The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-12-22
Three Small Institutions Forced to
Suspend Owing to Their COnnec-
tiOn with the Big One.
ACTION OF CLEARING HOUSE
WILL ADVANCE 75 PER CENT. On ALL
CLAIMS AGAINST THE BANK.
DepOsitOrs Likely to Receive Pay
ment I'm FuIl-NO Semblance of "a
Panic-Mr. EcLels's Statement.


CHICAGO, Dec. 21.-The National Bank
of Illinois, generally considered one of the
strongest financial institutions in the West,
closed it's doors to-day, and the failure
dragged down three other concerns-E. s.
Dreyer & Co. Wasmandorff Heinemann &
Co. and the Roseland Bank. The failure
of the National Bank of Illinois was due
to the fact that it's entire capital of 81. .0O0-
600 and 100000 over and above its surplus
of 100000 had been loaned on Calumet
eletric railroad stock. Five hundred thou
sand was loaned to Dreyer & Co, who had
spread their capital out so extensively that
they were unable to concentrate in time to
save themselves. The other failures were
due to the locking up of assets held by the
National Bank of Illinois. and which were
not available when that institution closed
its doors. No further trouble is expected.
as the clearing house association has agreed
to pay 10 per cent Of the deposits in the
National Bank of Illinois, and at the meet
ing of the clearinghouse committee this
afternoon all of the banks reported them
selves in good condition, and none of them
asked for the aid that would have been
freely extended had it been asked. 1t is
probable that all of the banks will resume,
with the exception of the National Bank
of Illinois, and all depositors will be paid
i'm full.
The National Bank of Illinois was one of
| the Oldest and best-named institutions in
| the city and it's failure was surprise to
most people, but not to those i'm select
| financial circles. The following notice was
posted on the doors before the opening of
| banking hours: "This bank is i'm the hands
| of the national bank examiner by order of
| the controller of the treasury" This action
| was decided on at a meeting of the direc-
| tors of the bank last night after the bank
| mad been suspended from the Clearing
House Association of Chicago at meet
| ing of the clearing house committee held
earlier In the day.
| OF the sixteen banks that cleared
| through the Nationa. Bank of Illinois two
closed their doors as result of the clos
| ing of that institution. They are E. 8.
| Deyer & Co. and wasmandorff & Heine,
| mann. These two institutions are mort
| gage loan banks and saving societies i'm a
small way and their failure is not expected
| to affect any business houses. The assets
| of f. S. Deyer & Co. are given at 81, 600 900
/
| Wasmandorff & Heinemann are approxi-
| mately: Assets. $650,0OO liabilities. SiO0 600
! The Security Title and Trust Company
was appointed receiver for both firms. Six
of the sixteen banks have arrangements to
| clear through other banks and the rest OF
the sixteen are making similar arrange.
| ments fast possible.
Another suspension was recorded late in
| the afternoon, when Judge Horton, of the
| Circuit Court, appointed John III. NichOl:
receiver for the property of Frederick
| Wierseman, who owns the Roseland Bank
| which is situated in Roseland. The appoint
| ment was made on the application OF
George Dalenberg, a Judgment creditor o.
| Wierseman to the extent of $500. The com
| plainant attributed the embarrassment o.
Mr. Wierseman to the connection of the lat
| ter with the National Bank of Illinois. Ths
assets are placed at $4,000 and the deposit.
at $4,000 The bank will resume busnes.
| within few days.
The failure of the National Bank of Hi
nois. stated, a great surprise il
business circles. The causes of the sus
| pension as given in the resolutions adopted
| by the clearinghouse committee are I'm
| warrantable and injudicious loans,
through which the capital and surplus o
said bank is seriously imperiled, if no
absolutely lost
ACTION OF THE CLEARING HOUSE.
At meeting of the clearing house banks
held after the close of business this after
noon, all the banks were represented. an,
upon recommendation of the clearing -hous
committee, which had made a thorough ex
| animation of the affairs of the closed bank
the clearing house banks were advised 4
advance 20 per cent. on all claims agains
the national bank of Illinois, which shaI
have been certified to by the receiver a
being on deposit i'm that bank. The gen
eral sentiment of opinion was that the dc
positors would receive their money i'm full
and the bank has now hand. in cas-
| means, nearly 40 per cent. of it's entire liza
bility. No banks requested any assistanc
from the clearing house, ana the state
ments published to-day on the call of tn
controller of the currency at the close O
business on the 18th instant show YER
strong reserves. There has been very littl
excitement to-day in banking circles Il
this city.
The following resolutions were adopte
ar the meeting:
Resolved That the clearing house com
mittee. after calling to their aid such othe
persons as they may desire, be requested I
formulate a plan which will enable cred
itors of the National Bank of Illinois [
avail themselves of the offer of the asso
citation banks to make advances by wa
OF loans TO said creditors to the extent O
70 per cent. upon properly proven claims.
The chairman Of the clearing house state
that the Willingness OF bankers 10 do thi
was evident that IL is not probable tina
any formal organization TO accomplish TN
object will be necessary, although the com
mittee appointed will give prompt atten
ton TO the duty imposed upon them.
The following dispatch was received to
day by the president of the clearing hous
| committee from Controller Eckels.
Il have appointed Bank Examiner Nc
Keon temporary receiver OF the Nations
Bank of Illinois and instructed him TO pub
lsh notice for creditors TO prove claim.
He informs me that the clearing house com
| mitttee agrees 10 advance 15 per cent o
evidence of claims. Notice will be pull
lished at once. and III claims are prove
| Immediately / shall within thirty days
able to pay very considerable diyidenS