First National Bank (Kansas City, MO)

Episode Information

Episode UID
161200937
Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
national
Bank ID
16120 national
Charter Number
1612
Start Date
January 29, 1878
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
57f1db59f1521f2c

Response Measures

Full suspension

Other: The bank initially closed its doors (suspended) due to a shrinkage of deposits over several days and months, which the directors attributed to 'monetary distrust'. While it later attempted to reopen or show strength (Article 8 mentions it sustained slight pressure but receipts increased), it ultimately went into liquidation.

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1878-02-11
Date receivership terminated
1881-07-06
OCC cause of failure
Losses
Share of assets assessed as good
60.9%
Share of assets assessed as doubtful
17.1%
Share of assets assessed as worthless
22.0%

Description

The bank experienced a significant drain of deposits over several months and a sharp run in the final days before directors voted to suspend and liquidate.

Events (6)

1. November 23, 1865 Chartered
Source
historical_nic
2. January 29, 1878 Run
Cause
Rumor Or Misinformation
Cause Details
Prevalent monetary distrust and a sharp shrinkage of deposits in the final days.
Measures
The board of directors voted to discontinue business and enter liquidation.
Newspaper Excerpt
This step is rendered necessary by a shrinkage in our deposits of over $350,000 within the last few days
Source
newspapers
3. January 30, 1878 Suspension
Cause
Rumor Or Misinformation
Cause Details
Heavy withdrawal of deposits and general monetary distrust leading to a board vote to discontinue business.
Newspaper Excerpt
The First National Bank of Kansas City suspended to-day.
Source
newspapers
4. February 11, 1878 Receivership
Source
historical_nic
5. February 11, 1878 Receivership
Source
newspapers
6. May 23, 1878 Other
Newspaper Excerpt
15 per cent. in favor of the creditors of the First National bank of Kansas City.
Source
newspapers

Newspaper Articles (16)

Article from New-York Tribune, January 31, 1878

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Article Text

BANK SUSPENSION. THE DOORS OF THE FIRST NATIONAL BANK OF KANSAS CITY CLOSED. KANSAS City, Mo., Jan. 30.-At a late hour last night, the following notice, signed by the officers of the bank, was left for publication at a newspaper office: At a meeting of the Board of Directors of the First National Bank of Kansas City, held this evening, it was voted that the bank discontinue business. This step is rendered necessary by a shrinkage in our deposits of over $350,000 within the last few days, added to the continuous very large reductions of the last few months, aggregating a much larger amount, and by the prospect of a continuance of the prevalent monetary distrust. The affairs of the bank will be rapidly liquidated, an I the depositors may rest assured that in due time, they will be paid in full. The closing of the bank took the entire community by surprise, and there was great excitement this morning. There was a heavy run on other banks this morning, the principal run being on the Martin Bank, which paid every depositor in full, and announce that they are prepared for every emergency. Up to noon to-day they have received over fifty new accounts, one depositor paying in $90,000. The excitement is now dying, and it is not expeeted there will be any further trouble.


Article from Evening Star, January 31, 1878

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A KANSAS BANK CLOSED.-The - First National Bank of Kansas City, Mo., closed yesterday, owing to a shrinkage in deposits during the past few days of over $350,000, added to the continuous drain during the past few months, aggregating a much larger amount. The closing of the bank took the community by surprise, and there was a heavy run on the other banks during the excitement, which, it was thought, was dying out last evening.


Article from The Wheeling Daily Register, January 31, 1878

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Bank Suspension. KASBAN CITY, Mo., January 30.-The First National Bank of Kansas City suspended to-day. The officers say they will pay in full. The closing of the bank caused great excitement and & run on other banks.


