9865. Allemania Bank (Saint Paul, MN)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 4, 1897
Location: Saint Paul, Minnesota (44.944, -93.093)

Metadata

Model: gpt-5-mini
Short Digest: 66e346d5

Response Measures

Full suspension, Books examined

Description

Contemporary reports state the Allemania suffered a heavy run after other St. Paul banks (notably Bank of Minnesota and Germania) failed, closed its doors Jan. 4, 1897, and the state bank examiner/receiver was later appointed. Legislative inquiry later found assets largely worthless and directors were heavy borrowers.

Events (3)

1. January 4, 1897 Run

Cause: Local Banks
Cause Details: Run triggered by panicky depositors after failures/closures of other St. Paul banks (Bank of Minnesota and Germania); steady withdrawals and panic-induced demand for funds.
Measures: Called state bank examiner; paid out large sums previously; directors decided to close to stop the drain.
Newspaper Excerpt: a crowd of depositors gathered demanding their money ... the failure being due to the combined withholding and withdrawing of deposits.
Source: newspapers

2. January 4, 1897 Suspension

Cause: Local Banks
Cause Details: Closed (suspended payments/doors closed) in immediate response to the run and announcement/assignment of other local banks (Germania); state examiner took possession in some accounts of reporting newspapers.
Newspaper Excerpt: The Allemania Bank ... closed its doors also soon after the other bank had announced its assignment.
Source: newspapers

3. January 5, 1897 Receivership

Newspaper Excerpt: Maurice Auerbach, president of the Union Bank, was to-day appointed receiver of the Allemania Bank under bond of $200,000. (Jan. 5 report).The receiver later found assets largely worthless per legislative report (Apr.).
Source: newspapers

Newspaper Articles (23)

1. January 4, 1897 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, January 4, 1897

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ANOTHER BANK CLOSES. The Allemania Bank Also of St. Paul Closes Its Business. St. Paul, Jan. 1.-The Allemania bank capital $400,000 and having a clientage similar to that of the Germania closed its doors soon after the other bank had announced its assignment. The Allemania bank was organized last year, being the successor of the Commercial bank, William Bickel, formerly president of the Germania bank, joining forces with Albert Scheffer of the Commercial to organize the new bank. Its last official statement made on December 17 showed: Loans and discounts, $706,842; sundry bonds, $86,750; demand loans, $62,881.40. Capital stock paid in, $400,000; undivided profits less expenses, $58,764.60; individual deposits, $329,789.27; interest certificates, $187,253.23. President Scheffer of the Allemania said at noon that they had been suffering from the panic, the failure being due to the combined holding and withdrawing of deposits. A crowd of depositors soon gathered demanding their money and at 11 o'clock it was decided to close at once.

2. January 4, 1897 Santa Fe Daily New Mexican Santa Fe., Santa Fe, NM

Article from Santa Fe Daily New Mexican, January 4, 1897

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BANKERS STILL IN TROUBLE The Germania Bank of St. Paul Went to the Wall This Morning. LOTS OF RESOURCES, BUT NO CASH Beauties of a Steadily Appreciating Dollar with All Other Forms of Property Declining in the Form of Object Lessons. I St. Paul, Jan. 4.-The Germania bank, b a state institution, to-day announced its assignment to Peter M. Kerst, cashier. r This bank stood a run of nearly two b days after the Bank of Minnesota closed 1 on December 22. The last official statement, on December 17, gave the loans t and discounts at $975,420,56; cash on r hand, $150,000; total resources, $1,626,788.01. Among the liabilities were: Capital stock, $400,000; surplus and undivided p:ofits, $58,797; deposits subject to check, d $355,191; demand certificates of deposits, o $7,899; time certificates of deposit, P $633,019. 1 The Germania bank has been organr ized for many years, ex-Gov. Alexander i Ramsay being for a long time president and William Bickel cashier. When Gov. o t Ramsay retired, Bickle became president, but last spring Bickle retired, becoming vice-president of the newly orgainzed Allemania bank. He was succeeded by Gustav Willius. President Willius told an Associated Press reporter that the closing was the result of an unreasonable panic, and that the bank would be opened for business as soon as the people regained their usnal cool sense. The bank paid depositors a $335,000 during the last nine days. Willa ine said that he fully expected to have n the bank re-opened by the last of March. C N THE ALLEMANIA BANK ALSO CLOSED TO-DAY. b n The Allemania bank had a capital of w $400,000, and a clientage similar to that in of the Germania. The Allemania was hi organized last year, it being the successW or of the Commercial bank, William Bickel, formerly president of the Germania, joining forces with Albert Scheefer, of the Commercial, to organize the new y bank. The last official statement, made b on December 17, shows: Loans and disp counts, $806,842; undivided profits, less is expenses, $58,746; individual deposits, b $329,789; interest certificates, $187,258. ag President Scheefer, of the Allemania, said that the failure was due to withdrawp als of deposits. A crowd of depositors gathered to-day demanding their money, and at 11 o'clock it was decided to close S at once. R J HAS JUST CLOSED. A m St. Paul.-The West Side Bank has W just closed. FAILURE IN IOWA. Mason City, Iowa.-The First National City bank, of Nora Springs, has failed. h It made an assignment to Byron GamI mings. h T SUICIDE OF ANOTHER BANKER. S Baltimore, Md.-Richard Cornelius, er cashier of the Farmers' and Merchants' S bank, committed suicide to-day by al drowning. W

3. January 4, 1897 Las Vegas Daily Optic Las Vegas, NM

Article from Las Vegas Daily Optic, January 4, 1897

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MINNEAPOLIS, Minn., January 4.The West Side bank, of St. Paul, closed its doors, caused by the failure of the Allemania Bank. There was a heavy run on the Minnesota State Savings bank, 10-day, and it took advantage of the sixty-days' notice.

