, 1876-08-21

country. b. Y. .Allen's Cook County
bank was thu chptrcxt Illustration you
81. Lonis vim cuufd tlo ono hand bohinl thu
back anil give Allen new lcssuns In wltltat
banking. It was Thought TINT 1ra Holmes was
pretty ilhera1 In lnking loans for his bank, put
bunker IL 81. LouIa. Winslow, Of tho old scar.
lLnayan Bank, escaped tho vcigcai1cc OF tho
law pn'l The wfascil ot hs dnpes BY lIght TO
some nnknown lana: g.: Louis n,,,,u would nayo
Or retired lin ~ one Of tic solId sncn Of the
city. Thcy call Ct. Louis a alow-Eolng, old.fogy
town, but she tlaA moro convicted slIarpcre
dcekel women p l,er street-cars. and more
bankrupt fortune-huntcrs In her fashionable su-
etety, than any other large city In the culusry.
There is only one restraint, That IL laz!ness,
ness Of TIC Southern people, St. Louis would
10 the f1ashicst city on the conttncIlt.
The nrrt bank that succumhed after The panic
was tho Tradcra', Al institution which bad been
signed 70 be grand financial combination, more
powerful than any ether In tue city. 1t WIS to
typify In ths West tho tnoney-makfng genius OF
the racc Of Rothschtld. Tho scheme was In
o06. Only sl5o,ooo Nas paid IL, aud II .horrt
time It WAS deemed advisable to Introduce
Christian capital. This grandeur Of the instt-
tuition gradually faded away, and after career
u EGFCu 3E&I& kllE uUuT3 MEf9 C1UEcH OGVEE 10
opon again. A long Int Of Unsecured notes ts
Al! that noW survives.
Tho history of tho
PEoPLE's SAVINGS INSTITUTION
L ,s1 %arasa " fraud tcom IL very INCEPTION T.
Of bank in tleir noigiSorhooI,
held meeting ind decided 70 apply for II char
Ter Under the nanlu Of the Laelcde Savings III
stitution. While the necessary negotiations were
In progress, L schoo1.teacher named Ulria innde
Up h!a mind that he would like TO be banker.
With the nsasstancc Of some friends, he pro-
cured a charter for tho Peoples ut tlu anne
bis charter and subscription list 10
certain Of the merchants who had agreed to
suhscribu for Laclede stock, aud they, thinking
paid over 10 per cent of the face value Of tho
stock. The uianagcrs Of the proposed Laclctlc
concern raiscd .great howl when they discover.
cd that Ulrtcl Ind outwittcd and anticipated
them., AZ TIC 'nat.cr had yong so ias there was
" accc5,t the Uricl institution with that slirewd
party ut Its head AS Caslller. The nominal capl,
tai of ths concern IT. was SO 600 but only S7,5oo
soutces Ind wonderful run Of patronage, Up
10 tle time Of the panic 1t was considered one
Of the sounicst banks IN the city. UlricI found
Il convenient to take trip to Europe immcdl-
piied BY Edward Wucrpsi, Who, Will hosdo Il
relntlvcs, took possession of the bank, and coon
sENT IT TO TIiH DOGS.
The Vtct-Prcsfdcnt was brother Of TauBsfg,
Of Taussl,,, Fisher u Co., Of New York, and this
Of thc banks money. TIC ilrlu soon afterwards
soa S' o1 s11 s sons The b. pant w" oe1s @as
aged to keep up appearances for some
Time. by offering large rate Of IN,
terest On deposits. and by " "shinnlnC."
So great Was tic public confidence in The bank
that 1t continued to do business nftor It's second
Cashier ran uwuy, loaslnH deficit Of $500, 900.
By degrees It's patrons becan,o u1arnsl and
wltluirew their deposits, This forced the bank
crty at ENORMOUS sacrifice. Its direct losses
I'll this way are estimated at half . million
dollars. FinAily, the vaults were drained, and the
concern was forced to suspend business Tlcu
lion On tho part Of the Cashter, aud Of inju-
dictous aud corrupt advances 10 friends mud reac
tives. The cuneern, which started with only
$500, had sunk or >quandered nearly 81, ,00o, ,0oo
ignorance Of ttsir duties and Of tho banking
business generally. The management had been
left the Cashier alone. At tho Dlrecturs' meet
ines !io usually subufttc,la manufactured stntc-
inGut VI the e6n4itftn Ut business, and tue d.
rccturs ncyar Inquired further. For t.oo yeurs
precious u The suspension not a single eMtry had
bteI. nude OIL the general books Of Mo 6ank( Thu
dcpostors recclvct' two dlvldends,-onc Of 9l4
cluiins.
TIE WESTERN SAVINGS DANE
started In l6i,, with 800, 900 subscribed capital
only 10 por geut Of whtell was paid In. The inst-
tuition was III Charge at its Cusher, II. g. Marx,
WHO WIS q mere boy, aud Us utterly unit for the
position as Il messenger would hnvc been. The
directors weru even moro Incompetent, aud
we're ncglrcltul as we'll. Still money
sauo rep,ily to ths Dank' Its ss' aspqsts 's15
but tho Cashier, being Of q speculative dlsposi.
| tinr., and under 10 control, dealt largely III
risky stocks anu bonds, turning tlae bank into
regular brokers Office. lie also fnthcrcd the
iloat II il papur, mi bought between sso, ,o99
and sio,09d worth Of tlat stuck al. 10
cents, which subse4ucntly sold at from
20 to 10 Cunts. In or'icr to entico deposltors,
deposits anl currcnt ACCOUNTS. The bank was
III the habit ot declaring largo dividends, ons of
sr1icA aeas u high a. stVtnty:a.s Per eeat! This
naturally surprised other aud sounder institu-
done Icgtinately,--,!0 per cent being considered
was afterwards discovcrcd thai tliis was
accompanied by purchasing heavy bonds,
tremendously, md also b.. temporarily swelling
the interest account In dlscountlng two aud
csme to grief Thls was done by tic all-powcr-
wore too igiorant to comprehend thv risk s tcses
actlons Implied. The natural consequence wis
most eplorab'c future, on tho 1:tll Ut March,
1876 pnbiic confidence aud patronage fal
been gradually withdrawn, until, ut the tiule OF
closing, tho depusts hu'i decreased from $780,
| OUO to $300vG. Thu deposltors were paid
small percentage, hut the atoekho!lcrs nothing.
THE WEST hr. LOUIS SAVINGS INSTITUTION
aud tho Western Savings Bank should properly
bu hraekctcl together, for, ~ 4 proni-
ncnt bank.man hers remarked, tlie Int.
ter YVES the bastar1 Child Of the former.
It wns organized In September, 1871, md wins
closed on tho nth Of J4'l,iary, 1870 lts whola
IN tl.e failure Of slngiu customer more than its
whulo capital. The Cashier, Beet,,g TINT h!s own
bunk WAS likely. to Eet Into trouble, obtaaed
tls sols purpose Of assisting him. Marx,
thu Cashier of tho Western, l'ad been q clurk
OF h!s, whom he tlttingly cllosu 70 garry
nut his plans, unl In due tnle, wllcn tho West
| St. Luu[s became short IT funds, lts Cashier
! procured from his disciple, Marx, heavy toan
/ upon CERTAIN bonds, which shortly afterwards
/ woFc discovered to bc worthless. TAis was
| largely instrumental In causing tho failure of
| the Western. 1'i,e bunker abnyc mentioned