Mastin Bank (Kansas City, MO)

Episode Information

Episode UID
916653390937
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
91665339 hash
Start Date
January 30, 1878
Location
Kansas City, Missouri (39.100, -94.579)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fefc82d64428b1d3

Response Measures

None

Description

Suspension led to appointment of a receiver and the bank was treated as failed; later reports discuss state funds tied up.

Events (3)
1. January 30, 1878 Run
Cause
Local Banks
Cause Details
Run triggered by the surprise discontinuance of the First National Bank of Kansas City, producing heavy withdrawals at other local banks including Mastin.
Measures
Paid every depositor in full; announced prepared for every emergency.
Newspaper Excerpt
there was a heavy run on the other banks, especially on the Mastin Bank, which paid every depositor in full
Source
newspapers
2. August 3, 1878 Receivership
Newspaper Excerpt
Col. Coates has been appointed receiver; a legal assignment was made this morning.
Source
newspapers
3. August 3, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Continued heavy withdrawals following rumors/concerns about State Treasurer deposits and the bank's connections to state funds and bonds led to suspension.
Newspaper Excerpt
Owing to the recent heavy run on this bank it is deemed necessary to close business for the present
Source
newspapers

Newspaper Articles (17)
1. January 31, 1878 The Rock Island Argus Rock Island, IL
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.

2. January 31, 1878 The Wheeling Daily Intelligencer Wheeling, WV
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.

3. August 4, 1878 Daily Globe Saint Paul, MN
Article from Daily Globe, August 4, 1878

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Bank Failure at Kansas City, Mo. KANSAS CITY, Mo., Aug. 3.-The Mastin bank of this city suspended this morning. The following notice is posted on the door: "Owing to the recent heavy run on this bank it is deemed necessary to close business for the present, that the interests of all creditors may be equally protected." [Signed.] "John J. Mastin, cashier." For the past three or four days there has been a steady draw upon the bank, and the business public have looked for something of this nature to occur every day. Col. Coates has been appointed receiver and the meeting of directors will be held this afternoon. KANSAS CITY, Mo., Aug. 3.-The Maslin bank did not open for business this morning, notice being posted on the door stating that owing to the continued withdrawal of deposits a temporary suspension was necessary. There was no excitement, but an intense feeling of regret among all classes. There was a meeting of the principal stockholders this morning, at which Mr. John Martin made the statement that the assets of the bank were more than sufficient to pay the liabilities, and his and his brother's private fortunes were pledged to the payment of every dollar in full. Col. Kersey Coates was appointed assignee, and a legal assignment was made this morning. From the best information the following are public funds on deposit: State about $20,000; city between $60,000 and $70,000; county $12,600. The universal belief is the suspension is only temporary and that the bank is entirely solvent and will assume business soon. There was no run on the other banks, and while business to-day was generally suspended, there will not be any general suffering as the bank did not have a class of small creditors.

4. August 4, 1878 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, August 4, 1878

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Article Text

A Kansas City Bank "Run" Into Suspension. KANSAS CITY, August3.-The Mastin bank of this city suspended this morning, the following being pasted on the door: "Owing to the recent heavy run on this bank, it is deemed necessary to close business for the present, that the interests of all creditors may be equally protected. "JOHN J. MASTIN, Cashier." For the past three or four days there has been a steady drain upon the bank, and the business public have looked for something of this nature to occur every day. Colonel Coates has been appointed receiver, and a meeting of the directors will be held this afternoon.

