Bank of Redfield (Redfield, SD)

Episode Information

Episode UID
7609032691122
Episode Type
Run Only
Bank Type
state
Bank ID
760903269 hash
Start Date
June 15, 1893
Location
Redfield, South Dakota (44.876, -98.519)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ac18774b9590fa4c

Response Measures

None

Description

Date of the run is placed in the 1893 panic (summer 1893) based on article context.

Events (1)

1. June 15, 1893 Run
Cause
Macro News
Cause Details
Panic of 1893 and failures of other regional banks (e.g., Gettysburg) provoking heavy withdrawals
Measures
Kept state school funds deposited in local banks (withheld apportionment) to prop up banks and prevent their failure
Newspaper Excerpt
I had only $2,000 in the bank and could have lost that without inconvenience, but considered that if that bank should go there would likely be a run on my bank at Redfield
Source
newspapers

Newspaper Articles (2)

Article from St. Paul Daily Globe, January 13, 1895

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Article Text

RUTH IS INVOLVED. Matters Look Very Dark for South Dakota's Land Commissioner. HELD UP PUBLIC FUNDS With the Evident Intention of Shielding Treasurer Taylor. SOME PECULIAR MOVES. a The Legislature Will Make Very Thorough Investigation. Special to the Globe. PIERRE, S. D., Jan. 12.-It never rains but it pours. The state officers, who have for the past three days been paralyzed over the flight and defalcation of Treasurer Taylor, are today filled with consternation at the revelations which every day is bringing forth. No attention is being paid to the legislative proceedings. Even the members spend little time in the chamber, and they and the officials are spending all of their time in discussing the fresh disclosures which each hour brings forth. Today another sensation has come to light which raises greater storm than even the flight of the treasurer or the conspiracy of certain of the bondsmen hold up the state for the cash and lease. This time another high public official is implicated. and the evidence is so conclusive and so damning that has shaken the state government from end to end. It appears that the commissioner of public lands, Col. Thomas H. Ruth, who, by the way. is at the head of the militia of the state. has acted in gross violation of the statutes, and has thereby cost the state more than $100,000. It is felt to be certain, moreover. that he has been An Accomplice of Taylor in diverting the public funds to his own private uses, and that he is equally liable. The comun of public lands has control of all the school lands in the state. When South Dakota was admitted into the Union it was granted 3,000,000 acres by the general government for schools. This land cannot be sold for less than $10 an acre, and each year the commissioner offers it for sale on an appraisement which he makes. No land is sold for less than the appraisement, but, particularly in the more populous counties, very large sums are realized. This office handles hundreds of thousands in this way When the money is received for the sale is divided among the varions counties and is by them loaned on approved curity. The interest on these loans,and also the interest on the deferred payments on the land sales, is divided among the schools of the state in proportion to the school population. The fund has grown so large that from $100,000 to $200,000 is divided. The statute provides that the appraisment shall be made on June 15 and Nov. 15 of each year. The state treasurer has the custody of the money, but the commissioner makes the distribution. It now appears that both Commissioner Ruth and Treasurer Taylor have been acting in concert for two years. and that they both used the funds for Their Own Private Benefit, and both are concerned in the great loss the public has sustained. The legislature has now ordered a thorough investigation of the commissioner's office, and it will doubtless find that there has been widespread conspiracy covering a long time. The actual facts of the conspiracy between the treasurer and the commissioner are not generally known here. but the following story will be brought out on the investigation which will take place at once: Col. Ruth, like Treasurer Taylor, is banker his bank being located at DeSmet, the county seat of Kingsbury county. When the panic of 1893 came on there was on hand in the school fund fully $200,000. large share of which was in De Smet and Redfield banks In common with other banks, these two felt the press of the run and they profited by their use of the state funds According to the statute the apportionment of the school funds should have been made on June 15, and the schools in various parts ot the state were expeeling it. in view of the hard times and the slow collections of taxes. The regular course would have been for the commissioner to apportion the fund and send vouchers to the various counties before the first day of July. Instead of that Ruth left for Carmichael, Pa., his old home. Pine passed along and nothing was heard from the school fund. The counties began to clamor. They had nothing to pay their school expenses with. The county auditors, who have the loaning of the permanent fund, began to send in strong demands for the apportionment of that fund, with A Vigorous Statement that its distribution at that time would mean the relief of thousands of people who were struggling against the wave of depression just then devastating the entire country. The deputies in the commissioner's office replied that, Ruth being absent, nothing could be done About this time Ruth sent letter to Treasurer Taylor, and also one to the treasurer of Clay county, and in some way mixed the envelopes. This letter, which Public Examiner Myers stated to 8 number of officials at the time that saw, read substantiali, as follows: the There seems to be great pounding in state over the holding up of this state money The only thing that we can do is to let them pound. We have as much use : the money as any one. must have that forty-five thousand. Don let the money be apportioned until my return This letter was returned by the treasurer of Clay county, who showed it to several persons. but did not report it the state officials. This is remarked as


