Great Falls weekly tribune., 1896-12-25
OLD BANK FAILS
OTHER BANKERS FRIGHTENED
Chicago Clearing House Takes Prompt
Action to Avert Panic Among
DepOsitOrs.

CHICAGO, Dec. 21.-The National Bank
OF Illinois, one of the Oldest and best
known banking institutions in the city
and with assets of between twelve and
fifteen million dollars, closed its doors
today. The following notice was posted
on the doors before the opening of the
banking hours:
This bank is in the bands of the ma
tional bank examiner, BY order of the
comptroller Of the currency"
This action was decided upon at a
meeting OF the directors of the bank
last night, after the bank had been sus-
pended from the clearing house of Chi
cago. at meeting Of the clearing house
committee held earlier in the day. OF
lG banks that cleared through the Ma
tioral Bank Of Illinois, two closed their
doors as result Of the closing OF that
institution. They are Il. S. Dreyer d
Co, and Wa4mansdorG Il lieinemann,
These two institutions are mortgage
loan banks and nayiug socetca In &
small wsy, aud their failure is not ex-
pected to affect business. The assets of
f S, Dreyer & Co. are given at 81 ,G0O,-
600, with liabilities of ?1,200COO. The
ligureG for aamaneQOrif !, Heinemann
are approximately: Assets, 3G50,000:
liabilities, 100000.
The Security Title and Trust company
was appointed receiver for both firms.
Six banks have made arrangements to
clear through other banks and the bal
ance of the IL are making similar ar
engagements as fast as possible. The
failure WIS great surprise in financial
and business circles.
The causes CT the suspension, as given
in resolutions adopted by the clearing
house committee, are "unwarrantable
and iniudicious loans, through which
the capital and surplus Of said bank are
Goriously impcriled If not absolutely lost"
The last statement of the bank showed
deposits, So, 5,1GG; loans, 59,199C42;
case resources, 81 $685. 202. It ie thought
probably Lone Of the depceitors will suf,
for 10y the suspension, as bapkors who
were present at the meeting CT the COM
mitt3o have recommended for conHidera
ton proposition to advance rs per cent
on all adjusted claims against the Ma
tiona! Bank If Illinois. Ia addition to
this they have agreed 10 use their iuhn-
ence with all other members Of the
ClosriDg House association 10 accept
such claims Us collateral, at the same
ratio.
The National Bank of Illinois YVES OF
ggnized ia August, 1871, with a capital
stock OF 330O0o0, which was subsequent
ly increased to 3l,00o,C0o. II WAS re.
garded as one Of the soundest financial
institutions in The city.
At a meeting of the clearing hous
banks, held after The rlosa Of Eueiness
this afternoon, all banks we're repro
santed, and upon the Recommendation Of
the clearing house cOrnmttee, who had
made thorGugh examination Of the Ma.
ton Bank ct Illinois, the clearing banks
wero advised to advance - per cent on
all claims against the National Bank of
Illinois which shall be certified to
by the receiver as being on deposit ia
that tauk. The general sentiment Was
ihst the deposltors would receive their
money in full and the bank has nov on
hand in cash nearly 10 per cent of its
entire liability, No banks requested
any aesistaucs fr0p tho clearing house
and statements published today, on the
call of the comptroller Of tho currency
at tie close Of business on the l7th inst,
show very strong reserves. There has
been very little eXcjtomcnt today in
baukinG circles in this city.