4. January 4, 1897 Evening Star Washington, DC

Article from Evening Star, January 4, 1897

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ST. PAUL BANK FAILURE. Another Institution Closes Its Doors Today. ST. PAUL, Minn., January 4. The Allemania Bank, capital, $400,000, and having a clientage similar to that of the Germania, closed its doors also soon after the other bank had announced its assignment. The Allemania Bank was organized last year, being the successor of the Commercial Bank, Wm. Bickel, formerly president of the Germania Bank, joining forces with Albert Scheffer of the Commercial to organize the new bank, of which Mr. Scheffer was made president; Wm. Bickel and Wm. Hamm. vice presidents, and E. D. Barnett, cashier. The Commercial had formerly been a national bank, but after its failure in the spring of 1892, it was reorganized a state bank and became merged last spring into the present Allemania Bank. This bank was also a sufferer by the panicky feeling after the Bank of Minnesota had closed. Its last official statement, after the close of business, December 17, 1896, was as follows: Resources-Loans and discounts, $706,842.48: sundry bonds, $86,750; overdrafts, $1,978.19; bank's building, $60,000; furniture and fixtures, $13,372.31. Due from other banks, $35,929.59; gold, $4,467.83; cash Items. $10,173.87 exchanges for clearing house, $11,114.28; demand loans, $62,881.40; total resources, $1,061,009.97. Liabilities-Capital stock paid in, $400,000; undivided profit, less expenses, $58,764.60; individual deposits, $329,739.27; interest certificates, $187,253.23; call certificates, $8,354: due banks and bankers, $66,740.52; cash creditors' checks, $6,023.11; certified checks, $4,145.24; total liabilities, $1,061,009.97. President Scheffer of the Allemania said at noon that they had been suffering from the panic, the failure being due to the combined withholding and withdrawing of deposits. There had for some time been a gradual drain on the bank, and it seemed to gain added force as soon as the announcement of the Germania failure was announced. A crowd of depositors soon gathered, demarding their money, and at 11 o'clock it was decided to close at once, State Bank Examiner Kenyon being called in and taking presession of the bank. President Willius told an Associated Press reporter today that the closing of the Germania was the result of an unreasonable panic, and that the bank would be opened for business just as soon as the people regained their usual cool sense. The bank, as a result of the panicky feeling had paid out to depositors $335,000 in the last nine days, and as they saw what the continuation of this would lead to, the directors had decided to close for the present. Mr. Willius says says he fully expects to have the bank reopened and ready for business by the last of March. New York Correspondents. NEW YORK, January 4.-The correspondent in this city of the Allembania Bank is the Mechanics' National Bank. The balance to the credit of the St. Paul instition here is said to be less than $1,000. The Hanover National Bank is the New York correspondent of the Germania Bank. The latter has been in the habit of carrying a fair account here, but It is stated that whatever Indebtedness may be due the Harover Bank is amply secured. Went End Bank Closes. ST. PAUL, Minn., January 4.-The West Side Bank has just closed.

5. January 4, 1897 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, January 4, 1897

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More Bank Failures. ST. PAUL, Minn., Jan. 4.-The Germania Bank of this city closed its doors this morning. Its capital was $400,000, with a surplus of $59,000. December 17 the loans and discounts amounted to $975,000 and its deposits to $1,091,968. The Allemania Bank, of this city, closed its doors today. Its statement on December 17 shows as follows : Loans and discounts, $706,842; cash on hand and due from other banks, $192,066; deposits, $602,305. It held on January 1 St. Paul city funds to the amount of $51,000 and State funds aggregating $35,302. DUBUQUE, lowa, Jan. 4.-The City Bank of Nora Springs, Iowa, suspend. ed to-day.

6. January 5, 1897 New-York Tribune New York, NY

Article from New-York Tribune, January 5, 1897

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THREE ST. PAUL BANKS CLOSE. WEAKENED BY STEADY WITHDRAWALS. A RUN ON THE MINNESOTA SAVINGS BANK FORCED IT TO TAKE ADVANTAGE OF THE SIXTY-DAY NOTICE CLAUSE. St. Paul, Minn., Jan. 4.-The Germania Bank of this city closed its doors this morning. Its capital was $400,000 with a surplus of $50,000. December 17 the loans and discounts amounted to $975,000 and its deposits to $1,091,968. The announcement was made by the officers of the bank that the institution had been assigned to Peter M. Kerst, who for the last year or two has been the cashier of the bank. The announcement stated that the action was taken after full consideration of all the phases of the situation, the directors having decided it was best for all concerned that they should close. The bank stood a run for nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed. on December 22. The Allemania Bank of this city closed its doors at noon to-day. The capital of the bank is $400,000: surplus, $50,000. Its statement December 17 showed as follows: Loans and discounts, $706,842: cash on hand, and due from other banks, $192,068: deposits, $602,305. It held on January 1 St. Paul City funds to the amount of $51,000 and State funds aggregatIng $35,302. The West Side Bank of St. Paul also closed its doors to-day. It cleared through the Allemania Bank, and the latter failure compelled it to close. It is a small concern. There was a heavy run on the Minnesota Savings Bank, which is intimately connected with the Germania Bank. As a result of the run the Minnesota Savings Bank has taken advantage of the sixty-day notice, The Germania, the Allemania and the West Side banks all did business as State banks. Every one depositors. and of them all of Each was them literally of will the reorganize three, pulled however, down as soon by is the solvent, as the machinery for that purpose can be put into use. The directors of the Germania met this evening and appointed a committee on reorganization. The New-York correspondent of the Germania Bank of St. Paul was the Hanover National Bank, at which It was said that whatever amount might be due from the Germania was amply secured. The Germania had carried a fair account with the Hanover. The Germania also had an account with the Bank of America, of New-York, to which It owed nothing. The New-York correspondent of the Allemania Bank was the Mechanics' National Bank, where it had a balance of less than $1,000. Its account was always a small one. The New-York correspondent of the Minnesota State Savings Bank is the Bank of America, with which it has an unimportant account. The New-York correspondent of the West Side Bank was the Third National Bank, where it had a credit balance. Its account was small.

