gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
66461a3362ccbf51
Response Measures
Full suspension, Books examined
Other: Management negotiated composition/arrangements with depositors and creditors (agreement to resume business with conditions); comptroller/examiner involvement and a receivership discussion.
Receivership Details
Depositor recovery rate
100.0%
Date receivership started
1894-09-05
Date receivership terminated
1898-02-28
OCC cause of failure
Losses
Share of assets assessed as good
12.0%
Share of assets assessed as doubtful
75.1%
Share of assets assessed as worthless
12.9%
Description
Several articles describe attempted arrangements to reopen, but a receiver was ultimately in charge and dividends were paid later.
Events (5)
1.September 29, 1882Chartered
Source
historical_nic
2.August 13, 1894Run
Cause
Local Banks
Cause Details
Quiet run and steady deposit withdrawals following the earlier failure of the State National Bank and circulating rumors that eroded deposits.
Newspaper Excerpt
The failure ... is directly due to a quiet run begun upon the bank in common with other Wichita banks immediately after the failure of the State National bank last May.
Source
newspapers
3.August 13, 1894Suspension
Cause
Government Action
Cause Details
Comptroller of the Currency took charge and the bank closed its doors after heavy withdrawals.
Newspaper Excerpt
The Wichita National bank ... went into the hands of the comptroller of the currency this morning.
Source
newspapers
4.September 5, 1894Receivership
Source
historical_nic
5.September 5, 1894Receivership
Newspaper Excerpt
Major Ewing will continue to fill position of bank receiver, Wichita National.
Source
newspapers
Newspaper Articles (21)
1.August 13, 1894Santa Fe Daily New MexicanSanta Fe., Santa Fe, NM
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Article Text
Suspended Bank. Wichita, Kas., Aug. 13.-The Wichita National bank, the oldest banking instilution in the southwest, went into the hands of the comptroller of the currency this morning. The deposits amounted to above $260,000; capital stock and surplus aggregated $300,000; President W. W. Levy is in Kansas City having gone there last night to see if an arrangement could not be made to tide over the difficulty and to-day the closed doors told the story of his failure. The cashier said: "Ibelieve the suspension will only be temporary and even if the bank is closed for good we can pay all our debts if we collect 35 cents on the dollar of what is due us."
2.August 13, 1894The Evening WorldNew York, NY
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Article Text
Wichita National Bank Closed. (By Associated Press.) WICHITA, Kan., Aug. 18.-The Wichita National Bank, the oldest banking institution in the Southwest, went into the hands of the Comptroller of the Currency this morning. The direct cause of the suspension is not given out, and figures are unobtainable at the present hour. The President is M. Levy, and Cashier, C. A. Walker.
3.August 14, 1894The Wilmington Daily RepublicanWilmington, DE
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Article Text
A Hansas Bank Suspends. WICHITA, Kan., Aug. 14.-The Wichita National bank of this city suspended payments yesterday. The excitement is intense, and runs have commenced on the other banks, but it is believed that they are in good condition and able to stand the demands that may be made upon them. The Wichira National is the oldest and largest banking institution in this part of Kansas.
4.August 14, 1894The Topeka State JournalTopeka, KS
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Article Text
NEWS OF KANSAS. Particulars in Regard to the Wichita Bank Failure. Haskell Indians to Go Into Camp at Bismarck. OTHER STATE NEWS. A Farmer Nominated forCounty Attorney by Chase Populists. WICHITA, Aug. 14-The failure of the Wichita National bank is directly due to a qulet run begun upon the bank in common with other Wichita banks immediately after the failure of the State National bank last May. The deposits which at one time amounted to $1,700,000 have steadily decreased for the past six years until at the close of business last Saturday night they amounted to only $140,000. Mr. C. A. Walker, the cashier of the bank, said: "The action of the board of county commissioners together with 100 able bodied liars, is responsible for the notice upon our door. "We have opened our doors every morning for 22 years and now our epitaph can be written in these few words, 'talked to death." Mr. Walker said that the poor crop prospect and general depression of values in consequence had seriously affected the banking interest throughout the entire west, but he expressed himself as of the opinion that the other banks in this city were in good shape to withstand a run. The general opinion seems to be that the blow will be very hard on Wichita. Many small merchants will be greatly embarrassed and the result cannot be estimated. The effect will be equally disastrous in the smaller towns in the southwest that had exchange deposited here. Some of these will be closed in consequence.
A SOUND INDORSEMENT.
