Bank of St Paul - St Paul, MN

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: October 21, 1859
Location: St Paul, Minnesota (44.944, -93.093)

Metadata

Model: gpt-5-mini
Short Digest: f0a54d69c5e70ffb

Response Measures

None

Description

Article (1859-10-21) reports a publicized substitution of lower-quality securities (Minnesota State Railroad bonds) for original Ohio sixes, which triggered a same-day run that continued through the day. No suspension, reopening, or receivership is mentioned. The bank president promised to retire notes at par within ~20 days.

Events (1)

1. October 21, 1859 Run

Cause: Bank Specific Adverse Info
Cause Details: Public revelation that the Bank had withdrawn its original Ohio 6% securities and substituted Minnesota State Railroad bonds with no market value, seen as a breach of business honor.
Measures: Bank president assured stockholders' capital; promised the bank would be prepared within ~20 days to retire at par every dollar of its issues.
Newspaper Excerpt: Quite a panic was created ... whereupon a run was made on the Bank, which continued through the day.
Source: newspapers

Newspaper Articles (1)

1. October 21, 1859 The Weekly Pioneer and Democrat Saint Paul, MN

Article from The Weekly Pioneer and Democrat, October 21, 1859

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Article Text

Minnesota Banks, their Circulation and Securities. Quite a panic was created among our business men, yesterday, by a report that the securities of the Bank of St. Paul, which were originally Ohio sixes, and above par in New York, had been withdrawn from the Auditor's office, and Minnesota State Railroad bonds deposited in their stead. This, upon inquiry, was found to be the case-whereupon a run" was made on the Bank, which continued through the day. The Bank of St. Paul, having gained its credit among our citizens on the strength of the high and perfectly safe character of the original securities, the withdrawal of them and the substitution in their place of securities which had no market value whatever, and without notice to the public, was regarded by our business men as a flagrant breach of business honor, and the notes of the Bank were therefore discredited throughout the city. We learn that the exchange of securities was made in August, or some two months ago ; though the fact was not publicly known until yesterday. We give, this morning, as pertinent to the occasion, a statement from the Auditor's office, of the circulation of the various banks in the State, and of their securities. The statement, however, does not show the amount of notes actually in circulation among the people, but the amount issued to the Banks by the Auditor. The public can form their own estimate, from it, of the value of Minnesota currency. Our opinion is, that, with the constantly developing dishonesty on the part of bankers, and the chances for substitution of stocks permitted in the banking law, the best of our home currency can at any time be made worthless, and that it should all, therefore, be treated as absolutely worthless now, and be driven utterly out of circulation. We are assured, that, so far as the Bank of St. Paul is concerned, its stockholders are men of abundant capital, and that its officers will be prepared within the next twenty days to retire at par every dollar of its issues. We have this assurance from the President of the Bank, and we give it to the public for its information and benefit. The statement follows : Farmers' Bank, Garden City-Circulation, $25,000; securities, Minnesota 8's, $25,000, personal bond, $6,250. State Bank. Austin-Circulation, $25,000; securities, Ohio 6's, $25,000, personal bond, $6,250. Bank of the State. St. Paul-Circulation $25,000; securities, Minnesota 8's. $15,000. University bonds, $10,000. personal bond, $6,250. Bank of St. Paul--Circulation $14,500; securities, Minnesota 7's, $30,000, personal bond, $6,250. Nicollet County Bank, St. Peter--Circulation, $20,000; securities, Minnesota University bonds, $20,000, personal bond, $10,000. Central Bank. New Ulm--.Circulation, $23,000: securities, Minnesota 7's, $27,000. People's Bank, St. Peter--Circulation, $25,650; securities, Minnesota 7's, $30,000. La Crosse and La Crescent Bank-- Circula tiou, $42,063, securities, Minnesota 7's, $49,000. Bank of Chatfield--Circulation, $50,000; securities, Minnesota 7's, $59,000. Winona County Bank--Circulation, $25,000; securities, Minnesota 7's, 29,000. Bank of Red Wing---Circulation, $23,100; securities, Minnesota 7's, $27,000.