The Providence news. (Providence [R.I.]) 1891-1906, 1896-12-23
RUNS ON CHICAGO BANKS.
vepositors Frightened by the Iiiinob
National Failure.

Chicago, Dec. 23.-The failures OF An
gus q Gindele. general contractors. the
American Brewing Mating and Eieva-
tor company, the George A. Weisse Malt
ing and Elevator companyand George A.
Weisse individually, all OF these being
due to the collapse OF the National Bank
OF Illinois and small runs on three banks.
were the echoes yesterday OF the bank
failures. Runs were made on the Gar
den City Banking and Trust company,
the Hibernian Savings bank and the
Illinois Trust and Savings bank, and
none OF the runs was OF much conse-
quence. The officers OF the Gar
den City Banking and Trust company
had expected that run would be made
upon then institution and were ready 10
meet It., They threw open the doors OF
the bank at an hour earlier than usual.
as they said they wanted to get the run
out OF the way so that they could trans
act their usual business without being
disturbed. Quite a crowd of spectators
had gathered at the doors before they
were opened, and as soon as the bank was
ready for business the depositors gave
the paying telAsrs all they cared 10 do.
The run kept up with energy for over an
hour and then died away. At the close
OF the banking hours the officers of the
institution announced that during the
day the amount of money taken In was
treble that paid out, and the bank was
declared to be in better shape than at
the opening OF the doors in the morning.
The run on the Hibernian Savings bank
was OF q short duration, as the officers
declined TO pay any deposits unless
given the legal 60 days notice. They said
that this was not because they were not
prepared TO pay all depositors in full.
but because they wished to avoid em-
baIrassment To smaller bankers, who
might not be prepared TO pay all their
depositors at once. and who might be
placed in an embarrassing position If
the stronger banks were paying all de-
mands for time deposits.
There was a slight run on the Illinois
Trust and Savings bank shortly after IL
opended yesterday morning, the similar
ity OF its name and the national bank
having led some depositors TO believe
that the former was embarrassed. Dur
ing the run in 1893 President John j.
Mitchell of the Illinois Trust gave or
ders to pay all depositors who called for
their money and was criticised by other
DdDkeIS 81. itchtiboy hlpi
ing, as soon as 1t became evident that
there was likely to be a crowd in the
bank, instructions were given the tellers
to serve the customary 60 days notice,
but to pay all depositors who could show
that they wanted 800 of their money for
a legitimate purpose. The result was
that the score or more OF people who
had lined UP at the paying tellers' win
dows soon dispersed. Before the close
OF banking hours the excitement had
completely died out. The giving or the
notice was sanctioned by the clearing
house. and the object was (the Illinois
Trust being the strongest savings bank
in the city) was 10 give the smaller ones
the opportunity to point 10 its action as
an excuse for giving the notice them
selves, which they did, and thus ef-
fectually stopped a run st any of the
savings banks. The Illinois Trust and
Savings bank Is said to have $e,ooo,0O0
In cash on hand. and was yesterday
Ioaning money instead of, as in 1893, call
ing loans to meet the demands Of the
savings depositors.