gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5bbf1dc27f5b7ccc
Response Measures
None
Events (3)
1.May 17, 1905Run
Cause
Bank Specific Adverse Info
Cause Details
Investigation by the public examiner and absence/lack of cash prompted depositors to withdraw funds.
Measures
Public examiner ordered bank closed for examination; stockholders later assessed and reorganized to stop withdrawals.
Newspaper Excerpt
a still run on the bank
Source
newspapers
2.May 17, 1905Suspension
Cause
Government Action
Cause Details
Public examiner closed the state-chartered bank pending a thorough examination due to lack of sufficient cash on hand.
Newspaper Excerpt
Closed by order of the public examiner for a thorough examination
Source
newspapers
3.July 6, 1905Reopening
Newspaper Excerpt
The doors of the Northern Pacific bank ... were opened this morning by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks.
Source
newspapers
Newspaper Articles (17)
1.May 17, 1905Evening Times-RepublicanMarshalltown, IA
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Article Text
BANK LACKING CASH IS CLOSED. Brainerd, Minn., Institution With $165,000 Deposits Embarrassed. Brainerd, Minn., May 17.-Public Examiner P. M. Kerst, has closed the Northern Pacific Bank, a state institution, for the purpose, as stated in a notice posted on the door, "of making a thorough examination of its affairs." The immediate cause of closing the institution, Mr. Kerst stated was a lack of sufficient cash on hand. The bank is capitalized at $25,000, and has a surplus of $13,000. Its deposits amounted to $165,000, and its total liabilities to $200,000. It is believed that the closing is only temporary. An investigation by the governor started a run on the bank yesterday.
2.May 17, 1905Rock Island ArgusRock Island, IL
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BANK IS CLOSED; SHORT OF MONEY Brainerd, Minn., Institution With $165,000 Deposits Seriously Embarrassed. Brainerd, Minn., May 17.-Public Examiner P. M. Kerst has closed the Northern Pacific bank a state institution, for the purpose, as stated in a notice posted on the door, "of making a thorough examination of its affairs." The immediate cause for closing the institution, Mr. Kerst stated, was a lack of sufficient cash on hand. The bank is capitalized at $25,000, and has a surplus of $13,000. Its deposits amounted to $165,000, and its total liabilities to $200,000. It is believed that the closing is only temporary. An investigation by the governer started a run on the bank yesterday.
BRAINERD BANK GLOSED BY STATE Examiner Shuts Doors of Northern Pacific Bank While Investigation Is Made. Brainerd, Minn., May 17.- Closed by order of the public examiner for a thoro examination.' This notice was posted on the door of the Northern Pacific bank of this city yesterday afternoon, and was a blow to citizens, a majority of whom had no suspicion that the soundness of the bank was questioned. Nothing definite was given out until late yesterday afternoon when Superintendent Kerst arrived from St. Paul and said: "The Northern Pacific bank has been temporarily closed by the superintendent of banks for the purpose of making a thoro examination of its affairs. As soon as the examination is finished a statement will be made to the public. "The immediate cause for closing the bank is the absence of cash means.' The Northern Pacific bank was capitalized for $25,000 and had a surplus of $13,000. It had deposits of $165,000, including bills payable, and its total liabilities are $200,000. The superintendent of banks says there was no other reason for closing the bank than that there was absence of cash. His deputies have been in the city for several days and they noticed a natural drawing out of money, what is termed in banking business, "a still run on the bank." The bank officers are among the best-known business men in the city. The president is Dr. Werner Hemstead; vice president, J. F. McGinnis; cashier, H. D. Treglawny. President Hemstead said: "I have enough available resources to place the bank on a footing to pay every depositor dollar for dollar and this we will do at once. It is understood that the directors contemplate a. complete reorganization and the bank will be opened on a sounder and larger basis than ever. There are a great many anxious depositors, but the bank officials offer encouragement in the fact that there are enough resources in the way of good paper to meet all liabilities. Mr. Kerst and a deputy are at work upon the books, but are not ready to make a statement.
STATE INSTITUTION SHUT UP. Northern Pacific Bank at Brainerd, Minn., Closed. Brainerd, Minn., May 18.-"Closed by order of the public examiner for a thorough examination," was the notice found posted on the door of the Northern Pacific bank of this city by astonished citizens during the afternoon. Though no official statement giving the cause of the state's order that the bank be closed can be secured the reason may lie in the fact that the liabilities of the institution are scheduled at $200,000, against deposits of $165,000. The bank is capitalized at $25,000 and has a stated surplus of $13,000. A still run on the bank that state examiners noticed some days ago, it is said, was in danger of draining the institution of what cash it had and that the lack of cash was responsible for the examination.
