The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-12-22
A BIG FAILURE in CHIC AGO.
The National Bank of Illinois Sus-
ponds Payment.
THREE SMALLER BANKS GO DOWN
Assets of the BANK of Illinois dee
tween Twelve ana Fifteen MIL
lious-Iujudicious Loans.

Chicago. December st.--Ths National
Bank Of Illinois, generally considered one
OF the strongest financial institutions in
tho West. closed It's doors and the failures
dragged down three ether concerns Il. s.
Dryer & Co.. Nasmansdorff, Einemau &
Co. and the Roseland bank
The failure OF tha National Bank OF I'LL
nols was due to tho fact that its entire
capital is ss.oo0,o00 and slooo,ooo over
and above Its surplus 100000 had been
leaned on Calumet Electric Railway stock.
Five hundred thousand dollars was loaned
10 Dryer & Co. who had spread their cap
ital out so extensively that they were un-
able to concentrate II In time to save
themselves. The other failures were due
to the locking up OF assets held by the
National Bank OF Illinois and were un-
available when that institution closed Its
doors.
No further trouble is expected. as the
clearing house association has agreed to
pay 70 per cent Of the deposits In the Ma
tional Bank of Illinois and at the meeting
Of 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 extended
had Il been asked.
IT is probable that all OF the banks Will
resume with the exception of the National
Bank of Illinois aud all depositors will be
paid in full.
Chicago, December 81. - Tho National
known banking institutions IN the city
and with assets of between sl2,000.0o0 aud
Sl5,o00,0oo. closed its doors today. Thu
following notice was posted on the doors
before the banking hours:
This bank is IN the hands OF the Ma
tional bank eXcEt nge. by order OF the comp.
troller of the treasury
This action was decided upon at a meet
ing OF the directors of the bank last night
after the bank had been suspended from
the Clearing House association Of Chicago
at a meeting of the clearing house commit
tee held earlier In the day
OF the sixteen banks that cleared through
the National Bank of Illinois two closed
their doors as a result of the closing OF
that institution. They are II. S. Dryer Il
Co. and Wasmnasdorff 4 Heineman These
two institutions are mortgage loan banks
and saving societies In small way, and
their failure is not expected to affect any
business houses. The assets of the former
are Sl.GO0,0O0. with Liabilities of 81 ZOE, 600.
The figures for Wasmnasdorf d lIeineman
are. approximately: Assets $3.50 900; Lin :
bilties 100000. Tho Security Title and
Trust company was appointed receiver for
both firms.
Six banks have made arrangements to
clear through other banks. and the balance
OF the sixteen are making similar arrange
ments as fast as possible. The failure was
great surprise In financial and business
circles.
The cause OF the suspension MS given la
the resolutions adopted by the clearing
house committee are "unwarrantable and
in!udcous loans" through which the CAP
tal and surplus of said bank Is seriously
| imperilod. II not absolutely lost.
| one Of the leading bankers and fInan-
| cers of this city at noon today said TO al
Associated Press reporter:
THE failure of the National Bank oil
| Illinois has created no disturbance of coll
sequence In financial circles here. One OF
two private banks have failed; but thus Is
only natural consequence of shrinking
real estate values"
The statement was made that a loan 81
81, 400, 900 to the Calumet Street Railway
company OF which ]. w. Farson Of Farson
| Leach Il Co. In president, has caused the
National Bank OF Illinois to suspend. MIR,
| Farson declined to make n statement on
that subject. but stated that the failure
would not affect the Calumet road. Heavy
| loans on real estate are also said TO have
been made. Tho last statement of the
| bank showed deposits OF $12, IT'S, 1866: loans
50 1870 ,642 cash securities A.ss3. 202.
1t Is thought probable that none OF the
| deposltors Will suffer from the suspension
as the bankers who were present at the
meeting OF the committee recommended q
proposition to advance 75 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 9th
or members OF the clearing house associa-
ton to accept such claims as collateral al
the same ratio.
The National Bank Of Illinois was or.
ganized in August, 1871, with capital
stock Of 5000 900. which was subsequently
increased to 81. GOO 900. 1t was regarded AZ
one of the soundest financial institutions
| In the city.