5. August 5, 1878 New-York Tribune New York, NY
Article from New-York Tribune, August 5, 1878

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TELEGRAPHIC NOTES. MONTREAL, Aug. 3.-The local Government has agreed to give grants of land and assistance, under the colonization law, to residents of the Province. KANSAS CITY, Mo., Aug. 4.-The Mastin Bank of this city has suspended, owing to the recent heavy run. Colonel Coates has been appointed receiver. MONTREAL, Aug. 3.-Charles E. Legge, a civil engineer, has seized the plant belonging to the Montreal, Portland and Boston Railway for debt due him. VICTORIA, B. C., Aug. 3.-In the Provincial Parliament to-day, a bill was introduced to impose a tax of $60 per annum on every Chinese person in the Province, BOSTON, Aug. 4.-The first entry for the regatta of the Eastern Rowing Association, on the 15th instant, was made last night, by George W. Lee, of the Trenton Club, of Newark, N.J. CINCINNATI, Aug. 4.-The Mayor has appointed August 14 as the day of holding a special election on the proposition to issue $2,000,000 in bonds for the completion of the Southern Railroad. CHICAGO, Aug. 4.-The Chicago Jockey and Trotting Club was organized yesterday and elected officers. It has a track on the Westside, and will holdits first meeting the second week in September SPRINGFIELD, 111., Aug. 4.-Governor Cullom has been appealed to for a company of militia to protect the coal mines at Stanton, Maucoupin County, which are threatened with destruction by striking miners. SAN FRANCISCO, Aug. 4.-A. M. Tullis, a wealthy farmer of Grand Island, Sacramento County, has been murdered while at work in his orchard by unknown persons. Robbery was not the object of the murder. DETROIT, Aug. 4.-The Shoe-wae-cae-mette Crew passed threw this city yesterday on the way to Monroe. The crew will return to Detroit on Monday or Tuesday next, to attend the regatta of the Detroit River Navy. MILWAUKEE, Wis., Aug. 4.-The jury in the Wheeler-Henderer murder trial, after being out about twenty hours, returned a verdict at 7:30 o'clock this morning, finding the defendant guilty of manslaughter in the fourth degree. The defence gave notice of an intention to move for a new trial.

6. August 5, 1878 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, August 5, 1878

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Bank Suspended. KANSAS CITY, Mo., August 3.-On 20count of P. recent heavy run on the Mastin Bank of this city it has suspended.

7. August 5, 1878 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, August 5, 1878

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SUSP as NSIONOF A BANK. KANSAS CITY, Mo., Aug. 3.-The Mas. tin Bank, of this city, suspended this morning, the following notice being posted on the door: "Ow ing to the recent heavy run on this bank, it is deemed necessary 10 close business for the rresent in order that the intorests of all the creditors may be equally JOHN J. MASTIN, Casuler. protected. For the past three or four days there has been a steady drain upon the bank, and the business public have looked every day 'or something of this nature to occur. Coi. Coates has been appointed receiver, and a meeting of the directors was held 10-day.

8. August 5, 1878 The New York Herald New York, NY
Article from The New York Herald, August 5, 1878

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A BANK SUSPENSION. THE MASTIN BANK, OF KANSAS CITY, MAKES A TEMPORARY STOPPAGE-EVERY DOLLAR SECURED. KANSAS CITY, Mo., August 4, 1878. The Mastin Bank did not open for business yesterday morning, a notice being posted on the door statmg want owing 10 the continued withdrawal of deposits.a temporary suspension was necessary. There was no excitement, but au intense feeling of regret among all classes. There was a meeting of the principal stockbelders in the morning, at which Mr. John Mastin made a statement that the assets of the bank were more than sufficient 10 pay the liabilities, and that his and his beother's private fortune were pledged to the payment of every dollar in full. Colonel Kersey Costes was appointed assignee and a legal assignment was made yesterday atternoon. From the best information the following are the pub.ic is funds on depomt:-Stateabo about $20,000; city, between $60,000 and $70,000; county, about $12,000. The universal belief is that the suspension 18 only temporary and that the bank IS outirely solveni and will resume business soon. There was no run on other banks, and, while the business on Saturday was generally suspended, there will not be any general suffering, as the back did - have the class of small depositors. ST. LOUIS, Mo., August 4, 1878. It is unofficially stated that the liabilities of the Mastin Bank, of Kansas City, are $1,900,000 and the above nominaily about the same.

9. August 6, 1878 The Daily Cairo Bulletin Cairo, IL
Article from The Daily Cairo Bulletin, August 6, 1878

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THE Mastin Bank of Kansas City, Mo. the largest banking concern in Missouri outside of St. Louis, suspended Saturday morning last. The State Treasurer had about $300,000 on deposit there.

10. August 6, 1878 The Sedalia Weekly Bazoo Sedalia, MO
Article from The Sedalia Weekly Bazoo, August 6, 1878

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The Mastin Bank. The temporary suspension of the Mastin Bank of Kansas City, caused but little excitement there yesterday. The stockholders of the bank are good, and no fears are enteriained of any loss. The cause that led to the suspension is briefly that the law requiring the listing of money in the assessment was being evaded and depositors were drawing their money out of the bank until after the assessor had been around. The run was a little too heavy and the course pursued was the only way to protect all creditors. The Mastin Bank is one of the safest in the state and as soon as a meeting of the directors and stockholders can be had, there is no doubt but that the bank will continue.

