The Bank of Shelton Collapses
Creditors force closure of the Mason County institution following reports of bad management and dwindling public confidence.
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SHELTON, July 22.—Tuesday morning Sheriff Duckworth closed the doors of the Bank of Shelton under an attachment by County Treasurer O'Neil as depositor of county moneys. Cashier Metzger left on Monday for Seattle in an attempt to secure funds to tide over the difficulty, but on Tuesday telegraphed his inability to raise the funds. For some time past the bank has been running at a low ebb, and it was with difficulty that funds to meet current drafts were secured. This was occasioned partly by the withdrawal of the county treasurer of most of the funds, and by the lack of confidence of local depositors. There is close to $15,000 due depositors, and the assets nearly offset the liabilities. The bank was organized in 1889, with a capital stock of $20,000. A. H. Anderson, of Seattle, was president, and A. F. Metzger cashier and manager. Later—A telegram from H. S. Tremper, attorney, this evening, says: 'Everything all right; depositors to be paid; home tomorrow.'
“The trouble is due partly to mismanagement, as there appears to be no evidence of misappropriation of funds, most of which are out on notes.”
Bank failures in the late 19th century often triggered immediate panic due to the lack of modern deposit insurance. While today's Federal Deposit Insurance Corporation (FDIC) prevents the kind of personal loss Shelton residents feared in 1892, the instability of local financial institutions remains a recurring anxiety in regional economic history.
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