7. January 5, 1897 The Norfolk Virginian Norfolk, VA

Article from The Norfolk Virginian, January 5, 1897

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THREE PAUL. Banko That Stood High Go With a Crush. St. Paul. Minn.. Jan. 4.--The Germania Bank of this city closed its doors this morning. Its capital was $400,000. December 1th loans and discounts amounted to $975,000 and its deposits to $1,091,968. The announcement made by the officers of the bank. that the institution had been assigned to Peter M. Kerst, who for the past year or two has been the cashier of the bank. The announcement stated that the action was taken after full consideration of all phases of the situation. the directors having decided it was best for all concerned that they should close. The bank stood a run for nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed on December 22. The Allemania Bank of this city closed its doors at noon to-day. The capital of the bank is $400,000; surplus, $59,000. Its statement December 17 shows as follows: Loans and discounts. $706,843: cash on band and due from other banks, $192,066; deposits, $602.305. It held on January 1 St. Paul city funds to the amount of $51 and State funds aggregating $35,302. The West Side Bank, of St. Paul. has closed its doors. It cleared through the Allemania Bang, which failed this morning. and the latter failure compelled it to close. It is a small concern. There was a heavy run on the Minnesota Bank, which is intimately connected with the Germania Bank. As a result of the run the Minnesota Savings Bank has taken advantage of the sixty day notice.

8. January 5, 1897 The Daily Morning Astorian Astoria, OR

Article from The Daily Morning Astorian, January 5, 1897

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THREE BANKS HAVE CLOSED In St. Paul as a Result of Failure of the Bank of Minnesota. e / THE FRIGHTENED DEPOSITORS e : I Make a Lively Run for Their Money and Cause a Panic-Fight Each Other in the Lines. I I r St. Paul, January 4.-As a direct re: sult of the closing of the Bank of Minnesota two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed not to be as strong as depositors wished, three St. Paul r banks, the Germania, the Allemania a and the West Side, one of them nae tional institutions, all closely associat: ed, closed their doors today, one being in the hands of the state bank examiner e : and the others making assignments. . During the time that has intervened since the closing of the Bank of Minne e : sota, the Germania paid out $225,000 to i frightened depositors and early today i the directors concluded they would stop the drain and make an assignment to the cashier, Peter M. Kerst. The Allemania Bank, which like the Germania, had a large clientage among the Germans, and whose vice-president had formerly been president of the Germania, then became a target for a lively run. People crowded about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant and promptly called on the bank examiner to take possession of the bank, and that official is now in charge. The West Side Bank, a small but possibly stronger bank, cleared through the Allemania and today its clearings were returned by the latter institution. Following this there was a decired run inaugurated on the bank and at 2 o'clock this afternoon the bank offlcials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon when they filed a deed of assignment to Cashier Staples, president of the bank. Considerable public money is tied up in the three institutions. Owing to the excitement caused by the closing of the Germania and Allemania Banks today, many depositors went after their money at one or two other banks, the Minnesota Savings Bank being the center of excitement. President William Bickel, Jr., is a son of the first vice-president of the Allemania. This bank was open for business but at 3 o'clock was taking advantage of the rule allowing sixty days' notice before allowing withdrawals of deposits. A few minutes before 2 o'clock the West Side Bank, organized in 1886, with a capital of $100,000, closed.

9. January 5, 1897 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, January 5, 1897

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St. Paul Banks Suspend. St. Paul, Minn., January 4.-The Germania bank of this city closed its doors this morning. Its capital was $400,000 with a surplus of $59,000. December 17 the loans and discounts amounted to $975,000 and the deposits to $1,091,968. The Allemania and West Side banks have also closed their doors.

10. January 5, 1897 The Houston Daily Post Houston, TX

Article from The Houston Daily Post, January 5, 1897

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ANK TROUBLES IN ST. PAUL ermania Bank and Allemania Bank Close Their Doors. HE WEST SIDE BANK CARRIED DOWN. uns on the Institutions Were the Cause of Suspension-Other Financial and Commercial Affairs. St. Paul, Minn., January 4.-The Gertania bank, a State institution. capital 00,000, did not open for business this iornéns, but announced its assignment Peter M. Kerst, cashier of the bank. he bank stood a run of nearly two weeks, depositors starting to withdraw their ccounts at the time of the suspension of Bank of Minnesota. The last official statement of the bank December 17, 1896, and showed re. ources of $1,625,763.01. Liabilities: Capital tock, $400,000; surplus and und.vided prof. $58,797.27: dividends unpaud, $2000; bank aliding loan, $75,000; individual deposits rbject to check, $345,191.44: demand certifiof deposit. $7899: time certificates of eponits. $633,019.70; certified checks, $11,0.02: cash oneditors' checks, $4305.41; due banks, $90,103,17: total, $1,625,768.01. The Germania bank has been organized many years, ex-Governor Alexander lamsey being for a long time president Walliam Bickel cashier. A few years Governor Ramsey retired and Mr. lickel became president, but last spring Ir. Bicked retired from the bank, becomvice president of the newly organized l'emania bank. He was succeeded by ustave Willius as president of the Ge.ana. The change in the official head the bank is beLeved to have caused a