11. August 7, 1878 Ottumwa Weekly Courier Ottumwa, IA
Article from Ottumwa Weekly Courier, August 7, 1878

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Bank Closed at Kansas City. KANSAS City, Mo., August 3.Mastin Bank of this city has suspended. This morning the following notice was posted on the door: "Owing to a recent heavy run on this bank it is deemed necessary to close business for the present that interests of all creditors may be equally [ protected. Signed.] JOHN J. MASTIN, Cashier. For the past three or four days there has been a steady drain on the bank and the business public have looked for something of this nature. Col. Coates has been appointed receiver. A meeting of directors will be held this afternoon.

12. August 7, 1878 The Princeton Union Princeton, MN
Article from The Princeton Union, August 7, 1878

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WHEN the Grand Mogul in St. Paul pulls the strings, it is amusing to note with what avidity his country pup- pets commences to dance. THE failure of the Mastin Bank, of Kansas City, Mo., was caused by the enormous assessments paid by it to keep the democratic machine, in that state, well oiled and in good running order. SEVERAL counties have instructed their delegates to vote for Flower for state auditor, while other counties have instructed their delegations to vote for Whitcomb. Whitcomb is pretty confident of being his own suc- cessor.

13. August 8, 1878 The Saline County Journal Salina, KS
Article from The Saline County Journal, August 8, 1878

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The failure of the Mastin Bank, of Kansas City, was a great surprise to the busines men in all sections of this State. It has been considered one of the strongest banking institutions west of the Mississippi river, and enjoyed the confidence of many Kansas banks. It was one of the depositories of the State funds of Missouri. Its failure is attributed to political influences, the managers having lately taken an active part in the defeat of Franklin for Congress. A rumor was started that the State Treasuror (who was in the Franklin fight) was a defaulter,and as the Mastins were on his bonds for a million of dollars, a run on their bank was started which resulted in the closing of the bank's doors. It is hoped that the bank can be opened again on good footing.

14. August 21, 1878 New-York Tribune New York, NY
Article from New-York Tribune, August 21, 1878

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A SUGGESTIVE CONTRAST. Let two items be contrasted : The experts employed by Senator Davis's investigating committee, after spending a year in minute scrutiny, report that the books of the United States Treasury balance to a cent, though transactions amounting to many thousand millions have been made by successive Republican Secretaries and their many subordinates, during all the excitement, haste, and demoralization of a great civil war. But the Treasurer of the Democratic State of Missouri officially reports that he has $506,187 80 in the defunct Mastin Bank ; that be demanded from the bank money to pay the July interest on the State bonds, and was informed by the officers that they could not comply with his order at once, but would make the remittance very soon after "July ;" that instead of instantly bringing the bank to account for State funds in its charge, he came to this city and borrowed from the Bank of Commerce $220,000 for payment of the interest; that the bank has not only made no remittance, but has failed. It is true he states that he holds a bond in the sum of $1,000,000, with the two Mastins and four other persons as securities, but it does not appear how much property they have that can be reached. He also holds $350,000 bonds of the Kansas City water works, but these bonds have been on the market for months and are yet unsold, and it is stated that they are virtually tied up and rendered at present unsalable by a suit commenced by Colonel Green for the appointment of a receiver. Under these peculiar circumstances, the State Treasury is unable to meet interest on the State debt, and will be unable for some time to come, unless an extra session of the Legislature should be called. It has been the habit of Democrats to make a great fuss over alleged fraud and corruption in the financial management of the Government by Republican officials, and to point "with pride" to the conduct of Democrats in office, with the boast that, when Democrats get the power, all sorts of misconduct will cease. The history of Democratic county officials in Ohio has recently been stated; it appears that, in more than half the counties under Democratic rule, public funds have been stolen by officials. But the transactions in Missouri are peculiarly instructive. About six years ago the Mastin Bank managed to elect as Treasurer of Jackson County, Missouri, which embraces Kansas City, a Confederate veteran named Mercer. From that time the bank became virtually the County Treasury, and was enabled to go into various operations which promised profit. During his term of office, we believe, the bank began to make advances on the contract for the Kansas City water works. Presently the pure and impeccable Democracy held a convention to nominate State officers, with assurance of carrying the State. The Mastin Bank saw another chance, and, by combinations with certain active politicians, contrived to secure the nommation of its friend, Mercer, for State Treasurer. It was currently reported that a great part of the expenses of the campaign was contributed by persons interested in the bank, and after the election the Mastin Bank became the chief depositary of State funds, its managers and friends becoming the Treasurer's bondsmen. Since that time the opportunity for large operations has been fine; and among these operations was an advance to the waterworks company, for which. it appears, the bank took $350,000 bonds of that company, which it deposited with the State Treasurer as security for his deposits, besides other bonds of the same company now advertised for sale here. Rumors of extensive use of State funds in private, political or newspaper enterprises were widely cirenlated, but when Mercer's term ended, the same combination of politicians and bankers managed to nominate Mr. Gates, the present Treasurer. As part of the money in the treasury, Mercer turned over to him a check for $297,000 upon the Mastin Bank, with the sanction of the Democratic auditing committee. This check has never been met, though it was given about January 1, 1877, but Mr. Gates has continued bis intimate relations and heavy deposits with the bank. Now it is proposed by the State authorities to sue Mercer and his bondsmen on the check, but they will of course show formal quittance of responsibility by the auditing committee. Treasurer Gates has not only continued to

