ISHPEMING — During the early days of 1884, the citizens of Ishpeming were startled to learn that one of banks in Ishpeming, D.F. Wadsworth & Co. had failed. “Wild rumors concerning the affair were soon flying around the streets, many of them exaggerating the liabilities to colossal dimensions, and others placing them far below the current figure.” (Iron Agitator, January 5, 1884)

“It soon became known that about $47,000 (worth $1,372,911 today) of the city taxes had been paid in and were in the hands of the insolvent firm and this created consternation among the bondsmen of John Dillon, the city treasurer, whose deputy Mr. Wadsworth was, performing all the business connected with the office.” (Iron Agitator, January 5, 1884)

“The failure of this firm was not a total surprise to those who were acquainted with the manner in which the affairs had been constructed of late, although there are, of course, many knowing ones who wag their heads and cry, ‘I told you so long ago.'” (Iron Agitator, January 5, 1884)

At a special meeting of the common council on the 7th of January, John Dillon, the city treasurer at that time, told the council he “had not handled a cent of the city’s money, did not have any in his possession; that Mr. Wadsworth, his deputy, did the business for him. He then presented his resignation, which was accepted.” (Iron Agitator, January 12, 1884)

Joseph Sellwood was elected the new city treasurer. The common council would now require the treasurer to “make out a monthly report to the council once in every month, regarding the financial condition of his office. “(Iron Agitator, January 12, 1884)

Even though neither of the papers identified the cause of the bank failure, it is evident that the blame was placed squarely upon D.F. Wadsworth’s shoulders. “The condition of the bank has been rotten for two years, and failure was inevitable. The crash is not due to the dullness of business or depression of the iron market. What is now looked upon as a disaster will have the effect to clean out the shaky and unreliable concerns which having been doing business on wind and promises.” (Iron Agitator, January 12, 1884)

“The city will probably issue bonds next week, or as soon as possible, for a sufficient sum to carry on the different departments until another year’s taxes are due. The city is out about forty-seven thousand dollars, and the taxpayers will have to make good the loss, by heavier taxation in the future. The lesson has been dearly bought, but it was just the kind of experience the city needed.” (Op-Ed, Iron Agitator, January 12, 1884)

City officials, especially the treasurer, were required to carry surety bonds to guard against just what did happen. “The city attorney has begun proceedings against the bondsmen of John Dillon, city treasurer, who, through the act of his deputy, D.F. Wadsworth, is short – as far as heard from – $49,335.81. It is a suit to recover on a bond and will probably be heard at the March term of the circuit court. The bondsmen, or a part of them, claim it to be their belief that the affair was a steal, premeditated, and for that reason they do not feel like standing the loss. There are sufficient verdicts given by the public on the subject, but all agree that the system as conducted here of securing the public funds by bondsmen is most unhealthy.” (Iron Agitator, January 19, 1884)

After about two weeks, the bank failure became old news as far as the papers were concerned. While the loss of money created some problems for the city, there was still optimism for the future of the city. “Although the failure of the firm of D.F. Wadsworth & Co, will have the effect to cause a stringency in the money market of this place for some months, yet it must not be said that the entire city is going to follow suit until naught but the ruins of dismantled business bodies remain. Outside people need have no fear regarding our future. Our iron mines and other natural resources will always make Ishpeming what it is today, the liveliest and most enterprising place on the peninsula and it is bound to grow and increase despite the few failures which it has been our duty to record within the past few weeks.” (Iron Agitator, January 12, 1884)