Amboy State Bank - Amboy, MN

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: February 27, 1902
Location: Amboy, Minnesota (43.888, -94.157)

Metadata

Model: gpt-5-mini
Short Digest: f8e384dd

Response Measures

Accommodated withdrawals, Books examined

Description

Public examination triggered publicity; a slight run on Feb 27, 1902 withdrew $10,000 but much was returned and the bank was found solvent and continued business.

Events (1)

1. February 27, 1902 Run

Cause: Rumor Or Misinformation
Cause Details: Public examination and allegations of mismanagement became known, spurring deposits withdrawals though examiner found the bank solvent.
Measures: Bank had prepared for such a move and had plenty of cash on hand to meet all demands; officers and stockholders intervened and some deposits were returned.
Newspaper Excerpt: The fact that an investigation was being made became known among the farmers, and yesterday a run on the bank was started and $10,000 was withdrawn. Some of this was subsequently returned.
Source: newspapers

Newspaper Articles (1)

1. February 28, 1902 The Mankato Free Press Mankato, MN

Article from The Mankato Free Press, February 28, 1902

Click image to open full size in new tab

Article Text

BANK IS SOLVENT Public Examiner So Finds Amboy Institution. Testimony Taken at Two Days' Hearing---Slight Run Started but Headed Off. The examination into the affairs of the Amboy state bank. which was conducted Tuesday and Wednesday by Public Examiner Johnson, was yesterday adjourned until April 22nd. The examination was held in the presence of the stockholders and the books were gone over and the officers of the bank and others were examined. W. E. Young appeared for the bank officers, and A. R. Pfau Sr. for one or more of the dissatisfied stockholders Harry Paddock took the evidence. The stockholders who brought about the examination claim mismanagement on the part of the officers Mr. Johnson found the bank to be perfectly solvent and on a sound basis. It was started three years ago, has acapital stock of $25,000, and has on hand in cash an amount equal to sixty per cent of the deposits. It has $1,500 surplus, and last year paid a dividend to the stockholders of nine per cent. F. N. Ware is president and S. C. Berner is cashier-both careful and capable business men. The greatest proportion of the stock is held by residents of Amboy and the surrounding country. While the bank has sixty per cent of the deposits on hand in cash, the law only requires twenty per cent to be so retained. There was a good deal said during the hearing as to money loaned to Fred Hilliker, formerly of Amboy, but it was shown that his indebtedness to the bank has been reduced to $2,200 and that this will probably be made good within thirty days. In reference to the charge tbat certain of the bank officers did not act as they should have, these officers put on testimony to show that they had acted only as is customary among bank officials. To help refute the charge, W. G. Hoerr, president of the National Citizens' bank of this city, was secured and he detailed a few facts in regard to the banking business. The fact that an investigation was being made became known among the farmers, and yesterday a run on the bank was started and $10,000 was withdrawn. Some of this was subsequently returned. One man drew out $1,500 in the forenoon and put it back in the afternoon. The bank had prepared itself for such a move and had plenty of cash on hand to meet all demands. Officers of the bank and stockholders who are favorable to them lay the trouble at the door of outside parties, whether rightfully or wrongfully. They say that these parties some time ago tried to buy out the bank, but were unsuccessful. While it is admitted that the bank will be somewhat injured by the present trouble, it will continue in business.