15. August 23, 1878 Brenham Weekly Banner Brenham, TX
Article from Brenham Weekly Banner, August 23, 1878

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THE Mastin Bank, at Kansas City, suspended with $506,000 belonging to the State of Missouri. State Treasurer Gates thinks the bank's securities are good and that not a dollar will be lost.

16. September 20, 1878 The State Journal Jefferson City, MO
Article from The State Journal, September 20, 1878

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Indicted. Kansas City, Mo., Sept. 10.-John J. Mastin, cashier of the Mastin bank. Howard M.Holden, president, and E. H. Alien, vice-1 resident of the First National bank, both suspended, were arrested this morning to answer indictments by the grand jury nnder the state law making it a felony for banks to receive deposits when in a failing condition. They gave bonds for tuture appearance. Considerable excitement was created in the city this morning by the announcement of these indictments. The parties were notified last night by county marshal Ligget of the action of the grand jury, and informed that he would expect to meet them this morning at eight o'clock to go to Independence. John J. Mastin was at the depot as was Holden, the former going to Independence and &ppearing before Judge White, where bail was furnished in the amount of $7,000. Holden arranged bond for himself and Allen,vice-president of the First National, for the same amount as in the case of Mastin. The prosecution against Mastin is based upon two claims amounting to $3,000 held by a Mrs. Ford. and Bullene, Moore and Emery. The indictments were found under the new banking law passed at the last session of the legislature, providing that "if any president, director,manager. cashier or other officer of any banking in. stitution doing business in this State shall receive or assent to the reception of any deposit of money or other valuable thing in such bank or banking institution; or if any such officer or agent shall create or assent to the creation of any debts or indebtedness by any such bank or banking institution in consideration or by reason of which indebtedness any money or valuable property shall be received into such bank or banking institution after he shall have had knowledge of the fact that it is insolvent or in failing circumstances, he shall be deemed guilty of larceny and upon conviction thereof shall be puinshed in the manner and to the same extent as provided by law for stealing the the same amount of money deposited or valuable thing if loss occurs by reason of such deposit." Mastin says he will meet the issue without fear. Holden, president of the late First National, is also president of the board of trade. Allen was mayor of the city for two years. and has always stood high in public estimation. He is a relative of Henry Ward Beecher by marriage. John J. Mastin has been at his post all Jay and goes about his duties regularly.

17. February 19, 1881 Lexington Weekly Intelligencer Lexington, MO
Article from Lexington Weekly Intelligencer, February 19, 1881

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GATES PAYS UP. St. Louis, February 17.-The fund of $184.000 held in trust by the Bank of Commerce of this city, pending certain legislation at Jefferson, the same being the amount of the deficit of State Treasurer Gates, occasioned by the failure of the Mastin Bank at Kansas City was placed to the credit of the state to-day, thus squaring up Col. Gates' accounts with the state and restoring to the treasury all the state funds locked up in the Mastin Bank at the time it suspended.