The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-08-30
THE CHICAGO BANKS.
rhc State Savings Bank Breaks Badly
A General Hum ON the other Banks.
Especial to the Democrat

Especial to the Democrat
s CHICAGO, Aug. 29.-The assignment and
y consequent suspension OF the State Savings
Bank in this city yesterday was undoubtedly
hastened by the failure of the st. Louis banks
about forty days ago. At that time large
sums were demanded by and paid out to the
depOsitors. The time rule was, nevertheless,
enforced and In order to meet the demands of
creditors at the expiration Of the first thirty
days, the bank was compelled to realize upon
its assets.
The statement which the assignees made
this morning shows that all the good assets,
United States, park and county bonds, cash
and real estate have been disposed OF, and
that nothing but mortgages, collaterals and
I. litt1e real estate have been retained. The
collaterals, amongst other papers, include
over six hundred thousand dollars in canal
bonds, which are worthless. The assignee
began an investigation of the books this
morning, and the statement which is made
from their face is not accepted as at all all-
thentic, Col. Taylor expressing grave doubts
whether many of the items displayed will be
found in the vaults when they are opened to-
morrow.
The number of depositors is supposed to
be about fifteen thousand and the average
amount OF deposits is two hundred dollars
each. Irish citizens are more largely inter-
ested than any others, and after them come
| the Americans, Swedes and Germans. The
scene about the bank this morning was one
OF intense excitement, although no threats of
resort to violent measures were heard. As
i usual in such cases the most bitter invectives
= were showered upon the head Of Spencer, who
| had SO successfully managed the concern
j into irretrievable disaster.
Quite force Of police was necessary to
keep the crowd away from the doors. There
appears to be but one conclusion drawn from
the situation of affairs, and that is that the
allure was caused by q most reckless If not
|dishonest management. Spencer had been
i Especulating in suburban real estate since 1873
III III fands drawn from the deposits of the
bank, and was doing this on his private ac- |
count.
E 1t Is also alleged that when Spencer bought |
mp the controlling interest in stock of the |
state Savings Bank, and it was done with |
money of the bank. This being a favorite
Hodge of his when identified with the Cook
county Bank, which went under with disas-
1rous results four years ago.
4 One of the former stockholders of the bank
1tates when Spencer got control of the institu-
L ion, by paying an advance of 200 per cent on
he stock, the stockholders who sold to him
new very well that they were selling to
coundrel and violating their trust
L The other savings banks experienced some
hat run to-day, the most closely besiged
4 eing the Fidelity which, however, met de-
bands to d certain extent, paying small
mounts and taking advantage of the time
ile of thirty and sixty days for the balance.
r. Myers. president of the Merchants. {
armers and Mechanics, has given orders = :
at no money be paid out of that institution G
kiless it be needed for immediate use The T
|ainois Trust and Savings and the Union |
fust and Savings are paying all demands @
rhe leading bankers have taken hopeful 1