9978. State Savings Bank (St Paul, MN)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
July 9, 1899
Location
St Paul, Minnesota (44.944, -93.093)

Metadata

Model
gpt-5-mini
Short Digest
96c65a1a

Response Measures

Accommodated withdrawals, Public signal of financial health, Partial suspension, Books examined

Other: Enforced statutory sixty-day notice (partial suspension) and posted a public statement of available funds/securities to reassure depositors.

Description

Newspaper reports (July 9, 1899) describe a multi-day run/withdrawal pressure on the State Savings Bank triggered by the closing of another savings bank in the city. Trustees later (reported July 18, 1899) invoked the 60-day notice for withdrawals to stem further runs. The bank remained open and trustees explicitly framed the 60-day rule as a temporary protective measure rather than a permanent closure, consistent with a run followed by suspension and eventual continued operation.

Events (3)
1. July 9, 1899 Other
Newspaper Excerpt
The announcement that the Savings Bank of St. Paul had been closed had the effect of causing a rather panicky feeling among the depositors of other banking institutions.
Source
newspapers
2. July 9, 1899 Run
Cause
Local Banks
Cause Details
Panic triggered by the announcement/closing of the Savings Bank of St. Paul (another institution) which caused depositors at the State Savings Bank to withdraw funds.
Measures
Bank president publicly posted cash and securities and reassured depositors; trustees later decided to enforce sixty-day notice to deter further withdrawals.
Newspaper Excerpt
The State Savings bank ... had quite a rush of depositors for withdrawals yesterday morning and before banking hours were over something like $15,000 had been withdrawn.
Source
newspapers
3. July 17, 1899 Suspension
Cause
Local Banks
Cause Details
Trustees invoked the 60-day notice after a four-day run and the failure of another bank in the city (to avoid selling securities at unfavorable prices).
Newspaper Excerpt
The trustees of the State Savings bank have decided to enforce the sixty day notice permitted by law from all depositors desiring to withdraw their deposits.
Source
newspapers

Newspaper Articles (4)
1. July 9, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 9, 1899

