9581. Security Bank (Duluth, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 11, 1896
Location
Duluth, Minnesota (46.783, -92.107)

Metadata

Model
gpt-5-mini
Short Digest
6371aa95

Response Measures

Full suspension, Books examined

Other: Receiver appointed after suspension; movement to reopen mentioned but no evidence of resumption in these articles.

Description

Multiple contemporaneous newspaper dispatches report heavy, unlooked-for withdrawals on Aug 11, 1896 leading the Security Bank of Duluth to close/suspend. State examiner took possession and a receiver was appointed Aug 14-15, indicating permanent closure/receivership rather than a simple temporary suspension. OCR variants call it 'national' in places, but most refer to it as a state bank; official examiner action and receiver appointment are documented.

Events (3)

1. August 11, 1896 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy and unexpected withdrawals combined with inability to make speedy collections/realize securities; liquidity pressure on the bank.
Measures
Bank posted notice of closing; state bank examiner took charge of books and assets.
Newspaper Excerpt
Heavy and unlooked-for withdrawals of deposits and the impossibility of making speedy collections have compelled us to close our doors.
Source
newspapers
2. August 11, 1896 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended because heavy withdrawals and inability to make prompt collections prevented continued payments.
Newspaper Excerpt
The Security Bank of Duluth ... closed its doors this morning. A notice posted on the door reads: 'Heavy and unlooked for withdrawals of deposits, and impossibility of making speedy collections, has compelled us to close our doors.'
Source
newspapers
3. August 14, 1896 Receivership
Newspaper Excerpt
M. D. Kenyon applied yesterday to the district court for the appointment of a receiver for the Security bank, and ... A. R. MacFarlane was named. The assets of the bank amount to $362,261.10, and the liabilities $374,416.71.
Source
newspapers

Newspaper Articles (19)

Article from Santa Fe Daily New Mexican, August 11, 1896

Click image to open full size in new tab

Article Text

GOLDBUG OBJECT LESSONS. Beauties of the Beneficent Gold Standard Policy Exemplified--Banks 60 to the wall. New York, Aug. 11. - The following notice, signed by F. D. Kilburn, superintendent of banking, was ported on the Murray Hill bank to-day: "This bank is closed pending an examination of the condition of its affairs." The bank is one of the oldest state institutions of this city. The deposits amount to about $1,250,000. It is believed that they will be paid in full. One reason advanced for the suspension is that the bank had to take a considerable amount of real estate for loans. BANK CLOSED IN DULUTH. Duluth, Minn.-The Security bank, capital $100,00, one of the leading banks of the city, closed this morning. Heavy withdrawals and the impossibility of making speedy collections is given as the cause. M. D. Kenyon, state bank examiner, is in charge. The deposits are in the neighborhood of $300,000. BANK FAILURE IN CHICAGO. Chicago.-The private bank of L.D. Taylor & Co., successors to North & Taylor, closed to-day. By an order of the court, the Equitable Trust company was made receiver. The assets are $150,000; liabilities $100,000.


Article from Las Vegas Daily Optic, August 11, 1896

Click image to open full size in new tab

Article Text

A Bank In Duluth Falls. DULUTH, Minn., August 11.-The Security bank, of Duluth, one of the largest state banks in this state, closed its doors this morning. The notice posted on the door reads: "Heavy and unlooked for withdrawals of deposits, and impossibility of making speedy collections, has compelled us to close our doors." The last statement of the bank's deposits, on July 22d, was $329,324. The officials say that they expect to pay the depositors in full. The failure has caused considerable excitement and further failures are feared.


Article from The Jersey City News, August 11, 1896

Click image to open full size in new tab

Article Text

MINNESOTA FEELS THE STRAIN. The Security Bank of Deluth Closes Its Doors. DULUTH, Minn., Aug. 11, 1896.-The Security Bank of Duluth, one of the largest national banks in the State, closed its doors this morning. Two notices are posted on the door, one reading:"Heavy and unlooked-for withdrawals of deposits and the impossibility of making speedy collections have compelled us to close our doors. We think depositors need have no fear regarding the ultimate safety of their funds. "W.=P, LARDNER, (Signed) "Cashier."


