9653. State Bank (Lake Crystal, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 29, 1888
Location
Lake Crystal, Minnesota (44.106, -94.219)

Metadata

Model
gpt-5-mini
Short Digest
a1dad550

Response Measures

None

Description

The State Bank of Lake Crystal suspended payment on 1888-11-29 due to heavy losses from officers' speculation in December wheat. A receiver was appointed by April 12, 1889, indicating permanent closure. No run (mass withdrawals motivated by rumor) is described in the articles; deposits were accepted up to posting of suspension notice.

Events (2)
1. November 29, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy losses from officers' speculation in December wheat (speculation with deposits); cashier received deposits up to time notice was posted.
Newspaper Excerpt
LAKE CRYSTAL, Minn., Nov. 29.-The State Bank of Lake Crystal suspended payment yesterday. ... The cause of the suspension was speculation in December wheat.
Source
newspapers
2. April 12, 1889 Receivership
Newspaper Excerpt
Mr. O. O. Pitcher has qualified as receiver of the defunct State Bank of Lake Crystal. He has furnished a bond for $2,500 ... The assets amount to between $1,000 and $1,500 ... The liabilities amount to about $4,000 ... the bank may appeal ... on the point that banks cannot be placed in the hands of a receiver.
Source
newspapers

Newspaper Articles (11)
1. November 29, 1888 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, November 29, 1888

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Article Text

NO CASH IN THE BOX. Sudden Suspension of the State Bank of Lake Crystal. Knights of Labor Precipitate a Strike at Deadwood and Win It. Another Sensational Murder Shakes the Substratum of Society in Le Mars. Professional Burglars Raid and Rob the Postoffice at Chilton. Special to the Globe. LALE CRYSTAL, Minn., Nov. 28.-The State Bank of Lake Crystal has stopped payment. The president, Randolph Mitchell, claimes he will resume payment next Friday, but there is no probability that he will. It looks like a very bad failure. Rumor has it that speculation in December wheat has beat the institution, which was too small to stand the deal. Its capital is $25,000 and it is the only bank in this village.

2. November 30, 1888 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, November 30, 1888

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Article Text

MINNESOTA BANK FAILURE. The Officers Gambled in December Wheat Options. LAKE CRYSTAL, Minn., Nov. 29.-The state bank of Lake Crystal suspended payment yesterday. Randolph is president, and H. Ray Howard is cashier. It had a large number of small deposits, aggregating about $50,000. Nearly every one is bitten. The cause of suspension was speculation in December wheat. The cashier received all the deposits up to the time of posting the notice of suspension.

3. November 30, 1888 Evening Journal Wilmington, DE
Article from Evening Journal, November 30, 1888

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Article Text

CONDENSED NEWS. Thomas Davis, a Cincinnati draughtsman, celebrated Thanksgiving by shooting himself through the head at his home. The State Bank of Lake Crystal, Minn., has suspended, swallowing the savings of many poor people. Deposits were received up to the time the notice was posted. A St. Louis special says the jute bagging trust is going to pieces. The sales have been far below the usual fall average. The sixteen factories leased and closed by the combine are soon to start up, which will cause a marked decline in prices. Kansas is being stirred from end to end in opposition to the Springer bill for the opening of Oklahoma to settlement, as it is feared all immigration will be attracted thereby to the Indian Territory. The body of Capt. Daniel Morrison, of Shelburne, N. S., was found in the wreck of his schooner, the M. & A. Morrison, of Provincetown, Mass. The rest of the crew were doubtless washed overboard and drowned. Mrs. Mary Dargenton died at Amesbury, Mass., from the effects of shot wounds inflicted Monday night by her husband, Jules Dargenton, who afterward committed suicide. The schooner David Faust, from Rondout, with cement, is ashore on Great Point Rip, Nantucket. A meeting of the executive committee of the National Association of Democratic clubs has been called for Dec. 15, at the Albermarle hotel, New York. During a Thanksgiving orgie in a Greenwich street tenement, in New York, a fight was started, and Mary Connell was thrown or fell from a fire escape and killed. Yale denies that a race has been arranged with the Cambridge (Eng.) university crew, to be rowed in England on April 15. Tramps have become so numerous and offensive about Olean, N. Y., that the local military company was called out end sent to break up their rendezvous. The tramps heard of the movement and fled. Wayman Sutton, of Lynchburg, Va., has cause for thanksgiving. He was to have been hanged Friday, but on Wednesday evening a mob tore down the jail and liberated him. The governor had refused to grant a petition for pardon. Sutton murdered a neighbor. Albert Walker's corpse is the latest result of thawing out dynamite. It thawed too quickly. Funeral at Sandusky, O. The striking switchmen at Indianapolis are making no progress in inducing other employes to join them, and their strike is a failure. Hon. James G. Blaine was in New York Thursday in attendance at the funeral of the wife of Gen. Sherman. The Lynn-Orlsfki broadsword combat, which was stopped by the police at New Haven some time ago, was finished at Berlin Thursday and won by Lynn. There were seven new cases of fever, but no death, at Jacksonville Thursday. Chief Arthur, of the Locomotive Brotherhood, has left New York for the west.

