New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-06
PRICE THREE CENTS.
RUN ON CHICAGO BANKS.
A PANIC SPREADING AMONG TIdID DE.
POSITORS.
ONLY ONE INSTITUTION GIVES THE LEGAL
NOTICE-THE ILLINOIS TRUST AND SAVINGS
BANK PAYING OUT AT MIDNIGHT
FEARS STARTED BY GROUND
LESS RUMORS.

FEARS STARTED BY GROUND
LESS RUMoRs.
Chicago. June 5.-wId and unfounded rumors
of impending financial disaster caused a senseess
run on many of the banks in Chicago to-day.
Those chiefly affected were the Prairie State Ma
tional Bank the State Bank Of Commerce. the
IlibernIan Savings Bank, the Dime Savings Bank
the Union Trust Company's Bank and the Illinois
Trust and Savings Bank Under the circumstances
il is no small tribute to the sagacty sonndness
and foresight of Chicago bankers to say that they
all withstood the strain. Where the runors
sprang from is mystery. 1t is no mystery how
they spread. for wildfre is quicker in its fight
than rumor when she takes fling at the banks.
Whether malice ignorance inspired the rumors
is unknown. but whichever il was the effect was
instantaneous and widespread. Fortunately tho
effect was confined TO uncomfortable crowding in
the banking rooms, TO pushing and hauling among
excited depositors seeking to withdraw their money,
! and to the gathering of curious crowds upon the
sidewalks outside the banks
| One of the ea-ies. and apparently the most
malicious rrimor Of the dav to the effect that
John NJ Smyth, the large furniture dealer on
! West Madison-st had failed. There was no
truth in the report and the managers of the con-
| ccrn assign no reason for its having started.
! Other smilar rlimors Of financial troubles were
| foun1 70 be without basis when traced down.
but they had spread far and wide before they
could bo successfully cortradicted. and the move.
ment the citv banks began IL was the sinau
depositors Of savings-thc people with from $50
70 $500 10 their credit-who soon filled many Of
the banking rooms and began To clanor for their
money. In every case they fornd. greatly 10
their comfort, the cashiers were prepared Tor
them and ready TO hand ont dollar for dollar.
| hrca
in line TO await turns at tho paving tellers'
wckets All VINO came up to o'clock, tne
regular hour for closing the banks, were ranged
! in line and when the doors were shut the pay.
mcnts proceeded just the same until the last &c"
po,itor within the bank walls had received the
| amount due him.
Early in the afternoon the Illinois Trust ana
Savings Rank posted notice saying that the banks
would remain open until o'clock tonight 10 pay
derositors and that the commercial branch OF tho
institution would remain open until the same time
TO pay checks. Later it was announced that the
| bank would open its doors at o'clock tomorrow
or an hour earlier than usual to accommodate those
who wished TO withdraw their money. TGese
notices had no effect, however, in allaying tho
panic. and the bank continued to pay oil deposltors
as RAPIDLY as the seven telers could count ont
the money President Mitchell said this evening:
We will keep open until o'clock at night for the
raymovt of drpostcrs as lone a. this run connn"s.
There are $4,000 600 deposits in this depart
| mcnt Of the bank. and seven mon are paying DC
postors Working twelve hours day il will take
seven men 100 days to paw out the SlO,Ooo,ooo.
Ao midnight the doors of the Illinois Trust ana
savings Bank still open, and nearly 100 de-
oo,itors are in the bank getting their money ~
fast as possible The bank officials cay they DO
not propose to close up at all; that they VIII
remain open until the people cease coming for
their money II don't know what 1t means,
said Cashier Gibbs, but do know II is largely
due 10 the newspaper reports and sensational
ruinors that have come to the people. As Ior
TIE Illinois Trust and Savings Bank. we can stand
any kind Of run We are asking nothing OF
ANYBODY and are not alarmed. As yet there 70
no occasion for alarm, but il the people keep on
drawing their money ont of the banks there viii
h, trouble All of this cash will be taken ouS
Of circulation and there will be a big crash
The Globe savings Bank posted notice this
afternoon that it would take advantage OF tho
law recurring from thirty 10 sixty days NOTICE
for the withdrawal of savings deposits. There
WAS no serious run on the bank to-day, but ifs
cfhcers decided to protect themselves as lar AZ
possible The concern is controlled by New
| England people.
There was also heavy run on the Prairie
|
sam. captasts as those managing the Prairie
state National Bank Unlike the latter institu-
| ton. the savings bank required sixty days notice
,f withdrawal of deposits. TIE throng OF people
| which surccd about the doors OF the savings
| hank WAS composcd of aborlng people who mad
placed their all in the institution
| An immense amount Of money was paid out
| during the day without any perceptiple d'inihu-
tion of the crowd, but the officials OF the oahk
a,neared .o take the matter easily and met all
| demands made upon them.
The officer, of the Hibernan Banking Associa-
| tion are not in the least alarmed over the run Oh
their institution. Ii is regarded as one Oh 'ho
strongest savings banks in the country. The de-
postors are mostly Irish. and 1t Is the depository
of large, amounts of the funds of the various Ro-
man yntholic parishes Its last report showed
| deposits of two and tlree-quarter millions; indi'
yidual deposits of threcauart of a million. and
undivided profits of a third OF a million The cap
it'll stock is $4,000. Vice-Presidenk Charles f.
| Clark who is manager of the savings department.
said ~ | o'clock: I'VE have been paying of all
| TN. morning at the rate of three minute. All
| tbc nnplcants are those who have money in the
| savings department They are poor people who
have every dollar in the world they possess with
us and naturally with the existing conditions they
| have got nervous. We do not blame them.
| I,nder our rules can compel notice of sixty
! 10 ninety days, but We are not doing this yea
| There is no need for any alarm far
concerned. and we do not propose to enforce tho
| usual notice unless we have to. 1t is significant
| that our commercial customers. those whose de-
posits are subject to check in the regular way.
| are not troubling us at ALL"
The crowd outside of the Dime Savings Bank
| had doubled by o'clock, but President Smaule
g. Bailey expressed no uneasiness. would he
say whether the bank would enforce its thirty.
day rule. I'VE have funds sufficient on hand"
he said. for all regular purposes and even for
| an emergency. No occasion exists for this alarm,
in progress on these institutions also. Investiga-
bank does solely savings business, its last 70.
port showing deposits of S5OO,0Oo, and surplus
| of x5l 900. The loans az the time of the same
report amounted to S451, ,OOO while United States
han nda md cash hnn afod