Article from The Providence News, August 11, 1896

Click image to open full size in new tab

Article Text

SECOND BANK FAILRRE. Security Bank of Duluth, Minnessota, Suspends. DULUTH, Minn., Aug. 11.-The security bnak of Duluth, capital $100,000, one of the leading banks of the city, closed its doors tibs morning. Heavy withdrawals of deposits and impossiility of making speed collections is given as the cause. M. D. Kenyon, State examiner, is in charge. The bank's deposits are in the neighborhood of $300,000.


Article from The Norfolk Virginian, August 12, 1896

Click image to open full size in new tab

Article Text

A New York Bank Closes I14 Doors. New York, Aug. 11.-The Murray Hill bank. doing business at 760 Third avenue, one of the oldest State banks in the city. has closed its doors. Notices signed by the superintendent of banking. which are posted on the door, state that the bank closed pending an examination of its affairs. The bank has deposits of about $1,250,000. which it Is beHeved will be paid in full. It is understood that the bank was compelled to suspend because it had taken a good deal of real estate for loans. Duluth. Minn., Aug. 11.-The Security Bank of Duluth, one of the largest national banks in the State. closed its doors this morning. Two notices were posted on the door. one reading: "Heavy and unlooked-for withdrawals of deposits, and the impossibility of making speedy collections, have compeled us to close our doors. We think depositors need have no fear regarding the ultimate safety of their funds. (Signed) "W. P. LARDNER, "Cashier." The other notice reads. "In my official capacity as Superintendent of Banks of the State of Minnesota, I have taken possession of the books. records and assets of every description of this bank as provided by law. (Signed) "M. D. KENYON, "Examiner." The capital stock of the bank was $100,000 and its surplus $40,000. Its last statement showed total resources of $35.835. There was $6.740 of undivided profits on hand. The total deposits July 22d. the date of the bank's last statement, were $329,324. None of the officers of the bank will talk about the bank's affairs further than to say that they expect to pay all deposits in full.


Article from Richmond Dispatch, August 12, 1896

Click image to open full size in new tab

Article Text

BANK FAILURE AT DULUTH. Considerable Excitement, and Further Failures Feared. DULUTH, MINN., August 11.-The Security Bank of Duluth, one of the largest State banks in Minnesota, closed its doors this morning. A notice posted on the door signed by the cashier stated that heavy and unlooked-for withdrawals of deposits, and the impossibility of making speedy collections, compelled the bank to close its doors, and also that depositors need have no fear regarding the ultimate safety of their funds. Another notice, signed by the bank examiner, said that he had taken possession of the books. The failure caused considerable excitement, and further failures are feared. The bank was organized in 1889, with Joseph Sellwood as president, and F. W. Paine, cashier. The capital stock is $100,000, the surplus is $40,000, and the average deposits are $425,000.


Article from Birmingham State Herald, August 12, 1896

Click image to open full size in new tab

Article Text

Another One Fails. Duluth, Minn., Aug. 11.-The Security bank of Duluth, one of the largest national banks in the state, closed doors this morning. Two notices were posted on the doors, one reading: "Heavy and unlooked for withdrawals of deposits and impossibility to make speedy collections have compelled us to close our doors. We think our depositors need have no fear regarding ultimate safety of their W. P. LARDNER, funds. "Cashier." The other notice reads: "In my official capacity of superintendent of banks of the state of Minnesota, I have taken possession of the books, records and assets of every description of this bank as provided by law. "M. D. KENYON, Examiner." The capital stock of the bank was $100,000 and its surplus $40,000. Its last statement showed resources of $535,835. There was $6740 of undivided profits on hand. The total deposits on July 22, the date of the bank's last statement, were $329,324. None of the officers of the bank will talk about the bank's affairs further than to say that they expect to pay all deposits in full.


