First National Bank (Redfield, SD)

Episode Information

Episode UID
339801117
Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
national
Bank ID
33980 national
Charter Number
3398
Start Date
January 1, 1893*
Location
Redfield, South Dakota (44.876, -98.519)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
42086ca64ede9857

Response Measures

None

Other: The bank used withheld state school funds (public funds) to meet the demands of the run during the panic of 1893.

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1895-01-11
Date receivership terminated
1897-09-18
OCC cause of failure
Excessive lending
Share of assets assessed as good
24.2%
Share of assets assessed as doubtful
61.6%
Share of assets assessed as worthless
14.3%

Description

The articles refer to the 'Redfield bank' in the context of the 1893 panic and the 1895 failure of State Treasurer Taylor; the provided receivership date confirms the 1895 closure.

Events (5)

1. October 2, 1885 Chartered
Source
historical_nic
2. January 1, 1893* Run
Cause
Macro News
Cause Details
The bank experienced a run during the Panic of 1893.
Measures
Used state school funds to meet withdrawals.
Newspaper Excerpt
When the panic of 1893 came on... these two felt the press of the run
Source
newspapers
3. January 11, 1895 Receivership
Source
historical_nic
4. January 11, 1895 Receivership
Source
newspapers
5. January 11, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Involvement in the defalcation and flight of State Treasurer Taylor.
Newspaper Excerpt
The state has also attached all of Taylor's interests in the Redfield Bank
Source
newspapers

Newspaper Articles (2)

Article from St. Paul Daily Globe, January 13, 1895

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Article Text

RUTH IS INVOLVED. Matters Look Very Dark for South Dakota's Land Commissioner. HELD UP PUBLIC FUNDS With the Evident Intention of Shielding Treasurer Taylor. SOME PECULIAR MOVES. a The Legislature Will Make Very Thorough Investigation. Special to the Globe. PIERRE, S. D., Jan. 12.-It never rains but it pours. The state officers, who have for the past three days been paralyzed over the flight and defalcation of Treasurer Taylor, are today filled with consternation at the revelations which every day is bringing forth. No attention is being paid to the legislative proceedings. Even the members spend little time in the chamber, and they and the officials are spending all of their time in discussing the fresh disclosures which each hour brings forth. Today another sensation has come to light which raises greater storm than even the flight of the treasurer or the conspiracy of certain of the bondsmen hold up the state for the cash and lease. This time another high public official is implicated. and the evidence is so conclusive and so damning that has shaken the state government from end to end. It appears that the commissioner of public lands, Col. Thomas H. Ruth, who, by the way. is at the head of the militia of the state. has acted in gross violation of the statutes, and has thereby cost the state more than $100,000. It is felt to be certain, moreover. that he has been An Accomplice of Taylor in diverting the public funds to his own private uses, and that he is equally liable. The comun of public lands has control of all the school lands in the state. When South Dakota was admitted into the Union it was granted 3,000,000 acres by the general government for schools. This land cannot be sold for less than $10 an acre, and each year the commissioner offers it for sale on an appraisement which he makes. No land is sold for less than the appraisement, but, particularly in the more populous counties, very large sums are realized. This office handles hundreds of thousands in this way When the money is received for the sale is divided among the varions counties and is by them loaned on approved curity. The interest on these loans,and also the interest on the deferred payments on the land sales, is divided among the schools of the state in proportion to the school population. The fund has grown so large that from $100,000 to $200,000 is divided. The statute provides that the appraisment shall be made on June 15 and Nov. 15 of each year. The state treasurer has the custody of the money, but the commissioner makes the distribution. It now appears that both Commissioner Ruth and Treasurer Taylor have been acting in concert for two years. and that they both used the funds for Their Own Private Benefit, and both are concerned in the great loss the public has sustained. The legislature has now ordered a thorough investigation of the commissioner's office, and it will doubtless find that there has been widespread conspiracy covering a long time. The actual facts of the conspiracy between the treasurer and the commissioner are not generally known here. but the following story will be brought out on the investigation which will take place at once: Col. Ruth, like Treasurer Taylor, is banker his bank being located at DeSmet, the county seat of Kingsbury county. When the panic of 1893 came on there was on hand in the school fund fully $200,000. large share of which was in De Smet and Redfield banks In common with other banks, these two felt the press of the run and they profited by their use of the state funds According to the statute the apportionment of the school funds should have been made on June 15, and the schools in various parts ot the state were expeeling it. in view of the hard times and the slow collections of taxes. The regular course would have been for the commissioner to apportion the fund and send vouchers to the various counties before the first day of July. Instead of that Ruth left for Carmichael, Pa., his old home. Pine passed along and nothing was heard from the school fund. The counties began to clamor. They had nothing to pay their school expenses with. The county auditors, who have the loaning of the permanent fund, began to send in strong demands for the apportionment of that fund, with A Vigorous Statement that its distribution at that time would mean the relief of thousands of people who were struggling against the wave of depression just then devastating the entire country. The deputies in the commissioner's office replied that, Ruth being absent, nothing could be done About this time Ruth sent letter to Treasurer Taylor, and also one to the treasurer of Clay county, and in some way mixed the envelopes. This letter, which Public Examiner Myers stated to 8 number of officials at the time that saw, read substantiali, as follows: the There seems to be great pounding in state over the holding up of this state money The only thing that we can do is to let them pound. We have as much use : the money as any one. must have that forty-five thousand. Don let the money be apportioned until my return This letter was returned by the treasurer of Clay county, who showed it to several persons. but did not report it the state officials. This is remarked as


Article from Evening Star, January 14, 1895

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Article Text

TAYLOR STILL AT LARGE. Offlecrs Confident That They Are Near His Hiding Place. The South Dakota officials are daily receiving telegrams from various parts of the country describing suspects held as probably being Taylor, the defaulting exstate treasurer. They have not, however, found any of them who seem to be the right man. The theory generally entertained is that he is concealed either in Chicago or New York and is awaiting the proper opportunity to have his agent at Pierre make the state a proposition for a compromise granting him immunity. The officials have traced him to very near his probable place of hiding, and they have satisfied themselves of the personality of the principal conspirators. Taylor, in the name of the Northwest Mortgage Company, of which he is president, gave a mortgage for $20,000 on land in Beadle county to Benedict & Benedict, and transferred his mortgage to C. H. Wells of Chicago. He did the same with $17,000 worth in Spink county and $16,000 worth in Potter county. All these mortgages were made December 31 and filed January 8. Taylor executed them in Chicago. The state has attached them all and will collect them on the ground of a fraud. The state has also attached all of Taylor's interests in the Redfield Bank, the Gettysburg Bank and in some fifty quarter sections of land in various counties. The bank stock and real estate in Aberdeen of I. T. McChesney, the New York broker, have been attached. McChesney is on Taylor's bond. The commissioner of public lands is Col. Thomas H. Ruth. He has control of all the school lands in the state. It is now said that both Commissioner Ruth and Treasurer Taylor have been acting in concert for two years, and that they both used the funds for their own private benefit. The legislature has ordered a thorough investigation of the commissioner's office. Col. Ruth, like ex-State Treasurer Taylor, is a banker, his bank being located at Desmet, the county seat of Kingsberry county. When the panic of 1893 came on, there was on hand in the school fund fully $200,000, a large share of which was in the Desmet and Redfled banks. In common with other banks these two felt the press of the run, and they profited by the use of the state