9727. Farmers and Mechanics Bank (Minneapolis, MN)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
December 29, 1896
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
281b9621

Response Measures

Partial suspension, Books examined

Other: Issued notice requiring 60 days' notice for withdrawals; clearinghouse resolved to stand by member banks.

Description

Multiple newspapers report a heavy run on the Farmers and Mechanics Bank triggered by recent closures/suspensions of other Minneapolis banks (Columbia National, Washington Bank). The Farmers & Mechanics then issued a notice requiring 60 days' notice for withdrawals (a partial suspension/30/60/90 style measure). There is no article here that documents a permanent closure or later reopening, so I classify as run -> suspension with outcome unsure.

Events (2)
1. December 29, 1896 Run
Cause
Local Banks
Cause Details
Run precipitated by the closing/suspension of other Minneapolis banks (Columbia National and Washington Bank); announcement of those failures caused depositors to withdraw from Farmers & Mechanics.
Measures
Bank later required all depositors to give sixty days' notice before being permitted to draw deposits.
Newspaper Excerpt
The biggest run was on the Farmers and Mechanics Bank, the largest savings institution in the northwest
Source
newspapers
2. December 30, 1896 Suspension
Cause
Local Banks
Cause Details
Partial suspension (30/60/90-type restriction) instituted in response to heavy withdrawals triggered by other banks' failures and city-wide panic.
Newspaper Excerpt
The Farmers and Mechanics Bank issued a notice this morning requiring all depositors to give sixty days notice before being permitted to draw deposits.
Source
newspapers

Newspaper Articles (3)
1. December 30, 1896 The Morning News Savannah, GA
Article from The Morning News, December 30, 1896

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Article Text

MONEY MAD IN MINNEAPOLIS. TWO MORE BANKS FORCED TO CLOSE THEIR DOORS. The Columbia National and the Washington Bank the Institutions Involved-The Closing of the Former Precipitated n Run on the Latter-Both Institutions Expect to Pay Their Creditors in Full-Failures in Other Cities. Minneapolis, Minn., Dec. 29.-The Columbia National Bank, whose president is Charles Kittleson, ex-state treasurer, and whose cashier is Joseph Bobleter, also an ex-state treasurer, failed to open its doors this morning and George M. Coffin, deputy controller of the currency, who happened to be in the city, took charge. Cashier Bobleter said that the liabilities, not including the capital stock, etc., and including principally deposits, amount in round numbers to $247,000, while the assets, mostly notes, amounted to $450,000. He said that he had no doubt but that the depositors would in time be paid in full. The state is creditor to the amount of $16,000 and the county to about $5,000. The city had $1,200 on deposit. At the present time, according to Cashier Bobleter, there is $33,000 cash in the vault, and $100,000 will be collected within the next thirty days. The suspension was ordered for the purpose of protecting the majority of the creditors, The bank's capital is $200,000. The suspension of the Scandia Bank yesterday and the Columbia this morning created consternation among the patrons of the Washington Bank, and I such a "run" ensued that the bank was compelled to close its door shortly after noon. Depositors drew their checks directly at the bank and through the clearing house at such a rate that it was evident that the interests of all the depositors demanded the suspension of business. The bank knew that its strength would be sorely taxed to-day, and had made arrangements to get $50,000 in cash, which would have tided it over safely, but the money was not forthcoming this morning, and after a vain attempt to stand the demands, Cashier Brecke telephoned Bank Examiner Kenyon that the officials had decided to close the bank, and asked him to take charge. Cashier Brecke stated this afternoon that aside from the matter of cash on hand, the bank was in excellent shape. Exactly what will be done has not yet been determined. It is very likely that the suspension will be only temporary, as the resources of the bank are in such shape, according to Mr. Brecke, that its depositors can be paid in full in a comparatively short time, and 50 cents on the dollar within two months. In round numbers, the liabilities are $500,000, and the assets $600,000. Of the latter only $14,500 is real estate. The bank had some city deposits, $3,000 of state money and $4,000 of the county's. The banks officials are: President, A. C. Haugan, who is at present city treasurer; vice president, K. S. E. John; cashler, O. E. Brecke. The bank's loans and discounts are $507,145. Its deposits are $458,000, and its capital stock $100,000. The announcement of the failure of the Columbia and Washington banks caused a considerable flurry at nearly all of the other banks of the city. The biggest run was on the Farmers and Mechanics Bank, the largest savings institution in the northwest, with deposits of over $6,000,000. This bank is said to be entirely safe. It stood a constant run of eight days during the panic of 1893.

