9713. Bankers' Exchange Bank (Minneapolis, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 30, 1896
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
07c37958

Response Measures

Full suspension, Books examined

Other: Voluntary liquidation / receivership after reopening; receiver discharged then later receiver appointed and dividends paid during winding up.

Description

A run in late Dec 1896 led the small Bankers' Exchange Bank to suspend payment (Dec 30). It reopened by order of the state bank examiner on 1897-01-07 but subsequently went into voluntary liquidation and a receiver (Otto Rood) was appointed on 1897-02-10. Cause of initial run/suspension tied to local bank failures/embarrassment in the city and depressed finances.

Events (4)

1. December 30, 1896 Run
Cause
Local Banks
Cause Details
Withdrawals followed recent suspensions/failures of other Minneapolis banks and the depressed financial condition; run removed significant deposits ($35,000–$85,000 reported over three weeks).
Measures
Cashier Field preferred to await the bank examiner's advice before making further payments; nearly 30% of deposits kept in vault per statement.
Newspaper Excerpt
The announcement that the Bankers' Exchange bank had suspended payment for a few days... A run has taken $35,000 from it in three weeks.
Source
newspapers
2. December 30, 1896 Suspension
Cause
Local Banks
Cause Details
Bank suspended payment temporarily after heavy withdrawals and because some of its available funds were deposited in other city banks that also suspended, embarrassing its transactions.
Newspaper Excerpt
The Bankers' Exchange bank announced the suspension of payment for a few days.
Source
newspapers
3. January 7, 1897 Reopening
Newspaper Excerpt
The Bankers' Exchange Bank of this city, which suspended some days ago, has resumed business. The receivers for the Bankers' Exchange bank...was discharged by Judge Smith today, and the bank resumed business.
Source
newspapers
4. February 10, 1897 Receivership
Newspaper Excerpt
Otto Rood was today appointed receiver of the Bankers' Exchange bank... The present action is a voluntary liquidation. The receiver expects to pay depositors in full within thirty days.
Source
newspapers

Newspaper Articles (17)

Article from Santa Fe Daily New Mexican, December 30, 1896

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MORE BUSINESS DISASTERS Commercial National Bank of Selma, Ala., Failed to Open Its Doors This Morning. SITUATION EASIER AT MINNEAPOLIS Two Failures Scarcely Cause a Ripple in Business Circles-Grain Operators Go to the Wall in Wisconsin-Assignment in Texas. Birmingham, Ala., Dec. 30.-The Commercial National bank of Selma, Ala., failed to open to-day. It was established in 1880, has a paid up capital of $300,000 and undivided profits of $50,000. R. M. Nelson, president of the Commercial, has for years been prominent in financial circles. GETTING USED TO FAILURES. Minneapolis.-The financial situation is much easier to-day. The announcement that the Bankers' Exchange bank had suspended payment for a few days caused scarcely a ripple, as the institution is small with only $30,000 capital. A run has taken $35,000 from it in three weeks. Cashier Field declared that he had plenty of ready money, but preferred to await the bank examiner's advice before making further payments. The Northern Trust company applied to the district court this morning for a receiver. It suspended payment in 1893, but afterward resumed. GRAIN DEALERS ASSIGN. West Superior, Wis.-The Anchor Grain company, operating on the Superior board of trade, assigned this morning. AN ASSIGNMENT IN TEXAS. Austin, Texas.-N. A. Bahn, Austin's leading jeweler, made an assignment this morning, naming preferred creditors to the amount of $300,000. MINOR FAILURES. Fort Wayne, Ind.-The retail dry goods firm of M. Frank & Co. has failed. The firm's indebtedness to local creditors amounts to $70,000. There is also a heavy indebtedness to eastern creditors. Cincinnati, Ohio.-Frank Duhme and Herman Duhme, jr., trading in jewelry and silverware as the Duhme company, have failed. The concern has issued stock since its organization four years ago amounting to $440,000. The assets and liabilities are not known, but the company's affairs are said to be badly involved.


