7297. Falls City bank (Louisville, KY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 1, 1890*
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini
Short Digest
309024bc

Response Measures

Borrowed from banks or large institutions, Full suspension

Description

Depositors ran on the bank in 'last fall' (1890) per contemporary reports; the bank subsequently 'closed its doors' and made an assignment in July 1891 to Mechanics' Trust Company and did not resume operations. Failures attributed to bad debts, bad management, and embezzlement by the cashier (Tillman). OCR corrected minor capitalization/spacing; dates inferred from publication dates (last fall → fall 1890).

Events (4)
1. September 1, 1890* Run
Cause
Bank Specific Adverse Info
Cause Details
Run in fall 1890 by depositors in response to the bank's shaky condition following the prior panic and concerns about bad loans/management.
Measures
Clearing house loans/other banks temporarily propped up the institution (clearing house loaned $56,000 and later $50,000).
Newspaper Excerpt
it was a private concern and has been shaky since last fall, when a run was made on it by its depositors.
Source
newspapers
2. July 10, 1891 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed and made an assignment because bad debts, bad management, and inability to meet withdrawals (assets tied in loans; large liabilities).
Newspaper Excerpt
The Falls City bank made an assignment this morning. ... The Falls City bank has closed its doors, making an assignment to the Mechanics' Trust Company.
Source
newspapers
3. July 11, 1891 Receivership
Newspaper Excerpt
has closed its doors, making an assignment to the Mechanics' Trust Company.
Source
newspapers
4. August 29, 1891 Other
Newspaper Excerpt
Maj. William Tillman, cashier of the Falls City bank ... has fled to Canada. ... To the $37,000 shortage in Tillman's accounts ... is to be added $15,000 in bonds ... the disclosures being exceedingly damaging.
Source
newspapers

Newspaper Articles (10)
1. July 11, 1891 San Antonio Daily Light San Antonio, TX
Article from San Antonio Daily Light, July 11, 1891

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Article Text

LATE TELEGRAMS BCILED DOWN FROM PRIVATE, SPECIAL AND OTHER SOURCES. Vessels drawing 17 feet come in over the Brazos bar without tug. Kern & Co., New Orleans dry goods are in a corner and ask a respite. Austin expects 2,500 troops at the state camp. Texas cotton reports indicate a tremendous crop. Citizens' bank, Nevada, Mo., closes doors. Railroad commission gives rates on wood, wheat, bagging and ties. City Marshal West. of Texarkana, shot and killed by J. D. Gaines. Chickasaw militia are cutting wires around the big pastures. Hayes County Alliance entertains District Alliance July 21. Work on Karnes City depot S. A. P. will commence at once. Uvalde burglars are very busy making water hauls. Cuero names her committee to look after World's fair matters. Emperor William goes to Guildhall and lunches with the Lord Mayor. Prince of Wales is hooted and jeered driving through Ludgate circle. Fall trade outlook at St. Louis is very promising. The district and county attorneys who meet at Fort Worth next week, will go to the City of Mexico. President Round, of Mexican National, returned from Europe, passes Laredo homeward bound. Chinamen coming into the United States, via Canada, are ordered to San Francisco to be sent home. Copper in excess of two per cent in lead ore is to pay duty of 1 2 cent per pound. Wanamaker pronounces Bardley's statements as to his connection with Keystone bank to be absolutely false Wanamaker produces testimony to show that he never delayed the closing of the Keystone bank. Wanamaker knows nothing of the 3,000 shares of stock to his credit in the Keystone bank. Cotton crop averages run from 77 to 95, Texas being highest,North CaroliLite lowest. Wanamaker's statement before the committee is exactly as made a month ago. Business of all kinds shows most conservative movement, according to Dun & Co. William at Guildhall assures Eng land of Germany's warm friendship for her. Fred Douglass says Hayti cares no more for a white diplomat than a black. White settlers are run out of the Indian Territory by Agent Bennet and the militia. Farrell's saw mill near Gladewater, and Harris's saw mill near Jefferson, destroyed by fire. The Neiman-Musky feud breaks out afresh in Waller Co., and John Neiman is shot. Cotton receipts at Galveston reach1,000,000 bales; the exchange jubilates today. France and Russia regard William's visit as in the interest of the European alliance. Small revolutionary parties prowl about Guatemala, but there IS no general movement. The negroes to be hung at Charles City yesterday were respited at the last hour. Hogg gives no satisfaction as to the extra session; it may or may not be called. New York money is easy on call at from 1-2 to 2 per cent. Silver $1.00 1-2. Southern railway and steamship association meets, but cannot agree on rates. The anti-sub-treasury men are in session at Fort Worth; B. F. Kendrick elected president. No sub-treasury advocates "are allowed to participate in the Fort Worth meeting. Evening session of anti-sub-treasury alliance men was devoted to speech making. Judge Stillwell encourages the democrats to believe that they can carry Ohio. Farmers co-operative convention to regulate grain prices meets at Topeka August 20th. Allee testifies to shooting Bowen, but swears Bowen shot first, and that he did not have his pistol out until Bowen fired. Falls City bank, Louisville, goes to the wail. Liabilities $341,000, nominal assets $1,223,000. Due depositors $191,700. The French and German socialists were conspiciously absent from the