Article from The Morning News, August 12, 1896

Click image to open full size in new tab

Article Text

A BIG BANK BREAKS. Deposits Withdrawn Faster Than Collections Could Be Made. Duluth, Minn., Aug. 11.-The Security Bank of Duluth, one of the largest national banks in the state, closed its doors this morning. Two notices were posted on the door, one reading: "Heavy and unlooked for withdrawals of deposits, and the impossibility of making speedy collections have compelled us to close our doors. We think that depositors need have no fear regarding the ultimate safety of their funds. Signed, W. P. Lardner, cashier." The other notice reads: "In my official capacity as superintendent of banks of the state of Minnesota, I have taken possession of the books, records and assets of every description of this bank as provided by law. Signed, M. I, Kendren, examiner." The capital stock of the bank was $100,000 and its surplus $40,000. Its last statement showed resources of $535,835. There was $6,740 of undivided profits on hand. Total deposits July 22, the date of the banks last statement, were $329,324. None of the officers of the bank will talk about the bank's affairs, further than to say that they expect to pay all depositors in full. Duluth, Minn., Aug. 11.-The Security Bank of Duluth, one of the largest state banks in the state, closed its doors this morning. A notice posted on the door signed by the cashier, stated that heavy and unlooked for withdrawals of deposits and the impossibility of making speedy collections compelled the bank to close the doors; also that depositors need have no fear regarding the ultimate safety of their funds. Another notice signed by the bank examiner said that he had taken possession of the books, funds and assets of the bank of every description as provided by law. The failure has caused considerable excitement and further failures are feared. The bank was organized in 1889, with Joseph Sellwood, president and F. W. Paine, cashier. The average deposits were $425,000.


Article from The Salt Lake Herald, August 12, 1896

Click image to open full size in new tab

Article Text

BANKS CLOSED. DULUTH, Minn., Aug. 11.-The Security bank, of Duluth, one of the largest state banks in the state, closed its doors this morning. This notice was posited: "Heavy and unlooked for withdrawals of deposits and the impossibility of making speedy collections compelled us to close our doors." The last statement of the bank deposits on July 22 were $329,324. Officials say they expect to pay the debts in full. NEW YORK, Aug. 11.-The Murray Hill bank, doing business on Third avenue, one of the oldest state banks in the city, has closed its doors. The notice states that the bank is closed pending an examination of its affairs. The bank has deposits of $1,250,000, which it is believed will be paid in full. It is understood the bank was compelled to suspend because it had to take a good deal of real estate for loans.


Article from The San Francisco Call, August 12, 1896

Click image to open full size in new tab

Article Text

SEVERAL BANK FAILURES Peculiar Condition of the Money Market Causes Suspensions. Depositors Will Be Paid in Full When Securities Can Be Realized On. NEW YORK, N. Y., Aug. 11.-The Murray Hill Bank, doing business on Third avenue, one of the oldest State banks in the city, has closed its doors. A notice states that the bank was closed pending an examination of its affairs. The bank has deposits of $1,250,000, which it is believed will be paid in full. It is understood that the bank WAS compelled to suspend because it had to take a good deal of real estate for loans. BOSTON, Mass., Aug. 11.-W. H. Tre worky, wholesale dealer, has made an assignment for the benefit of his creditors. No statement of assets and liabilities has yet been prepared, but it is understood that the liabilities are in the neighborhood of $200,000. DULUTH, MINN., Aug. 11.-The Security Bank of Duluth, one of the largest banks in the State, closed its doors this morning. A notice was posted on the door, saying: "Heavy and unlooked for withdrawais of deposits, and the impossibility of making speedy collections compelled us to close our doors." The last statement of the bank deposits on July 22 was $329,324. The officials say that they expect to pay depositors in full. The failure caused considerable excitement, and other failures are feared. CHICAGO, ILL., Aug. 11.-North & Taylor, private bankers, who did business at 959 West Madison street, suspended today. The banks depositors are working men and the total amount of their savings is placed at $100,000. The firm had a capital of $50,000. Charles A. North and Luis D. Taylor, the partners, have been in business for several years. They were compelled to discontinue because of the extraordinary condition of the money market and inability to realize on securities. Depositors are promised full payment. The Equitable Trust Company was appointed receiver.