5.May 18, 1905The Madison Daily LeaderMadison, SD
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STATE INSTITUTION SHUT UP. Northern Pacific Bank at Brainerd, Minn., Closed. Brainerd, Minn., May 18.-"Closed by order of the public examiner for a thorough examination," was the notice found posted on the door of the Northern Pacific bank of this city by astonished citizens during the afternoon. Though no official statement giving the cause of the state's order that the bank be closed can be secured the reason may lie in the fact that the liabilities of the institution are scheduled at $200,000, against deposits of $165,000. The bank is capitalized at $25,000 and has a stated surplus of $13,000. A still run on the bank that state examiners noticed some days ago, it is said, was in danger of draining the institution of what cash it had and that the lack of cash was responsible for the examination.
6.May 18, 1905Bismarck Daily TribuneBismarck, ND
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Article Text
STATE INSTITUTION SHUT UP. Northern Pacific Bank at Brainerd, Minn., Closed. Brainerd, Minn., May 18.-"Closed by order of the public examiner for a thorough examination," was the notice found posted on the door of the Northern Pacific bank of this city by astonished citizens during the afternoon. Though no official statement giving the cause of the state's order that the bank be closed can be secured the reason may lie in the fact that the liabilities of the institution are scheduled at $200,000, against deposits of $165,000. The bank is capitalized at $25,000 and has a stated surplus of $13,000. A still run on the bank that state examiners noticed some days ago, it is said, was in danger of draining the institution of what cash it had and that the lack of cash was responsible for the examination.
HOPE FOR BRAINERD BANK PUBLIC EXAMINER TELLS HOW THE REORGANIZATION MUST BE EFFECTED. Peter M. Kerst, public examiner, believes the Northern Pacific bank of Brainerd, the doors of which were closed on his order, will be reorganized and continue business. "There is an impairment of the capital stock," said Mr. Kerst today, "but to just what extent cannot be determinted until the bank's paper securities are investigated and their true worth ascertained. If the impairment does not exceed the amount of the capital stock, $25,000, and I do not think it does, the bank will be placed in a position where it can reorganize. An assessment will be first levied on the stockholders to make good the deficiency to the depositors. There is a general sentiment. in Brainerd in favor of reopening the bank, but before this can take place I will have to insist on three things. "First-The stockholders must agree to a prompt payment of whatever assessment is levied. "Second-The larger depositors must agree not to withdraw their deposits as soon as the bank is reopened. Such action on their part, creating a disastrous run, would be fatal to the institution. "Third-I shall have to insist that the management of the bank has plenty of cash on hand to operate the institution. 'It was a lack of cash on hand that forced the bank to close its doors. And this lack of cash was the result of inability to realize on paper. Much of this paper can be collected but it may take some time."
Looks After Brainerd Bank. Public Examiner Kelso went to Brainerd this morning to help right the affairs of the suspended Northern Pacific bank. A meeting of the stockholders to decide on future action was scheduled for this afternoon.
BRAINERD BANK TO BE REOPENED If Stockholders Will Pay Up Institution Will Be on Sound Footing. In the opinion of Public Ex aminer P. M. Kerst, the Northern Pacific State bank at Brainerd, which was closed by the public examiner pending an investigation of its condition, will be reorganized and will continue business on a solvent basis. Mr. Kerst, who returned to St. Paul from Brainerd yesterday, says, however, that the stockholders will be required to make good the impairment in the capital stock, which was largely the cause for the closing of the bank's doors, and that the larger depositors must agree not to withdraw their deposits as soon as the bank is opened. Naylor's 20 per cent discount
10.May 25, 1905The Princeton UnionPrinceton, MN
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sota's star pacer, as an attraction for the Lewis and Clark exposition. The managers of the big show have made overtures to M. W. Savage, the owner of Dan, and say that the speedy Minnesota horse will be played as a star attraction if his owner will send him out. He is wanted for a number of exhibitions against time. The Northern Pacific bank in Brainerd was closed last week by the public examiner pending a thorough investigation of its affairs. Officers of the bank have enlisted some outside capital and say the plans for reorganization are maturing satisfactorily and that the bank will be reopened in ten days or two. weeks. The division headquarters of the Winnipeg line of the Soo will be moved from Glenwood to Thief River Falls about the first of June. This change will mean about twenty men, who will move with their families to that city. Among those will be the division superintendent and assistant superintendent and their office force, the chief dispatcher, operators and office help. Peter Lenich and Lue Loujer, indicted on the charge of murdering Peter Korceran at Eveleth during a drunken row recently, were placed on trial at Duluth, May 18. The information in their case is that on Easter Sunday last the men had a celebration at one of the Austrian boarding houses near the Eveleth mines. Loujer and Korceran are said to have become involved in a fight, into which Lenich also became mixed. Korceran was getting the worst of the fight and started to run. Lenich is said to have chased him with a knife and plunged the weapon several times into the body of the fleeing man causing his death on the street. Following the murder, Lenich and another Austrian who was wounded during the boarding house fight disappeared from Eveleth, but later were captured at a lonely cabin in the North woods on information furnished by a settler.