11. January 5, 1897 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, January 5, 1897

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Suspension of the Germania, the Allemania and the West-Side, the Latter a Small Concern. DEPOSITORS WERE PANICKY AND THE BANKS LACKED CASH TO MEET SUDDEN DEMANDS. Officers Confident of Reopening When Assets Are Realized On-A Devil's Lake Bank Closed. ST. PAUL, Minn., Jan. 4.-As a direct reselt of the closing of the Bank of Minnesota, two weeks ago, which created new distrust among bank depositors and started runs on a number of city banks that were reputed not to be as strong as depositors wished, three St. Paul banks-the Germania, the Allemania and the West Side, none of them national institutions, and all closely associated-to-day closed their doors, one being now in the hands of the state bank examiner and the others making assignments. During the time that has intervened since the closing of the Bank of Minnesota, the Germania Bank paid out $225,000 to frightened depositors, and early to-day the directors concluded that they would stop the drain, and made an assignment to the cashier. Peter M. Kerst. The Allemania Bank, which, like the Germania, had a large clientage among the Germans, and whose vice president had formerly been president of the Germania, then became the target for as lively a run as could be seen during panic times anywhere. People crowded about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant, and promptly called on Bank Examiner Kenyon to take possession of the bank, and that official is now in charge. The West Side Bank. a small but possibly stronger bank, cleared through the Allemania, and to-day its clearings were returned by the latter institution. Following this there was a decided run inaugurated on the bank, and at 2 o'clock this afternoon the bank officials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon, when they filed a deed of assignment to Charles F. Staples, the president of the bank. Considerable public money is tied up in the three institutions, but there is an ample supply for all immediate needs in the other banks of the city. The assignment of the Germania and West Side banks has brought up a somewhat new question in the banking laws of the State, and the courts will be called on to settle it. The state bank examiner doubts their right to assign. holding that they should have, under the law. turned over their assets to him. The attorney general intimates that he will bring action to test the matter as soon as the papers can be prepared. During the day numerous reports of trouble among the other banks were current, and a few banks suffered runs of greater or less intensity, but the savings banks were protected by the law that allows them to require sixty days notice before paying out deposits, and the national banks are in a strong condition and have no fear of anything of the sort. THE GERMANIA BANK. The Germania Bank stood a run of nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed, on Dec. 22. The last official statement of the condition of the bank was made Dec. 17, 1896, and was as follows: -Resources

12. January 5, 1897 The Indianapolis Journal Indianapolis, IN

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Loans and discounts $975,420.53 Overdrafts, secured and unsecured 2,355.70 Stocks and bonds 87,890.06 Banking house 253,847.10 Furniture and fixtures 10,328.00 Other real estate 40,156.47 Current expenses 13,742.54 Taxes paid 2,131.50 Due from other banks 59,259.78 Checks and cash items 2,535.73 Exchanges for clearings 27,607.46 Currency 42,339.00 Nickels and cents 244.59 Gold 103,560.00 Silver 4,347.25 Total $1,625,768.01 Liabilities Capital stock $400,000.00 Surplus and undivided profits 58,797.27 Dividends unpaid 2.00 Bank building loan 75,000.00 Individual deposits, subject to check 345,191.44 Demand certificates of deposit 7,899.00 Time certificates of deposits 633,019.70 Certified checks 11,450.02 Cash creditors' checks 4,305.41 Due to banks 90,103.17 Total $1,625,768.01 The Germania Bank has been organized for many years, ex-Governor Alex. Ramsey being for a long time president and William Bickel cashier. A few years ago Governor Ramsey retired and Mr. Bickel became president, but last spring Mr. Bickel retired from the bank, becoming vice president of the newly organized Allemania Bank. He was succeeded by Gustav Willius as president of the Germania, T. H. Menk being vice president and P. M. Kerst cashier. The directors are Gustav Willius, William Bickel, Acoert Spangenberg, Joseph Haag, J. B. Hermann, E. F. Beresford, H. Menk; O. E. Hoiman, C. L. Horst, Adam Beyer, W. H. Harris, P. M. Kerst, John Klein and Wm. A. Schornztien. The change in the official head of the bank last year is believed to have caused a shifting of accounts. President Willius told a reporter to-day that the closing was the resuit of an unreasonable panic, and that the bank would be opened for business just as soon as the people regained their usual cool sense. The bank, as a result of the panicky feeling, had paid out to depositors $225,000 in the last nine days and as they saw what the continuation of this would lead to, the directors had decided to close for the present. Mr. Willius says he fully expects to have the bank reopened and ready for business by the last of March. # THE ALLEMANIA BANK. The Allemania Bank, capital $400,000 and having a clientage similar to that of the Germania, closed its doors soon after the other bank had announced its assignment. The Allemania Bank was organized last year, being the successor of the Commercial Bank. William Beckel, formerly president of the Germania Bank, joining forces with Albert Scheffer, of the Commercial, to organize the new bank, of which Mr. Scheffer was made president, William Beckel and William Hamm, vice presidents, and E. D. Bennett, cashier. The Commercial had formerly been a national bank, but after its failure in the spring of 1892, it was reorganized as a state bank and became merged last spring into the present Allemania Bank. This bank was also a sufferer by the panicky feeling after the Bank of Minnesota had closed. Its last official statement at the close of business, Dec. 17, 1896, was as follows: Resources

13. January 6, 1897 The Morning News Savannah, GA

Article from The Morning News, January 6, 1897

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ST. PAUL'S BROKEN BANKS. Steps Taken to Straighten Out Their Affairs. St. Paul, Minn., Jan. 5. -Maurice Auerbach, president of the Union Bank, was to-day appointed receiver of the Allemania Bank under bond of $200,000. The board of directors of the Germania held a special meeting and appointed a committee of seven stockholders to take measures for the speedy reorganization of the bank. Charles F. Staples was made assignee of the West Side Bank. Early in the day there was a slight run on a couple of banks, but everything quieted down quickly, and no further trouble is expected among the financial institutions here. St. Paul still has five national, six state and three savings banks, with deposits aggregating $20,000,000. Bad business methods wrecked the Bank of Minnesota, and the others were forced to close by panicky depositors.

