The Grange advance., 1874-04-22
Chicago Cortespo,dence.

10o'e ooo"t Bank Stsndles-Put not yos,r
trust in National Bpnks, or Government In
spectors-Ho,o theI " Heather Chinee of
C"'cGgo made theirls Assets.''
A short time since I gave YOU an ac-
count OF the Frank jim Bank Of this city,
now in the hands df receiver. This
being small private bank and doing
a small business attracts interest more
from the bold rascality of its manage
ment, than from the extent of it's busi-
ness. The Manufacturers National.
which failed about the same time, diff.
ferred from the Franklin in three par
ticulars: first, it was National Bank,
secondly, it did a very large business,
and thirdly, it practiced its chicanery
more adroitly. Being National Bank,
with capital Of $500, 900, no business
man thought it necessary to make a
special investigation; that was left for
the Government Bank Inspector, Mr..
Sphinx, to do. Every three months this
official declared that he had made the
proper investigation, and pronounced
the Bank sound.| In 1872, Mr.. Bu-
chanan, then with the National Bank
Of Commerce, left that institution and
became Vice President of the Manu-
facturers. This move on hiF part add
ed greatly to the public col p6depce, as
he was considered pfude4t afa' care
full bank officer. The depoAi4k6f the
Manufacturers National therefore
swelled to 100000, and all looked Sc
rene. The knowing ones, to be sure,
vagged their heads wisely as the Presi-
dent, Ira Holmes, drove by in his dash
ing turnout. But though he was
known to be sporting gentleman, and
dashing speculator in real estate, no
connection was supposed necessary be-
tween the Manufacturers National
Bank and the private transactions Of
its president. 2he3 ecorld Is learning
that the moral character Of the Man.
ogers O any financial institatioe ought
to haze an important bearing upon its
credit. Ira was a willy manager: He
sent his feelers out in all directions in
search Of depositors he buttonholed
men on the street corner, and in his
plausible, friendly way solicited their
bank accounts. Ira Holmes is one of
those Napoleonic men who have ''star"
and believe in it. No spent up Utica
Of a Bank should contract his powers,
SO he built splendid hotel on the cor
ner Of Wabash Avenue and Adams
street. He got himself seven or eight
fast horses, he attended all the races,
and generally had one or more horses
contesting the prize Ira laid out a
subdivision to the city Of Chicago, and
altogether was emphetically man of
"enterprise."
The September crisis came and proved
that dash and enterprise wouldn't sus-
tain rotten bank. The Manufacturers
Bank struck its flag, and on the 9th
large card displayed from the door an
nounced that "this Bank will no longer
receive deposits Or pay checks" Hun
dreds of fear stricken depositors rushed
in dismay to the bank, anxiously enquir-
ing what they would probably pay, and
what the chances were. Country bank
ers came rushing in from different states
some from your own State of Mime
sofa, their own solveney perhaps depend
ing upon their deposits with the Manufac-
turers' National. Toall these enquiries
the reply was made: j. We><e in liqui-
dation" (the banking law \provides
that national bank my go i1t to liqui-
dation by turning out lis assetsto the
creditors y" but We have good \paper
and we will turn that out to satisfA 4 your
claims" So the anxious depoeitor,
who feared he mightfget nothing il he
let an opportunity slip, was shown John