Article from The Rock Island Argus, January 31, 1878

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KANSAS. KANSAS CITY, Jan. 30. -At meeting of the board of directors of the First National Bank, held last eyening,it was voted that the bank discontinue business. This step is rendered necessary by a shrinkage in deposits of over $350.000 within the last few days, added to the continuous very large reductions of the last few months, aggregating a much larger amount, and by the prospect of a continuance of the prevalent monetary distress. They promise full payment to depositors. The closing of the bank took the entire community by surprise and there was great excitement. This morning there was a heavy run on the other banks, especially on the Mastin Bank, which paid every depositor in full and announces that they are prepared for every emergency. Up to noonto-day they had received over fifty new accounts, one depositor paying in $90,000. The excitement is now dying out and it is not expeeted that there will be any further trouble.


Article from The Wheeling Daily Intelligencer, January 31, 1878

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Kansas City Bank Troubles. KANSAS CITY, Mo., January 30.--At a late hour last night the following notice, signed by the officers of the bank, was left for publication at the newspaper offices: "At a meeting of the Board of Directors of the First National Bank of Kansas City, held this evening, they considered and voted that the bank discontinue business. This step is rendered necessary by a shrinkage in our deposits of over $350,000 within the last few days, which, added to the continuous very large reductions of the last few months, aggregate a much larger amount, and by the pros. pect of a continuance of the present monetary distress. The affairs of the bank will be rapidly liquidated and depositors may rest assured that in due time they will be paid in full." The closing of the bank took the entire community by surprise, and there was great excitement this morning. There was a heavy run on the other banks this morning, the principal run being on the Mastin Bank, which paid every depositor in full, and announces that they are prepared for every emergency. Up to noon to-day they had received over fifty new accounts, one depositor paying in $90,000. The excitement is now dying out, and it is not expected that there will be any further trouble.


Article from The Daily Dispatch, January 31, 1878

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Missouri. KANSAS CITY, January 30.-The First National Bank of this city has discontinued business. The directors publish a card giving reasons therefor, and saying depositors will in due time be paid in full. The community is much surprised. There was a run on the other banks to-day, but the excitement has now subsided.


Article from The New York Herald, January 31, 1878

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FINANCIAL DIFFICULTIES. BANK SUSPENSION-RUN ON BANKS. KANSAS CITY, Mo., Jan. 30, 1878. At a late hour last night the following notice, signed by the officers of the bank, was left for publication at a newspaper office:-"At a meeting of the Board of Directors of the First National Bank of Kansas City, held this evening, it was voted that the bank discontinue business. This step IS rendered necessary by a shrinkage in our deposits of over $350,000 within the last tew days, added to the continuous very large reductions of the last few months, aggregating a much larger amount, and by the prospect of a continuance of the prevalent monetary distrust. The affairs of the bank will be rapidly liquidated, and the depositors may rest assured that, in due time, they will be paid in full." The closing of the bank took the entire community by surprise and there was great excitement this morning. There was a heavy run 00 other banks this morning, the principal run being on the Mastin Bank, which paid every depositor in full and announce that they are prepared for every emergency. Up to noon to-day they have received over fifty Lew accounts, one depositor paying in $90,000. The excitement is now dying out and it 15 not expected there will be any further trouble.


Article from The Wheeling Daily Intelligencer, February 1, 1878

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Financial Flurry in Kansas City. KANSAS, Mo., January 31.--The financial flurry is aboutover. The announcement in the evening papers of the suspension of the Commercial National Bank had little or no effect. The business men and heavy depositors have not 80 far shown any uneasiness. The withdrawal of deposits have been confined to small depositors. The opinion is, while some of our business men may be embarrassed by the reason of the lock-up of their means and being forced to pay heavy interest on loans they can weather the storm by close collections and careful dealinga. There will be sufficient capacity on the part of banks to aid all the commercial transactions. There is great confidence in the ability of the First National Bank. It sustained slight pressure to-day but its receipts were largely increased. Money came in from all quarters. Viewing this the business men took courage, and this afternoon, at a meeting of the Board of Trade, resolutions of confidence in the banks were passed. When the banks closed there was good feeling all around. Prices for grain ruled a little higher. There are 244,253 bushels in store of which 123,082 are wheat and 94,970 corn.


