9729. Farmers' and Mechanics' Bank (Minneapolis, MN)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
55965b62

Response Measures

Public signal of financial health, Partial suspension

Description

Multiple contemporaneous articles (Dec 29-31, 1896) report a heavy run on the Farmers' and Mechanics' Bank in Minneapolis. The bank invoked the 60-day notice rule to limit withdrawals but is described as remaining open and 'entirely safe' in the reports; no suspension, receivership, or permanent closure of this bank is reported in these articles. The run was triggered by failures/suspensions of other local Minneapolis banks (Columbia National, Washington, Scandia), so cause is classified as local_banks.

Events (1)
1. December 30, 1896 Run
Cause
Local Banks
Cause Details
Run was prompted by announcement of failures/suspensions of the Columbia National, Washington (and Scandia) banks in Minneapolis, which created consternation and heavy withdrawals at other banks, especially Farmers' and Mechanics'.
Measures
Invoked rule requiring depositors to give sixty days' notice before withdrawals; bank issued statement of cash on hand.
Newspaper Excerpt
The biggest run was on the Farmers' and Mechanics' Bank ... This bank is said to be entirely safe.
Source
newspapers

Newspaper Articles (9)
1. December 30, 1896 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, December 30, 1896

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MORE MINNEAPOLIS BANKS FAIL. The Columbia National and the Washington-Considerable Burry. MINNEAPOLIS, MINN.. December 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 Comptroller 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 to $247,000. while the assets, mostly notes, are $450,000. He said that he had no doubt the depositors would in time be paid in full. The State is creditor to the amount of $16,000. and the county to that of about $5,000. The city had $1,200 on deposit. At the present time, according to Cashier Bobleter, there Is $33,000 cash in he 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 capital is $200,000. The suppension of the Scandia yesterday and the Columbia this morning created consternation among the patrons of the Washington Bank, and such a "run" ensued that the bank was compelled to close its doors about 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 suspension. 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. Cashierd 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 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 bank officials are: President, A. C. Haugan; Vice-President. J. S. Johnson: Cashier, 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 amounting to over $6,000,000. This bank is said to be entirely safe. It stood a run of eight days during the panic of 1893.

2. December 30, 1896 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 30, 1896

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Bank Failures. MINNEAPOLIS, Minn., Dec. 30.-The Bankers' Exchange Bank suspended payment to-day. It is a small concern, and its officers claim that they have money enough to pay every depositor and stockholder. The Northwestern Loan and Building Association to-day made an application Ifor the appointment of a receiver for the Northern Trust Company, of this city, alleging that it is insolvent. Its capital is $500,000 with a guaranty fund of $100,000. Its liabilities are said to be about $500,000. The run on the Farmers' and Mechanics' Bank continues this mording. The bank has taken advantage of the rule which enables it to demand sixty days' notice before paying a depositor. There is also a slight run on the Hennepin County Savings Bank. It has deposits of $1,200,000.

3. December 30, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, December 30, 1896

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STEADY RUN ON MINNESOTA BANKS It Causes Two More of the Institutions to Close Their Doors. Failure of the Columbia National Followed by a Suspension of the Washington. There Is Also a Flurry at Other Banks in the City of Minleapolis. MINNEAPOLIS, MINN., Dec. 29.-The Columbia National Bank, whose president is Charles Kittleson, ex-State Treasurer, and whose cashier is Joseph Bobleter, al-o an ex-State Treasurer, failed to open its doors this morning, and George M. Coffin, deputy Comptroller 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 he had no doubt the depositors would in time be paid in full. The State is a creditor to the amount of $16,000 and the county about $5000. The city had $1200 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 yesterday and the Columbia this morning created consternation among the patrons of the Washington Bank and such a run ensued that the bank was compelled to close its doors shortly after noon. Depositors drew their checks directly at the bank and through the clearing-house at such a rate that it was apparent that the interests of all the depositors demanded a 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 quite likely that the suspension will be only temporary, as the assets 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 bad some city deposits, $3000 of State money and $4000 of the county's. The bank's officials are: President, A. C. Haugen, who is at present City Treasurer; vice-president, K. S. E. Johnson; cashier, 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.

4. December 31, 1896 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, December 31, 1896

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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 $27,774 more liabilities than assets. Deputy-Collector 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 Falls Bank, of this city, this forenoon. All demands were paid, and the excitement quieted down.

