6831. Madison Bank (Madison, KS)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 19, 1898
Location
Madison, Kansas (38.136, -96.136)

Metadata

Model
gpt-5-mini
Short Digest
d8d10691

Response Measures

None

Description

The Madison Bank closed (was put in hands of the bank commissioner/was obliged to close) after the failure of the First National Bank of Emporia, which held a large deposit of Madison Bank. Subsequent reporting (Feb 10, 1899) states the Madison Bank will resume, indicating it reopened. There is no explicit description of a depositor run in the articles — action was suspension due to correspondent/default at Emporia. Dates reflect article publication dates reporting the events.

Events (3)
1. November 19, 1898 Suspension
Cause
Correspondent
Cause Details
Large deposit ($37,014.90) of Madison Bank was tied up at the failed First National Bank of Emporia (Cross failure), prompting authorities to close the Madison Bank while funds were inaccessible.
Newspaper Excerpt
has been to take possession of the Madison Bank ... As soon as he heard of the Emporia failure Mr. Breidenthal wired the Madison Bank to close its doors and post a notice saying that the bank was in the hands of the bank commissioner.
Source
newspapers
2. December 2, 1898 Other
Newspaper Excerpt
As a consequence of this failure the neighboring Madison bank has been obliged to close its doors.
Source
newspapers
3. February 10, 1899 Other
Newspaper Excerpt
The Madison bank, which was forced to suspend through the Cross failure at Emporia, will resume.
Source
newspapers

Newspaper Articles (4)
1. November 19, 1898 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 19, 1898

Click image to open full size in new tab

Article Text

NOT WORTH ANYTHING. Breidenthal Says National Bank Examinations Are Worthless if Emporians Lose All. John W. Breidenthal has returned from Madison, Greenwood county, where he has been to take possession of the Madison Bank on account of the failure of the First National bank of Emporia. The Madison Bank had $37,014.90 on deposit in the Emporia bank. As soon as he heard of the Emporia failure Mr. Breidenthal wired the Madison Bank to close its doors and post a notice saying that the bank was in the hands of the bank commissioner. Then he started for Madison to look after the affairs of the bank in person. "Even if the Madison Bank should lose every dollar it had deposited in the Emporia bank it will still pay out," he said this morning on his return, "and if they get 50 cents on the dollar they will be able to resume with their capital unimpaired. The only trouble with them now is that their money is tied up. No depositor will lose anything, however." Mr. Breidenthal has appointed E. F. Fellay, bookkeeper in the bank, as a special deputy to take charge of its affairs. Concerning the failure of the First National of Emporia Mr. Breidenthal said: "I have carefully examined all the statements and reports I have seen thus far concerning the affairs of the bank and I fail to find anything that warrants the statement that the depositors will lose all of their deposits. The reports, some of them, are mere generalities, and the conclusions are jumped at. It is stated from Washington that Cross was short something like $65,000, and that he and interests in which he was concerned owed the bank $150,000 more. To offset this he had a herd of over 400 Hereford cattle, and at his last sale they averaged $400 each. Place the amount at $200 each and they would bring in $80,000. The Sunny Slope farm ought to bring $25,000 more, and these would go a long way towards paying off Mr. Cross' debts. If it is true that the depositors will lose what they had in the bank it proves that the national bank examination system is not worth anything, and that I do not believe. All those deposits could not be lost in a short time unless there was a speculation going on and we hear of nothing of that sort. I do not wish to submit any opinion as to the outcome of the bank's affairs until there is some sort of a tangible statement to base it on, but I believe this talk about the depositors losing everything is romance. the County "The Eureka Bank and Bank the Burlington and Osage Bank were also connected with the Emporia bank, but they are perfectly safe. At Burlington the depositors were levelheaded enough to have a committee examine the bank before a run was precipitated."

