St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-06-06
EXCITED DEPOSITORS.
Groundless Rumors Start Runs on
Chicago Savings Ranks

GrOundless Rumors Start Runs on
Chicago Savings Banks.
CHICAGO, June 5.-The failure of
Herman Shaffner, which occurred last
Friday, bore fruit today In well-defned
runs which were preciDitated OH almost
if not every one of the savings banks Of
Chicago. The first to feel the effect Of
the excitement was the Bank of Com
merce, where great many Jewish cItI-
ZenS OF the poorer class keep their ac-
counts. These took the alarm, naturally,
as the result of the Shatfner failure, and
bore down upon the Bank OF Commerce
in full force at the OPEN
ing hour. The tellers were doubled
up and paid checks as fast as presented
throughout the day. The excitement
spread and soon involved the other
savings institutions. The Illinois Trust
company, which has larger share of
this class OF deposits than any other
bank in the city, amounting at times to
over So, 00O,0 900, put OH an extra force of
tellerS and paid every one as rapidly as
possible, and at IL o'clock posted 4 no
tice upon the front door that the bank
would remain open until 10 O'Clock to-
night, and so long as the present excite
ment should continue. The Hiber-
MAN bank, which, as its name inn !!
plies. was the depository for
large number of Irish-Americans of
small means, was crowded all day,
but found no difficulty in meeting the
demand, and at o'clock the excitement,
had perceptibly decreased. The Dime
Savings bank took advantage of its rule
and paid a percentage only upon each
deposit. The Globe Savings applied the
thirty-day rule. The Milwaukee Ave
nue. Savings sustained moderate run
throughout the day, and kept open until
O'Clock. Equally spirited checking
was noticeable upon the Prairie State
Savings and Union Trust company, as
we'll as upon the Avenue Savings bank, .
but i'll no case was any alarm felt by
well informed people.
The situation was greatly aggravated
by number of board of trade brokers,
who, for purposes of their own, devoted
themselves to the circulation of sensa- !
tional rumors, in which they involved
at one time or another, nearly every
bank in the city, and a large number OF
leading stock yards operators. Not
Wlthstanding these efforts, there is
every reason to believe that none of tho
leading banking institutions, whethet
savings, state or national, OF Chicago,
are in any danger Of suSpending. +;
The failure of Meadowcrort Bros, a
minor institution, occurred, but arOuSedi
little or 10 interest in the minds of thel
general public. Their total deposits
did not exceed 100000. MeadOwcroft
Bros. 4 Co. did commercial paper,
business similar to that of Herman
Schaffner & Co.. the banking firm which
made an assignment Saturday. Tho
concern was one of the oldest in the
city. Eddy d Walker, attorneys, place
the liabilities at $250,000 and the assets
at S4G0,0 (
At II o'clock tonight the Illinois Trust
aud Savings bank was still paying off.
and the crowd of depOsitors anxious to
draw their money was as large as ever
The bank officials said that they cared
nothing whatever for the run, but were
rather pleased than otherwise to paw
out the money, as 1t meant a big saving
to the institution in interest. The quar-
terly lnstallment being due July /. and
all depoSitors who drew their money to-
day have lost. The bank officers esti-
mate that the run so fax has given them
a net profit of $4,000. 1t was am
nounced at midnight that tho
long as a single depositor cared
to draw out dollar. A special detail
of police was sent for. the force of pay<
ing telleIS which had been constantly
on duty for several hours was relieved,
others took their places. and the paying
OF money was continued at seven wilma
dows. The depositors were not fright
ened or worried, many of them seemed
to regard the matter as joke, and some
of them said they were only drawing
their money because others were doing
the same thing.
mil or D.. It
months" said President Mitchell tot
night>"and not close our doors night OF
day i such a proceeding should become
necessary. 1t will take these seven
men at least that length of time to pay
out the money out of our vaults Even il
we get no more deposits we are good
for any Iun no matter how long it keeps
up. We have no intention of taking
advantage of the time clause. Anv
depositor can get his money al any time
he wants it."