14. January 6, 1897 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, January 6, 1897

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ST, PAUL BANK SITUATION. Two Small Runs-No Further Trouble Anticipated. ST. PAUL, MINN., January 5.-Maurice Auerbach, president of the Union Bank, was to-day appointed receiver of the Allemania Bank, under a bond of $200,000. The Board of Directors of the Germania held a special meeting, and appointed a committee of stockholders to take measures for the speedy reorganization of the bank. Charles F. Staples was made assignee of the Westside Bank. Early in the day there were slight runs on a couple of banks, but everything quieted down quickly, and no further trouble is expected among the financial institutions here. St. Paul still has five national, six State, and three savings banks, with deposits aggregating $20,000,000. Bad. business methods wrecked the Bank of Minnesota, and the others were forced to close by panicky depositors.

15. January 7, 1897 The Princeton Union Princeton, MN

Article from The Princeton Union, January 7, 1897

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BANKS GO UNDER THREE MORE FINANCIAL INSTITUTIONS CLOSE THEIR DOORS. The Germania Bank and a Branch and the Recently Organized Allefania Bank Suspend as the Result of a Run-Runs Are Made on Other Banks, but It Is Thought That No More Failures Will Occur. St. Paul, Jan. 6. - The Germania Bank of St. Paul, a state institution, capital $400,000, did not open for business to-day, but announced its assignment to Peter M. Kerst, who for the past two years has been cashier of the bank. The bank stood a run for nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Minnesota closed on Dec. 22. The last official statement of the condition of the bank was made Dec. 17, 1896, and was as follows: Resources - Loans and discounts, $975,420.53; overdrafts, secured and unsecured, $2,355.70; stocks and bonds, $87,890.36; banking house, $253,847.10; furniture and fixtures, $10,328; other real estate, $40,158.47; current expenses,$13,742.54; taxes paid, $2,131.50; due from banks, $59,259.78; checks and cash items, $2,535.73: exchanges for clearing, $27,607.45; currency, $42,339; nickels and cents, $244.59; gold, $103,560; silver, $4,347.25; total resources, $1,625,768.01. Liabilities - Capital stock. $400,000; surplus and undivided profits, $58,797.27; dividends unpaid, $2; bank building loan, $75,000; individual deposits subject to check, $345,191.44; demand certificates of deposit, $633,019.70; certified checks, $11,450.02; cashier's checks, $4,305.41; due to banks, $90,103.17; total liabilities, $1,625,768.01. President Willius told an Associated Press representative to-day that the closing was the result of an unreasonable panic and that the bank would be opened for business just as soon as the people resumed their usual cool senses. The bank, as a result of the panicky feeling, has paid out to depositors $250,000 in the last nine days, and as they saw what the continuation of this would lead to, the directors had decided to close for the present. Mr. Willius says he fully expects to have the bank reopened and ready for business by the last of March. The Allemania Goes. The Allemania bank, capital $400,000, and having a clientage similar to that of the Germania bank, closed its doors also soon after the other bank had announced its assignment. The Allemania bank was organized last year, being the successor of the Commercial bank. This bank was also a sufferer by the panicky feeling after the Bank of Minnesota had closed. Its last official statement at the close of business Dec. 17, 1896, as follows: Resources - Loans and discounts, $706,842.28; sundry bonds. $86,750; overdrafts, $1,978.19; bank building, $6,000; furniture and fixtures, $13,12.31; due from other banks, $35,929.59; gold, $42,500; currency, $25,000 silver, nickels, etc., $4,467.85; cash items, $10,173.87; exchanges for clear ing house, $11,114.28; demand loans $62,881.40; total resources, $1,061, 009.97. Liabilities - Capital stock paid in $400,000; undivided profits, less ex

16. January 8, 1897 The New North-West Deer Lodge, MT

Article from The New North-West, January 8, 1897

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THREE MORE ST. PAUL BANKS. Two Were Large Institutions, the Other Was Small. St. Paul, Minn., Jan. 4.-As a direct result of the closing of the Bank of Minnesota, two weeks ago, which created new distrust among depositors and started runs on a number of city banks that were reputed not to be as strong as the depositors wished, three St. Paul banks-the Germania, the Allemania and the Vest Side, none of them national institutions, all closely associated-closed their doors today, one being in the hands of the state bank examiner and the others making assignments. During the time that had intervened since the closing of the Bank of Minnesota, the Germania paid out $225,000 to frightened depositors, and early today the directors concluded they would stop the drain and make an assignment to the cashier, Peter M. Keerst. The Allemania bank, which, like the Germania, had a large clientage among the Germans, and whose vice president had formerly been vice president of the Germania, then became the target for a lively run. Crowds gathered about the doors and fairly fought for a place in the line before the paying teller's window. The bank officials realized fully what such a run meant, and promptly called on Bank Examiner Kenyon to take poss sion of the bank, and that official is now in charge. The West Side bank, a small but possibly stronger bank, cleared through the Allemania, and today its clearings were returned by the latter institution. Follows ing this there was a decided run inaugurated on the bank, and at 2 o'clock this afternoon the bank officials closed the doors and called a meeting of the directors to decide what action to take. Their decision was apparent late in the afternoon, when they filed a deed of assignment to S. H. Staples, president of the bank. Considerable public money is tied up in the three institutions, but there is an mple supply for all immodiate needs in the other banks of the city. The assignment of the Germania and West Side banks has brought up a somewhat new question in the banking laws of the state, and the courts will be called upon to settle it. The state bank examiner doubts their right to assign, holding that they should have, under the law, turned over their assets to him. The attorney general intimates that he will bring an action to test the matter as soon as papers can be issued. During the day numerous reports of trouble among the other banks were current, and a few banks suffered runs of greater or lesser intensity, but the savings banks were protected by the law that allows them to require 60 days' notice before paying out deposits; and the national banks are in strong condition, and have no fear of anything of the sort. The Germania Bank. The Germania bank was a state institution and had a capital of $400,000. The last official statement of the condition of the bank, December 21, gave loans and discounts as $975,420.53; total resources, $1,625,788. Among the liabilities were cap, ital stock, $400,000; surplus and undivided profits, $58,797; individual deposits subject to check, $345,191; demand certificates of deposit, $7899; time certificates of deposit, $633,019. The Germania bank has been organize. many years, ex-Governor Alexander Ram. say being a long time president, and William Bickell, cashier. When the governor retired, Mr. Bickell became president, but last spring Bickell retired, becoming vice president of the newly organized Alle, mania bank. He was succeeded by Gustav Willius. President Willius told an Associated Press representative that the closing was the result of an unreasonable panic, and the bank would be opened for business as soon as the people regained their usual cool sense. The bank, as a result of the panicky feeling, had paid the depositors $335,000 in the last nine days. Willius said he fully expected to have the bank reopened by the last of March. The Allemania. The Allemania bank has a capital of $400,000, and a clientage similar to that of the Germania. The Allemania was organized last year, as a successor of the Commercial, William Bickell, formerly pres. ident of the Germania, joining forces with Albert Scheffer, of the Commercial, to organize a new bank. The last official statement made, December 17, showed loans and discounts, $706,842; undivided profits, less expenses, $508,764; individual deposits, $329,789; interest certificates, $187,253. President Scheffer, of the Allemania, said the failure was due to combined withdrawal of deposits. A crowd of depositors gathered today demanding their money, and at 11 o'clock it was decided to close. f Runs on Other Banks. Owing to the excitement caused by the closing of the Germania and the Allemania banks, many depositors went after their money in one or two other banks.

