258301165 25830
national
07b2b00652ce2ecbAccommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Partial suspension
Clearinghouse involved: Yes (loan, examination, or other measures)
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PREPARING FOR TROUBLE. DES MOINES, Iowa, Jan. 21.-The banks of Des Moines have all fortified themselves against all dangers of a run tomorrow, following the failure of the German Savings bank. Fully $500,000 will be received tomorrow from Chicago and other points.
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DANGER TO THE BANKS HAS PASSED. Million Dollars Imported from Chiengo is Not Needed. DES MOINES, Jan. 22.-(Special Telegram.) -All danger of a run on Des Moines banks is considered to be past. This morning nearly a million dollars arrived from Chicago on the early trains for different banks. Express wagons heavily guarded were in waiting and when the banks opened this money, together with what they had on hand, enabled them to display great piles of bills and coin before the eyes of callers. Acting on the clearing house resolution, the banks announced that they would take advantage of their contracts and require notices from time depositors before permitting withdrawals and the savings banks took advantage of the sixty-day clause in the law. It is believed that before the sixty days is up, apprehension on the part of depositors will pass away. In banking circles the failure of the German Savings bank yesterday is said to have resulted from careless banking. Loans were made indiscriminately, business men failing to get accommodation elsewhere going to it. The bank had built up a big business in three years, but did it by offering great inducements. As high as 4 per cent interest was allowed depositors on daily balances. It will take many months to close out the bank's business and its assets will depreciate materially, but will pay 75 or 80 cents on the dollar.