Article from Rock Island Argus, December 30, 1896

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Failures of the Day. Birmingham, Ala., Dec. 30.-The Commercial bank, of Seima, Ala., failed to open its doors this morning. The capital is $300,000; the undivided profits $50,000. West Superior, Wis., Dec. 30-The Anchor Grain company, operating on the Superior board of trade has assigned. Minneapolis, Dec. 30.-,The Bankers' Exchange bank announced the suspension of payment for a few days. It has only $30,000 capital. There has been a run on the bank. The Northern Trust company has applied for a receiver. The hearing was postponed one week.


Article from Deseret Evening News, December 30, 1896

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Easter Financially. MINNEAPOLIS, Minn., Dec. 30.-The financial situation 18 much easter today. The announcement that the Bankers' Exchange bank had suspended payment for a few days caused scarcely a ripple as the Institution 18 small with only $30,000 capital. The run on this bank has taken $85,000 from it in three weeks. Cashier Field declared he had plenty of ready money but preferred to await the band examiner's advice before making further payments. The Northern Trust company, through its president, George Maxwell, applied to a district court this morning for a receiver. The hearing was postponed a week. Ex-Governor A. R. McGill to president. The company suspended payment in 1893 but afterwards resumed.


Article from Richmond Dispatch, December 31, 1896

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GOES INTO EXAMINER'S HANDS. Bankers' Exchange Bank, of Minneapolis-General Bank Situation. MINNEAPOLIS, MINN. December 30.The Bankers' Exchange Bank went into the hands of Bank-Examiner Kenyon this morning Depositors have drawn out about $35,000. the past few days, and President Field concluded to close. though he had in the vaults nearly 30 per cent. of all the money on deposit. The bank is less than a year old, having been incorporated last year. Its loans and discounts are $68,000; its capital, $30,000. and its deposits are about $40,000. Depositors will be paid in full. and a fair sum will be left for the stockholders. George Maxwell, vice-president of the Northern Trust Company, made application this morning for a receiver for the company. A. R. McGIII. ex-Governor of Minnesota, is the president of the organization. The following statement was issued by the company: "This company has for some time been seeking to realize upon its loans and securities, and has until now been able to maintain Itself without difficulty. but the depressed condition of finances is such that it has been unable to realize, as it had hoped and the suspension within two or three days of some of the banks of the city, in which was deposited some of its available funds, has somewhat embarrassed It in the transaction of its business. Independent of its assets, the company has a list of responsible stockholders, who are abundantly able to make good any deficiency that may result from depreciation in the value of its assets, 80 that the creditors of the company need have no apprehension as to the ultimate result. Their claims will all be paid in full, even if the company is not permitted to immediately resume. as is now hoped." The liabilities of the company are about $500,000. Jamason issued restraining or-


Article from The Morning News, January 1, 1897

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MINNEAPOLIS OVER THE SCARE. The Situation in Banking Circles Has Calmed Down. Minneapolis, Minn., Dec. 31.-Excitement over the recent bank failures in this city has entirely subsided and all is quiet again. There were no runs of consequence on any of the banks this morning. Daniel Fish has been appointed receiver for the Northern Trust Company, and A. B. Derelius for the Bankers' Exchange Bank, both of which suspended yesterday.


Article from Little Falls Weekly Transcript, January 1, 1897

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SITUATION EASIER. No Apprehension Felt as to the Larger Minneapolis Banks. MINNEAPOLIS, Dec. 31.-The financial situation is much easier here and no apprehensions are felt as to the security of any of the large banks. The announcement that the Bankers' Exchange bank had suspended pay. ment for a few days caused scarcely a ripple, as the institution is a very small one, with only $30,000 capital. There had been a run on the bank which has taken $35,000 from it in three weeks. Cashier Field declared that he had plenty of ready money in the vault but preferred to await the bank examiner's advice before making further payments. The Northern Trust company,through its vice president, George H. Maxwell, applied to the district court for a receiver. The hearing was postponed one week. Ex-Governor A. R. McGill is its president. It suspended payment during the panic of 1893 but afterwards resumed business.


