Germania Bank - Minneapolis, MN

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: December 22, 1896
Location: Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model: gpt-5-mini
Short Digest: 954c0c1a

Response Measures

Full suspension

Other: Receiver/assignee was appointed; reorganization committee named.

Description

Article (Jan 5, 1897) describes heavy withdrawals after failures of other banks and manufactured reports, leading directors to close the bank, appoint an assignee/receiver and attempt reorganization. Dates in December refer to the prior month (Dec 1896). Cause of the initial run appears driven primarily by failures of other local banks and panic spread by reports.

Events (3)

1. December 22, 1896 Run

Cause: Local Banks
Cause Details: Panic triggered by the failure/suspension of neighboring banks (Allemannia, Bank of Illinois in Chicago) and spread of alarming reports about Germania
Measures: Directors paid out available cash for several days (~$225,000), then called a special meeting and decided to close and place assets in charge of an assignee; committee appointed for reorganization
Newspaper Excerpt: the suspension of our neighbor... precipitated the run... when the Germania was closed ... a herd of wolves
Source: newspapers

2. December 22, 1896 Suspension

Cause: Local Banks
Cause Details: Directors closed the bank to protect depositors and creditors after heavy withdrawals precipitated by failures of other banks and persistent alarming reports; assets placed in charge of an assignee/receiver for reorganization or liquidation
Newspaper Excerpt: to close of the doors bank in charge of an assignee.
Source: newspapers

3. December 23, 1896 Receivership

Newspaper Excerpt: The directors appointed a receiver... to make arrangements with its creditors; a committee evening to organize reorganization was appointed; the bank will try and reopen with its creditors' intervention of a receiver tomorrow, will to make and the arrange- ments the intervention of the last official total resources ... and liabilities ... (article describes appointment of assignee/receiver and reorganization attempts.)
Source: newspapers

Newspaper Articles (1)

1. January 5, 1897 The Salt Lake Herald Salt Lake City, UT

Article from The Salt Lake Herald, January 5, 1897

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Article Text

withdrew e extent that itors banks to such an to the wall, three forced to go enough imthey were had not funds debecause they to meet the in hand Each of the mediately mands made upon them. solvent, and they however, is soon as the money use. organize as be put into three, will for that purpose of can the Germania met The directors appointed a on reorganization M. Kerz and this tee evening and of C. The Germania commit- Ex- the others is in the are hands in the hands of Bank aminer Kenyon. be appointed for West the Allemannia A receiver tomorrow, will to make and the arrangebank will try and reopen Side with its creditors of a receiver. ments the intervention of the last official total resources The without bank showed statement being in Ger- the of mania of this and liabilities, $1,625,768, and $633,019 $1,625,768, building counts; and $253,847 $975,420 stock in loans including deposits dis- in $400,000 certificates capital of deposits; $346,191. subject time to check are THE PRESIDENT'S STORY. in of the Germania was directpursuance night, The closing of the action who of the concluded ors on Saturday their depositors by prepared suspend- a to protect President Willius he said: statement, ing. soon in as which the result known, of the presi- matdential As election improve became in a remarkable be degree, ters began and to there did May not 1 seem the to bank doubt that on impregnable would any condition be in SO that strong an assessment and on stock. could This a successfully be made on the 22nd of Dewhen was the situation the suspension follow- of the cember, Minnesota occurred, failure of Bank immediately of upon the which ing of Illinois of Chicago, stroke of the Bank unexpectedly as and a caused lightning The four came as in midwinter Minneapous general alarm. increased the panicky disasbank but I did not fear feeling. until it became evil-disposed that an attack trous certain outcome failures directed persons any apparent toward false judiciously Germania bank, circulating regarding from the maufactured reports other, it and city to the with to day that the for betfrom subside and make room systematic one day end of the persistency excitement intensity I hoped would judgment. but it grew in every day. ter became holder SaturThe attack close of business on withAfter 2. we found day, of deposits had feel that we did not drawal Jan. the that assumed the justi- such or dimensions continue receiving deposits day fied to out money beyond that condito pay having submitted the without to the directors tion of called a special quently we on the same day at affairs meeting 7:30 Conse- nearly for for the board We paid off days, that in nine some$225,000 purpose. deposits business reserve on hand and in which and kept $100,000 cash means, of the shows thing over 'the unreasonableness after having canic. The the matter directors, in all its conclusion bearings. weighed unanimously to the officers had came that the action and of that, the however debeen correct, it might be, it became depos- their plorable the protection of all the duty for other creditors, to close of the itors and and to place the assets doors bank in charge of an assignee." A CLAMORING CROWD. The Allemannia closed a few crowd min- of before 11 o'clock with a telldepositors utes clamoring at the paying Presier's window for their money. dent "Our Scheffer suspension said: is due to the morning, large of withdrawals this depositnumber the fact that most of our The news and withheld their deposits. the ors suspension of our neighbor, here, of the precipitated the run beGermania, course with all the deposits there and withheld of and the fact that not ng steady withdrawal, we could force of was a tide. When the full them failure on to become welf stem he Germania's seemed the burst panic-stricken like a they thev came down on us and the fold. When the Bank of Min- 101n failed the business men and The esota were not much disturbed ease unately returned were caught. feeling have of ew shortly, and might failure conit not been for the banks in Then was f feeling came back busiinued the panicky four had Minneapolis. the and intensified he by the fact that men then caught it very badly. here, less feeling naturally spread over easy he people have not been nd When the the this morning that came ince doors the then. Germania they was closed ts straw in the case, and ast us like a herd of down total resources of the the The on report wolves. Alleman- of according to their $706. ia, day, was $1,061,009. including Liabilities, ame of loans and discounts. stock of 1,081,009, 42 including capital 400,000 and deposits of $329,789. THE WEST SIDE. Speaking of the failure of said: the West bank. President Staples ide "Our suspension was due to the AlleWe did all of our clearing the Allemannia and failed to cover our the hannia. through they this clearings In mornng sent them all back on us. meantime nd the news of the suspension the Germania and the Allemannia pread f through West St. Paul and our obbegan scrambling in to epositors their money. We could not refuse ain in a little while there was a good nd run on the bank. We were ized bliged to close up to save ourselves." West official statement of the made to the state exon December 17, is as $150.miner ide The bank, this bank follows: 'otal assets, $217,014.17 Of was The total depos00 in loans and discounts, and