet thence east par- allel with north line of said section 1150 teet to the east line of said section 4, thence north along the east line of said section 1894 feet to place of beginning, all in section 4, township 25, range 19, west of the 6th p. m. And adjudging that said plaintiff have the first lien on said premises to the amount for which judgment will be taken as aforesaid, and ordering said premises to be sold without appraisement and the proceeds applied to the payment of the amount due plaintiff; and forever barring and foreclosing said detend- ants from ail right, title, estate, interest, property and equity of redemption in or to said preinises or any part thereof. A. J. RAPP, Cierk. [SEAL] Pollock & Love and G. E. Wilson, attorneys for plaintiff.

6. September 14, 1894 The Kinsley Graphic Kinsley, KS

Article from The Kinsley Graphic, September 14, 1894

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frst !ublished Aug 24, 1894. # FUBLICATION NOTICE. -No. 1780. The Franklin Savings Bank, a corporation, plaintiff, VS James E Crane, Emily L Crane, his wife, L G Boies, L R Read, V D Bitlings, G W Milner, E Howland, The Kinsley Excharge Bank, Scott Yentman, receiver of the Kinsley Exchange Bank, Angeline S Sullivan and Alfred B Church, Executors of the estate of Patrick S Sullivan, deceased, Harvey Matteson and Harriet Dickerson, executors of the estate of Russell Dickerson, deceased, the Board of County Commissioners of Edwards county, Kansas, defendants. 'The defendants, James E crane, Emily L Crane, Lis wife, L G Boies. L R Read, Angeline S Sullivan and Alfred B Church, executors of the estate of Patrick S Suilivan, deceased, Harvey Matteson and Harriet Dickerson, executors of the estate of Russell Dickerson, deceased, and E. Howland, wili take not.ce that the said plaintiff did, on the 6th day of August, 1894, file its petition in said district court, within and for the county of Edwards, in the state of Kansas, against the said defendants, and that the said defendants, James E Crane, Emiy L Crane, his wife, LG Boies, LR Read, Angeline S Sullivan and Alfred B Church, executors of the estate of Patrick Sullivan, deceased, Harvey Mattesor and Harriet Dickerson, executors of the estate of Russeil Dickerson, deceased, and E Howland, must answer said petition filed as aforesaid, on or before the 4th day of October, 1894, or said petition will be taken as true. and a judgment rendered in said action against the defendants, James E Crane and Emity L Crane, his wife, for the sum of $4,0.0, with interest on the same at the rate of 12 per cent per annum from August 1, 1888, less the sum of $620. paid as interest on said amount; and costs of suit. Aud for a forther juugment against all of the defendants for the foreclosore of a certain mortgage upon the following described real estate, situated in the conuty of Edwards, and the state of Kansas, te-wit: Lois 3 and 4 and south half of northwest quarter, and the southwest quarter, except au acres described as follows: Commencing at the northeast corner of lot 3. of section 4 township 25 range 19, thence w along section line 1150 feet, hence south parallel with east line of said section 1894 feet thence east par-allel with north line of said section 1150 teet to the east line of said section 4, thence porth along the cast line of said section 1894 feet to prace of beginning, all in section 4, township 25, range 19. west of the stu p. m. And adjudging that said plaintiff have the first tien en said premises to the amount for which judgment will be taken as aforesaid, and ordering said premises to be sold without appraisement and the proceeds applied to the payment of the amount due plaintiff; and forever barring and foreclosing said delend-ants from all right, title, estate, interest, property and equity of redemption in or to said premises or any part thereof. A. J. RAPP; Clerk. [SBAL] Pollock & Love and G. E. Wilson, attorneys for plaintiff.