Article from New-York Tribune, January 8, 1897

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THE REVIVAL IN BUSINESS. MORE IDLE PLANTS TO RESUME WORK-A DENVER BANK TO REOPEN. Denver. Col., Jan. 7.-The American National Bank reopened this morning, with Julius A. Myers president. It means nearly $1,000,000 of tied-up money being put in immediate circulation here. Youngstown, Ohio, Jan. 7.-The Youngstown Car Works, which have been idle for more than a year, will resume on Monday. The company has secured a large order for coke-cars, and will have a run of at least two months, with other orders in prospect. Casper. Wyo., Jan. 7.-The Pennsylvania Oil and Gas Company, after a close-down of four months, has opened its refinery and started the fires again. Shipments of oil will be resumed, and renewed drilling is probable in the near future. Houghton, Mich.. Jan. 7.-The Centennial Copper Mine, which suspended work four years ago. will resume operations by February 1. The mine has a continuation of the celebrated Calumet Conglomerate lode, from which other mines have paid $55,000,000 in dividends. The Centennial has sunk $1,500,000 up to date. Minneapolis, Jan. 7.-The Bankers' Exchange Bank of this city, which suspended some days ago, has resumed business.


Article from The Houston Daily Post, January 8, 1897

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Receivers Discharged. Minneapolis, Minn., January 7.-The receivers for the Bankers' Exchange bank, which closed during the recent excitement with more than legal reserve on hand was discharged by Judge Smith today, and the bank resumed business. The Farmers and Mechanics' Savings bank today declared its usual 4 per cent annual dividend.


Article from The Bryan Daily Eagle, January 9, 1897

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Exchange Bank Resames MINNEAPOLIS, Jan. 8.-The receiver for the Ban ers' Exchange bank which closed during the recent excitement with more than the full legal reserve on hand, was discharged by Judge Smith and the bank resumed business. The Farmers and Mechanics, Savings bank has deolare its usual 4 per cent annual dividend.


Article from Omaha Daily Bee, January 9, 1897

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Bank Resumes. MINNEAPOLIS, Jan. 8.-The Bankers' Exchange bank, which closed its doors a week ago, resumed business today. Acting upon the recommendation of M. D. Kenyon, the state superintendent of banks, Judge Seagrave Smith made an order this morning discharging the recéiver and restoring the bank's assets to its officers.