4. November 30, 1888 Wheeling Register Wheeling, WV
Article from Wheeling Register, November 30, 1888

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Article Text

CONDENSED TELEGRAMS. In Boston 20,216 women have registered to vote for school committee, as compared with 837 last year. The Panama Canal Company will issue the remainder of a lottery loan on December 12, at 30 francs below par. Robert L. Downing, the tragedian, and Kugenia Blair, his leading lady, were married yesterday at Minneapolis. The State Bank, of Lake Crystal, Minn., suspended payment yesterday. Its capital was $25,000, and its deposits $50,000. Rafael Velano, who arrived at New York from Jacksonv lle on Tuesday, was attacked yesterday by what Dr. Edson, of the Board of Health, believes to be yello fever. Dallas M. Hughes, alaias several other names, was indicted at Washington yes terday for false pretenses. He is the man with half a dozen wives in half a dozen towns. The Maryland authorities have manned the State boats with heavy guns and propose to blow the oyster boats out of the Chasapsake to-day. A desperate battle is expected. The Supreme Court of Utah yesterday ordered an inquiry into charges of fraud against the receiver of the Mormon Church property, which was confiscated for the benefit of the public schools. Robert Garrett is said to be improved but his strange hallucinations continue. At Georgetown, O., Whitecaps are again notifying citizens to leave the country or take whippings. At Reading, Pa, 157 names of Democratic veterans are on a paper for the new Democratic G. A. R. organization. A band of Creek Indians is on the way to Washington to protest against the passage of the Oklahoma bill by Congress. Mrs. Jennie McGraw-Fiske died leaving $1,500,000 to Cornell University. The husband contested the will on the ground that the University already possessed all the property allowed by law. The Court of Appeals at Albany yesterday decided against the University. An appeal will be taken.

5. November 30, 1888 Press and Daily Dakotaian Yankton, SD
Article from Press and Daily Dakotaian, November 30, 1888

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Article Text

Bank Officers Speculated. LAKE CRYSTAL, Minn., Nov. 29.-The State Bank of Lake Crystal suspended payment. The capital of the bank was $25,000, and it had a large number of small. deposits, aggregating about $50,000. The cause of the suspension is said to be heavy losses sustained by the bank's officers in wheat speculation.

6. November 30, 1888 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, November 30, 1888

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Article Text

Weather Indications. Generally cloudy and light rains; northwesterly winds; stationary temperature. CONDENSED NEWS. Thomas Davis, a Cincinnati draughtsman, celebrated Thanksgiving by shooting himself through the head at his home. The State Bank of Lake Crystal, Minn., has suspended, swallowing the savings of many poor people. Deposits were received up to the time the notice was posted. A St. Louis special says the jute bagging trust is going to pieces. The sales have been far below the usual fall average. The sixteen factories leased and closed by the combine are soon to start up, which will cause a marked decline in prices. Kansas is being stirred from end to end in opposition to the Springer bill for the opening of Oklahoma to settlement, as it is feared all immigration will be attracted thereby to the Indian Territory. The body of Capt. Daniel Morrison, of Shelburne, N. S., was found in the wreck of his schooner, the M. & A. Morrison, of Provincetown, Mass. The rest of the crew were doubtless washed overboard and drowned. Mrs. Mary Dargenton died at Amesbury, Mass., from the effects of shot wounds inflicted Monday night by her husband, Jules Dargenton, who afterward committed suicide. The schooner David Faust, from Rondout, with cement, is ashore on Great Point Rip, Nantucket. A meeting of the executive committee of the National Association of Democratic clubs has been called for Dec. 15, at the Alber.narle hotel, New York. During a Thanksgiving orgie in a Greenwich street tenement, in New York, a fight was started, and Mary Connell was thrown or fell from a fire escape and killed. Yale denies that a race has been arranged with the Cambridge (Eng.) university crew, to be rowed in England on April 15. Tramps have become so numerous and offensive about Olean, N. Y., that the local military company was called out and sent to break up their rendezvous. The tramps heard of the movement and fled. Wayman Sutton, of Lynchburg, Va., has cause for thanksgiving. He was to have been hanged Friday, but on Wednesday evening a mob tore down the jail and liberated him. The governor had refused to grant a petition for pardon. Sutton murdered a neighbor. Albert Walker's corpse is the latest result of thawing out dynamite. It thawed too quickly. Funeral at Sandusky, O. The striking switchmen at Indianapolis are making no progress in inducing other employes to join them, and their strike is a failure. Hon. James G. Blaine was in New York Thursday in attendance at the funeral of the wife of Gen. Sherman. The Lynn-Orlsfki broadsword combat, which was stopped by the police at New Haven some time ago, was finished at Berlin Thursday and won by Lynn. There were seven new cases of fever, but no death, at Jacksonville Thursday. Chiff Arthur, of the Locomotive Brother hood has left New York for the west.

