The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-12-22
dependent banks and avert any unnece.-

dependent banks and avert any unneces-
sdry panic.
ECKLES' STATEMENT.
z washington, Dec Comptroller Eek
les today gaze out the following state
ment concerning the failure Of the Ma
tional Bank OF Illinois:
II am advised by Bank Examiner Nc
Keen that the National Bank of Illinois
has closed for business, and is now in his
hands for the comptroller of the cur
.ency. In order 70 prevent any trouble
proving claims against the bank. and to
obtain for the creditors at an early date
the largest part of the amount due them,
I have appointed Mr.. McKeon tempo
rary receiver, with telegra phic instruc-
tons TO publish notice of proof of claims
at once. The clearing house committee
of Chicago have advised me. through the
examiner, that the clearing house viii
Immediately advance as per cent of the
face of approved claims, and thus give
creditors of the bank immediate relief
and prevent unnecessary disturbance OF
business. ] have also instructed the re-
ce,ver. while securing all loans of a
doubtful character, 10 exercise the Ut
most caution so as not TO work any hard
ship upon the business interests OF those
dealing at the bank and depending upon
it The advance made by the clearing
house, il is to be understood, is not in
payment of such claims in full. but SIM
ply Can of such all amount with the
certificates as collateral security.
THE failure Of the bank is due to in
furious. reckless and imprudent meth
DDS followed by the officers and not
checked by the directors. though their
attention has been individually called TO
he ND hat, IND sx-.I 1ol csr.
nature they had promised to remedy the
weak points In the banks condition.
The largest source Of failure is the
banks holdings of the Calumet Street
railway stock, the full amount of which
cannot be stated, for IL is discovered that
part of such holdings were not made to
appear on the banks statement, but was
concealed in another account This, ana
other large and doubtful loans, have
been called by special letter to the atten-
ton of the officers and directors and spe-
ciflc Improvement promised year ago.
Ir June last, on the surface, there had
been an improvement made, but when
bank Examiner McKeon, on November
so. examined the bank, he found that
the books showed that the loan to the
Calumet Electric and other similar loans
had been increased, and the promises of
officers and directors had not been car
red out. Upon this report / prepared a
letter addressed to the president and di-
rectorS. which / sent to the examiner on
December IA, TO be read by him to COM
mittee appointed for that purpose. The
letter called attention to the failure to
fulfill The promises made by the officers
and directors.
1T emphasized the position taken by
the office that a decided and radical
ohanCp had fn IA had OF
titled the directors. with a full and COM
plete analysis on the part of the exam
liner of the matters in the bank demand
ing attention. On Saturday / received
notice from the examiner that the ru-
mors of the banks condition had reach
ed the clearing house committee, and
they desired to have this report read to
them. / ordered it TO be done, but sug-
gestec that before doing so, he see the
officers Of the National Bank of Illinois.
and secure their acquiescence. This was
obtained, and the vice president of the
bank was present with the clearing
house committee. The condition reveal
ed led to the resolution to suspend the
bank from the clearing house. Before
action was taken, however, the examin-
or autographed me, and in reply l Sug-
geSted that, in view of the large inter-
eStS involved, great care should be TAX
en- and, even at the risk of taking some
chances, funds might be provided if it
was deemed safe to do SO, to afford vol
untary liquidation. The assets of the
bank were examined, and its manage
ment, as shown by the examiner, con-
sidered. and as conclusion it was con-
cluded that the bank should be suspend
ed from the clearing house. and funds
not furnished for voluntary liquidation.
Three Of tha HANKS directors were DrpS-
ent at these meetings.
In view of everything, I am convinc-
ed that the clearing house committee act
ed judiciously. The management, on the
part of the officers and directors, has
been. to state it mildly. grossly negli-
gent. The liabilities of the bank are
large. but, by careful and judicious man.
agement, the loss entailed on creditors
need not be large, if any. Every mea-
sure will be taken by the clearing house
and the comptroiiers office to prevent
other banks, or business failures, and I'M
necessary money stringency. Already
all outside hanks having the National
Bank CT Illinois as a reserve agent, have
been notified by telegraph of the IS per
cert arrangement
"A large amount of difficulty can be
prevented if those depending on the
banks of Chicago and elsewhere, affect
I'd by the banks failure. will use good
Judgment and do not work themselves
INTO a state Of panic. Other banks can
be made TO fail only through those hav-
ng funds with them becoming frighten-
ID and making unnecessary demands. |
On the other hand, the banks ought to
De careful and prudent in not unneces-
;arily calling the loans of their business |
customers"