36fee45aAccommodated withdrawals
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Two More Small Ones. ST. PAUL. Aug. 5.-The Peoples bank and the West Side Savings bank have suspended payment. Both were small banks. A run was started on the Germania bank, but it soon subsided. Everyone who called for their money were paid without demur. There were incipient runs on other banks but they have as yet not amounted to anything.
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ST. PAUL BANKS GO UNDER. SURPRI THAT THE GERMAN-AMERICAN CLOSED ITS DOORS. A STATEMENT FROM ITS OFFICERS TWO SMALLER INSTITUTIONS COMPELLED TO SUSPEND PAYMENT. St. Paul, Aug. 4.-The temporary suspension of the German-American National Bank last night, although not wholly unexpected in banking circles, was a great surprise to the general community. Still, so confident are the people of the strength of the remaining banks, that although some depositors are quietly withdrawing their money from a few banks, there is no particular excitement or general run on any of the banks, the savings banks for several days having been enforcing the sixty day rule, although most of them have abundant resources for any emergency. The failure of the Seven Corners Bank on Tuesday attracted little attention, as it has been known to be weak for a good many months. Some of the other banks had helped it at times, but felt, at the present time, a disinclination to continue their help, which seemed only to postpone the failure that finally came. But the closing of the German-American Bank last night was of a different character. It and its predecessors have been institutions of the city, the first organization having been effected in 1856, and all subsequent changes strengthening and enlarging the bank. Among its depositors were a great many small German depositors, who have been quietly withdrawing their money for some months. The bank was a severe sufferer by a number of business failures during the last two years. The difficulty of making collections and dislike for forced collections caused the suspension. The notice on the door reads: "Owing to the continual withdrawal of deposits the bank has been compelled to suspend. The bank has ample assets to pay all liabilities." According to statements by the officers and directors of the bank, the bank has $4,000,000 of good commercial paper, a banking-house and property worth at least $500,000, and other assets which will make $500,000 more, making a total of $5,000,000 to pay a deposit account of $2,261,000. The bank could go on again in ninety days if the Controller thought it best, even if the stockholders had to pay an assessment of 10 per cent. The People's bank closed its doors at noon. It has a capital stock of $200,000. No detailed statement of the affairs of this bank can be obtained before to-morrow. The same answer was given to the United Press representative when a statement of its affairs was asked of the officers of the West Side Bank, which latter has a capital stock of $100,000 and closed its doors at 1 o'clock. There are a few people hanging around some of the other banks, but no general run on any of them. There was a steady run on the Germania Bank all day. The officials decided to keep the bank open until 6 o'clock. St. Paul, Aug. 4 (Special).-"The Daily News" says: "Certain irregularities of the past of C. A. Hawkes, former cashier of the Seven Corners Bank, made the suspension of the institution necessary, and not the financial situation generally. Mr. Hawkes had the fullest confidence of the bank's officials, and bore an unblemished character. He employed this confidence in securing large loans, aggregating more than $35,000, from the funds of the bank, and placing his unsecured notes and the notes of his brother as security for the repayment of the money. This obtained, Mr. Hawkes had glittering prospects at the time money was taken out. He failed to lift his notes, however, although the matter was canvassed on several occasions by the directors. "Finally a time came when Mr. Hawkes stepped out of the cashier's desk, whether by request or voluntarily has not been stated by the bank people. No charges have ever been lodged against Mr. Hawkes by President Banholzer, of the bank, and according to Mr. Banholzer's own statement no charge will be preferred. T. B. Kellogg, attorney for Mr. Hawkes, appeared before the bank officials a day or two since and offered settlement in full of the Hawkes paper held by the bank. A day later Mrs. Mary B. Hawkes, mother of the cashier, transferred to President William Banholzer some real estate, the consideration being $18,500. This property is subject to a mortgage of $8.500 leaving $10.000 actually paid on the Hawkes
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CONGRESS HAS MET. Confidence Not Yet Restored--Gold Still Coming Back and the Sherman Law Still in Operation-More Money Is the Only Thing that Will Stop the Failures. CHICAGO, Ill., Aug 4 -Receivers were appointed to day for the great wholesale and retail houses of the Jas. H. Wheeler Company. The application for receivers was made by creditors, including A. D Juilliard, Bliss, Fabian & Co, the H. B. Claflin Company, of New York, and Columbus R. Cummings, William B. Howard and Irving, Hartz Enow, of Chicago. The receivers are the Chicago Title and Trust Company and William A. Mason, the latter being the treasurer of the firm. A. D. Juilliard is a creditor for $120,000, Biiss, Fabian & Co, for $200,000, and the H. B. Claflin Co. $30,000. The full amount due New York creditors is said to be about $2,000,000, while the total liabilitiesare estimated at $2,400,000. MILWAUKEE, Wis., Aug. 4-A sensation was caused to day by the bringing of suits against Senator John L. Mitchell, principal stockholder of the Wisconsin Marine and Fire Insurance Company Bank, by the receiver of the corporation and by the widow of Alexander Mitchell, mother of the Senator. In addition to thesuits brought against Senator Mitchell by the receiver, actions were brought against David Ferguson and John Johnson, also stockholders in the Mitchell Bank. ST. PAUL, Minn., Aug. 4-The an nouncement this morning that the National German-American Bankwhich has a larger capital than any other bank in St. Paul-would not open its doors for business caused tremendous excitement, and when the other banks opened there were long lines of depositors in front of every one of them. The outlook was so threatening that the People's and West Side bankstwo small State institutions-did not open their doors. By the noon hour the crowds melted away from all the banks except the Germania and the First National. Depositors kept withdrawing money from these steadily up to three o'clock. At the Germania Bank Cashier Bickel appeared at three o'clock and posted a large placard announcing that the bank would remain open until mid night to pay all demands. At the First National Bank also the doors remained open, and Cashier Bailey said the paying tellers would remain as long as there was a depositor in sight. President Hill, of the Great Northern Railroad, a large stockholder of the First National Bank, sat in the bank all the afternoon smilingly chatting with President Upham. It was said that he had $2,000,000 in ready cash which he was willing to place at the disposal of the bank at a moment's notice. The institution, however, had no need of help from any source. It has a million dollars more than enough to pay every dollar asked for. The run was an unreasonable one, induced solely by the general unrest. By six o'clock not a depositor was in sight. The situation was very much the same at the Germania Bank, and at half past five o'clock withdrawals had practically ceased. The Clearing House statement was more favorable this evening than was expected, and the bankers express the belief that the run will amount to nothing to morrow. Each of to day's suspensions was insignificant. The People's Bank was organized under the State Banking act on December 16, 1882, with a capital of $200,000. It had but little more than $100,000 on deposit. The West Side Bank is also a State institution, having been organized on August 24, 1886. Its capital is $100,000 and its deposits had run down to about $50,000. Daniel W. Lawler, Democratic candidate for Governor of Minnesota last fall, has been appointed examiner to take charge