The New York herald., 1877-08-29
HEAVY BANK FAILURE.
The State Savings Institution Of Chi
cago to Close To-Day.
FLIGHT OF ITS PRESIDENT.
Six Other Banks Expected To Be In
volved in Its Ruin.
ASSETS AND LIABILITIES.
FLIGHT OF ITS PRESIDENT
ASSETS AND LIABILITIES.
[DY TELEGRAPH TO THE HERALD.


CHICAGO, ILL.,. August %. 1877
The State Savings Institution Of Chicago will
close It's doors tomorrow morning. 1t will be re-
membered that the recent bank troubles in St.
Lcdis caused heavy run upon the savings banks
Of Chicago. and that after two days OF constant
drain upon the available funds OF the
institution they were compelled to take ad-
vantage Of the "thirty day rule,' which
requires that depositors shah give thirty days.
notice OF intention to draw out The president OF
that the bank had In ready cash 100000 and could
within reasonable time convert Its paper into
available funds, that 1t would be ready for any
emergency. The depositors took the advice OF the
newspapers and decided TO give the bank far
chance TO straighten up It's affairs. The
run was checked and people began to
think that there was no ground for uneasiness. In
the meantime the bank has been going from bad to
worse 1t Is estimated that within the last three
months over $l,Ooo,Ooo has been paid out while
within the past six weeks deposits have steadily
fallen of 1t became evident TO the directors some
time ago that this could not last much longer, and
several efforts were made to raise money in this
city and in New York, without avail
DEPOSITS RECEIVED UP TO THE LAST MOMENT.
Notwithstanding the fact that the directors were
satisfied the bank would collapse within short time
deposits were received up to last Saturday, when
meeting was held to decide upon the future. 1t
was then agreed that all deposits coming in from
that time until the suspension was made public
should be turned over to DR.. Grant, u private
citizen, and by him held ior the ben
eft of the depostors. Deposits were received up
to three O'Clock this afternoon so not to excite
suspicion, but they turned over to Dr. Grant,
as decided by the directors This afternoon final
meeting OF the directors was held and 1t was de-
cided to turn over books and other property OF the
institution TO Colonel Abner Taylor, whom they ap-
pointed receiver.
DEPOSITS AND DEPosIToRs.
From Colonel Taylor the HERALD correspondent
procured the following iniormaton:--The number
Of persons deposltors in the bank Is upward of six
teen thousand and the amount of deposits foot up
by mortgages, bonds, &c; but these II disposed
OF now will have to be sacrlhced. Last
Saturday morning President Spencer left Chicago
for New York, 0stensiDly for the pur-
pose Of raising some money, but 1t is
believed with view to his personal safety. His
mission II after money was fruitless one. He had
been connected with several loosely managed
banking houses before he became president of the
State Savings, and but little confidence was placed
in his integrity by the business community. He
has deceived the public to the true condition Of
the bank, and the last quarterly statement made
in Jnly is gross falsincation OF the assets.
LIABILITIES AND ASSETS
Colonel Taylor had the following summary Of the
spondent:-
To savings deposits 93l, 756 SO
Certificates Of deposits its................ 4,533 So
Bills payable. 52,O5O 90
Total. ,s39 80
ASSETS.
Mortgage Ioans.... %l,o5O,lS+ 59
Collateral loans 1,167,sj0 70
Real estate loaias. ...... ........... 105,O3l 90
New bank bui'ding. Observation-Disclosures. 121. COS 90
Total. 80, TIA go 81
HrsH ON OTHER BANKS DREADED.
Colonel aylor says this statement must be taken
with gref.t deal OF allowance. lie has not been
able yet to examine the books and does not
know wha they will show, but expects them to
exhibit a amount OF viany that Will astonish
everybody. Colonel Taylor feels that when the
failure Of the States Saving Is announced in the
morning IL the other savings banks will have to
suspend as they are not prepared for run.
He believes that fully SIX savings banks
will topI de over wlthin'a week. There will be
beyond q, doubt intense excitement in the city to.
morrow. To might not over two dozen persons