2. December 2, 1898 The Midland Journal Rising Sun, MD
Article from The Midland Journal, December 2, 1898

Click image to open full size in new tab

Article Text

Government Banking. News comes from Emporia, Kan., that the president of the First National Bank of that city has committed suicide, after wrecking the bank so badly that not only are its capital and surplus gone, but the depositors will get little or nothing of the $500,000 owing them. As a consequence of this failure the neighboring Madison bank has been obliged to close its doors. Only a few weeks ago the Trader's National Bank, of this city, which the Comptroller of the Currency supposed was perfectly sound, was examined by a committee of the Clearing House and found to be insolvent. Its depositors have not yet been paid a cent, and it stockholders will probably lose the greater part of the money they had invested in its stock. When the Chestnut Street National Bank of Philadelphia failed, a year ago, the discovery was made that it had been insolvent for over a year, and that the Comptroller of the Currency knew it. Still the bank was permitted to continue doing business and to receive deposits, because, as the Comptroller declared, closing its doors might have caused runs on other Philadelphia banks and led to a panic. These are but specimens of occurrences which happen every few days. The failures of national banks are so frequent that they excite no comment and interest nobody but the suffers by them. As a protection to bank creditors the government management of banks is a delusion, and so would be its protection of bank note holders, if the notes were not secured by bonds. Yet, the bankers and the so-called curreucy reformers want the government to "go out of the banking business" by turning over the function of issuing circulating notes exclusively to the banks, and let the people look to the banks only for their redemption. Let it rather go out of the banking business by abolishing the whole national bank system, leaving all banking to be supervised by the individual States, and reserving exclusively to itself to sovereign function of issuing circulating notes, which the banks never should have been permitted to usurp.New York Sun. [In place of putting the money in circulation provided by the government for the use of the people, into the hands of the banking monopoly, as proposed by the Sun, through State banks, the government should establish banks for the accommodation of the people and keep the money from the control of the banking monopoly.-ED.]

3. December 16, 1898 Weekly Independent Elko, NV
Article from Weekly Independent, December 16, 1898

Click image to open full size in new tab

Article Text

"SOUND MONEY.' The New York Sun occasionally shines with its old time lustre, as witness the following: "News comes from Emporia, KanBas, that the president of the First National Bank of that city has committed suicide after wrecking the bank 80 badly that not only are its capital and surplus gone. but the depositors will get little or nothing of the $500,000 owing them. As a consequence of this failure, the neighboring Madison bank has been obliged to close its doors. "Only a few weeks ago the Trades. men's National Bank of this city, which the Controller of the Currency supposed was perfectly sound, was examined by a committee of the Clearing House and found to be in solvent. Its depositors have not yet been paid a cent. and its stockhold. ers will probably lose the greater part of the money they have invested in its stocks. "When the Chestnut Street Nation al Bank of Philadelphia failed, a year ago, the discovery was made that it had been insolvent for over a year, and the Comptroller of the Currency knew it. Still, the bank was permitted to continue doing business and to receive deposits, because, as the Comptroller declared, closing its doors might have caused runa on other Philadelphia banks and lead to a panic. "These are but specimens of occur. rences which happen every few days. The failures of national banks are so frequent that they excite no comment and interest nobody but the sufferers by them. As a protection to bank creditore the Government manage. ment of banks is A delusion, and 80 would be its protection of bank note holders, If the notes were not secured by bonds. "Yet, the bankers and the eo-called currency reformers want the govern. ment to 'go out of the banking busi. ness," by turning over the function of issuing circulating notes exclusively to the banks. and let the people look