Article from The Emporia News, February 1, 1878

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BANK FAILURE. The First National Rank of Kanas City Gone Under. Considerable stir was made here Wednesday morning, on receipt of the news of the failure of the First National bank of Kansas City ; not that any one here has suffered by the collapse, but because the officers of the bank were well and favorably known here. It will be remembered that this bank suspended during the panic of the fall of 1873, but arrangements were made by which it continued business. We are informed that it has been considered in an unsafe condition for some time, and that in consequence of this feeling the business has been gradually decreasing, until the result is as above announced. The officers publish the following card to "the public: At a meeting of the Board of Directors of the First National Bank of Kansas City, held this evening, it was voted that the bank disconinne business. This step is rendered necessary by he shrinkage in our deposits of over $350,000 within the last few days, added to the continuous very arge reductions of the last few nonths, aggregating & much larger mount, and by the prospect of a continuance of the prevalent monetary distrust. The affairs of the bank will be apidly liquidated, and depositors nay rest assured that in due time hey will be paid in full. H. M. HOLDEN, Pres't. E. H. ALLEN, V. Pres't. M. W. STCLAIR, Cashier. Kansas City, Jan. 29, 1878.


Article from The Iola Register, February 2, 1878

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THE First National Bank of Kansas City decided last Tuesday to discontinue business and go into liquidation. The reasons given for taking this step are the recent shrinkage in its deposits, and the "prospect of a continuance of the present monetary distrust." The directors say that depositors may "rest assured in due time they will be paid in full." The First National was one of the heaviest and most enterprising banking institutions west of the Mississippi river. It suspended for a short time during the panic of 1873, but was reorganized with its capital doubled, and supposed to be stronger than before. Its failure is to be deeply regretted. The liabilities are about $600,000, and its assets, including-real estate, estlmated at $1,000,000.


Article from Watertown Republican, February 6, 1878

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THE first National Bank of Kansas City, suspended last week, causing a slight ruu on other banks.


Article from Perrysburg Journal, February 8, 1878

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WEST AND SOUTH. Replying to a telegraphic inquiry by W. E. Chandler, on the 29th, Maj. E. A. Burke, of New Orleans, disclaims all knowledge of corrupt or disreputable bargains on the part of Mr. Hayes or Southern Congressmen last winter, or that the Southern men did anything to prejudice Tilden's chances in the electoral count. He says that whatever assurances were given or derived were openly submitted to the Nicholls Legislature, and, having been voted and acted upon by eighty-five members, the subject could not be regarded as secret. Maj. Walsh, the commandant of Fort Walsh, Canada, near which Sitting Bull is camped, denies all reports that Sitting Bull has crossed the line. The First National and Commercial National Banks of Kansas City, Mo., suspended on the 30th ult. The Topeka (Kan.) Bank and Savings Institute has suspended. The Merchants' National Bank, of Fort Scott, Kan., closed its doors on the 31st ult. William Weiners was hanged on the 1st at St. Louis for the murder of A. V. Lawrence. On the scaffold he acknowledged his guilt and forgave everybody. Philip Watson (colored), a wife murderer was hanged at Covington, Ky., on the 1st. Previous to his execution he admitted his guilt and expressed repentance.