2. July 11, 1891 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, July 11, 1891

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Article Text

BANKS ON THE ROCKS. Three Monetary Institutions Have Hard Luck. LOUISVILLE, Ky., July 0.-Financial circles received a shock this morning when it was officially announced that the Falls City bank had closed its doors. It was a private corporation and has been in a shaky condition since last fall, when a run was made on it by its depositors. The liabilities are supposed to be about $1,300,000. Assets, $100,000. Its capital stock was placed at $600,000. The bank officers state that their assets will be $1,200,000 and liabilities a little more than half that amount. The depositors will be paid in full, and it is expected that there will be something left for the stockholders. The bank's money was tied up in loans, and this together with the depositors' withdrawals, brought about the collapse. NEVADA, Mo., July ).-The Citizens' bank of Nevada closed its doors this morning, and with it three other banks in the county. The Bank of Sheldon, Bank of Walker and Bank of Bronaugh, all under its control, passed into the hands of Receiver A. E. Fordham. The capital stock of the Citizens' bank is $100,000, but with all four there was only a paid up stock of $68,400. No statement of assets and liabilities has been made. Deprecation of values and withdrawal of deposits are given as the causes. JACKSONVILLE, Fla., July 10 -The Lake City bank failure IS more serious than was supposed, and the general impression is that it is a complete wreck, though the president says he will pay out. There are many more depositors than was supposed. The best business men are badly hit. The county funds are said to be secured. There is still no definite statement of the liabilities. The individual and firm losses range from $5,000 to a few dollars.

3. July 11, 1891 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, July 11, 1891

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Article Text

EMBARRASSED BANKS. A Big Concern in Louisville Makes an Assignment-Other Failures. LOUISVILLE, Ky., July 10. -The - Falls City bank made an assignment this morning. Major Tillman, the cashier, says the liabilities are $431,000, assets (nominal) $1,223,000. It is said that from the beginning of the financial panic of last year the bank has been carried along by the clearing house, being on the ragged edge all the time. The bank owes the clearing house $223,900. It had been known for several days that it was only a matter of time before the bank would have to go. Depositors will be paid in full and stockholders will get possibly 35 cents on the dollar. There was a shaky feeling on the street for a while, but later things recovered. A MISSOURI BANK CLOSED. NEVADA, Mo., July 10.-The Citizens' bank of Nevada closed its doors this morning. The notice etated that the stockholders of the bank hoped to pay all claims against the bank at an early date. The bank claims to have a capital stock of $1,000,000 and a eurplus of $12,000. The failure is attributed to stringency in the money market, and slow collections. All the county funds are locked up in the bank. The amount of the liabilities cannot be ascertained. A FLORIDA FAILURE. JACKSONVILLE, Fla., July 10.-The Lake City bank failure is more serious than supposed, and the general impression is that it is a complete wreck, though the president says he will pay up.

4. July 16, 1891 The Iowa Plain Dealer Cresco, New Oregon, IA
Article from The Iowa Plain Dealer, July 16, 1891

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Article Text

OVER A MILLION: / Enormous Debts of the Falls Bank of Louisville, Ky. LOUISVILLE, Ky., July 11.-The Falls City bank has closed its doors, making an assignment to the Mechanics' Trust Company. Bad debts and bad management are responsible. For over six months the clearing house has been tiding it over, but it was never able to recover from the panic of last December, when the general money market was SO tight. It had ib capital stock of $600,000. The liabilities, including the capital stock, will reach $1,200,000. The depositors will probably be paid in full, but the stockholders will be fortunate if they get 10 per cent. The bank has been in a tottering condition for some time. It began to topple last December, but the other banks, fearful that its failure would precipitate a general crash, came to its rescue. First the clearing house loaned it $56,000, then a month later $50,000 more. It has thus been kept up until the danger of a general panic was averted. The other banks, however, have or ce obtained a firm footing and recently concluded to withdraw the props from the Falls City bank. This was done with the above result. In 1869 this bank was the victim of one of the most sensational robberies in criminal history. The robbers engaged a room overhead and bored through the walls into the vault, securing $400,000 in money and collaterals.

5. July 18, 1891 The Historic Times Lawrence, KS
Article from The Historic Times, July 18, 1891

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Shaky Since Last Fall. LOUISVILLE, Ky., July 11.-Financial circles received a tremendous shock this morning when it was officially announced that the Falls City bank had closed its doors. It was a private concern and has been shaky since last fall, when a run was made on it by its depositors. The liabilities are supposed to be about $1,300,000; assets, $1,000,000. Its capital stock was placed at $600,000. It is not thought that the depositors will lose anything.