Article from The Worthington Advance, January 14, 1897

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Five young men who comprise a gang of the most daring bank swindlers and forgers that has operated in this country in 20 years were captured in Chicago. The number of steerage passengers landed at Ellis island during 1896 was 252,350. There were 99,223 cabin passengers landed at the port of New York during the same period. Fire destroyed property at Athens, Tex., valued at $100,000. Fire destroyed the entire business portion of Royalton. Wis. In Minnesota the Bank of Canton at Canton and the Citizens' bank of Lanesboro, both owned and operated by Field, Kelsey & Co., suspended business. J. H. Johnston & Co., silversmiths and jewelers in New York, failed for $250,000. Simon Cooper, a negro outlaw, murdered Ben Wilson, aged 80 years, his son Wesley, aged 40. and Mrs. Wesley Wilson, aged 35, and a colored man at Magnolia, S. C. The refusal of Wilson to loan Cooper a buggy was the cause. Senator-elect Money, of Mississippi, arrived at Tampa, Fla., from Cuba and left for Washington. The Bankers' exchange bank in Minneapolis, Minn., which suspended some days ago, has resumed business. William J. Bryan was the guest of the Bryan league at a banquet given at the Tremont house in Chicago in celebration of the anniversary of Andrew Jackson's birth and made the principal speech. Anthony Henderson, a negro arrested for the murder of George Summer at Unadilla, Ga., and attempted assault upon his daughter, was lynched by a mob. John Vaughan and Gus Homer, armed with a pistol and knife, engaged in a duel at Memphis, Tenn., and both were fatally wounded. The fiftieth session of the general assembly of Indiana met in Indianapolis. Henry C. Pettit, of Wabash, was chosen speaker of the house. The American national bank of Denver, Col., which suspended April 21, 1896, has reopened its doors. The United States dispatch boat Dolphin arrived at Jacksonville, Fla., to watch filibusters. Howard Wilson and Miss Fay Rawls broke through the ice while skating at Creston, la., and in saving the life of the young lady Wilson lost his own. William Speidel, 21 years of age, was robbed and murdered while on his way to be married at Port Jervis, N. Y. R. G. Dun & Co., of New York, in their weekly review of trade say that while banking failures have not ceased at the west, apprehension about them has almost wholly subsided and no serious influence upon general trade is expected Thomas Wilson, accompanied by his daughter, Mrs. Kinnery, and her tive children, attempted to ford Práirie creek near Plato, Mo., and the children were all drowned. The exchanges at the leading clearing houses in the United States during the week ended on the 8th aggregated $1.144,639,080, against $1,055,921,223 the previous week. The decrease compared with the corresponding week of 1896 was 7.6. There were 488 business failures in the United States in the seven days ended on the 8th, against 329 the week previous and 405 in the corresponding period of 1896. In his message to the Missouri legislature Gov. Stone advocated the hanging of persons convicted of train robbery. The Bank of North St. Paul, Minn., closed its doors with liabilities of $25,000. Robbers blew open a safe in the post office at Blooming Grove, Tex., and secured $9,000. The office of the Leader, a newspaper at Montpelier, O., was burned, the loss being $10,000. Simon Cooper, a negro outlaw, who murdered thaee members of the Wilson family and a colored servant, was lynched near Sumter. S.C. Gov. Matthews in his last message to the Indiana legislature expressed strong sympathy for the Cuban insurgents and advocated compulsory education and a law prohibiting the formation of trusts in the state. The North Carolina legislature passed a resolution instructing the senators and congressmen from that state to try and bring about the passage of an act recognizing the independence of the patriots of Cuba. Charles Walstrom and Mike Martin, who lived on an island across the bay from Charlevoix, Mich., were murdered by unknown parties. The First national bank of Alma, Neb., was closed with liabilities of $134,000. Robert Laughlin was hanged at Brooksville, Ky., for the murder of his invalid wife and 14-year-old niece. After the murder he set fire to the house and the bodies were consumed. Senator-elect Money, of Mississippi, who has just returned to Washington from a two weeks' visit to Cuba, says that Spain is unable to cope with the insurrection: that she will never put it


Article from The Diamond Drill, January 16, 1897

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DOMESTIC. In Minnesota the Bank of Canton at Canton and the Citizens' bank of Lanesboro, both owned and operated by Field, Kelsey & Co., suspended business. Simon Cooper, a negro outlaw, murdered Ben Wilson, aged 80 years, his son Wesley, aged 40, and Mrs. Wesley Wilson, aged 35, and a colored man at Magnolia, S. C. The refusal of Wilson to loan Cooper a buggy was the cause. The Bankers' exchange bank in Minneapolis, Minn., which suspended some days ago, has resumed business. William J. Bryan was the guest of the Bryan league at a banquet given at the Tremont house in Chicago in celebration of the anniversary of Andrew Jackson's birth and made the principal speech. Anthony Henderson. a negro arrested for the murder of George Summer at Unadilla, Ga., and attempted assault upon his daughter, was lynched by a mob. John Vaughan and Gus Homer, armed with a pistol and knife, engaged in a duel at Memphis, Tenn., and both were fatally wounded. The fiftieth session of the general assembly of Indiana met in Indianapolis. Henry C. Pettit, of Wabash, was chosen speaker of the house. The American national bank of Denver, Col., which suspended April 21, 1896, has reopened its doors. The United States dispatch boat Dolphin arrived at Jacksonville, Fla., to watch filibusters. Howard Wilson and Miss Fay Rawls broke through the ice while skating at Creston, la., and in saving the life of the young lady Wilson lost his own. The exchanges at the leading clearing houses in the United States during the week ended on the 8th aggregated $1.144,639,080, against $1,085,921,223 the previous week. The decrease compared with the corresponding week of 1896 was 7.6. William Speidel, 21 years of age, was robbed and murdered while on his way to be married at Port Jervis. N. Y. Thomas Wilson, accompanied by his daughter, Mrs. Kinnery, and her five children. attempted to ford Prairie creek near Plato, Mo., and the children were all drowned. R. G. Dun & Co., of New York. in their weekly review of trade say that while banking failures have not ceased at the west, apprehension about them Las almost wholly subsided and no serious influence upon general trade is expected There were 488 business failures in the United States in the seven days ended on the 8th, against 329 the week previous and 405 in the corresponding period of 1896. The Bank of North St. Paul, Minn., closed its doors with liabilities 01 000. Robbers blew open # safe in the post office at Blooming Grove, Tex., and secured $9,000. The office of the Leader, a newspaper at Montpelier, O., was burned, the loss being $10,000.