4. February 10, 1899 The Goodland Republic Goodland, KS
Article from The Goodland Republic, February 10, 1899

Click image to open full size in new tab

Article Text

KANSAS ITEMS CONDENSED. Girard will soon have a publie library. Farmers north of Lawrence have had many horses stolen. "Tiger" Johnson has served 30 years as constable at Emporia Wamego sold its $25,000 waterworks bonds at a premium of $671. Miami county farmers are going in heavy on Kaffir corn this season. Sam B. Johnson, of Troy, was ap pointed a townsite appraiser in the Chickasaw nation. The Madison bank, which was forced to suspend through the Cross failure at Emporia, will resume. An inspector found Postmaster Beat tie, of Grinnell, short $60 and removed the postmaster instanter. Butler is the largest Kansas county, with an area of 1,428 square miles Wyandotte is at the foot with 153. Hanover, Washington county, with 875 population, has 13 saloons, each of which pays yearly to the town $120. Mr. John Krebs, convicted at Junetion City of murdering Mrs. Lizzie Craig, was given ten years in state prison. Over 200 official township and county bonds in Miami county are worthless because no revenue stamps were put on them. Joseph V. Quarles, the new United States senator from Wisconsin, married Miss Caroline Saunders, at Lawrence, in 1868. The Clay Center Dispatch argues that all doctors ought to be in the pay of the county and their services given free to the individual. Miss Anna Finn secured a judgment of $7,000 against the city of Leavenworth for injuries received by falling on slippery sidewalks. There are 394 people on the payroll of the present legislature and the daily expenses of both houses, including salaries and supplies, aggregate $1,250. A Topeka telegram said the present members of the state board of railroad commissioners will be permitted to remain until the court of visitation law takes effect April 15. A bill has been introduced in the house which makes it a penal offense, punishable by imprisonment in the penitentiary, for a person to traduce the character of a woman. Near Pittsburg the other day the roadbed began to sink under a 'Frisco passenger train, and investigation showed that 60 feet of track was over a coal mine, where the ground had begun to give way. Fifty-nine stalls in the fair grounds at Wiehita burned the other morning. The grounds are three miles from the fire department headquarters, so the fire secured a good start before the firemen reached the scene. Gen. Otis cabled on the 31st that the following boys of the Twentieth Kansas had died at Manila: Edward Rothmyer, P.T. Hackett, Lewis R Badger, E. P. Blair, Ben W. Squires, John D. Young, Norman E. Hand and David L. Campbell. The war department issued an order on the 81st for mustering out the Twenty-third Kansas (negro) regiment now at Santiago. The boys will arrive at Newport News about February 2 They will be mustered out at Fort Leavenworth. The Kansas Editorial association will meet at Topeka February 21. On the afternoon of the 22d the editors will be taken to Kansas City, Mo., where they will be given a banquet and free tickets to the opening of the big Convention hall. Insurance companies are paying the two per cent. tax placed on gross premiums by the extra session of the legislature. None of the companies show any inclination to take advantage of Attorney General Godard's decision that the session was illegal. At Washington Dick Meyers, who just returned from Manila, shot his father in the shoulder and beat him up badly. Both men had been drink ing and the father ran his wife and daughter out of the house with hatchet before the shooting occurred. Wellington recently built a new jail and the authorities decided to name it after the first prisoner confined therein. The prisoner proved to be a woman, Mrs. Horton, and the jail was named "Horton jail." Itlater developed that the woman was innocent A telephone deal has been consummated whereby the towns and cities of Bourbon, Montgomery, Labette Crawford, Cherokee and Neosho counties will soon be connected bv an independent toll line company. The circuit of the different lines will embrace over 100 southwestern towns. Col. Fred Funston cabled Gov. Stanley from Manila that he had made the following promotions in the Twen tieth Kansas: First Lieutenant Glas cow, of Republic county,to fill the va caney caused by the removal of Capt J.E. Towers, company A; J. C. Houser man, of company to be first lieuten ant, company C; Samuel Hopkins to be second lieutenant, company C. Probably the most remarkable suit ever filed in a Kansas court was one that was filed at Fort Scott by Mrs. Mary Epps, a Paola clairvoyant who makes a business of dispelling ghosts from the homes of the superstitious In good faith she, by her attorneys, sues to recover from Ben Bruce, negro, the sum of $100 for services rendered in the line of her profession. W. V. Church, who will succeed Webb McNall as state insurance su= perintendent, will not take charge of the office until the expiration of Me Nall's term July