Article from The Crisis, May 23, 1878

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CHILLICOTHE, LIVINGSTON CO., MO., THURSDAY, MAY 23, 1878. to the use of the army to put down loborGermany. In Ruchstag on Monday two inter-state freighttraffle, extends sympa WS. strikes, he said it was not in accordance to Southern Republicans. and eulogist socialists openly invited rebuke by refusing with the Republican principal of governGovernor Hartranft's administration. I to join in loyal cheers which the president GRESS. ment to keep an army to restrain any por. convention was remarkable for its unani of the chamber proposed. but no attention tion of the people from exercising any just enate on the 13th right. If these strikes gave rise to disorwas paid them. All attempts to establish ty of feeling and purpose. sting. Mr. Morrill St. Louis Blown. ders it was the duty of the States individuHoedel's insanity, as well as his independh half a dozen meally to repress them. What the governring the repeal of ence of the social Democrats, have failed. A very heavy wind and rain sto ment ought to do was to organize a Nay declare it is unpassed over the northwestern part and his crime is proved by numerous witnesses tional militia system throughout the counployed by the govtry. He was in favor of encouraging rifle and the trial will be a mere formality. burbs of St. Louis on Saturday. doing gr ht hours' work as clubs, for the Republican country need Rather Free with Jewels. for ten hours. damage and more or less injuring eight never fear disorder when the people were ter, as a question ten persons, but killing none. The sto An agent of an eastern wholesale armed. As to communism. which was e following pream1 came from the southeast, striking flaunted before Congress as the reason why jewelry firm stopping at the Lindell hotel, the army should be increased, that never ground first in the western suburbs, then in St. Louis, last Saturday was, robbed of Maryland has, by its had a footing and never would have a footd that due effect was passing northeast over the fair grounds over five thousand dollars worth of his ing in this land unless Congress should untes cast by the States Lowell, situated at the northern extrem wares. The thief entered the adjoining dertake to police the country with a stander, 1876, by reason of of the city. The wind attained a velocity ing army, then communism would break ctoral votes from the room. which is occupied by a regular ana; and out in every town in the country, but if sixty miles an hour, and in its course to boarder of the house, with a false key, communism should break out the President y Samuel B. McLin, the roofs off or otherwise damaged over o pried open the folding doors which conState canvassers of was authorized to call out the militia. If hundred houses. Trees, shrubbery, et the election held nected this room with the jeweler's, abthe militia could not be trusted. public inber, 1876, for elecstitutions were a failure. and fences and small buildings were to stracted the property. which was rolled up ice President, has Washington Notes. up and scattered in all directions. in clothes. and left the hotel unobserved. that false and fraudusuch election in that Bursted Bank. ADDRESS FROM THE REPUBLICAN CONGRESReception to Gen. Shields. of the people of that SIONAL COMMITTEE. A formal reception was given to G The dime Savings Bank at Sacramenat the action of the making such returns. The Republican Congressional comJas. Shields in St. Louis at the residence to, Cal., has suspended. It proves to have uct and promises of mittee has issued the following address to Judge John M. Krum. A large number been a sham affair, never incorporated, as now minister to the the voters of the United States. which we citizens, among them many of prominene supposed, but run by the firm of Joseph at a conspiracy existgive as furnished by the associate press: Davis & Co., infoonnection with a pawnbrokwere present. and a very cordial and ge whereby the RepubThe Democratic House of Representatives has to-day, ial evening was spent. An address of W ing business. Deposits, about $55,000; asacts of the parish of by party vote, adopted a resolution, which, under the eral election in Nopretense of an investigation. 