Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-28
THE EFFECT ELSEWHERE.

Al NtlNAdoy ILL
CHICAGO, September 27.-As the
clearinghouse meeting continued to an
early hour this morning the suspended
banks were permitted to vote. Mr..
COOlbaugh handed in communication
to the public signed by the president
and directors of the Union national
bank, saying that they would hold
themselves personally responsible as in-
divlduals for the payment Of all deposits
now held by said bank, or which may
hereafter be made with 1t. Mr.. Cool
baugh also addressed the meeting, as
follows: ~ endeavOTed on a former oc.
c2sion to make my views and position
on the financial condition of the bank
known. My opinions then were based
ON what / deemed were the conditions
Of surrounding cities, and the basis on
which they did business. Since then |
have been advised that the banks of
Cincinnati and st. Louis were doing
business on another beside currency
basis. l believe, in view Of the changes
made by those cities, that il would be
as impossible for Chicago TO do business
on a currency basis as il would be for il
to DO business for the surrounding coun-
try on gold basis. For the information
of those present, l would say that the
entire deposits of the bank amounted to
four million three hundred thousand
dollars, not over fifty thousand dollars Of
which was doubtful. In sixty
days about four million dollars
would mature. AT the present time
there is in the banks ten millions of
dollars. He made the statement because
Il was due to the associated banks, and
besides, the Union national bank want
ed them to know that il was far from
being insOlvent. 1t desired to cooperate
with the other banks in all practicable
matters. He had hoped that the meet
ing would adopt unanimously some
measure for relief, as had been done in
other cities. 1t was imperatiVely neces
sary that something Of the kind should
be done. Why could they not act in
harmony for the public good If they
had read a paper which they all knew
made the liabilities Of the Union not
sound, where could sounder mares be
found than those appended to that docu-
ment, and if these are willing, if neces-
ssry, to sacrifice their fortunes to show
TO tile public that they meant to prove
true to their trust, all that was needed
was the concerted action on the part Of
the bankers, and the panic would be
quelled. II proclamation could be sent
out to the west showing that the Chi
cago bankers were acting in unanimiiy
it would restore public confidence, ami
settle the financial condition Of this en-
tire section, beyond doubt, in less than
a week. Unless some concerted action
was taken, currency drafts Of Chicago
would be at a premium of four or five
In 10. T.
Coolbrough said that the Union national
bank would stand shoulder to shoulder
with the other banks If they showed any
desire to act harmoniously. The meet
ing Of the associated banks, 10 be held
tonight, will undoubtedly adopt the
New York plan. 1t is announced this
morning that the Third national bank
has suspended.
The presidents met last evening, and
knowing Saturday to be ordinarily a
heavy day for the checks Of small man
ufacturers, and the panic among small
deposit0rs increasing, they agreed TO
close their respective banks in the morn
ing. All of them have abundant re-
sources, many of them being able 10
pay two dollars for eighty cents Of every
one dollar on deposit out OF their assets.
Other banks in the city were heavily
drawn on but are all right, and will not
be affected. The suspended banks are
all savings banks, and conducted and
owned chiefly by Germans, with large
lines ofsmall German depositOrs. 1t is
believed there will be no more trouble,
as confidence seems to prevail The Of
ticers Of the suspended banks met this
evening to devise measures for relief.
Nothing Of Importance was done, save
the appointment OF a committee to de-
wise and report plan to facilitate ex-
change among the banks with a view of
early resumption. The lack of system
attic action among the banks has
tended TO suspend these banks. Every
iank is looking out for its own safety.
The suspended banks viii place all their