NORTHERN PACIFIC BANK RESUMES The Reorganization Committee at Brainerd Meets All Requirements of Examiner. Special to The Journal. Brainerd, Minn., July 6.-The doors of the Northern Pacific bank of this city were opened this morning by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval of the public examiner, the reorganization committee having complied with all requirements and all the affairs of the bank having been adjusted satisfactorily. Mr. Kerst said today: "The bank is absolutely in a safe condition. It has been placed under an entirely new management. I have known the new head of the Northern Pacific bank for years and know him to be an able and proficient banker. The conditions which I required have all been met with and in some cases are even better than I had expected. "For instance, one of the conditions was that there be at least $35,000. in hand before the bank could open. The fact is, there is at least $45,000 of cash means in hand. An assessment of 50 per cent of the capital stock of the bank has been paid in in cash. That realized $12,500 and, with the book surplus, $13,000, all of the doubtful assets have been wiped out, leaving the capital stock of the bank. which is $25,000, unimpaired. In addition, there will be a small surplus accumulated during the time the bank has been in the hands of the public examiner." The stockholders held a meeting last night and the resignations of Dr. Werner Hemstead, president, and J. F. McGinnis, vice president, were received. M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier. The offices of vice president and cashier were left open at present, but it is understood some new blood will be infused and the offices filled from members of the new board of directors, which will be elected in a short time.
BRAINERD BANK BEGINS AGAIN Northern Pacific Bank Resumes With Consent of Public Examiner. The doors of the Northern Pacitic bank of Brainerd have been opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval of the public examiner, the reorganization committee having complied with all require. ments and all the affairs of the bank having been adjusted satisfactorily M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier. The offices of vice-president and cashier were left open at present, but it is understood some new blood will be infused and the offices filled from members of the new board of directors, which will be elected in a short time.
13.July 12, 1905New Ulm ReviewNew Ulm, MN
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Bank Opened Again. Brainerd, Minn., July 8.-The doors of the Northern Pacific bank of this city were opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval of the public examiner, the reorganization committee having complied with all requirements and all the effects of the bank having been adjusted carefully. M. T. Dunn of Le Roy. Minn., was elected president and J A. Batchelder assistant cashier.
14.July 12, 1905Willmar TribuneWillmar, MN
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Bank Opened Again. Brainerd, Minn., July 8.-The doors of the Northern Pacific bank of this city were opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval ot the public examiner, the reorganization committee having complied with all requirements and all the effects of the bank having been adjusted carefully. M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier.
15.July 13, 1905Warren SheafWarren, MN
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Bank Opened Again. Brainerd, Minn., July 8.-The doors of the Northern Pacific bank of this city were opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval ot the public examiner, the reorganization committee having complied with all requirements and all the effects of the bank having been adjusted carefully. M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier.
16.July 13, 1905Warren SheafWarren, MN
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Bank Opened Again. Brainerd, Minn., July 8.-The doors of the Northern Pacific bank of this city were opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval ot the public examiner, the reorganization committee having complied with all requirements and all the effects of the bank having been adjusted carefully. M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier.
17.July 15, 1905The Irish StandardMinneapolis, Saint Paul, MN
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Bank Opened Again. Brainerd, Minn., July 8.-The doors of the Northern Pacific bank of this city were opened by order of Bank Examiner P. M. Kerst, and business was resumed after a suspension of several weeks. The bank was opened with the full consent and approval ot the public examiner, the reorganization committee having complied with all requirements and all the effects of the bank having been adjusted carefully. M. T. Dunn of Le Roy, Minn., was elected president and J. A. Batchelder assistant cashier.
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.