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Article Text

price, during the past year had sold $26,000 worth of real estate at much better figure than the book value of property. John Caulfield and J. C. Prendergast two members of the board of trustees o the bank, seen yesterday afternoon, wer inclined to the opinion that the action 0 Gen. Pope in ordering the bank close was not the proper one. The real estat holdings of the bank, the gentlemen said were not second and third mortgages, bu first mortgages on the property, and in each instance the property was worth the book value. A portion of the prop erty which the bank was forced to tak on foreclosure was improved, and some thing like $16,000 per year in rents wa secured from this source. The bank ha not been disposing of its holdings, fo the reason that it was considered that better price could be obtained within short time for a majority of the property BOARD OF TRUSTEES. The board of trustees are Thomas A Prendergast, J. A. Stees, E. J. Meier John Caulfield, John S. Prince and J. C Prendergast. William Hamm was a mem ber of the board, but stated yesterda; that he had resigned about a year ago W. S. Timberlake was elected to fill th vacancy caused by the resignation Mr. Hamm, but one of the officials o the bank stated last evening that Mr Timberlake had resigned several month ago, and the vacancy had not been filled A number of depositors, as well a those who have been-doing a commercia business with the bank, are in favor, I a receiver is appointed, of having th compensation of the officials fixed b) the court at the time he is appointed The names of Gustave Scholle and Eonc F. Berrisford have been mentioned fo the position of receiver if the court de cides that the appointment of one is nec essary. The savings deposits, aggregating $953, 453, are divided among 5,000 depositors and they are largely small accounts, th average being under $250. MEETING OF DEPOSITORS. A number of the depositors in the Savings Bank of St. Paul met informally last night and decided to call a meeting for this afternoon at 2:30 o'clock, to be held at Assembly halls, Third and Wa basha streets. Their idea is to talk ove what is the best course to pursue for their mutual benefit. Some of the de positors think it would be wise to selec an attorney to appear in court Monday morning when the question of a receive comes up again. While they all desire some good, competent man placed 11 charge they do not want any of thes dollar a minute men if they can help it The less that is required to be paid fo a receiver's fees and attorneys the more the depositors are going to realize ou of assets of the bank. In connection with a receiver some o the depositors thought if some good conservative banker, like Joseph Lockey of the National German-American bank or F. D. Monfort, of the Second Nation al, could be induced to take hold of th savings bank affairs for a reasonable compensation, and enough to emplo: such clerical help as is necessary and not réquire more than a portion of thei own time to attend to the work, that 1 would be a most desirable thing. OTHER INSTITUTIONS. The announcement that the Saving Bank of St. Paul had been closed had the effect of causing a rather panicky feel ing among the depositors of other bank ing institutions. The State Savings bank at Fourth and Minnesota streets, ha quite a rush of depositors for withdrawal vesterday morning and before banking hours were over something like $15,000 ha In been withdrawn. President -FerdInand Willius,-however reassured the depositors that the banl was all right, and a number of those WITH came in with the express purpose of can celing their accounts, decided to allow the money to remain. President Willium had prepared and hung in the bank where all who came in could see it the follow ing card: Cash on hand and available funds which can be turned into cash in twenty hours: Cash on hand, $166,000 Unite States bonds, $64,500 Chicago bonds $79,000; New York bonds, $50,000; Bosto: bonds, $10,000; St. Paul bonds, $84,500; L Sueur, Minn. bonds, $13,000; Council Bluffs Io. bonds, $10,000; Dayten, O. bonds $15,000 Luverne, Minn., bonds, $12,000 Ait kin County, Minn., bonds, $13,000; Ramse County, Minnos bonds, $34,000; Dodg County, Minn. bonds. $15,000; Clevelan and Ohio bonds $10,000; other municipa bonds. $105,000; total. $681,000. "In round figures we have about $1,200, 000 in deposits, said President Willius "and, as you will notice by the card ove there, we have available cash on hand an securities which we could realize on 1 a day's S: notice amounting to $681,000. W could pay out money for days and neve feel it, and yet, as usual, some of th people get hysterical and demand thei money. "Some of the people have already re covered from their fright, and I will guar antee that the greater part of the mone withdrawn today will be re-deposite Monday. We have SO much money an the rate of interest is SO low that we hav stopped advertising for depositors. received a call from Bank Examine Pope and he, realizing that the closing 0 the Savings Bank of St. Paul might caus some commotion among the depositors other savings banks, gave me this let ter,' and Mr. Willius exhibited th following, bearing the signature o Mr. E. M. Pope: Mr Ferdinand Willius, State Saving bank. Dear Sir: Owing to the closing of th Savings Bank of St. Paul there may b apprehension and anxiety on the part some of those who have savings deposit in your bank. You are authorized to stat that the department of the public ex aminer has recently completed an examin ation of your bank, noting every item of your resources, their character an value, and does not hesitate to state tha the State Savings bank is perfectly abl to pay in full all claims against it. Hop ing there will be no unwise and unneces sary withdrawals. I am yours truly. Cashier Ickler, of the Northern Saving bank, at Sixth and Minnesota streets said the closing of the Savings Bank o St. Paul had no noticeable effect on the institution he had charge of. except tha many new accounts had been opened during the day. "We shall take no ad vantage of the sixty day notice require by our rules as to the withdrawal of de posits," said Mr. Ickler. "If the deposit ors want their money they can have it.' DEMAND FOR BOXES, There was a demand for boxes in the safety deposit vaults yesterday and one 0 the officials at the institution in the Na tional German-American Bank building said the demand had been so good tha all the boxes which rented at $4 per yea had been disposed of during the day. SAVINGS BANK DEPOSITORS. Meeting to Be Held at Assembly

