The Waupaca County National Bank

Caldwell Realty/Peterson Realty

122 South Main Street

Waupaca, Wisconsin

 

Information from The Waupaca County Post

August 3, 1893

 

SUSPENDED.

 

The Waupaca County National Bank Closes its Doors.

 

Wednesday morning the Waupaca County National Bank, of which Charles Churchill is president, R. Lea vice-president and M. F. Skinner cashier, did not open its doors, the following notice being posted on the curtain:

 

“Owing to the disposition of depositors to continue drawing funds, and in the interest of all concerned, the board of directors of the Waupaca County National Bank have determined to close their doors until arrangements can be made to meet demands, with the assurance to depositors that their claims will be paid in full.”

 

While it has been known for the past ten days that depositors had drawn more or less money from the bank, yet the suspension was unlooked for, as the bank is considered perfectly solvent, and will probably not only pay depositors in full, but will resume as soon as the present stringency in the financial market is over with.

 

The last official statement given out by the bank on July 12, ’93, is as follows:

RESOURCES:

                        Loans and discounts                                                              $127,350.13

                        Overdrafts, secured and unsecured                                                 19.49

                        U.S. Bonds to secure circulation                                    12,500.00

                        Due from approved reserve agents                                30,533.21

                        Due from other National Banks                                               2.95

                        Banking-house, furniture and fixtures                               8,260.33

                        Current expenses and taxes paid                                     1,325.26

                        Premiums on U.S. Bonds                                                 1,625.00

                        Checks and other cash items                                                         447.98

                        Bills of other banks                                                           1,500.00

                        Fractional paper currency, nickels and cents                     113.99

                        Specie                                                                             16,209.90

                        Legal-tender notes                                                            2,500.00

                        Redemption fund with U.S. Treasurer                                 562.50

                        (5 per cent of Circulation)

                                                Total                                        $202,950.74

 

LIABILITIES:

                        Capital stock paid in                                                        50,000.00

                        Surplus fund                                                                      1,000.00

                        Undivided profits                                                              3,551.45

                        National Bank note’s outstanding                                   16,209.90

                        Individual deposits subject to check                               47,341.23

                        Time certificates of deposit                                            89,808.04

                                                Total                                                   $202,950.74

 

There has been no run on the bank, but a steady withdrawal of money by depositors for personal reasons alone, mainly because of Richard Lea’s actions in the Mead case.  The financial conditions in the money centers being so strained, it has been practically impossible for any bank to rediscount paper, and, the notes they hold not being due, a shortage of ready cash was the result.

 

Chas. Churchill, president of the bank furnished the POST the following for publication:

 

“Owing to a continuous withdrawal of funds from the bank and stringency in the money market we have determined to suspend.  All depositors will be paid in full within reasonable time and all accounts are the same as when our last report except the withdrawal of funds by depositors.”

 

It is understood that the immediate cause of the suspension was the withdrawal of over $30,000 deposits within the last ten days, on account of a personal enmity against Richard Lea.

 

The stockholders of the bank are as follows according to City Clerk Holmes:

                        Chas. Churchill                       $ 4,000

                        Mrs. L. B. Consolus                   1,000

                        Richard Lea                               7,500

                        Ole O. Hole                                1,000

                        C. Johnson                                 1,000

                        L. D. Moses                             25,000

                        L. H. Pelton                                1,000

                        N. L. White                                 1,000

                        Anna E. Lathrop                         1,000

                        N. L. Nelson                               1,000

                        F. G. Barnum                             1,000

                        Julia G. Lord                               2,500

                        Gunder Crostue                         1,000

                        Maria Hole                                  1,000

                                                                        $50,000

 

 

 

 

TO THE PUBLIC

 

Notwithstanding the temporary suspension of the Waupaca County National Bank, the National Bank of Waupaca has kept its doors open and will continue to do so.  Its officers state that they have a larger cash balance on hand than ever before and that they have got plenty more where they can get it, and that they have every reason to know that they can carry it through.  Our business men have united in standing back of the bank and they state that they will not allow it to go under.  The guarantee of the stockholders should be sufficient to induce the public that their money is safe.

 

The business of a bank is to loan its deposits and we all know that should every depositor call for his money at the same time it cannot help but embarrass the strongest and solidest institutions.  For this reason people must not get scared but keep cool and let their money remain where it is.

 

This county and especially this immediate vicinity cannot afford to allow this bank to go under, and all should rally and help it along.  The potato crop must soon be moved and without the assistance of the bank it cannot be done and the result will be our farmers will have no sale of their crops and business will be demoralized.