17. January 8, 1897 The Columbia Herald Columbia, TN

Article from The Columbia Herald, January 8, 1897

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IN ONE DAY. Three St. Paul Banks Close Their Doors and Quit Business: ST. PAUL, Jan. 4.-As a direct result of the closing of the Bank of Minnesota two weeks ago, which created new distrust among bank depositors and started runs on a number of city banks that were reputed to be as strong as depositors wished, three St. Paul banks, the Germania, the Allemania and the West Side, none of them national institutions, and all closely associated, to-day closed their doors, one being now in the hands of the State Bank Examiner and the others making assignments. The last report of the condition of the Germania Bank was made Dec. 17, and showed a capital stock of $400,000 and individual deposits to the amount of $345,191.00. The Allemania Bank was organized last year. and had a capital stock of $400,000. Its last statement showed individual deposits to the amount of $329,789.27. The West End Bank was organized in 1886, with a capital of $100,000. The total assets are $217,024.17, and the deposits amounted to $113,546.

18. January 8, 1897 The Times Owosso, MI

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ST. PAUL BANKS CLOSED. The Germania, Allemania and West Side Suspend Payment. St. Paul, Jan. 5.-The Germania bank, a state institution, capital $400,000, did not open for business Monday, but announced its assignment to Peter M. Kerst, who for the past year or two, has been the cashier of the bank. The announcement stated that this action was taken after full consideration of all phases of the situation, as it was deemed best for all concerned that this action be taken. The bank stood a run for nearly two weeks, its depositors beginning to withdraw their accounts at the time the Bank of Illinois closed on Dec. 22. The Allemania bank, capital $400,000, and having a clientage similar to that of the Germania, closed its doors also soon after the other bank had announced its assignment. A few minutes before 2 o'clock the West Side bank, organized in 1886, with a capital of $100,000, closed its doors. The president, C. F. Staples, told the Associated Press representative that the bank cleared through the Allemania, and had its clearings returned because of the closing of the bank. This was but one of the causes that lead to the closing of the West Side bank, which had suffered considerably from the general shaky condition of financial affairs. Public funds were on deposit in all three of the closed banks. The state had $10,546.05 in the Germania; $35,302.54 in the Allemania, and $3,646.63 in the West Side bank. The county treasurer had deposited $9,635.35 in the Germania; $26,215.35 in the Allemania, and $7,554.84 in the West Side bank. City Treasurer Horst had on deposit city funds in the Germania $49,793.82; in the Allemania, $151,455.50, and in the West Side bank, $21,894.50.