2. July 9, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 9, 1899

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Article Text

of property. John Caulfield and J. C. Prenderga two members of the board of trustees the bank, seen yesterday afternoon, we inclined to the opinion that the action Gen. Pope in ordering the bank clos was not the proper one. The real esta holdings of the bank, the gentlemen sa were not second and third mortgages, b first mortgages on the property, and each instance the property was wor the book value. A portion of the pro erty which the bank was forced to ta on foreclosure was improved, and som thing like $16,000 per year in rents W secured from this source. The bank h not been disposing of its holdings, the reason that it was considered that better price could be obtained within short time for a majority of the proper BOARD OF TRUSTEES. The board of trustees are Thomas Prendergast, J. A. Stees, E. J. Met John Caulfield, John S. Prince and J. Prendergast. William Hamm was a me ber of the board, but stated yesterd that he had resigned about a year a; W. S. Timberlake was elected to fill vacancy caused by the resignation Mr. Hamm, but one of the officials the bank stated last evening that I Timberlake had resigned several mont ago, and the vacancy had not been fill A number of depositors, as well those who have been-doing a commerc business with the bank, are in favor, a receiver is appointed, of having compensation of the officials fixed the court at the time he is appoint The names of Gustave Scholle and Eon F. Berrisford have been mentioned the position of receiver if the court cides that the appointment of one is n essary. The savings deposits, aggregating $95 453, are divided among 5,000 deposito t and they are largely small accounts, average being under $250. MEETING OF DEPOSITORS. A number of the depositors in t Savings Bank of St. Paul met informa last night and decided to call a meeti for this afternoon at 2:30 o'clock, to held at Assembly halls, Third and W basha streets. Their idea is to talk o what is the best course to pursue their mutual benefit. Some of the positors think it would be wise to sele an attorney to appear in court Mond morning when the question of a receiv comes up again. While they all des some good, competent man placed charge they do not want any of the dollar a minute men if they can help The less that is required to be paid a receiver's fees and attorneys the mo the depositors are going to realize of assets of the bank. In connection with a receiver some the depositors thought if some go conservative banker, like Joseph Lock of the National German-American bar or F. D. Monfort. of the Second Natio al, could be induced to take hold of savings bank affairs for a reasonal compensation, and enough to empl such clerical help as is necessary not réquire more than a portion of th own time to attend to the work, that would be a most desirable thing. OTHER INSTITUTIONS. The announcement that the Savir Bank of St. Paul had been closed had effect of causing a rather panicky fe ing among the depositors of other bar ing institutions. The State Savings bai at Fourth and Minnesota streets, h quite a rush of depositors for withdraw yesterday morning and before banki hours were over something like $15.000 h In been withdrawn. President FerdInand Willius-howev reassured the depositors that the ba was all right, and a number of those W came in with the express purpose of ca celing their accounts, decided to all the money to remain. President Will had prepared and hung in the bank who all who came in could the follo ing card: Cash on hand and available funds wh can be turned into cash in twenty hours Cash on hand, $166,000 Uni States bonds, $64,500 Chicago bon $79,000: New York bonds, $50,000: Bost bonds, $10,000; St. Paul bonds, $84,500 Sueur, Minn. bonds, $13,000; Council Blu Io bonds, $10,000: Dayten, O. bon $15,000 Luverne, Minn., bonds, $12,000: kin County, Minn., bonds, $13,000; Rams County, Minno bonds, $34,000; Doc County, Minn. bonds, $15,000; Clevela and Ohio bonds, $10,000 other munici bonds, $105,000; total. $681,000. In round figures we have about $1.2 000 in deposits,' said President Willi "and, as you will notice by the card o there, we have available cash on hand s securities which we could realize on a day's notice amounting to $681,000. could pay out money for days and ne feel it, and yet, as usual, some of people get hysterical and demand th money. 'Some of the people have already covered from their fright, and I will gu antee that the greater part of the mor withdrawn today will be re-deposi Monday. We have SO much money the rate of interest is so low that we ha stopped advertising for depositors. "I received a call from Bank Exami Pope and he, realizing that the closing the Savings Bank of St. Paul might ca some commotion among the depositors other savings banks, gave me this ter," and Mr. Willius exhibited following, bearing the signature E. M. Mr. Pope: Mr. Ferdinand Willius, State Savi bank. Dear Sir: Owing to the closing of Savings Bank of St. Paul there may apprehension and anxiety on the part some of those who have savings depos in your bank. You are authorized to st that the department of the public aminer has recently completed an exam ation of your bank, noting every it of your resources, their character value, and does not hesitate to state tl the State Savings bank is perfectly to pay in full all claims against it. H ing there will be no unwise and unnec sary withdrawals. I am yours truly Cashier Ickler, of the Northern Savir bank, at Sixth and Minnesota stree said the closing of the Savings Bank St. Paul had no noticeable effect on institution he had charge of, except t] many new accounts had been oper during the day. "We shall take no vantage of the sixty day notice requir by our rules as to the withdrawal of posits, said Mr. Ickler "If the depos ors want their money they can have 1 DEMAND FOR BOXES, There was a demand for boxes in safety deposit vaults yesterday and one the officials at the institution in the tional German-American Bank build said the demand had been so good t) all the boxes which rented at $4 per y had been disposed of during the day.

