The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1896-12-25
A FINANCIAL CRASH.
One of Chicago's Strongest Ma
tional Banks
Closes It's Doors to the Public, Carrying
Down with 1t several Private BANKING
Houses Reassuring Action Taken
by tho Chicago clearinghouse.

CHiCAGo, ice. 2l.-1he closing OF AN
institution which was considered to
be the second strongest national bank
in Chicago. quickly followed by the
failure of three private banking
houses which did business with it,
caused a furry of excitement In finan.
cial circles to-day and led to runs ON
several banks by timid depositors.
flood of rumors relative 10 other banks
and business firms added to the in-
tense nervousness which pervaded all
classes of people long after banking
hours and the close of the courts.
The banks which were closed were the
following:
National Bank of Illinois, capital,
$1,000 200; liabilities, Sll, 1000 900.
f. ). Dreyer & Co., bankers, mort.
gage brokers and real estate dealers;
liabilities, 81 500, 900; estimated value
of assets, 81, $50, 900.
Wasmansdortf & Heinsmann, bank
ers and mortgage brokers; liabilities,
S416, 900; estimated value of assets,
$3.50,
Roseland savings bank, Roseland,
ILL.,; small capital and assets esti-
mated equal to liabilities.
All the private banks which closed
their doors cleared through the Ma.
tional Bank of Illinois, and the big
crash compelled their suspension to
conserve their assets and protect cred
itors. The two private city banks
went into liquidation through receiv-
ership proceedings in the courts.
Reassuring action was taken at
largely attended meeting of the Clear
inghouse association, which was held
after banking hours this afternoon.
The following resolution, offered by
ex-Comptroller of the Currency 4. s.
Lacey, presidentsof the Bankers Ma
tional league, was unanimously adopt
ed:
That the clearinghouse committee after
calling to their aid such other persons as they
may desire, be required to formulate a plan
which will enable creditors OF the National
Bank Of Illinois 70 avail themselves OF the Of
fer OF the associated banks t. make advances
by way OF loans to said creditors to the extent
OF 20 per cent upon properly proved claims.
The chairman of the clearinghouse
committee stated that the readiness Of
bankers to do this was SO evident that
it was not probable any formal organ.
ization to accomplish the object set
forth in the resolution would be nee.
essary, although the committee ap-
pointed will give prompt attention to
the duty imposed on them.
William h. Dummer, president of
the association, and president Of
the Northwestern national bank, read
the following telegram, which he had
Currency Eckels, dated Washington:
Il have appointed Bank Examiner
Mckeon temporary receiver of the
National Bank of Illinois, and in
structed him to publish notice to
prove claims. He informs me that
the clearinghouse committee will
advance 75 per cent. on evidence OF
claims. Notice will be published at
once, and If claims are proved imme-
diately shall within thirty days be
able to pay "a very considerable divi-
dend. appreciate the action of the
clearinghouse in Offering to advance
on such certificates"
The decision of the clearinghouse
committee to refuse clearing privi-
leges to the National Bank of Iii linois,
also to refuse funds by which the bank
could have gone into voluntary liqri
dation was chiefly due to the astound-
ing discovery that the bank had
loaned -, 400, 600 TO the Calumet Elec-
tric Street Railroad Co., ON it's bonds
as sole security. This loan exceeded
the banks capital and surplus. An.
other account, which caused the bank
ers to hesitate, was stated to be near
$780, 0OO the debtor being E. S. Dreyer
q Co. Robert Berger, the only part
ner of Mr.. Dreyer, is son-in-law of
George Schneider, president of the
failed national bank. There were two
other big loans which were considered
poor collateral
The necessary sequel to this refusal
to lend aid or to continue clearing
privileges was that the big national
bank III Dearborn street failed to open
its doors this morning for public busi-
ness. This was anticipated by the ac-
tion OF the clearinghouse committee,
but there was a small knot of anxious
depositors waiting on the marble steps
of the entrance when the big iron
screen in front of the doors was rolled
UP az hihS OSAOIh W autfiit SeVcral
clerks.
AT $3.50 O'Clock card was hung on
the grill work, reading as follows:
This bank is in the hands OF IA national bank
examiner. by order Of the comptroller OF the
currency.
This cheerless announcement for
depositors was shortly followed by
the posting of notices that certain
private banks and business firms
would clear through other banks or
pay checks which had been given Sat
urday on the suspended institution.
County Treasurer ID. III. Kochers-
perger has $500, 900 of county funds
tied mp in the National bank. and
Fred nj. Blount, the newly appointed
treasurer of the drainage board, had
over $4,000 of district funds in the
bank, whose officers were on his bond.
The bank officials were also on the
bonds of the city and county and West
pa rlr hr.a ard