The daily morning journal and courier., 1896-12-22
CHICAGO BANKS IMPERIILED
THE ILLINOIS NATIONAL FAILURE
 CAUSES RUNS ON OTHER BANKS,

A'eNA OupAuipJ'
 Chicago, Dec. 21.-The National Bank or Illinois, located at 115 Dearborn street, and one of the oldest and best known banking institutions in the city, | With assets amounting to nearly $15,- O0O,O00, did not open it's doors this morn- | ing.
 | This action was decided upon by the | directors of the bank at 6 o'clock last night, after the bank had been sus- pended from the Clearing House asso- clation. of Chicago at a meeting of the l clearing house committee held at the home of Secretary Elbridge G. Keith. | The causes of the suspension, as giv- en in the resolutions adopted by the clearing house committee, are "unwar- rantableand injudicious loans'' through which the capital and surplus of said bank is seriously imperiled, if not ab- solutely lost.''
 At the last statement of the bank its capital was shown to be $1, ,O0O. 900. with surplus of $1,0O0,O00, and undi- l vided assets of over $300,O00.
 1t is thought probable that none of the depositors will suffer great loss by | the suspension, as the bankers who were present at the meeting of the committee, have recommended for con- slderat1on the proposition to adyance 10 per cent. on all adjusted claims | against the National Bank of Illinois.
 In addition to this they have agreed to use their influence with all other members of the Clearing House asso- citation to accept all such claims as col- lateral at the same raltio
 l At 10 o'closk this morning a large crowd gathered around the doors of the National Bank of Illinois, and creditors 1 discussed the probability of realizing | from their deposits. On the large door leading to the counting room the fol- lowing notice was posted: "Thfs bank is in the hands of the national bank examiners By order of the comptroll- CT of the currency"
 F Posted over the doors and walls in the corridors were notices from various 1 depositors of the bank stating that checks given on the bank Saturday would be paid by the signers.
 Shortly after 10 o'clock the announce I ment of the failure of E. s. Dreyer & Co., an old established banking insti- tuition, corner of Washington and Dearborn streets. It is learned that tAS IOuCGIIeH $ D6HGVOl6HI dSSOCldLlOu of this city has SIS, ,000 on deposit in the Dreyers bank.
 The firm of E. s. Dreyer & Co. was considered one of the strongest in l Chicago.
 A run on the Garden City Banking and Trust company's S bank was caused by the fact becoming generally known among the depositors that the institu- tion cleared through the failed Nation- al Bank of Illinois. The line of fearful depositors was not long, and withdraw- als were promptly made until the reg ular hour for closing the bank, B o'clock The doors were then closed, and only those depositors who were in- side were paid.
 At the Illinois Trust and Savings and American Trust and Savings banks there were small lines of men and wo- men, who were anxious to get their money in hand and the bank officers were glad to pay out, as the withdraw- als in the savings departments meant gain of interest money which would be due January l. Both these banks are regarded as financially impregna- ble
 I President Schneider, of the National Bank of Illinois, is also treasurer of the Chicago Associated Press.
 The Roseland savings bank, situated in the suburb of Roseland, peopled largely by Holanders, did not open it's doors this morning. The bank is own- ed by Fred Weirman. The depositors, who are mostly poor people, were as- sured that they would get their money as soon as the money was received from the National Bank of Illinois.
 The Roseland capital is small and, the assets are estimated as equal to the liabilities. All the private banks which closed their doors cleared through the National Bank of Illinois. The decision of the clearing house committee to re- fuse clearing privileges to the National Bank of Illinois, and also to refuse funds by which the bank could have gone into voluntary liquidation, was chiefly due to the astounding discovery that the bank had loaned $2, 400, ,000 to the Calumet Electric Street Railway company on it's bonds as sole security. This loan exceeded the banks capital and surplus. Another account which caused the bankers to hesitate was stated to be near $5OO,000, the debtor being B. s. Dreyer & Go. Robert Ber- ger, the only partner of MT. Dreyer, is a son-in-law of George Schneider, pres- ident of the failed National bank
 There were two other big loans which were considered poor collateral. Among the banks which made clearances through the National Bank of Illinois, was that of Farson, Leach & Co. Af- ter the National banks suspension, Farson, Leach 6 Co. continued to do business, and John Farson, who is president of the Calumet Electric Street company, who secured the enormous loan from the failed National bank, said his house would take care of the Calumet Electric railway through the breakers.
 Farson, Leach 6 Co. are the chief owners of the Calumet Electric rail- way, which is a new enterprise, em- bracing several towns southeast from Sixty-third street The loan of $2, ,400,- 900 obtained from the National bank was used to build and equip the road, which is now in full operation.
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