18 to lay the foundation for sets. stocks of the nominal value of about come was delivered by Peter L. Foy, whi a revolutionary explosion of the President from his ofy withheld from the was responded to by Gen. Shields in a ve $10,000. but worth much less. A great porfice. This is the culmination of a plot which has been en exclusion by the refoot from the day Hayes and Wheeler were constitutionState of the vote happy manner, after which speeches we tion of the depositors are children. and ally declared elected. It made its first public appearelectors of President made by Col. Dan Morrison, ex-Gov. Re much indignation is manifested. ance in a resolution of the last Democratic House, and at James E. Anderwas adopted at the close of the session, declaring that England's Commune. nolds, Judge Krum and others. Music W on of East Feliciana, Tilden and Hendricks were elected. who subsequently of registration in the furnished by the United States band fro made similar public declarations themselves, A few The striking mill handsa Blackburn, in that State, in furtimid members had long held back, and some of them, the arsenal. and falsely protested England, became riotous on the 14th, and coerced to a final vote, still pretend that they will halt ecincts had not been as soon as their partial and one-rided invest igation shall Amicably Adjusted. troops were called out to preserve the be ended. in other words, after hearing the suborned evstate returning board In the case of the English strikes n peace. The soldiers did not arrive, howidence, to bring in a verdict that Hayes is usurper, and ulently excluded the that he shall not remain in office. These men have nd by means thereof, ever, until thousands of maddened men gotiations between representatives of t control of the Democratic party. They dare not even ulent action by said follow Alex. H. Stephens in 8 un't against caucus dictaand women had broken the windows in all masters and operatives, have resulted of the people of that tion to the extent of showing a semblance of fair play. rsed, that such acfavorably that a settlement has been reac the mills, and burned the house of Mr. They will be impatient: in the future as they have rson was induced and been in the past. It more difficult to believe in their ed. The conditions of which are that t Johnson. a master, to the ground. The les of Hon. Jno. Shersincerity in view of the public avowal of their party that easury of the United operatives throughout the district are residence of an older man was also parits purpose is, if possible, to displace the President. It is a matter of history that the resolution just adopted work three months at a reduction of 10 p tially demolished. these charges, the naWHB "framed to express this object. The speaker of the House was consulted in advance as to whether he would Another Riot in England. cent. the mills running full time. T hich they are reported rule that it was a privilege question. The party manadignity and position wages are to be raised at the end of thr The excitementam mill operatives gera were anxious to conceal their purpose if possible. inection with the said In this they were defeated by the speaker who would months if trade is materially improved. the same should be of England continued to spread up to the not rul it H question of privilege unless it el arly assailI the honor of the naKansas City's|Broken Banks. ed the title of the P resident. The resolution bei goffer20th, and several large mills were burned the truth as to such ed he read opinion deciding it to be a refore, be it by the strikers, who are determined to rule Comptroller of currency has declar question of the highest privilege because it involved a ommittee, consisting question of the validity of Mr. Hayes' title. or ruin. Many policemen have thus far a dividend of 75 per cent. in favor of t e, be appointed to inHere are his very words: "A higher privilege than creditors of the Commercial National bar been injured. and the presence of the millgations 28 to the contheon here involved, and broadly and frectly present ed, as to the rightful occupancy of the chief executive aforesaid, in respect tary at other points was all that prevented of Kansas City: and 15 per cent. in favor chair of the government, and the connection of high govthe alleged false and the creditors of the First National bank ernment officials with the frauds alleged, the chair is the greatest excesses on the part of mobs. return of the votes by unable to conceive. The chair exumerated among d precinct officers in A Shocking Murder. Kansas City. the question of privilege set down in the manual the 1 Florida, and into