The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-06
Runs Started by Baseless Rumors on
Several Chicago Savings Banks.
Some Took Advantage Of the Advance Notice
Rules, but the Big Ones Increased Their Pay.
ing Tellers and Kept Open Until Late.
Receiver Appointed for Meadowcroft
Brothers 4; Co., Private Bankers.
Many Failures Reported from Other Parts of
the Countrvg-Sandusky (0.) Bank and q Big
Kansas Grain Company in Trouble.
RUNS ON CHICAGO BANKS.

RUNS ON CHICAGO BANKS.
Depositors In Savings Institutions Excited
By Unfounded Rurnors.
Special 10 the Indianapolis Journal
CHICAGO. June 5.-Wild and unfounded
rumors of impending financial disaster
caused q senseless run on many of the
banks in Chicago to-day. Those chiefly
affected were the Prairie State National
Bank. the State Bank of Commerce, the
Hibernian Savings Bank. the Dime Saw
ings Bank, tbs Union Trust Compsny's
Bank and the Illinois Trust and Savings
Bank. Under the circumstances 1t is no
small tribute to the sagacity. soundness
and foresight of Chicago bankers to say
that they all withstood the strain.
Where the rumors sprang from is a mystery.
It Is no mystery how they spread. for wild
fire is no quicker in its flight than rumor
when she takes Q fling at the banks.
Whether malice or ignorance inspired the
rumors Ia unknown, but whichever 1t was
rhe effect was instantaneous and wide-
spread. Fortunately tho effect was con.
fined to uncomfortable crowdiDg in the
banking rooms TO pushing and hauling
among excited depositors seeking to with
draw their money. and to the gathering
of curious crowds upon the sidew alks out
side the banks.
One of the earliest and apparently the
most malicious rumor of the day was to the
effect that John NJ. Smyth, the large fnrn-
iture dealer on West Madison street. had
failed. There was no truth in the report.
and the managers of the concern could as-
sign no reason for it's having been started.
Other similar rumors of financial troubles
were found to be without basis when traced
down. but they had spread far and wide
before they could be successfully con-
tradicted, and the movement on the
city banks began. 1t was the small deposit
ors of savings-the people who had
from $50 to $500 to their credlt-who soon
filled many of the banking rooms and
began to clamor for their money. In
every case they found. greatly to thcir
comfort. that the cashiers were prepared
for them and ready to hand ont dollar for
dollar end it then became question
merely OF standing in line to await turns
ct the paying tellers' wickets. Ali who
came up to o'clock, the regular hour for
closing the banks, were ranged In line, and
procesded just the same until the last de-
poiS,osr within the banh wells had receiyed
the amount due him.
KEPT OPEN ALL NIGHT.
Early In the afternoon the Illinois Trust
aud Savings Bank posted notice sayiDg z
that the bank would remain open until 9
o'clock tonight to pay deposltors. and that
the commercial branch of the institution
would remain open until the same time to
DAY checks. Later it was announced that
the bank would open its doors at A. NJ. to-
morrow or ON hour earlier than usual, to
accommodate those who wished to with.
draw their money. These notices had no
SSfs Sass s1G''s, snG the bank aSsOs ooss.nueS
to pay off dsposisors as rapidly
as tho seven tellers could count
ont the money. At l:3O this Tuesday
morning the Illinois Trust and Savings
positors had thinned out somewhat.
but enough of them wero inside
the bank and around the doors
TO keen the pay ing tellers busy for at least
that by O'clock they had paid out about
$50. 900 and they had over 50. Oo0.000 in cash
stacked up for tue tellers to work upon.
President Michael said this evening:
"We Will keep open for the pay.
ment of depositors as long as this
run continues. There are so. 900. 600 of de-
posits in this department of the bank, and
seven tellers are paying depositorS. We
are staying open twelve hours, and 1t will
take the seven men ten days to pay out the
SO, 100000. There is no run on the CON-
merciAl department."
An Associated Press dispatch says the
runs were precipitated by the failure of
herman Schaffner IL Co., which occurred
last Friday. The first to feel the effect Of
the excitement was the Bank of Commerce,
where great many Jewish citizens OF the
poorer class kept their accounts. These
took alarm naturally as the result of the
Scheifner failure and bore down upon the
Commerce bank in full force at the open
ing hour. The tellers were doubled and
paid checks as fast as presented through
out the day. The excitement spread and
soon inv Olved the other savings
The Illinois Trust Company. W hich has
larger line of this class of deposits than
any other bank in the city. amounting at
times TO over $4,000 600, put on an extra
force of tellers and paid every one as rap
idly as possible. and at o'clock posted
would remain open until 10 o'clock to-
night. and so long as the present excite
ment should continue. The Hibernian
pies Bfns wss ws'h the aspOsitorg ss for 'm
large number of Irish-Americans of
small means. was crowded all day, but
found no difficulty In meeting the demand,
and at 3 O'clock the exciteMene had DE-
creased. The Dime Savings Bank took ad-
vantage of its rule and paid percentage
only upon each deposit. The Globe Saw
ings applied the thirty-day rule. There
was q moderate run on the Milwaukee,
avenue Savings Bank throughout the day.
and IL. too, kept open house until 9 o'clock
tonight. Equally spirited checking was
noticeable upon the Prairie State Savin gs
Bank, but in no case was any
alarm felt by we'll informed people.
The situation was greatly aggrava ated by q
number of Board of Trade brokers. who.
for purposes of their own, devoted them.
selves to the circulation of sensational
rumors. In which they involved. at one
time or another, nearly every bank in the city
and large um Der of leading stockyard OPP
orators. Notwithstanding these malicious
efforts there is every reason to believe that
none of the leading banks. whether saw
Ings. State or national. of Chicago are in
any danger of suspension. Only one bank
failure was announced to-day.
FAILURE OF PRIVATE BANKERS.
Meadowcroft Brothers & Co., private
bankers. doing q commercial paper busi-
ness similar to that OF Hermann
Schaffner IL Co.. the banking firm
which made On assignment on Saturday,
closed their doors this morning The con-
cern was one of the oldest in the city.
The firm was composed of Robert, Charles
j. and Frank II. Mesdowcrofr. The busi-
ness was esta blished in 1860 by the father
of the present proprierors- The bank occu-
pies the quarters formerly used by the Park
National Bank. which failed some time
ago. Lyman L. Crandall has been ap-
pointed receiver.
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