Article from New-York Tribune, August 12, 1896

Click image to open full size in new tab

Article Text

WESTERN BANKS GO UNDER. Duluth, Minn., Aug. 11.-The Security Bank of Duluth, one of the largest State banks in the State, closed its doors this morning. Two notices were posted on the door, one reading: Heavy and unlooked-for withdrawals of deposits and the impossibility of making speedy collections have compelled us to close our doors. We think depositors need have no fear regarding the ultimate safety of their funds. W. P. LARDNOR, Cashier. The other notice reads: In my official capacity as Superintendent of Banks of the State of Minnesota I have taken possession of the books, records and assets of every description of this bank, as provided by law. M. D. KENYON, Examiner. The capital stock of the bank was $100,000, and its surplus $40,000. Its last statement showed total resources of $535,835. There was $6,740 of undivided profits on hand. The total deposits on July 22, the date of the bank's last statement, were $329,324. None of the officers of the bank will talk about the bank's affairs further than to say that they expect to pay all deposits in full. The failure has caused considerable excitement, and further failures are feared. The bank was organized in 1889, with Joseph Sellwood, president, and F. W. Paine, cashier. The capital stock is $100,000; surplus, $40,000, and average deposits, $425,000. Chicago, Aug. 11.-The private bank of North & Taylor, No. 959 West Madison-st., was closed this morning. No statement has as yet been made.


Article from The Princeton Union, August 13, 1896

Click image to open full size in new tab

Article Text

DULUTH'S Security bank closed Tuesday morning. The cause was slow collections which showed a weakness in its published statement and caused a run. It is said the depositors will receive 100 cents on the dollar.


Article from Twice-A-Week Plain Dealer, August 14, 1896

Click image to open full size in new tab

Article Text

BANKS CLOSE. Various Causes for the Suspension of Financial Institutions. THREE OF THEM CLOSE THEIR DOORS. They Are the Murray Hill Bank of New York, North & Taylor of Chicago, and Security of Duluth-All Will Pay in Full. New York, Aug. 12..-The Murray Hill bank, doing business at 760 Third avenue, one of the oldest state banks in the city, has closed its doors. A notice, signed by the state superintendent of banking, which was posted on the door, states that the bank is closed, pending an examination of its affairs. It is stated that the Murray Hill bank was closed by order of Superintendent of Banks Kilburn because it was behind in its legal reserve of money and could not carry on business. The directors say the bank will resume in a few daysand pay 100 cents on the dollar. The total assets are expected to be $1,000,000, about $500,000 greater than the liabilities. Many of the depositors are willing to sell their deposits for onehalf their value. Chicago Bank Goes Under. Chicago, Aug. 12.-North & Taylor, private bankers, who did business at 959 West Madison street, suspended Tuesday. The bank depositors are working men and the total amount of their savings is placed at $100,000. The firm had a capital of $50,000. Charles A. North and Louis D. Taylor, the partners, have been in business for several years. They were compelled to discontinue because of the extraordinary condition of the money market and inability to realize on securities. Depositors are promised full payment. The Equitable Trust company was appointed receiver. Security Bank of Duluth Closed. Duluth, Minn., Aug. 12.-The Security bank, of Dulnth, one of the largest state banks in the state, closed its doors Tuesday morning. The capital stock of the bank was $100,000 and its surplus $40,000. Its last statement showed total resources of $535,835. There was $6,740 of undivided profits on hand. The total deposits on July 22, the date of the bank's last statement, were $329,324. The officers of the bank say that they expect to pay all deposits in full. Millers Assign. Hamilton, O., Aug. 12.-The Carr & Browne company, of this city, which runs a large flouring mill, assigned Tuesday morning to William E. ,Browne, president of the Second national bank. The assignee gave bond in the sum of $30,000. Assets, $26,000; liabilities not given. Liabilities of $200,000. Boston, Aug. 12.-The assignment is announced of W. H. Treworgy, wholesale lumber dealer. It is understood that the liabilities are in the vicinity of $200,000.


Article from The Saint Paul Globe, August 15, 1896

Click image to open full size in new tab

Article Text

Receiver for the Security. DULUTH, Minn., Aug. 14.-M. D. Kenyon applied yesterday to the district court for the appointment of a receiver for the Security bank, and on motion of Attorney General Childs, A. R. MacFarlane was named. Mr. MacFarlane was for many years vice president of the American Exchange bank. He gave bonds for the amount of $375,000. The assets of the bank amount to $362,261.10, and the liabilities $374,416.71. The movement to reopen the bank is still under way, and with good prospects of success.


