People's Pilot, Volume 3, Number 6, Rensselaer, Jasper County, 28 July 1893 — MIGHT BE WORSE. [ARTICLE]

MIGHT BE WORSE.

Several Banks Forced to Suspend on Tuesday, Bat AU Have A»mU in Excess ot Liabilities—Among Them Was the Wi»consin Fire and Marins Insurance Company's Bank at Milwaukee, the Oldest Institution in the Northwest. Milwaukee, July 26.—The Wisconsin Fire and Marine Insurance company’s bank, the largest financial institution in the whole northwest outside of Chicago, has closed its doors. This is known as Mitchell’s bank. It was founded in 1839 by the late Alexander Mitchell, father of United States Senator John L. Mitchel L It owes depositors >7,870,503, while its assets amount to >8,946,354. The bank’s capital was >500,000 paid up. It had the largest capital among the Milwaukee banks, and in May, 1889, celebrated its fiftieth anniversary. By a special act of the legislature the stockholders are liable without limit for all debts of the bank. John L. Mitchell is president, David Ferguson vice president, John Johnson cashier and Robert L. Jennings assistant cashier. At the instance of Benjamin M. Weil the bank consenting, Judge Johnson appointed Washington Becker receiver of the bank. His bond was fixed at >1,000,000. Mr. Becker has made a large fortune in the street railway business and was only a short time ago taken into the bank as a vice president It is impossible to estimate to what extent the failure will effect the business interests of the city and of the state. The name of Mitchell known in financial circles from one end of the country to the other. The city as a municipality is affected directly from the fact that in this bank were deposited the city funds, amounting in all to about >1,600,000. These deposits are protected by a bond signed by John L. Mitchell and David L. Ferguson, which is in reality the bank itself. And this bond is only for >l,500,000, just >IOO,OOO less than the city had on deposit when the bank closed. The city may be compelled to stop payments temporarily, but it will be in shape to do a cash business very shortly. License money is now pouring in and the city will shortly have >150,000 in cash with which to meet present demands The state is also involved. State moneys are deposited in the bank, and under the policy of the present state administration the state takes all the responsibility, and the bondsmen of the state treasurer are released when the money is deposited. The day passed with but one assignment, but that one was in the nature of a surprise. It was the assignment of the Obermann Brewing company. The assignee is Hermann. Obermann and he furnishes bonds in the sum of >50,000. George Obermann when seen said the brewery would continue business. He attributed the failure to the fact that collections are slow and banks which they relied upon had gone under. A considerable crowd gathered at the Merchants’ exchange, First national, and the and II Isley banks, and more qr less of a crowd at the Wisconsin national. Notwithstanding this fact and the renewed feeling of uncertainty, a number of old depositors were on hand at each of the institutions for the purpose of making deposits, and while considerable money was hastily withdrawn, even larger amouats were placed on the inside of the counters. The failure of the Bank of commerce was not unexpected, as the bank was owned by the DePauws and the DePauw estate, and because of the failure of C. W. DePuaw Saturday a run was made on the bank Monday. The bank is the oldest in the city and one of the oldest in the state. Of the DePauw estate Mrs. Washington C. DePauw, N. T. DePauw and C. W. DePauw owned nearly three-fourths. The first named is worth >5,000,000, and they are all liable for twice the amount of their stock. The last named has made an assignment. Louisville, Ky., July 26.—At 10 o’clock Tuesday morning the Merchants’ national, bank posted a notice of suspension, and half an hour later the failure of the Louisville deposit bank was announced. By this time half a dozen banks in the city were being run by depositors, mostly small ones. They all stood the pressure except one, the Fourth national, which closed its doors. Excitement was running high and every one of half a dozen banks was crowded with depositors who were in line waiting their turn with the paying te ler. The failure of the Merchants’ national was caused by the withdrawal of the balances of the country banks and country depositors. The Louisville deposit was the only bank in the city not a member of the clearing house association, and in its time of need none of the other banks would give it any assistance whatever. The suspension of the Fourth national was a result of the panic. None of the failures are considered bad ones. Depositors in the two national banks will be paid in full, and the loss to stockholders will not be more than 60 per cent, in either case. The Merchants national bank is capitalized at >500,000, and J. H. Linderbeager is president. The Fourth national has a capital of >300,000 and a surplus-of >35,000. George Davis is president. The Louisville deposit bank has a capital of >300,000 and a surplus of >16,128. Mosea Schwartz is president.

’‘Everybody wants fresh bread,” said a citizen, “and I have sometimes wondered what became of that which was left over. I got some light on this subject to-day when I saw in front of a bakery a sign reading: ‘Yesterday’s bread three cents a loaf.’ ” A now of accordion-plaited gauze is the only trimming on the front of a large hat of lace braid. Hundreds of people can talk for one who can think, hut thousands can think tor one who can see.—Ruskin. Thirty persons have committed suicide on the Eiffel tower.