Article from The Pioneer Press, June 27, 1895

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Article Text

ed upon the step I have taken. Iknow I have committed a crime in the eyes of the law and am ready to take the penalty. My conscience is clear of any intent to do wrong, but I could not see my bondsmen suffer. 1 have therefore come here voluntarily; have turned over to the state enough property to wipe out the deficit and am now ready to take any sentence which my acts have warranted." The reporter asked Mr. Taylor to give a sketch of the facts which brought about his downfall and he complied frankly. "Until the day before Christmas," he said, "I had no more notion of taking the state's money than you have. The catastrophe was the result of the panic. In good times it would not have occurred. It is entirely untrue that my predecess or in treasurership was short. Mr. Smith made his settlement with me in full. But when he did so he exacted a promise from that I would let him have some large deposits afterward and in pursuance of that promise I was caught by $7,200 in his favor. The loan was amply secured, however, and the state will get the sum in full. Nor is it true that I would have proved a defaulter had a settlement been manded of me at the end of my first term. Had the state called for a settlement I could have raised every cent without trouble. My credit was high, was good for a large sum of money and I had extensive property. DENIES VARIOUS REPORTS. It is also entirely untrue that Commissioner Ruth, of the school and public lands, had any arrangement or agreement with me about the holding up of the school money in the summer of 1893. We never exchanged a word about the matter. I did hold up the state's money at that time, and I believed, and the other state officers believed, that it was a moral duty to do so. The money was deposited in various important banks of the state. Strictly, under the law, I should have drawn this out. But had I done so it would certainly have wrecked them and probably every financial institution in South Dakota. I was keeping care ful track of the banks, and knew that to carry out the law at that time meant disaster. By the most vigor. ous work and by pulling every string I could I succeeded in floating the funding warrants of the state and so prevented a panic in this state, while banks were failing thick and fast all over the country. "It is not true that the money lost went for political purposes. 1 was never a beavy contributor to political funds, and the loans I made, whether with men in office or not, were made upon strictly business principles or for friendship sake. In every case I required what I considered good security. As a matter of fact, I did make a number of these loans about as they have already described, and when I tried to collect them found that the borrowers were unable to pay. This probably cost me $30,000. "Then I loaned $30,000 to a relative of mine to invest in mining property and he lost it. I was in no way concerned in the enterprise, though I thought it sound and safe, but I took full security, and this security will amply protect the loan. I was also drawn into the Northwest hotel scheme during the world's fair. I did not want to go into it, but was compelled to do so to protect my friends who were caught, and also my word, which had been given to some of them. There I lost $7,000. Then came the failure of Diggs' bank, and I lost $8,000 there. GETTYSBURG BANK AFFAIR. "But the affair which brokemy back was the Gettysburg bank. During the panic Leppleman came to me and demanded assistance. I had only $2,000 in the bank and could have lost that without inconvenience, but considered that if that bank should go there would likely be a run on my bank at Redfield, which was known to be in some relations with the other, and that if one prominent institution