all In Demand. following: Election of President.' The chair thereKansas City has at least its share of ent of said committee fore rules that the preamble and resolution embrace nent thereto, and that question of privilege of the hishest character, and rethe crime of the day. On Friday last a woThe syndicate have anticipated the urpose of executing cognized the right of the gentleman from New York to man named Ludwig was found dead with a options for August and September, a e power to send for offer the same." Upon Republicans minister the oath, and the struggle against the revolutionary scheme. which ope around her neck, and circumstances have taken $10,000,000 of the 414per ce after five days duration, terminate in the success of eir discretion to deconnected with the case indicate that she bonds. Total amount thus far taken $3 the conspirators. like full authority of The Republicans offered to favor the fullest investiwas murdered by her drunken husband. 000,000. particular, and with gation into all alleged frauds, by whichever varty chargLouisiana, which subLast of the Four Per Cents. who has been arrested and bound over for ed to have been committed, but the Democracy purmittee of this House, sued its course shamelessly and relentlessly, and shifted trial. It is reported that the Rothschilds h shall be authorized to all inquiry into attempts at bribery in Oregon, South said committee and A Desperado Captured. Carolina Florida, and murder and violence in eral taken the remaining $15.000,000 of 41/p y stenographers, and States. Neither amendment nor debate as allowed : The detectives have arrested, near cent. Syndicate contract. The price of 4 a deputy sergeant-atthe inexorable previous question was applied and enthe sessions of this forced This scheme, if pursued (and it is now fully inFort McKinney, Sam Kelly, a desperatecatper cent. bonds advanced to $1.021/2 and a ion. angurated), can only have the effect of further paralyzcrued interest. tle thief and murderer, for whom $5,000 reing business of all kinds, preventing the re-toration of cussion, the SpeakA Turkish Job. confidence which seemed pending, casting a gloom over ward has been offered. Kelly resisted, but nble and resolution every household, and bring our nation into reproach Snyder and a posse of soldiers captured The Providence Tool Company h before our civilized world. The peace of the country is the highest privithe first consideration of patriots. This new effort of him and confoderates, as far as can be ased. Parliamentary started up to complete the original Turki the Democ acy to inaugurate anarchy and Mexicanize play by the Repubcertained. egovernment by throwing doubts upon the legitimacy contract, of which about 10,000 rifles a lay a vote on the of the title of the President, is in keeping with the The Fenians) Again. still to be made. records of that party, one wing of which rebelled against se adjourned. the government, while the other wing gave aid and comThe Fenian scare is not yet over. Fatal Boiler Explosion. on repeal bill was fort. We call therefore, upon all who opposed the reFour companies of infantry and a battery A boiler at a coal mine in Tamaro bellion of 1861, withont distinction or party. to rally Senate, on the 14th. again to the support of law. order and stable governare held under marching orders at Fort e post office approIll., exploded on Monday, killing John W ment, and to overwhelm with lefeat the reckless agit at was laid aside Erie to prevent the breaking of the neutraltors who to gain political power, would add to the loughby, John Sympson, and woundi present distress of the country by shaking the founda ) committee on mility laws. three small boys who have since died. tions of the government they failed in a four-years' war vorably on the SenA Defaulting Feller. to destroy. Death of Lord Russell. Secretary of war to By unanimous order of the committe. Feller, the defaulting cashier of a TifI over the graves of Earl Russell died on the 15th ins EUGENE HALE, Chairman. fin, Ohio, bank, has been arrested an the regular or volREPUBLICAN RESISTANCE. at the advanced age of eighty-seven yea ited States during brought back to the scene of his crookedAfter the adjournment of the House nd who have been He was England's oldest peer. ness for trial. ries. on the 15th the Republican members of the Disastrous Frost. ker announced the House held a caucus to determine how far GENER Heavy frosts in all parts of New Yo