Article from The Cook County Herald, August 15, 1896

Click image to open full size in new tab

Article Text

OF LOCAL INTREST The Security bank of Duluth failed Tuesday. There will be plenty of time to get hot discussing politics after the weather gets cooler. Mr: and Mrs. Schofield arrived here Sunday evening for a visit with Mr. and Mrs. Nauffts. "Cyclone" Davis has been nominated for Congress by the Taxas populists of Fourth district. Dr. Mayhew, accompanied by his granddaughters, Misses Ella and Carrie Mayhew, returned from Duluth Sunday eyening. Misses Dora Schultz and Clara Murphy who have been visiting friends here returned to their homes in West Duluth yesterday. Running a foot race was the novel method adoped by two New Yorkers to settle which of them should marry a girl that both wanted, and who would not decide between them. At the Republican judicial convention held in Duluth last week W. A. Cant was nominated for district judge to succeed Judge Morris, and JudgeE nsign was nominated to succeed himself. The family of Peter Backlund, who is employed on the new residence being erected for the light house keeper, arrived here Wednesday evening. They willreside for the present in the residence recently vacated by Register Tucker. To us, of the north shore of Lake Superior, who are constantly fanned by the cool, refreshing breezes which predominate here, it is hard to contemplate that scores of people are dying from the effects of the heat within a few hundred miles of us, A party of West Duluthians consisting of Messrs. J. Cochran, Emil Zauft, L. A. Barnes, Mr. and Mrs. R. L. Cochran and Misses Cochran and Rockwell passed through town on the Dixon Wednesday evening en route to Isle Royale where they will enjoy camp life for a couple of weeks.


Article from Mower County Transcript, August 19, 1896

Click image to open full size in new tab

Article Text

NEWS IN MINNESOTA Melrose has granted a 40-year electric lighting franchise. The South St. Paul belt line railroad will begin to run trains before Sept. 1. Democrats of the Third congressional district have nominated H. J. Peck of Shakopee. Congressman Kiefer of St. Paul, has withdrawn from the contest for a renomination. The remains of Judge A. J. Edgerton were laid at rest with Masonic honors at Mantorville. The 7-year-old daughter of a farmer named Rosseland, of Chester, was killed in a hailstorm. Governor Clough has issued a proclamation declaring Labor Day, Sept. 7, a general holiday. The body of Adolph Franzen, who was drowned at Winona, has been found at Davenport, Ia. A movement is on foot to reorganize the Security bank of Duluth and place it upon its feet again. The Berlin Summit creamery, near Albert Lea, was destroyed by fire. Loss $8,000; insurance $1,700. An application has been filed to change the name of the town of Thief River Falls to Beau Falls. Stratton Bros.' drug store at Belle Plaine was burglarized of jewelry and money amounting to $125. Bertha Tuchenhagen of Waverly was accidentally shot by Joseph Gibbin. She is not expected to live. Horejs Bros., bakers, at St. Paul, lost 34 horses, 12 wagons and 4 carriages by the burning of their stables. Harvest hands returning from the West report a demoralized state of affairs in the wheat belt of Minnesota, and North and South Dakota. Italian laborers on the Great Northern returning from work on hand cars collided and two men were run over and seriously injured at Melrose. James Prince, John Langren and Frank Treat of New Brighton were convicted by a jury of illegal shooting of prairie chickens and were assessed $28 each. Judge Severance denied the injunction filed in May last by L. G. M. Fletcher against the city of Mankato to restrain it from purchasing an electric light plant. President Northrup of the state university prophesies that the coming year will see an enrollment of 2,600 students in that institution. The Red River valley drainage commission has let three more contracts for ditches to be constructed at Spring Creek, in Norman county, and at Manston in Wilkin county. Two suits of clothes were found on


