State Bank - Fairfax, MN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1893*
Location: Fairfax, Minnesota (44.529, -94.721)

Metadata

Model: gpt-5-mini
Short Digest: 41d5426c

Response Measures

None

Description

Article reports the State Bank of Fairfax closed its doors and officers absconded; describes mismanagement/possible embezzlement and losses to depositors and merchants. No reopening mentioned; treated as permanent closure/suspension.

Events (1)

1. January 1, 1893* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Officers absconded amid mismanagement, paying unusually high interest, and losses from manipulated mill and endorsed notes; alleged wrongdoing/embezzlement led to collapse.
Newspaper Excerpt: The bank of Fairfax closed its doors last Wednesday and its officers, J. A. Beard and F. A. Grey took the first train out of town.
Source: newspapers

Newspaper Articles (1)

1. January 4, 1893 New Ulm Review New Ulm, MN

Article from New Ulm Review, January 4, 1893

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Article Text

Slick Bankers. The bank of Fairfax closed its doors last Wednesday and its officers, J. A. Beard and F. A. Grey took the first train out of town. The suspension was unexpected and caused considerable excitement for it was reported to have a paid up capital of $20,000. One thing how ever had been regarded as suspicion for a long time and this was the paying of eight and ten per cent on deposits, contrary to customs of banking institutions. Quite a number of farmers have lost money by the failure by having stock in mill, the management of which was manipulated through the bank. A. V. Reicke, Lammers & Green, Anton Altman, Geo. M. Brand and other merchants are also among the losers. The feeling against the bank officers was outspoken and they are severely censured. Fairfax is one of the liveliest towns on the St. Louis Ry. and its merchants are liberal, wideawake hustlers and to be thus robbed of their property is a blow which cuts them to the quick and especially the more so when each day reveals further the unsavory methods employed on the part of the bank officers to get possession of their money. Ever since the State Bank started, there has been a bitter rivalry between the two streets of the town on each of which a bank is located. So the merchants on the street on which the Bank of Fairfax is located, accommodated their bank by endorsing notes in its favor and now the callapse of their pet reaches their pocket-book as well, The officers of the State Bank a run on anticipated heavy their institution but they will meet it without any extended difficulty.