19. January 9, 1897 Red Lodge Picket Red Lodge, MT

Article from Red Lodge Picket, January 9, 1897

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THREE MORE ST. PAUL BANKS. Two Were Large Institutions, the Other Was small. St. Paul, Minn., Jan. 4.-As a direct Minne- rethe closing of the Bank weeks ago, which sota, sult of two and created of started new distrust among depositors were a number of city banks not to be as strong as reputed runs on banks-the the that deposthree St. Paul the Allemania and of them national Germania, itors none wished, institutions, the doors Vest all Side, closely associated-closed their state today, one being in the hands of the asbank examiner and the others making signments. the time that had interv ened During closing of the Bank of Minne- to the Germania paid out sota, since the $225,000 today the frightened depositors, and early the directors concluded they would stop the drain and make an assignment to cashier, Peter M. Keerst. The Allemania bank, which, like the Germania, had a large clientage among and whose vice president the been vice president a the had Germans, formerly target of for Germania, then became the the run. Crowds gathered about the doors lively and fairly fought for a place window. in before the paying teller's such line bank officials realized fully what on The run meant, and promptly called a Bank Examiner Kenyon to take posses- now sion of the bank, and that official is in charge. The West Side bank, a small but possi- Alstronger bank, cleared through the rebly lemania, and today its clearings were turned by the latter institution. Follow~ this there was a decided run inaugu- this ing on the bank, and at 2 o'clock the rated the bank officials closed afternoon and called a meeting of the directors decisdoors decide what action to take. Their to was apparent late in the afternoon, to S. ion filed a deed of assignment H. president of the when Staples, they bank. tied Considerable public money is up m- in three institutions, but there is an in the ple the supply for all immediate needs other banks of the city. The assignment of the Germania and Side banks has brought up a laws some- of West new question in the banking called upwhat state, and the courts will be examiner the settle it. The state bank that on to their right to assign, holding turned doubts should have, under the law, they their assets to him. The attorney acover intimates that he will bring an general tion to test the matter as soon as papers be issued. of can the day numerous reports curDuring among the other banks were of trouble and a few banks suffered runs rent, or lesser intensity, but the that savings algreater were protected by the law before banks them to require 60 days' notice national lows out deposits; and the have no banks paying are in strong condition, and fear of anything of the sort. The Germania Bank. Germania bank was a state insti- The The and had a capital of $400,000. tution official statement of the condition and of last bank, December 21, gave loans resources, I discounts the as $975,420.53; total cap 1 Among the liabilities were undivided $1,625,788. stock, $400,000; surplus and subject ital $58,797; individual deposits certificates of 1 profits, check, $345,191; demand to deposit, $7899; time certificates of deposit, s 3633,019. Germania bank has been organized RamS The ex-Governor Alexander Wilmany being years, a long time president, and say Bickell, cashier. When the governor but liam Mr. Bickell became president, vice f retired, spring Bickell retired, becoming Alle2 last of the newly organized Gusmania president bank. He was succeeded by tav Willius. d Willius told an Associated President representative that the closing was and Press result of an unreasonable panic, the bank would be opened for business usua as the soon as the people regained their cool sense. it bank, as a result of the panicky in o The had paid the depositors $335,000 he fully 1 feeling, last nine days. Willius said by expected the to have the bank reopened the last of March. il The Allemania. r Allemania bank has a capital that of and a clientage similar to o The Allemania was $400,000, the The Germania. of the organ Com last year, as a successor G. ized mercial, William Bickell, formerly forces pres e ident of the Germania, joining Commercial with Albert Scheffer, of the last offl organize a new bank. The show y cial to statement made, December undivided 17, e loans and discounts, $706,842; individua e ed less expenses, $508,764; certificates profits, deposits, $329,789; interest cil n $187,253. President Scheffer, of the Allemania combine n the failure was due to of de twithdrawal said of deposits. A crowd the at positors gathered today demanding decide money, and at 11 o'clock it was to close. Runs on Other Banks. n, to the excitement caused by Alle th Owing of the Germania and the afte ht closing mania banks, many depositors went banks 'S. en their money in one or two other th the Minnesota Savings bank being

20. April 8, 1897 The Times Washington, DC

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SENSATIONAL DISCLOSURES MADE A Legislative Committee Investigating Bank Failures. St. Paul, Minn., April 7.-The jointlegislative committee investigating insolvent banks in this city and Minneapolis has made public the testimony secured during the past two months. Some of the disclosures are highly sensational. As to the Bank of Minnesota, of which William Dawson, Sr., was the president, and William Dawson, jr., cashier, W. H. Lightner, one of the receivers, stated that on October 7 $135,606 was due to the bank from the Fort Dearborn National Bank of Chicago. The balance, he said, was incorrect, accounts between these two banks being falsified to the extent of $100,000. At the time of the failure of the bank there was owing to it by the officials the following sums: William Dawson, sr., about $90,000; William Dawson, jr., $59,950: R. A. Smith, $50,000, of which he has since paid $35,000. In addition to that, William Dawson, jr., was guarantor of $53,000, of which $30,000 was overdrawa. As to thecause of the failure of the bank, it was testified that William Dawson, sr., owed it $281,000. The schedules of assets and liabilities of William Dawson, jr., have been filed in the district court. The assets are placed at $239,168.78, and the liabilities, $868,452.47. The face value of the assets is much higher. By far the largest portion of Mr. Daw. son's direct liabilities consists of in dividual notes. A few of these are secured, but most of them only by the indorsement of William Dawson, sr. As to the Scandia Bank, of Minneapolis, the committee states that its failure, according to the evidence, was honest, and it may yet pay in full. The committee says that the Washington Bank, of Minneapolis, went under for want of paid-up capital, direct and indirect loans to its officers, and from a lack of supervision. Dwelling upon the affairs of the Allemania Bank, of St. Paul, the report says that the assets, or a large portion of them, were worthless. The directors, it states, were heavy borrowers, and were guilty of misstatements. As to the affairs of the Minnesota Savings Bank, of St. Paul, the committee states the officers were borrowers. directly or indirectly. to an amount more than double the capital stock.