J. W. Dean, one of the most prominent farmers of this county, and prosperous, who has done business with the Wichita National for eighteen years, and who says that Mr. Levy tided him over more than once, was in town yesterday. He was greatly shocked over the suspension of the bank. He declared M. W. Levy not only his friend, but that in his judgment was one of the most capable and honest men in the state, a banker among a thousand, as ready to assist a farmer as a merchant, and that he, Dean, would quickly tender Levy a hundred thousand dollars if had it to put the bank on its feet again.
WASHINGTON, Aug. 15.-Never before in the case of a Kansas bank failure has there been such a scramble for the receivership, as that now in progress over the Wichita National bank. This is in the face of the fact, too, that no receiver is likely to be appointed. There is a disposition at the office of the comntroller of the currency to allow the bank to resume business, provided the management is able to comply with the usual conditions. It was stated today that a comparison of the statements offered for May 4 and July 18 show that the decrease in deposits had probably caused the break, and, this being the situation, it is looked upon as being favorable for the resumption of business. But this fact does not appear to be known in Kansas, for the wires are kept busy with ap lications for the receivership. Senator Martin of Kansas says he has received a large number of applications from men from one end of the state to the other. The first applicatfon received at the office of the comptroller of the currency was C. G. Crandle of Medicine Lopge. An. other man who wants the place is George W. Robinson of Winfield. John Eaton of the same town has also expressed the same desire. George Pitts of Wellington was one of the first to have his application on file. The last one to apply today was David Dale of Wichita and if any receiver, is appointed, it is said his chances are good. Bank Examiner Ewing of Kansas has been sent to Wichita to look after the bank and until he reports the condition of the bank at the time of suspension it will not be decided whether a receiver will be appointed or not.
BIG BANK FAILURE. The Wichita National Forced to Close Its Doors. WICHITA, Kan., Aug. 14.-The Wichita National bank, the oldest in Southwest Kansas, failed to open its doors this morning and a notice was posted up that the comptroller had taken charge at the close of business Saturday. The deposits amounted to about $260,000 and the capital stock and surplus aggregate $300,000. President M. W. Levy is in Kansas Ctiy, having gone there last night tq see if arrangements could not b1 made to tide over the trouble, but the closed doors this morning told th story of his failure to secure help. C. A. Walker, cashier of the bank, says: "The responsibility for the suspension can be charged to the county commissioners and a hundred able-bodied liars who have talked the bank to death. Irresponsible people have been attacking the stability of the institution for three weeks, and there has been a constant and heavy drain on us during that time. The county commissioners, among others, list ned to the stories afloat and checked out $46,000 without giving us any notice. I believe the suspension is only temporary, and even if the bank is closed for good we can pay all our debts if we collect thirty-five cents on the dollar of what is due us." The demands on the other banks will probably be heavy, but it is believed that all of them are prepared to protect themselves, for all have been reorganized since the boom and their condition is first class. The small depositors have, however, taken fright.
From the Mt. Hope Menton. A Wichita woman says she has looked under the bed fora man every night for twentyseven years and has never found one, till one night the burglars really did come and she found her husband under it. From the Ponco City Courier. Mrs. Lease has written a book with the surgestive caption: "A Compound Man." Mr. Lease is a Wichita druggist, and she wishes to advertise his business. Prescrip. tions carefully compounded! From the Alva Republican. Wichita ways was a hog. She now claims that her old Bill Mathewson was the original "Buffalo Bill." We think that "Tariff Bill" takes the title. It has buffaloed more people than either Mathewson or Cody, From the Topeka Capital. A Vichita girl named Miss Lelia Hardin Bugg has written a novel which sails under the title of ' Orchids." More, it has been published. Still more. it is strictly in the literary swim because sociology is the underlying theme. From the Ha stead Independent. The Wichita National bank, the pride of the people of that town, was forced tosuspend Monday. Halstead parties carried a line of deposits there. It is said that depositors can be paid in full and that the bank will open up again in a few weeks. From the Et Dorado Republican. M. W. Levy's Wichita National bank failed to open Its doors Mon ay morning and is In the hands of the government. This Is one of the oldest national banks in the state. Mr. Levy, the president, is one of the best all around men in Kansas and everybody will be sorry that he is in trouble. From the Clay Center Times. The First National bank, of Wichita, closed its doors Monday. It was one of the oldest banks in the Arkansas valley. M. W. Levy, its president, was treasurer of the old North and South railroad which was never built, but which finally because the Rock Island as constructed through this county. From the Pembody Graphic. A man was found sitting on the steps of the Sedgwick block in Wichita last week entirely bereft of reason. The only way to account for his insanity is that he is some mesmerist who hypnotized the public mind of the Peerless Princess some years ago and then at this late day sought to break the spell. From the Arkansas City Travier. The reason assigned by the officers of the Wichita National bank for the failure of that institution, which has long been regarded us one of the strongest banks in the southwest. shou cause men to stop and think of the great damage that can be done any line of business by lying and slander. This community has suffered sorely by open and unfounded charges. By an investigation of the local situation we learn that none of the ba ks of this city will be affected in the least by the failure reported above. From the Klowa Review. The Wichita National bank closed Its doors Monday. For some time certain parties have been lying about It and finally started a run. For twent wo years the n lehita National has stood like a wall of granite for Wichita and her interests and was one of the soundest moneyed institutions in the world. It would have been better for all concerned if they had stood by the bank and not forced it to the wall. Fools with money should keep it out of the banks If they listen to reports started by men who have no money. We hope the suspension is only temporary. From the Eureka Messenger. The Wichita Nat onal bank. of Wichita. Kansas, was talked to death recently People began to whisper that the bank was not in good conditio and a report of that kind travels night and day. The Wichita National had $600,000 of deposits but they melted gradually away under the influence of bad talk, until last Monday morning. the bank was compelled to close for lack of ready cash although its asset* greatly exceed the Habilities. Th re ought to be a law to punish the busybodies whose wagging tongues wreek important Institutions and bring distress to hundreds of persons.