Article from Birmingham State Herald, February 11, 1897

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A RECEIVER APPOINTED. Minneapolis, Minn., Feb. 10.-Otto Rood was today appointed receiver of the Bankers' Exchange bank. This institution closed its doors last December and re-opened Jan. 7, by order of the state bank examiner. At the time of re-opening the deposits were $53,000. Since then, however, the deposits have been reduced 75 per cent. by withdrawals. The action today was a voluntary liquidation. The bank claims to have four times the amount of deposits in bills receivable. The receiver expects to pay depositors in full within thirty days.


Article from The Indianapolis Journal, February 11, 1897

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Receiver for a Bank. MINNEAPOLIS. Feb. 10.-On the petition of A. M. Hove, Otto Rood was this morning appointed receiver of the Bankers' Exchange Bank, with a bond fixed at $20,000. The petition stated that Mr. Hove had drawn his check on the bank yesterday in the sum of $100 and that payment of the same had been refused, although there had been plenty of money on deposit in his name to cover the check. The Bankers' Exchange Bank is a small institution which closed last December and was re-opened in January. All its deposits excepting $13,000, have since been withdrawn and the officers say that there are assets of $40,000. The receiver will wind up the business.


Article from The San Francisco Call, February 11, 1897

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Bank's Second Closing. MINNEAPOLIS, MINN., Feb. 10.-Otto Reed was to-day appointed receiver of the Bankers' Exchange Bank, Second-avenue South and Third street. This institution closed its doors last December and reopened January 7, by order of the State Bank Examiner. At the time of reopening the deposits were $53,000. Since then, however, the deposits bave been reduced 85 per cent by withdrawals. The action to-day was a voluntary' liquidation, and the bank claims to have four times the amount of deposits in bills receivable. The receiver expects to pay depositors in full within thirty days.


Article from The Diamond Drill, February 13, 1897

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GOING OUT OF BUSINESS. Minneapolis Bank Goes Into Voluntary Liquidation. Minneapolis, Minn., Feb. 11. - Otto Rood has been appointed receiver of the Bankers' exchange bank, Second avenue south and Third street. This institution closed its doors last December and reopened January 7 by order of the state bank examiner. At the time of the reopening the deposits were $53,000. Since then, however, the deposits have been reduced 75 per cent. by withdrawals. The present action is a voluntary liquidation. and the bank claims to have four times the amount of deposits in bills receivable. The receiver expects to pay depositors in full within 30 days.


Article from The Saint Paul Globe, May 15, 1897

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# MINNEAPOLIS GLOBULES. Jessie McKay, who was arrested with two men at Shakopee on a charge of grand larceny, was discharged yesterday morning by Judge Kerr, as there was no evidence to hold her. Judge Lochren returned yesterday morning from Duluth, where he has been listening to the trial of cases which did not require a jury, there not being funds enough to provide for jury expenses. Tilda Larson was sent to the workhouse for ten days yesterday morning by Judge Kerr for being drunk. She admitted having only partaken of the contents of two pails of beer and did not think she was drunk. In response to a petition Judge Smith has ordered Otto Rood, receiver of the Bankers' Exchange bank, to pay a dividend of 20 per cent on the present total indebtedness of the bank. This is the third 20 per cent dividend of the bank since the receivership. There is plenty of mirth and music, jerk and jingle in "A Railroad Ticket," the popular farce comedy which will be presented at the Bijou next week. The scenes are laid in and about New York, and a railroad ticket broker's office figures as a prominent scene. There remains but two performances in the first week of the summer dramatic season at the Metropolitan, tonight and the matinee this afternoon. The financial success of Eugenie Blair's engagement thus far has been all that was expected, and from an artistic point of view the production of "Camille" is highly satisfactory.