7. November 30, 1888 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, November 30, 1888

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Article Text

Bank Suspension I LAKE CRYSTAL, Minn., November 29. - The State Bank of Lake Crystal suspended payment yesterday, Randolph Mitchell, president, and H. Ray Howard, cashier. It had a large number of small deposits aggregating about $50,000, and nearly every one in the place is bitten. The :cause of the suspension is the speculation in D scember wheat. The cashier received ali deposits offered up to the time of posting the notice of suspension.

8. November 30, 1888 Los Angeles Daily Herald Los Angeles, CA
Article from Los Angeles Daily Herald, November 30, 1888

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Article Text

BANK SUSPENDED. The Responsibility Laid on December Wheat. LAKE CRYSTAL, Minn., November 29. -The State Bank of Lake Crystal suspended payment yesterday. Randolph Mitchell is president, and H. Ray Howard cashier. It had a large number of small deposits, aggregating about $50,000. Nearly every one in the place is bitten. The cause of the suspension was speculation in December wheat. The cashier received all the deposits offered up to the time of posting the notice of suspension.

9. December 5, 1888 Watertown Republican Watertown, WI
Article from Watertown Republican, December 5, 1888

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Article Text

LOST IN DECEMBER WHEAT. Speculation With Deposits Causes the Wreck of a Bank. LAKE CRYSTAL, Minn., Nov. 29.-The State Bank of Lake Crystal has suspended payment, and as a result the villagers and farmers who had their money deposited therein are in all excited state. The bank was organized two years ago with Randolph Mitchell as president and H. Ray Howard cashier. The capital was $25,000. It had a large number of small deposits, aggregating about $50,000, and nearly every one in the place was bitten. The cause of the suspension is speculation in December wheat. The institution was too small to stand the strain of recent heavy losses.

10. December 13, 1888 The Worthington Advance Worthington, MN
Article from The Worthington Advance, December 13, 1888

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Article Text

Depositors Are Left. The State Bank of Lake Crystal sus. pended payment the other day. The cap. ital of the bank was $25,000, and it had a large number of small deposits aggre. gating about $50,000. The cause of the suspension was said to be heavy losses in wheat speculation. The cashier received all the deposits that were offered up to the time of posting the notice of suspension.

11. April 12, 1889 The Mankato Free Press Mankato, MN
Article from The Mankato Free Press, April 12, 1889

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Article Text

-Mr. O. O. Pitcher has qualified as receiver of the defunct State Bank of Lake Crystal. He has furnished a bond for $2,500, with P. W. Pitcher and G. F. Piper as sureties. The assets amount to between $1,000 and $1,500, mostly in real estate. Besides this the creditors hope to get hold of some property, including the bank building, which they say was fraudulently transferred. This will bring the assets up to from $3,000 to $3,500. The law allows four months in which to set aside a transfer when there is intent to evade the law. The liabilities amount to about $4,000, with more to be heard from. It is possible that the bank may appeal to the supreme court from Judge Severance's decision to appoint a receiver, on the point that banks cannot be placed in the hands of a receiver. The elevator company's business is also mixed up with the bank and will have to be investigated. -The game bill was debated in the committee room of the State senate yesterday by several senators, who proved themselves thorough sportsmen by their excellent discourses on the merits of an August or September limit on shooting prairie chickens. Senator Edwards made an amendment to substitute Sept. 1 for Aug. 20 as the day to begin the slaughter of chickens, in order to make it to correspond with the day in Iowa and Dakota. If Aug. 20 was fixed upon the border counties would be overrun with sportsmen from other States, who would bag all the birds. Besides, he said, on August 20 most of the grain in the State was standing, and protested against giving young sportsmen license to tramp through the fields and destroy grain. Senator Goodrich opposed the amendment, on the ground that the chickens were old and tough on Sept. 1, and if the late date was sanctioned by the legislature the result would be that the law breakers would get all the sport. Senator Brown emphatically indorsed the remarks of Senator Edwards, and incidentally roasted the members of the rich gun clubs. The Edwards amendment prevailed, and the bill was recommended to pass in that form. -A first-class contractor and carpenter said to-day, in speaking of the proposed contractors' and mechanics' union, that good contractors stand no show in bidding on anything any more. Those who know nothing about the business rush in and get the contracts by bidding so low that often the bondsmen are obliged to finish the contracts. It was the same way with the various mechanical industries, he said, especially with carpenters. Common laborers will engage as carpenters, though they have had no experience and do not possess any tools, and will work for a dollar and a half a day; whereas good carpenters, who have had years of experience and possessed several hundred dollars' worth of tools should do the work and receive regular mechanics' wages. He took no stock in the attempt to lay these wrongs at the doors of the rich, but said it was all owing to the inexperienced men cutting each others' throats in their bids. A man will build a house at a reasonable price as quickly as at a very low price, after he has made up his mind to build. The difference between the two prices should go to the labor in higher wages, and would, were it not for labor itself. He favored, as the only escape from the existing condition of affairs, a law requiring persons to serve apprenticeships before becoming mechanics or contractors. He did not believe in strikes and would not join any organization where they would be allowed. It was to try to meet the above stated complaints that the contractors' union had been talked of.