5. December 31, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, December 31, 1896

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FOUR MINNESOTA BANKS IN TROUBLE Northern Trust Company Also Applies for a Receiver. One Concern Goes Down in Its Eff.rt to Keep Others Afliat. The Clearing-House Will Stani b7 All Firms That Are in Its Organization. MINNEAPOLIS, MINN., Dec. 30.- The Bankers' Exchange Bank went into the hands of Bank Examiner Kenyon this morning. Depositors had drawn out about $35,000 the past few days, and President Field decided to close up, though he had in the vaults nearly 30 per cent of the money on deposit. The bank is less than a year old, having been incorporated last May. Its loans and discounts are $68.000, its capital $30,000, and its deposits about $40,000. Depositors will be paid in full and a fair sum will be left for stockholders. George Maxwell, 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: 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 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 the available funds, has somewhat embarassed it in the transaction of its business. Independent of its assets, the company has a list of responsiblestockholders 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 result. 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 Jamieson issued a restraining order returnable at 10 o'clock to-morrow morning. Judge B ndel 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 $27,774 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 withdraw deposits. The bank issued a statementsaying it had $800,000 in its vaults. The Clearing-house Association held a meeting and resolved to stand by all of the banks which are members of the organization.

6. December 31, 1896 The Record-Union Sacramento, CA
Article from The Record-Union, December 31, 1896

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ANOTHER BANK FAILURE. The Bankers' Exchange of Minneapolis Closes Its Doors. MINNEAPOLIS (Minn.), Dec. 30.The Bankers' Exchange Bank went into the hands of Bank Examiner Kenyon this morning. Depositors had drawn out about $35,000 the past few days, and President Field concluded to close up, 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 May. Its loans and discounts are $68,000, its capital stock $30,000, and its deposits about $40,000. Depositors will be paid in full, and a fair sum will be left for stockholders. George B. Maxwell, VicePresident 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 company. 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 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 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 value of its asselts, SO 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 business, as is now hoped." The liabilities of the company are about $500,000. Judge Bendel signed an order this morning appointing Judge Ueland 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 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 withdraw deposits. The bank issued a statement saying it had $800,000 in its vaults. The Clearing-house had a meeting and resolved to stand by all of the banks which are members of the organization.

7. January 1, 1897 The Forrest City Times Forrest City, AR
Article from The Forrest City Times, January 1, 1897

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MORE BANK FAILURES, the Columbia and Washington National Banks to Operations Depositors be of Minneapolis in Order Might that Forced the Interest of Suspend Banks Expect to be MINNEAPOLIS, Columbia whose ient is Charles national bank. Full. Their Both Minn., Kittleson, Dec. Able to Far H Conserve 30-The prest. treasurer, cashier and also whose ex-state is Ja seph Bobleter, an ex-state to open failed its doors yester treas of the to the happened morning, comptroller and be George in city,took currency, M. Coffin, said the liabilities, stock, deposits, Cashier etc., not amount and Bobleter including including in princi. capi. that round to arer, tal day deputy the charge. who bers pally mostly notes, to He said no the depositors that $247,000, he would amounted had while in doubt time the $450,000 but that be paid assets, num in full. The state is a creditor to the amount of $16,000 and the county to about $5, 000. The on city had time, $1,200 deposit At the present according Cashier Bobleter, there is $35,000 cash to in the vault, and $100,000 will be col. lected 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 Mon. day and the Columbia yesterday morning, created consternation among the patrons of the Washington bank and such a "run" ensued that the bank was compelled to close its doors shortly after noon. Depositors drew their checks directly at the bank and through the clearinghouse at such rate that it was evident that the in. terests of all the depositors demanded a suspension of business. The bank knew that its strength would be sorely taxed yesterday and had made arrangements to get $50,000 in cash, which would have tided it over safely, but the money was not forthcoming yesterday 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 yesterday af. ternoon 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 are real estate. The bank had some city deposits, $3,000 of state money and $4,000 of the county's. The bank's of ficials are: president A. C. Haugan, who is at present city treasurer; vicepresident, K. S. E. Johnson; cashier, 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 carings institution in the northwest, with deposits of over six million dollars. This bank is said to be entirely safe. It stood a constant run of eight days during the panic of 1893.