Article from The Ely Miner, August 19, 1896

Click image to open full size in new tab

Article Text

THE NEWS. Compiled From Late Dispatches. DOMESTIC. Linn O'Neill, of Toledo, O., aged five years and blind, one of the greatest musical prodigies the world ever produced, died from the effects of the heat. During a storm at Cleveland many small boats on the lake were wrecked but no lives were lost. Bob Pierson and Morris Jacobs, pugilists, who attempted to fight near Cincinnati, were arrested and fined $100 each and sent to jail for 50 days. Harry K. Brown, exchange clerk of the Bullion and Exchange bank of Carson, Nev., is said to be a defaulter to the extent of $75,000. The Security bank of Duluth, Minn., one of the leading banks of the city, closed its doors with deposits of $800,000. A fire on the water front of Norfolk, Va., destroyed property valued at $100,000. Five lives were lost in a fire which occurred in A. K. Warren & Co.'s electrical supply manufactory in New York, the property loss being $100,000. The Murray Hill bank in New York suspended payments with liabilities of $500,000. S. K. Martin, president of the S. K. Martin Lumber company of Chicago, the largest lumber firm in the world, died at Alma, Mich., aged 59 years. Joseph Kohler and his wife were killed by the cars at a crossing near Canton, O. Fire in the penitentiary at Anamosa, Ia., destroyed the large library-room of 8,000 volumes, the tailor shop, the dining-room and chapel. The hot wave was broken in the northwest on the 11th, but continued in the east and south. On the date named 146 persons died from the heat in New York, 22 in Brooklyn, 18 in Philadelphia, 12 in St. Louis, 16 in Terre Haute, Ind., 8 in Chicago and several in other towns, the total reported being 265. The reports as to the condition of the crops throughout the country are favorable, corn especially having been greatly benefitted by the hot weather. During a thunder-shower at Rogers, Ark., B. J. Bryant and his five-year-old daughter were struck by lightning and killed. W. H. Treworgy, wholesale lumber dealer in Boston, failed for $200,000. North & Taylor, private bankers in Chicago, suspended payments, with liabilities of $100,000. Lena Rivitt, aged 16, and Cora Goanette, aged ten, were drowned while bathing in Pinedale pond near Athol, Mass. A ten-year-old boy named Mills killed the two little children of Frank Powers at Hollywood, N. C., because they would not stop crying. By a flood in the Tiptown river in the vicinity of Bourbon, Ind., houses, barns and crops were destroyed and 25 persons lost their lives. E. S. Sanborn & Co., of Lynn, Mass., manufacturers of ladies' shoes, failed for $100,000. A strike has been ordered in all mines in Ohio where the men are working for less than the rate established at the last scale meeting, and all mines operated under the contract lease system. Josiah E. Kelley, for 27 years assistant cashier of the First national bank at South Bend, Ind.. killed himself because of a shortage of $24.000 in his accounts. The Manhansett hotel at Shelter Island, one of the largest and most fashionable of the summer hotels on the Long Island coast, was burned, the loss being $100,000. The Michigan Buggy company's factory at Kalamazoo was burned, the loss being $100,000. Miss Celia Rose, 24 years old, is in jail at Mansfield, O., charged with killing her father, mother and brother with poison. In a wreck on the Lake Shore road near Otis, Ind., Engineer James Griffin and Fireman Michael Roach, both of Elkhart, Ind., were killed. The Knights and Ladies of Industry, a benevolent order with headquarters in St. Louis, went out of existence. S. F. Myers & Co., manufacturing jewelers in New York city, failed for $500,000. During a storm at Pittsburgh, Pa., and vicinity six lives were sacrificed and thousands of dollars' worth of property laid waste.


Article from The Pioneer Press, August 20, 1896

Click image to open full size in new tab

Article Text

A Receiver Named. Duluth, Aug. 15 -M. D. Kenyon has applied to the district court for the appointment of a receiver for the Security bank, and on motion of Attorney General Childs, A. R. Macfarlane was named. Mr. Macfarlane was for many years vice president of the American Exchange bank. He gave bonds to the amount of $375,000. The assets of the bank amount to $362,261.10; and the liabilities are $374,416.71. The local liabilities are $279,000 and the rediscount $95,156.67. The movement to reopen the bank is still under way and with good prospect of success.


Article from The Madisonian, August 22, 1896

Click image to open full size in new tab

Article Text

A Receiver Named. DULUTH, Aug. 15.-M. D. Kenyon has applied to the district court for the appointment of a receiver for the Security bank, and on motion of Attorney General Childs, A. R. McFarlane was named. He gave bonds to the amount of $375,000.