9.August 20, 1894The Topeka State JournalTopeka, KS
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BANK WILL REOPEN SOON. The Suspended Wichita National to Resume Business on September 1. WICHITA, Aug. 20.-Arrangements have been completed with the depositors and creditors of therecently closed Wichita National bank, whereby, it is authoritively stated, the bank will reopen its doors for business on September 1. The comptroller, it is said, has been fully satisfied by Examiner Ewing's statement of the solvency of the institution under the proposed arrangements.
10.August 21, 1894Pine Bluff Daily GraphicPine Bluff, AR
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Able to Resume Business, WICHITA, Kan.. Aug. 21.-The directors of the lately suspended Wichita National bank announced that they have been able to make such arrangements with their depositors as will enable them to reopen the institution Sept. 1. Bank Examiner Ewing has satisfied himself of the ability of the bank to meets its obligations handsuccessfully resame business.
11.September 1, 1894Baxter Springs NewsBaxter Springs, KS
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Baby Drowned. NEVADA, Mo., Aug. 30.-The 13 months-old daughter of William Hulse fell into a boiler of water at Stotsbury, a small hamlet fourteer miles northwest of here. yesterday atternoon and was drowned. In Cleveland, o., the convention of the Independent Polish Catholics, which was to open Monday, has been postponed. Brazil is keeping her warships in Rio harbor for fearof further trouble. The king of Corea has ordered his troops to fight with Japan against China. Joseph Balls, colored, of Emporia, the oldest man in Kansas, is dead. He was 114 years old. Postmaster Heed of Albion, Idaho, is short in his accounts $2,700; cause, supposed to be gambling. The lately suspended Wichita National bank will resume business again about September 1.
LEVY AT WASHINGTON. Preparations Being Made for Resumption of Wichita National. A special dispatch from Washington says: "Mr. M. W. Levy, president of the Wichita National, called at the office of the comptroller of the currency today for the purpose of making arrangements for reopening the bank, of which he is president, which was forced to close its doors some days ago. The comptroller being absent, nothing but an understanding about some of the detail matters could be reached, but it is the impression at the department that there will be little trouble in SO arranging matters that the bank will be allowed to resume its business. Mr. Levy feels very confident that such an arrangement can be made and that it can be put into effect within thirty days. The comptroller of the currency is expected to return on Monday morning, when Mr. Levy will call on him for final arrangements. It is understood that the bank will be reduced in capital stock from two hundred thousand dollars to one hundred thousand. In the meantime those who would like to be appointed receiver of the bank are unable to see how it is possible for the bank to resume. Senator Martin is looking after his side of the question and has recommended the appointment of G. T. Pitts, of Wellington, as receiver. It also happens that some more papers arrived today from Kentucky, recommending Mr. W. R. Dulaney, of Wichita. Mr. Dulaney is firing in his indorsements from that state, which is looked upon as a very strong card, as the chief deputy in the office, Mr. Tucker, is from that state, and from this point of view the friends of Mr. Dulaney claim that, in the event a receiver is appointed, he will be able to defeat the recommendation of Senator Martin." It is authoritatively given out, however, that there will be no receiver appointed. That seems to be quite sure. During the week just closed the business done was very favorable to resumption, and it is the understanding about the bank that everything is now in shape for that end. Fred Bentley has returned from Washington, and his opinion is, from information received there, that the bank will uudoubtedly resume. He says postively that he was not at Washington pie hunting but that on the contrary he gave every encouragement to the movement to resume.
