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2 STATE BANKS CLOSE Royalton and Bowlus Each Have a Bank Closed During Past Week The financial circles of the county received a severe shock during the past week, when the State Bank of Royalton, organized in March 1908 with a capitalization of $10,000, and The First State Bank of Bowlus, organized in September 1907 with a capitalization of $10,000, closed their doors. On July 28 the Royalton bank received a thorough examination by examiners from the state department, at which time it was found that the bank had greatly impaired its resources by loaning money freely to business houses in which its officers were directly interested, and besides this overdrafts which had been running a long time were discovered. Kelsey Chase, state superintendent of banks, thereupon threatened to close the bank unless an assessment of 30 per cent was levied against the stockholders of the institution to put the bank on a sound footing. Rather than comply with this order, the bank on last Friday closed its doors. The books show its resources to be $146,291.91, admitted liabilities $132,000, deposits on time certificates $85,000. The officers are Stephen Schwartz, president : H. A. Schwartz, vice-president: S. J. Swartz, Cashier. The bank was an old institution of the county, having been run as a private bank since the early 80's to 1908. Examiner Regan has been placed in charge of the Royalton bank. Whether the bank is solvent or not is not known and all kinds of stories are heard. Fearing the reflex action of the closing of the Royalton bank, the First State Bank of Bowlus, the ownership of which was closely allied with it, was closed by the state examiner Tuesday and placed in charge of Examiner Millard. The bank had upon examination been found to be in good financial condition, however, and will most likely be reorganized and reopened in a few days with some strong financial interests back of it. The bank has deposits of $80,000, and its surplus was given out as $1,000. The officers of this institution are O. H. Havill of St. Cloud, president; H.J. Schwartz of Royalton, vice president; J. C. McDougall, cashier. There was considerable excitement in Bowlus when the institution was closed and several parties from here and Royalton went out there. The county funds in these banks are covered by surety bonds. As soon as the Bowlus bank was closed, O. H. Havill tendered his reof the signation presidency of the Merchants National bank of St. Cloud. John N. Benson, was elected to sucCashier A. H. Reinbard was to promoted ceed him. vice president and Assistant Cashier Carl Benson was made cashier.