3. July 9, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 9, 1899

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Article Text

would not lose a cent. The bank had been forced to take a deal of real estate, but this was rapidly improving in price, and during the past year the bank had sold $26,000 worth of real estate at a much better figure than the book values of property John Caulfield and J. C. Prendergast, two members of the board of trustees of the bank, seen yesterday afternoon, were inclined to the opinion that the action of Gen. Pope in ordering the bank closed was not the proper one. The real estate holdings of the bank, the gentlemen said, were not second and third mortgages, but first mortgages on the property, and in each instance the property was worth the book value. A portion of the property which the bank was forced to take on foreclosure was improved, and something like $16,000 per year in rents was secured from this source The bank had not been disposing of its holdings, for the reason that it was considered that a better price could be obtained within a short time for a majority of the property. BOARD OF TRUSTEES. The board of trustees are Thomas A. Prendergast, J. A. Stees, E. J. Meier, John Caulfield, John S. Prince and J. C. Prendergast. William Hamm was a member of the board, but stated yesterday that he had resigned about a year ago, W. S. Timberlake was elected to fill the vacancy caused by the resignation of Mr. Hamm, but one of the officials of the bank stated last evening that Mr. Timberlake had resigned several months ago, and the vacancy had not been filled. A number of depositors, as well as those who have been doing a commercial business with the bank, are in favor, If a receiver is appointed, of having the compensation of the officials fixed by the court at the time he is appointed. The names of Gustave Scholle and Eonch F. Berrisford have been mentioned for the position of receiver if the court decides that the appointment of one is necessary The savings deposits, aggregating $953,453, are divided among 5,000 depositors, and they are largely small accounts, the average being under $250. MEETING OF DEPOSITORS. A number of the depositors in the Savings Bank of St. Paul met informally last night and decided to call a meeting for this afternoon at 2:30 o'clock, to be held at Assembly halls, Third and Wabasha streets. Their idea is to talk over what is the best course to pursue for their mutual benefit. Some of the depositors think it would be wise to select an attorney to appear in court Monday morning when the question of a receiver comes up again. While they all desire some good, competent man placed in charge they do not want any of these dollar a minute men if they can help it. The less that is required to be paid for a receiver's fees and attorneys the more the depositors are going to realize out of assets of the bank. In connection with a receiver some of the depositors thought if some good, conservative banker, like Joseph Lockey, of the National German-American bank, or F. D. Monfort, of the Second National, could be induced to take hold of the savings bank affairs for a reasonable compensation, and enough to employ such clerical help as is necessary and not require more than a portion of their own time to attend to the work, that it would be a most desirable thing. OTHER INSTITUTIONS. The announcement that the Savings Bank of St. Paul had been closed had the effect of causing a rather panicky feeling among the depositors of other banking institutions. The State Savings bank, at Fourth and Minnesota streets, had quite a rush of depositors for withdrawals yesterday morning and before banking hours were over something like $15,000 had been withdrawn. President Ferdinand Willius, however, reassured the depositors that the bank was all right, and a number of those who came in with the express purpose of canceling their accounts, decided to allow the money to remain. President Willius had prepared and hung in the bank where all who came in could see it the followcard: ing Cash on hand and available funds which can be turned into cash in twenty four hours: Cash on hand, $166,000; United States bonds, $64,500; Chicago bonds, $79,000; New York bonds, $50,000: Boston bonds, $10,000; St. Paul bonds, $84,500; Lo Sueur. Minn. bonds, $13,000; Council Bluffs, bonds, $10,000; Dayton, O., bonds, $15,000; Luverne, Minn., bonds. $12,000: Aitkin County, Minn. bonds, $13,000; Ramsey County, Minn., bonds, $34,000; Dodge County, Minn., bonds, $15,000; Cleveland and Ohio bonds. $10,000 other municipal bonds, $105,000 total, $681,000. In round figures we have about $1,200.000 in deposits, said President Willius, "and, as you will notice by the card over there, we have available cash on hand and securities which we could realize on in a day's notice amounting to $681,000. We could pay out money for days and never feel it, and yet, as usual, some of the people get hysterical and demand their money. "Some of the people have already recovered from their fright, and I will guarantee that the greater part of the money withdrawn today will be re-deposited Monday. We have S0 much money and the rate of interest is SO low that we have stopped advertising for depositors. received a call from Bank Examiner Pope and he, realizing that the closing of the Savings Bank of St. Paul might cause some commotion among the depositors of other savings banks, gave me this letter, and Mr. Willius exhibited the following, bearing the signature of Mr. E. M. Pope: Mr. Ferdinand Willius, State Savings bank. Dear Sir: Owing to the closing of the Savings Bank of St. Paul there may be apprehension and anxiety on the part of some of those who have savings deposits in your bank. You are authorized to state that the department of the public examiner has recently completed an examination of your bank, noting every item of your resources, their character and value, and does not hesitate to state that the State Savings bank is perfectly able to pay in full all claims against it. Hoping there will be no unwise and unnecessary withdrawals. am yours truly Cashier Ickler, of the Northern Savings bank, at Sixth and Minnesota streets, said the closing of the Savings Bank of St. Paul had no noticeable effect on the institution he had charge of, except that many new accounts had been opened during the day. "We shall take no advantage of the sixty day notice required by our rules as to the withdrawal of deposits, said Mr. Ickler. "If the depositors want their money they can have it." DEMAND FOR BOXES. There was a demand for boxes in the safety deposit vaults yesterday and one of the officials at the institution in the National German-American Bank building said the demand had been SO good that all the boxes which rented at $4 per year had been disposed of during the day.

