City Bank - St Paul, MN

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 16, 1896
Location: St Paul, Minnesota (44.944, -93.093)

Metadata

Model: gpt-5-mini
Short Digest: 47eb6263

Response Measures

None

Description

Article (St. Paul Daily Globe, 1896-01-16) reports City Bank suspended payments and is under Bank Examiner M. D. Kenyon's oversight; discussion of reorganization and belief deposits will be paid suggests a temporary suspension and not an immediate failure. No run or depositor panic is described.

Events (1)

1. January 16, 1896 Suspension

Cause: Government Action
Cause Details: Bank examiner ordered assessment due to low reserve; directors chose to suspend payments and reorganize rather than force stockholder assessment.
Newspaper Excerpt: The City bank yesterday morning suspended ment. The City bank is now in the hands of Bank Examiner M. D. Kenyon, and its affairs are being closely overhauled
Source: newspapers

Newspaper Articles (1)

1. January 16, 1896 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, January 16, 1896

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Article Text

ASSESS OR SUSPEND. The City Bank Took the Latter AIternative. The City bank yesterday morning suspended ment. The announcement came as a surprise outside the inner financial circles of the city, but it was well known among bankers that the institution would have to do something to put it on a better financial basis. The City bank is now in the hands of Bank Examiner M. D. Kenyon, and its affairs are being closely overhauled, in order to learn its exact condition. From a reliable authority it was learned last night that it would probably be able to pay dollar for dollar on all of its deposits. Many prominent men of the city are stockholders, and for that reason there is no necessity of feeling any alarm over the institution. The stockholders are good for the amount if the assets don't cover the total liabilities coming under the head of deposits, although it is believed that they will. County Treasurer Hastings, who is one of the heavy depositors for the county, having about $8,000 in the institution, was seen last night. "I am inclined to think that the bank will pay every dollar of its deposits," he said. "I have no fear SO far as the county money is concerned. And I understand it was decided that to suspend payment would be better than to continue and lose money. I feel no apprehension whatever concerning the matter. I have every CO idence in Mr. Buxton, the president, and I believe that it was conducted in an honest manner." In banking circles the statement is made that the bank examiner had ordered an assessment on the stockholders, as the reserve carried was too small. After discussing the matter it was decided that it would be better to settle up and reorganize rather than to force an assessment upon stockholders. Late yesterday afternoon affidavits of Erma G. Dickenson, assistant secretary of the Minneapolis Base Ball company, and Victor J. Welch, her attorney, were filed, stating that the bank had refused to cash a check for $70.23, drawn upon the City bank. On the affidavits and complaints filed, Judge Jamison based an order returnable at 10 o'clock this morning, requiring the directors to show cause why a receiver should not be appointed for the corporation. The matter will be argued this morning. It is said that T. J. Buxton will probably be appointed, and it is believed that the action was begun to force matters to an issue, i. e., the suit is a friendly one.