Article from The Leavenworth Weekly Times, August 8, 1878

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S A BUSTED BANK. T That Being the Condition in Which Mastin's Institution is at Present. S A $500,000 Run Proves too Much, and a Closure of the Doors 1 is the Consequence. A Paralyzing Blow to the Best Interests of Kansas City-The Other Sufferers. A GREAT SURPRISE. The announcement, by telegraph, yesterday morning, that the Mastin Bank, at Kansas City, had suspended, created more than anordinary ripple of excitement, being received with unfeigned surprise by the great majority of the community, as the general impression was that this ins itution was, live Cresar's wife, above suspicion. It has been for years regarded as an exceptionally strong bank, and the fact that smaller institutions throughout the State of Kansas, as also hundreds of individual rt firms THROUGHOUT THIS STATE, 0 a did business there, was h ir sufficient guarantee to prove that it 78 was looked upon with confidence. Since the tailure of the Kansas City First National of Bank, the Mastin has been looked upon as Is the first and best bank in that city, and, in nt fact, stood above the First National in the 1opinion of the people, as regarded solidity. ร  A small amount of the bank's paper is held m here in this city, by some few of our merchants, or rather, drafts for small amounts, k in the aggregate not exceeding $1,000, if it en should, possibly, reach that figure. us THE FAILURE OF THIS BANK, re regarded as it was as the strongest in the as western country, and the preceding failure, ay but a few months ago, of the First National of Kansas City, will have a tendency to ncreate a feeling of insecurity in the minds ร  of the people throughout this State and the te banking institutions of Kansas which have been depositing and corresponding with ad these paper concerns, and the natural conhe sequence will be that Leavenworth will bere come the banking headquarters for the he Western and Southwestern portions of the to State, as it is now for the Northwest. Leavenworth is the natural center for Kansas if and is now being recognized assuch. ed THE CAUSE OF THE FAILURE. The immediate cause of the failure was the withdrawal of $200,000 from the bank ly id by the State Treasurer, which, becoming a known, created a pinic, and in two days = some $300,000 was withdrawn by depositors a which, altogether, took $500,000 clear cash ur out of the vaults. Up to the very last moals ment the bank expected to arrivatof $250,000 from the house of Donnell, Lawson & Co, New York, but it did not arrive, nor liany intimation that they could reasonably he expect it, and they went under A STATE DEPOSITORY. The bank was in a certain sense a State depository,the State Treasurer usually havSt. ing from $200,000 and upwards in the bank, all the time. Gates Was elected with Gov. Phelps, James N. Burnes, formerly of St. Joseph, now of Kansas City, Mastin of nd Kansas City, and Britton and Senator D. for H. Armstrong, of St. Louis going his bond. Mastin, therefore, had the use of $200,000, and sometimes more than that, of the to State's money, all the time for his bank. The State Treasurer must have had some idea the bank was not safe when he withdrew the $200,000 of State money, which the withdrawal was the cause of the panic and of the great run. IT WAS KNOWN. Some parties belonging most likely to ere the class of I-told-you-sos, after the bank en had closed its doors, made known the startin ling intelligence that they had been posnd sessed of the information all along that the bank was in a shaky condition, and if they ed had wanted to they could have told the whole story a week before the bank failed. There is little probability in this, as men or who were heavy depositors in the concern en knew nothing of it until the run began, succeeding the withdrawal of the State money. IT WILL CAUSE TROUBLE. The failure of the Mastin Bank will be the cause of a great deal of embarrassment, not only among business men and others in Kansas City, but in scores of towns and villages in the State of Kansas, where smaller banks and private individuals kept th accounts. As an instance of the peculiarnt ly bad manner in which such failures as these affect some depositors, it is nccessary only to cite one instance, that of a hardlis ware merchant in Northwestern Kansas, who sold out some time ago for $16,000, one half of which he deposited in the First National of Kansas City and the other be half in the Mastin. When the former institution closed its doors he very naturally ist congratulated himself upon the fact of ur having been wise enough to deposit $8,000 where it would be safe, and where it ran no risk of being swallowed up by a failure. He succeeded in recovering $3,500 from the debris of the First National, which he at once deposited in the Mastin-


Article from The New York Herald, September 11, 1878

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ARRESTED BANK OFFICERS. AN INDICTMENT BY A KANSAS GRAND JURY OF DELINQUENT BANK OFFICIALS. [BY TELEGRAPH TO THE HRRALD.] KANSAS CITY, Mo, Sept. 10. 1878. Howard M. Holdon, president of the late First National Bank; E. H. Alien, vice president, and John J. Mastin, cashier of the suspended Mastin bank, have been indicted by the Grand Jury, were arrested and taken before Judge White, of the Criminal Court, 10. day. The charge being that of receiving funds in is failing institution. There is great excitement here over the affair, as all three men have a good social standing in the community. They have been balled out in the sum of $7,000 each.


Article from The New Orleans Daily Democrat, October 11, 1878

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Butler as a Greenbacker-Dividends in Favor of Bank Directors. WASHINGTON, Oct. 10.-In the House of Representatives, June 6. 1870, while the funding bill was being pressed to its passage, Hon. B. F. Butler, of Massachusetts, moved to amend section 4 by adding the words, "And the United States also solemnly pledges Its faith to make provision, at the earliest practicable period, for redemption of United States notes in coin." which amendment was disagreed to, though Mr. Butler voted in the affirmative. The Controller of the Currency has declared a dividend of 25 per cent in favor of the creditors of the Washington County National Bank of Greenwich, New York, making in all dividends of 50 per cent. He has also declared a dividend of 15 per cent in favor of the creditors of the First National Bank of Kansas City, Mo., making in all 30 per cent. Also a dividend of 12 per cent in favor of the creditors of the First National Bank of Bethel, Conn., payable as soon as the necessary schedules can be prepared by the receiver.