21. April 8, 1897 The Copper Country Evening News Calumet, MI

Article from The Copper Country Evening News, April 8, 1897

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ACCOUNTS FALSIFIED. Legislative Committee Investigates Some Bank Failures. DISCLOSURES ARE SENSATIONAL. Lack of Honest Supervision by Directors Is Shown-Great Overdrafts Made by Private Individuals- Allemania's Assets Were Worthless and Its Directors Were Heavy Borrowers-The Scaudia Failure Was Honest and May Pay Out. St. Paul April S.-The joint legisla. tive committee investigating insolvent banks Tuesday made public the testimony secured during the past two months. The committee investigated banks in St. Paul and Minneapolis, and some of the disclosures are sensational in the extreme. As to the Bank of Minnesota W. H. Lightner, one of the re. ceivers, stated that on Oct.*7 $135,605.95 was due the bank from the Fort Dearborn National bank of Chicago. This balance was incorrect. The accounts Between these two banks were falsified to the extent of $100,000. The testimony shows that it was customary for the Dawsons to sell St. Paul Plow company notes through remittances to Boston Such notes were sold to the amount of $40,000. crediting the amount to the Merchants National bank of New York. On the morning of Dec. 22 they paid notes the amount of $40,000 in the Bank of Minnesota. These were St. Paul Plow company notes. Due from Officials. At the time of the failure of the bank there was owing to it by the bank offi. cials the following sums: William Dawson Sr., about $90,000; William Dawson, Jr., $59,900: R. A. Smith did owe the bank $50,000. and has since paid $35.000. In addition to that, William Daw. son. Jr., was guarantor of $53,000, of which $30,000 was overdrawn. As to the cause of the failure of the bank, it was testified that William Dawson, Sr., owed It $281,000 During the last thirteen months before suspension William Daw. non, Sr., the St. Paul Plow company, and the Gladstone Land company borrowed $550,000 from the bank. Scandia bank of Minneapolis-Its fallure was honest, according to the evidence, and it may yet pay 100 cents on the dollar. There was no indebtedness direct or indirect on the part of the of. ficials Lack of judgment in loans toused its suspension. Had No Capital. Washington bank of Minneapolis-It went under for want of paid up capital. Second, as a result of loans made directly or indirectly to officers, and, third, from lack of honest supervision. The directors knew, or seemed to care nothing about its business, then en arged from the private bank of Johnson. Haugan & Co., to the Washington bank. Assets were accepted at par when practically worthless. Stock was sim ply issued without the capital or paid in part in securities of doubtful or worthless character. It never should have been allowed to start up. The committee were unable to find all the although they found enough to cause them to assert that the books show that as money was paid into the bank, it was used by the officers to square their old debts. so that at n time was the bank in a solvent condi tion. The committee was unable learn the names of the stockholders an t falled to secure the stockholders' ledg and transfer book. Directors Were Borrowers. Allemania bank of St. Paul-The as sets. or a large portion of them. cam from the old Commercial bank. an were worthless. The directors wer heavy borrowers and were guilty misstatements. We found that nearl all their quick assets failed to show tingent liability on rediscount. Minnesota Savings bank of St. PaulDirectly or indirectly the officers wer borrowing to an amount more than dou ble the capital stock. The character their accounts is shown by the asset of $10.000 cash they exhibited when th The receiver found it to be $1 in actual coin loans were worthless. The last ex ination was made in October, 189 and on its evidence the bank examine ought to have closed it then. After ex amination in 1895 it was not inspecte by the examiner again until its susper sion. notwithstanding the fact that knew of its precarious condition in 189 Confederate Memorial Day. Sew Orleans, April 8.-Confedera Temorial Day, which is also a legal ho iday, was celebrated with a milita parade, of which marched to the tom the Army of Northern Virginia, Co artiller home salute W ar each tomb. The set cer mies of the day took place at the Co emerate monument, where an immen crowd gathered. Onion Supply Short. San Francisco, April 8.-There is scarcity of onions in the local mark Dealers say that all the California cr was shipped as soon as gathered to eastern and southeastern states t a corner has been effected in a is Washington and Oregon crop. So she the supply in this state that tv carloads to were shipped from Reno, Ne Los Angeles, which seems like sen ing coal to New Castle. Lamont for Railroad President. New York, April 8.-It is stated

22. May 18, 1897 The Morning News Savannah, GA

Article from The Morning News, May 18, 1897

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BANK PRESIDENT INDICTED. His Personal Account With the Institution Overdrawn. St. Paul, Minn., May 17.-Another sensational indictment in the bank cases was reported by the grand jury to-night. The Allemania Bank was among those that failed during the past winter, into whose affairs the grand jury has been looking, and this indictment was for grand larceny against Albert Scheffer, president of the institution. The ground for the charge is an overdraft on his personal account to the amount of $6,475. Scheffer has for several years been prom. inent in politics in the northwest. The Allemania closed its doors because of a run inugurated after some other banks had failed, and has been going through the preliminary steps for reorganization.

23. July 3, 1902 The Minneapolis Journal Minneapolis, MN

Article from The Minneapolis Journal, July 3, 1902

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Other decisions to-day were as follows: Ramsey County. Wm. F. Hunt, as receiver of the Allemania bank, appellant, vs. Charles G. Rooseu, respondent. First-The Allemania bank of St. Paul, a banking corporation organized under the laws of the state, became insolvent in 1897, and receivers were appointed to take charge of and wind up its affairs. Subsequently, in April following the appointment of receivers, a majority of the creditors petitioned the district court of Ramsey county to permit and authorize, under chapter 69, laws 1897, a reorganization of the bank on the terms and conditions of that statute, but was, after due hearing, ordered dismissed. Some four months subsequently, but without notice to creditors and interested parties, the same petition was again presented to that court, but to a judge other than the judge who had previously ordered its dismissal, who, without knowledge of the prior dismissal, granted its prayer and ordered the entry of final judgment approving and adopting the proposed plan of reorganization, and adjudging and determining therein and thereby that all stockholders who should pay any portion of their liability as such to aid and assist in the purposes of the reorganization should be released from their statutory liability to the extent of the amount so paid The receivers were thereupon discharged, and the officers of the bank resumed control of its affairs and issued to all the creditors, payable in five equal annual instalments certiflicates of deposit for the amount of their respective claims, which the creditors accepted and retained, and at no time did any of them, who are now creditors, in any way call in question the validity of the reorganization or the judgment authorizing it. Defendant was a stockholder of the corporation and paid, in reliance upon the terms of the judgment, one-half the par value of the stock held by him to aid in the reorganization; which was effected in the interests of creditors and for the payment of their debts. It is held, first, that the findings of the trial court to the effect that all the creditors of the bank acquiesced in and ratified the proceedings under the reorganization, are sustained by the evidence; and, second, that though the judgment adopting and approving the plan of reorganization was void, because based upon a petition which had been dismissed, and creditors who acquiesced therein and accepted and retained benefits accruing therefrom are estopped from now calling the validity of such proceedings in question. Second-Section 4, chapter 69, laws 1897, construed and held to preserve and con-