9917. Citizens State Bank (St Paul, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 18, 1893
Location
St Paul, Minnesota (44.944, -93.093)

Metadata

Model
gpt-5-mini
Short Digest
90bf4fd6

Response Measures

None

Description

An 1893 article (May 18) reports Citizens' Bank closed/suspended payments temporarily because it could not immediately convert securities to cash and expected to resume. A later 1894 article (Jul 17) lists Citizens' as having a receiver and having made part payment, indicating the bank ultimately entered receivership. There is no description of a depositor run in the articles, so this is a suspension that ended in closure/receivership. No major OCR corrections required.

Events (2)
1. May 18, 1893 Suspension
Cause Details
Temporary illiquidity — unable to convert securities into ready money, so bank suspended payments voluntarily to protect depositors and itself.
Newspaper Excerpt
We have closed in justice to the depositors and ourselves. There have been no indications whatever of a run on this bank... We have more than enough money to meet all demands, but it is in such shape that it cannot be obtained for a day or two.
Source
newspapers
2. July 17, 1894 Receivership
Newspaper Excerpt
the county had deposits in all of the defunct banks... Deposits were had in the Commercial and Citizens', but the former has paid up while the latter has made part payment through the receiver.
Source
newspapers

Newspaper Articles (2)
1. May 18, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, May 18, 1893

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Article Text

# BANK REORGANIZED bank yesterday morning when the doors opened. The entire number was accommodated within the vestibule. There were for the day about 200 withdrawals, $49,146 being withdrawn. This was about half the amount taken out on Tuesday. Against the 200 withdrawals there were 128 deposits, aggregating $13,964.88. A large portion of the money withdrawn was for the purpose of paying taxes, and affairs may be said to be at about their normal state. The Farmers' and Merchants' bank stockholders held a meeting yesterday afternoon to reorganize the bank, double its capitalization and change its name. The bank is now capitalized at $75,000, and the change will bring it up to $150,000 inside of two or three days. The officials and stockholders say that the success with which they have met has far exceeded their expectations, and they are correspondingly jubilant. It is the intention to name the bank the Merchants' bank instead of the Farmers' and Merchants' bank. M. A. Paulson said that the bank had done a very wise thing in suspending as it did, and that it would be very much strengthened thereby. It has been in a first-class paying condition for a long time past, its dividents having never fallen below 6 or 8 per cent. It was simply forced to close because it could not instantly convert its securities into ready money. Walter H. Carroll, cashier of the Citizens' bank, said last evening that there need be no alarm on the part of the bank's depositors. He added: "We have closed in justice to the depositors and ourselves. There have been no indications whatever of a run on this bank, and the deposits yesterday were as large as usual. We have more than enough money to meet all demands, but it is in such shape that it cannot be obtained for a day or two. The probabilities are that we could have gone along that time without suspension, but we would be running the risk of being caught short of funds today or tomorrow, and, therefore, you can see that this was the best and the most honorable course to pursue. I think that by next Monday, at the outside, our securities can be turned so as to resume the regular course of business again. The depositors will be paid in full."

2. July 17, 1894 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, July 17, 1894

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Article Text

SOMEBODY MUST PAY. THE COUNTY WiLL PROCEED AGAINST THE BONDSMEN OF THE DEFUNCT BANKS. It Is Now Proposed to Oblige the Bondsmen to Reimbarse the County - Stockholders Want Control of the St. Louis Road's Indebtedness-Another Saloonkeeper Charged With Perjury. The county commissioners have at last bestirred themselves and now propose to make somebody pay for the money lost in the banks that failed last summer. The county had deposits in all of the defunct banks, but they were secured by special bonds. At vesterday's meeting of the board of commissioners it was decided to bring suits upon these bonds for the payment of the money deposited in the banks referred to. County Attorney Nye was instructed to draw up complaints in the cases as soon as possible. The banks to be proceeded against are the Farmers and Merchants', American Exchange, Bank of New England and State. Deposits were had in the Commercial and Citizens', but the former has paid up while the latter has made part payment through the receiver. The cases will be important, inasmuch as they will show the liability and reliability of bondsmen. The county has $160,000 due from the banks. For a long time the board of commissioners did nothing about the matter or the money, and many people were of the opinion they would let cash go to the dogs, but apparently something has occurred to stir them up. In the meantime, however, if the bondsmen of the banks deS re to settle up with the county the siuits will not begin. The last day of igrace is July 26, and if no action is aken by the bondsmen by that date the suits will be filed the 1st of August.