4. July 18, 1899 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 18, 1899

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Article Text

SIXTY DAYS' NOTICE. State Savings Bank Decides to Avail Itself of It. The trustees of the State Savings bank have decided to enforce the sixty day notice permitted by law from all depositors desiring to withdraw their deposits. In doing so President Willius issued the following statement: The trustees of the State Savings bank, at their meeting yesterday afternoon, directed their officers to enforce notice of withdrawal of deposits, as provided by law. This action was taken, not because it was a matter of necessity, but because the trustees considered that it was for the best interests of the depositors. During the past week a large amount of money was drawn from the bank by depositors who did not need the use of it, and who, made withdrawals because of unwise impulses. The run lasted only four days, and the causes are known to all. On Monday, the 17th, another bank in the city failed. As a result, it appeared to the trustees that the situation was ripe for a second run. This, following so closely after the first run, might result, if continued for any length of time, in forcing trustees to dispose of valuable securities which the bank had been many months in accumulating for the benefit of the depositors. In case Ithese securities were disposed of it would be very difficult for the trustees to replace them, because they are of such a character that all persons seeking investment for money would be anxious to have them and loth to part with them. For instance, the bank holds among its securities-United States bonds, bonds of the cities of Chicago, Boston, New York, St. Paul, Dayton, O., Cleveland, O., Ramsey county, Dodge county, Minn., etc., all of which can be turned into money at a moment's notice. The trustees believed that if the depositors had a little time to consider the matter they would not feel like disposing of securities of this class for the purpose of meeting the fears of a few nervous persons. They felt it to be their duty to give the depositors an opportunity to consider the matter well, and decide whether the bank should convert its securities into money at this time, or whether it is wiser to keep the securities which must produce the interest which the depositors expect to receive. The depositors cannot expect the bank to keep all its cash on hand ready to meet withdrawals at a moment's notice, and at the same time pay interest. If the depositors wish for interest, it is best for the bank to keep its securities. The trustees are of the opinion that within a few days the depositors can sat-