2. December 31, 1896 The Times Richmond, VA
Article from The Times, December 31, 1896

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Article Text

Another Minneapolis Bank Closes-Condition of Other Institutions. MINNEAPOLIS, MINN., Dec. 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 en 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 stockholders George Maxwell, vice president of the Northern Trust Company, made application this morning for a receiver of the company. A. R. McGill ex-Governor of Minnesota, is the president of the or ganization. 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 stock holders, who are abundantly able to make good any deficiency that may result from depreciation in value of its assets, so that the creditors of the company need have no apprehension as to the ultimate results, 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. Judge Jamison issued a restraining or der. returnable at 10 o'clock to-morrow morning. Judge Belden signed an order this morning appointing Judge A. Ueland receiver of the Washington Bank under a bond of $200,000 The petition recites that the bank has $27.77 more liabilities than assets. Deputy Comptroller Coffin is still in charge of the Columbia National Bank awaiting the arrival of Bank Examiner Cooke The Farmers and Mechanics Bank issued a notice this morning requiring all depositors to give sixty days notice before being permitted to draw deposits. The bank issued a statement saying it had $800,000 in its vaults. The ClearingHouse Association held a meeting and resolved to stand by all of the ten banks which are members of the organization. There was a heavy run on the St. Anthony Fall Bank of this city this forenoon. All demands were paid, and the excitement quieted down. CHICAGO Dec. A. Paulsen, who was the principal owner of the failed Central Trust and Savings Bank filed a bill in the Circuit Court to-day to restrain the Atlas National Bank from disposing of a note for $30,000 made by him to the bank and to restrain President Grannis and Charles B. Farwell, a director and x-United States senator, from disposing of their own property, so that Paulsen cannot collect any of the damages he may be awarded at the trial of his suit for $250,000 against the bank Grannis and Farwell in connection with the $30,000 note and the closing of Paulsen's bank by the failure of the Atlas to clear for it. In his bill Paulsen sets up the liquida. tion of the Atlas Bank now in progress and states his belief. that. notwithstanding all the depositors are being paid in full. it is hopelessly insolvent and will not pay its depositors from its own funds He also alleges that the Atlas Bank still holds him as endorser on the $30,000 note although the courts have held it to be fraudulent. and also unlawfully withholds $40,000 of collateral bonds belonging to him APPLETON WIS. Dec. 0.-John S Van Nortwick to-day made an individual assignment of his Fox river interests naming Postmester John M. Bear of this city, as receiver the latter giving bonds for $250,000. The principal property included in this assignment are the plants of the Combined Locks Paper Company, the Appleton Pulp and Paper Company, Union Paper Company at Kaukauna Wis.: Fibre Company at Monoca: 740 shares in the Green Bay and Mississippi Canal Company the face value of which is $740,000. and miner interests, including his residence in this city. DALLAS TEXAS. Dec. 30.-Telegrams to commercial agencies at Dallas announce the failure of A.A. Bahn feweler at Austin Texas Liabilities $30,000: assets. $10,000 Eastern creditors are caught for only $5,000. Three Austin banks are owed $10,000. PARKERSBURG W. VA., Dec. 30.-Isaac Prager & Sons, extensive retail dry-goods dealers, made an assignment yesterday. Assets and liabilities are estimated at $100,000. MONTGOMERY, ALA., Dec. -The Commercial Bank of Selma failed to open its doors for business to-day. instead a notice was posted stating that the Board of Directors had decided to make an assignment The cause of this action was the heavy run made on the bank in the last few days. The bank was a heavy debtor to New York banks, among them the Chemical, American Exchange Nattobal City, Third National of Montreal, and National Bank of the Republic, and they sent an attorney some days ago to investigate its condition. The knowledge of the attorney's presence had a great deal to do with the run. The Board of Directors arrived at the conclusion to assign after a long and continued session lasting until after midnight last night. The officers of the bank are. R. M. Nelson, president: Geo. A. Wilkins, vice-president; A. E. Baker, cashier. The patrons of the bank have cont. dence that it will soon resume business and are signing an agreement to withdraw their deposits. one-third in three months. one-third in six months, and one-third in nine months. There is no public statement as yet of assets and liabilities. The business men are hopeful that the failure will not be detrimental to their interests. HORRIBLE BRUTALITY

3. December 31, 1896 The Morning News Savannah, GA
Article from The Morning News, December 31, 1896

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Article Text

MONEY PANIC OF MINNEAPOLIS BANKERS EXCHANGE BANK NOW SHUTS ITS DOORS. Signs of a Run Induce the President to Suspend Business-Money Representing One Third of Its Deposits Now in Its Vaults-Some of Its Funds Tied Up in Other Banks in the City That Have Closed. Minneapolis, Minn., Dec. 30.-The Bankers' Exchange Bank went into the hands of Bank Examiner Kenyon this morning. Depositors have drawn 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. McGill, ex-governor of Minnesota, is president of the organization. The following statement was issued by the company: "This company has for some time been seeking to realize on its loans and securities, and has until now been able to maintain itself without difficulty, but the present 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 tranaction 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, so that the creditors of the company need have no apprehension as to the ultimate results. Their claims will all be paid in full, even if the company is not permitted to immediately resume business as is now hoped." The liabilities of the company are about $500,000. Judge Jamison issued a restraining order returnable at 10 o'clock tomorrow morning. Judge Belden signed an order this morning appointing Judge Neland receiver of the Washington bank, under a bond of $200,000. The petition recites that the bank has $27,774 more liabilities than assets. Deputy Controller Coffin is still in charge of the Columbia National Bank, awaiting the arrival of Bank Examiner Cooke. The Farmers and Mechanics Bank issued a notice this morning requiring all depositors to give sixty days notice before being permitted to draw deposits. The bank issued a statement saying it had $800,000 in its vaults. The clearing house associated held a meeting and resolved to stand by all of the ten banks which are members of the organization. There was a heavy run on the St. Anthony Falls Bank of this city this forenoon. All demands were paid and the excitement quieted down.