The herald., 1896-12-22
R[CK[ESSNESS AND
'M|SMANA|1EMENT
Wreck the National Bank
of Illinois
THE entire CAPITAL md surplus
Loaned on Stock Which Can't
Be Converted
CLEARING HOUSE ACTIONS
Taken to Prevent Unnecessary Distues
CLEARING HOUSE ACTIONS
Taken to Prevent Unnecessary Distues
bsnce Of Business
Prompt Action by Comptroller Eckels 70
Protect Depositors
Four Other Banking Houses Dragged
Down by the Failure, But Fur
ther Trouble Is Not Con-
sidered Probable.
Associated Press Special Wire

Of1lCAIO, Lee. zl-IHe NdtlOna1
Bank of Illinois, generally considered
one Of the strongest financial institu-
tions in the west, closed it's doors today,
the failure dragging down three other
concerns-E. S. Dreyer & Co., Was
mansdorff, Heineman & Co. and the
Roseland bank
The failure of the National Bank OF
Illinois was due to the fact that its en-
tire capital stock of 81, 900, 900 and 100000
over and above its surplus of $500 600 had
been loaned on Calumet electric stock.
Money was loaned to Dreyer G. Co., who
had spread their capital out SO ex-
tensively that they We're unable to con-
centrate it into save themselves. Other
failures were due to the locking up Of
assets held by the National Bank of Illi-
nois, and at a meeting of the clearing
house committee this afternoon all of
the banks reported themselves in good
condition, and none Of them asked for
aid that would have been freely extend
ed had 1t been asked.
1t is probable that all the banks viii
resume, with the exception of the Ma
tional Bank of Illinois, and all deposit
ors will be paid in full.
At a meeting of the clearing house
banks, held after the close of business
this afternoon. upon rec recommendation of
the clearing house committee, which had
made a thorough examination of the
| affairs of the National bank of Illinois.
| the clearing house banks agreed to ad-
| vance 70 per cent on all claims against
the National bank Of Illinois which shall
nave been certified to by the receiver
as being on deposit in that bank. The
iy,1e nj dpnOS-
itors would receive their money in full.
The bank now has on hand nearly 40
per cent of the liabilities No bank re-
oueStexi any assistance from the clear
ing house.
The bank statements published today
at the call of the comptroll@e' of the cur
rency at the close of business on thA
18th inst show a very strong reserve.
There has been very little excitement
today in banking circles in this city.
The following resolutions were adopted
at the meeting:
Resolved, That the clearing house
committee, after calling to their aid
such other persons as they may desire,
be requested to formulate a plan which
will enable the creditors of the National
bank of Illinois to avail themselves OF
the offer of the associated banks to make
advances by way of loans to said cred
tors to the extent of IS per cent upon
properly proved clalms.
The chairman of the clearing house
stated that the willingness of the bank
ers to do this was so evident that 1t IL
not probable that any formal organiZa-
ton to accomplish the object will be
necessary, although the committee will
give prompt attention to the duty inn
| posed upon them.
The following dispatch was received
| today by the president of the clearing
| house committee:
| WASHINGTON, D. c., Dec. 21.-f
have appointed Bank Examiner Nc
| Keon temporary receiver of the National
! aBnk of Illinois and instructed him to
| publish notice for creditors to prove
| claims. He informs me that the clearing
house committee agrees TO advance rs
per cent on evidence of claims. Notice
| will be published at once and If claims
are proven Immediately I shall within
! thirty days bee able to pay very con-
| siderable dividend. / appreciate the
| action of the clearing house in Offering
to advance on such certificates.
! (Signed) JAMES H. ECkELS,
{ Comptroller of the Currency.
ANOTHER FAILURE
Another suspension was recrded late
! IN the afternoon when Judge Horton of
the circuit court appointed John HI.
| Nicols receiver for the property of Fred
| erick Wierzman, who owns the Rose
| land bank, which is situated in Rose
| land The appointment was made upon
| the application of George Dalenburg.
a. Judgment creditor of Wierzma to the
| extent of $780, The complainant at
| tributed the embarrassment of Wierzma
! to the connection Of the latter with the
| National Bank of Illinois. The assets
( are placed at $4,000 and the deposits at
| S50. 900 The bank will resume business
| in a few days.
ECKLES' STATEMENT
| WASHINGTON, Dec. 21.-Comptr01-
| Ter Eckles today gave out the following
| statement regarding the Bank of Him
| els. II am advised by Bank Examiner
Mexican that the National Bank of IL
! linnis has closed for business and -
now in his hands for the comptroller q
the currency. In order to prevent any
trouble In proving claims against the
| bank ard to obtain for the creditors at
an early date the largest part OF the
amount due to them, have appointeo
! Mr.. Mckean temporary receiver, with
| talerra phic instruction to publish no
| tice of proof of claims at once. me
g., clearing house committee OF Chicago
has advised me through the examiner
that the clearing house will Immediately
advance rs per cent of the face of ap-
proved claims, and thus give the credits
ors of the bank immediate relief and
prevent disturbance of business.
The advance made by the cleArinos