6. August 30, 1891 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, August 30, 1891

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Article Text

Over $50,000 Shy in Bank and Trust Funds. LOUISVILLE, Aug. 29.-Maj, William Tillman, cashier of the Falls City bank, which recently collapsed in this city, has fled to Canada. The news has caused a sensation, both in financial and social circles, the fugitive being a prominent figure in both. His flight was prompted by the investigation which is being made into the affairs of the suspended bank, the disclosures being exceedingly damaging. To the $37,000 shortage in Tillman's accounts with the defunct Falls City bank is to be added $15,000 in bonds, a trust put in his hands for the widow and daughter of R. B. Alexander, who preceded Tillman as cashier. President Sanders, of the Mechanics' Trust company, says he does not know if Tillman got all the money, but he got a large share of it. It was only vesterday that he determined to go, as imprisonment stared him in the face. and his friends made up a purse for him. The books of the broken bank are in very bad shape, the savings ledger having been missing for several years. It is supposed he lost the money in speculation. Maj. Tillman was born in New York in 1834. He was on the staff of Gen. Asa Williams. and was made a paymaster. He resigned in 1866 with the rank of brevet lieutenant colonel, hav. ing disbursed $23,000,000. He came to Louisville in 1875, and in 1876 accepted a position in the bank. In November. 1886, he was appointed cashier.

7. September 5, 1891 Custer Weekly Chronicle Custer, SD
Article from Custer Weekly Chronicle, September 5, 1891

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A Cashier Skips. LOUISVILLE, Ky., Aug. 29.-Major William Tillman, cashier of the Falls City bank which recently collapsed in this city, has fled to Canada. The news has caused a sensation both in financial and social circles, the fugitive being a prominent figure in both societies. His flight was prompted by an investigation which is being made into the affairs of the suspended bank. The disclosures are exceedingly damaging.

8. September 26, 1891 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, September 26, 1891

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gan, during the war and then held a lucrative place as paymaster. He married a Miss Pettit, a daughter in one of the wealthiest families in Louisville, located there in 1875 and was soon a favorite of the very best society and in due time became cashier of the Falls City bank. At length he was made commissioner of the sinking fund, which enabled him to put $600,000 of public money in his bank, and then, as the evidence now indicates, he went wild. When the Democrats nominated another man to succeed him, his friends created a deadlock in the city council and so held him in place. Then he contracted with one William P. Johnson to elect the latter county clerk in 1890, on condition that the bank should run that office, and spent somewhere between $50,000 and $90,000 in the election. No such corruption had ever been known in Kentucky. As much as $150 was paid for one vote. But Johnson was beaten and Major Tillman was ruined. Nevertheless, he kept up a fair outside appearance until the bank made an assignment a few months ago, and as soon as the new bookkeepers got to work figures of grave meaning were revealed. Major Tillman had systematically falsified all the accounts. Overdrafts were found on firms long gone out of business. One for $5,000 was on L. L. Warren, who

9. October 8, 1891 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, October 8, 1891

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gan, during the war and then held a lucrative place as paymaster. He married a Miss Pettit, a daughter in one of the wealthiest families in Louisville, located there in 1875 and was soon a favorite of the very best society and in due time became cashier of the Falls City bank. At length he was made commissioner of the sinking fund, which enabled him to put $600,000 of public money in his bank, and then, as the evidence now indicates, he went wild. When the Democrats nominated another man to succeed him, his friends created a deadlock in the city council and so held him in place. Then he contracted with one William P. Johnson to elect the latter county clerk in 1890, on condition that the bank should run that office, and spent somewhere between $50,000 and $90,000 in the election. No such corruption had ever been known in Kentucky. As much as $150 was paid for one vote. But Johnson was beaten and Major Tillman was ruined. Nevertheless, he kept up a fair outside appearance until the bank made an assignment a few months ago, and as soon as the new bookkeepers got to work figures of grave meaning were revealed. Major Tillman had systematically falsified all the accounts. Overdrafts were found on firms long gone out of business One for $5,000 was on L. L. Warren, who

10. November 7, 1891 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, November 7, 1891

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gan, during the war and then held a lucrative place as paymaster. He married a Miss Pettit, a daughter in one of the wealthiest families in Louisville, located there in 1875 and was soon a favorite of the very best society and in due time became cashier of the Falls City bank. At length he was made commissioner of the sinking fund, which enabled him to put $600,000 of public money in his bank, and then, as the evidence now indicates, he went wild. When the Democrats nominated another man to succeed him, his friends created a deadlock in the city council and so held him in place. Then he contracted with one William P. Johnson to elect the latter county clerk in 1890, on condition that the bank should run that office, and spent somewhere between $50,000 and $90,000 in the election. No such corruption had ever been known in Kentucky. As much as $150 was paid for one vote. But Johnson was beaten and Major Tillman was ruined. Nevertheless, he kept up a fair outside appearance until the bank made an assignment a few months ago, and as soon as the new bookkeepers got to work figures of grave meaning were revealed. Major Tillman had systematically falsified all the accounts. Overdrafts were found on firms long gone out of business. One for $5,000 as on L. L. Warren, who