FEW STILL REMAIN WHO HAVE FAILED TO SIGN WICHITA NATIONAL AGREEMENT Time for Action is Short and the Remaining Depositors Must Sign or a Permanent Receiver Will be Appointed-Mr. Walker's Statement With Reference to Resumption: The Wichita National bank has now secured over 90 per cent of the depositors who have signified their desire that the bank shall resume. There are 10 per cent remaining who have failed to comply with the conditions stipulated by the comptrol. ler of currency. The proviso given by the department at Washington is finally and in full keeping with the plans always adhered to by the officials of the band, i. e. to treat all alike, there shall be no favorites and all must stgnd on the same footing. That the assets of the bank are fully ample to pay every cent of indebtedness there is no question; that they are able to make payments at an early date than a receiver could possibly make is the natural conclusion of all; that by placing the business of the Wichita National bank in the hands of a receiver can but prove to the detriment of all the depositors. With this view of the matter why is is that the stipulated conditions are not complied with? It is customary when a firm iu business fails that the creditors meet and settle the matter by taking their pro ratio of the assets. In this case the assets are thrice the liabilities. The honesty of the men who have had the management of the institution is questioned by no thorough business man. That the proposition to resume is a sure and safe one to each depositor is not questioned. This being the case in question why cannot the bank resume and pay off the 10 per cent of the depositors who have failed to sign? With these propositions in mind a rep. resentative called on Mr. Walker yesterday and asked as to the probability of the bank resuming, to which Mr. Walker said: "Yes, over 90 per cent of the depositors have signed the agreement which puts all on an equal footing. This is indeed very flattering to us, but we are expecting daily to receive a notice from the department for a final settlement. When this comes we will obey. Yes, we could assume the amount of the claims yet outstanding, but this would be making preferred creditors of those who have held back as against our friends. The time is very short, and it will certainly not be to the interest of the depositors to have the assets sacrificed for the purpose of paying a large amount of extra and unnecessary cost of a receiver and an attorney. Should the few men who are still holding out come forward and sign the agreement, we would resume business in a few days. The whole question now remains with the action of those who have not signed. This is not a case where the majority rules."
HE HOLDS HIS PLACE. Major Ewing Will Continue to Fill Position of Bank Receiver, Wichita National. Major Ewing returned from Washington yesterday. The receivership of the Wichita National bank has been finally settled by the decision of the comptroler of the currency which allows Major Ewing to continue in that capacity. It was decided that it was not necessary for Major Ewing to resign as bank examiner and he will hold both positions. This decision was arrived at because of the large number of the depositors in the suspended Wichita National who sent in requests that Major Ewing be left in charge.
WILLPAY DIVIDEND CHECKS HERE FOR WICHITA NATIONAL BANK DEPOSITORS. There Will be Paid Out Tomorrow by Receiver and Twenty-Five Thousand Dellars Will Go Into Immediate Circulation in This City-Ten Per Cent is the Dividend Declared-Receiver Also Completed Settlement With Niederlander by Which All His Property was Cleared of Encumbrance and Turned In, Yesterday Major Ewing, receiver for the Wichita National bank, received a great big pile of checks from the treasury department. The checks were sent him to pay the dividend recently declared for the depositors. The checks will be paid out tomororw by Major Ewing and the money will go into circulation imemdiately and,w ith the enormous amount of money left here during the state fair, will go a long ways towards giving a better tone to business. To be sure the dividends, on the aggregate will not amount to more than $25,000% but that amount of money, as it changes hands eight or ten times, will add quite a good deal to the life of trade. It is money that will be brought into circulation without exchanging any thing for it; it will be that much added to the capital of the city. It will be a dollar and a quarter per capita and that after all is no small thing. Major Ewing was feeling good last night, not alone over the dividend but over the fact, as well, that he had secured a complete and satisfactory settlement of the Neidelander obligations to the bank. This is a matter that gave Major Ewing a great deal of concern, and he worked very hard and very long to bring about an amicable settlement which, at last, was consummated out of court. The receiver, by the settlement, -gets all of Mr. Neiderlander's property in Wichlita, including a farm and the old and new Neiderlander residences. He not only got them, but Mr. Neiderlander first paid off the mortgages and other liens and when the bank got them it got them with a good title and bur 8 dened in no way whatever. The property in its original value was about three times more than the debt but of course is values have shrunk a great deal. A conservative stimate at this time puts the actual value of the property epual to the amount of the debt. At any rate, Major Ewing is well satisfied with the 3 settlement.
Receiver of the Wichita National Bank. 1 as Gold Lettering -
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