8. January 6, 1897 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, January 6, 1897

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troller of the currency, who happened to be in the city, took charge. Cashier Bobletter said that the lia bilities, not including the capital stock, etc., and including principally deposits, amount ted to $450,000. He said that be had no doubt but that the depositors would in time be paid in full. The State is creditor to the amount of $16, and the county to about $5,000. The city had $1,200 on depos t. At the present time, according to Cashier Bobletter, there is $33.000 cash in the vault and $100,000 will be collected within next 30 days. The suspension was ordered for the purpose of protecting the majority of the cred itors. The bank's capital is $200,000 The suspension of the Scandia yester day and the Columbia this morning created consternation among the patrons of the Washington bank, and such a "run" ensued that the bank was compelled to close its doors 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 suspension of business. The bank knew that its strength would be sorely taxed today, and had made arrange ments 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 eonly 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 monhts. 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 bank officials are: President, A. C. Haugan, who is at present city treasurer; vice president, K. S. E. Johnson; cashier, O. E. Brecke. The bank's loans and discounts are $507,145. Its deposits are $548,000 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. MINNEAPOLIS, Dec. 29.-The Washington bank of this city has closed its doors. Its last Statement, Dec. 17, shows loans and discounts of $500,000 and deposits of $540,000. Its capital is $100,000 and surplus $13,000. A. C. Haugan, its president, iscity treasurer and it is likely that quite an amount of city funds will be locked up by the failure. Its business is largely with working people. The officers claim that they will be able to pay them in full. COLUMBIA BANK CLOSES. MINNEAPOLIS. Dec. 29 -The Columbia national bank of this city closed its doors this morning owing to inability to make collections. It is a comparatively new bank, having been organized about five years ago with ex State Treasurer Chas. Kittelser as its president and ex State Treasurer Bobleter as cashier, which positions they still hold. Its capital on December 18 was $200,000, with a surplus of about $6,000. Its loans and discounts were $48,000 and its deposits $264,000. It has never been profitable. Deputy Controller of the Currency Joe W. Coffin, who happened to be in the city, took charge of the bank. Its officers claim that they will be able to pay depositors in full. SNELLBURGER & SON ASSIGN. BALTIMORE, Dec. 29.-L. Snellburger & Son, leading retail dry goods merchants of South Baltimore, made an assignment today. Liabilities $50,000; assets about the sameamount. Pressure of creditors and slow collections caused the suspension. INSOLVENT JEWELERS. CINCINNATI, Dec. 29. petition was filed last evening by members of the well known firm of Duhme & Co., jewelers, for a dissolution and a receiver for the firm. They say the company is insolvent and unable to meet maturing debts. TOO MUCH LUMBER. SEATTLE. Wash., Dec. 29.-The B. E. Stetson and Post Saw Mill company closed down its plant yesterday, throwing 70 men out of employment. The over production of lumber, together with the recent failures of eastern banksatfecting a number of western lumber firms, caused the suspension. Will Confer With Foreign Bimetallists. WASHINGTON, Dec. 1.-Senator Wolcott of Colorado, the chairman of the special Senate committee to arrange for a bimetallic conference of the nations of the world, is going

9. January 7, 1897 Staunton Spectator and Vindicator Staunton, VA
Article from Staunton Spectator and Vindicator, January 7, 1897

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Bank Failures. The Bankers' Bank of Minneapolis, suspended payment Dec. 30. It is a small concern, and its officers claim that they have money enough to pay every depositor and stockholder. The Northwestern Loan and Build ing Association of the same place on the same day, made an application for the appointment of a receiver for the Northern Trust Company, of that city, alleging that it is insolvent. Its capi tal is $500,000 with a guaranty fund of $100,000. Its liabilities are said to be about $500,000. The run on the Farmers' and Me chanics' Bank continued. The bank has taken advantage of the rule which enables in to demand sixty days' notice before paying a depositor. There is also a slight run on the Hennepin County Savings Bank. It has deposits of $1,200,000. The Commercial Bank of Selma, Alaband. failed last week for $300,000. The Atlas Bank of Chicago closed its doors last week, but is now paying off its depositors in full and will close without loss to stockholders. The Bank of Superior, in Wisconsin, owing to a run on its deposits, made an assignment last week. The failure of the Mortgage and Trust Company in Dallas, Texas, will cause the suspension of several sub companies. The assets are said to be tied up in mortgages that cannot be realized upon. Out of the thirteen banks in Superior, Wis, which were doing business a year ago, only four are in business at the present time. A plan is on foot to reorganize and consolidate all the various banks into one large institution with a capital stock of $1,500,000.