Omaha daily bee., 1896-12-22
CHICAGO BANK IS CLOSED Up
Illinois National in the Hands Of the
National Bank Examiner
LOSS TO DEPoslToRS WILL Be SMALL
one Mig Loan TO street Railway Conn
Vnny Considered Grossly ininhi-
cIous hy clearing House, which
Promptly closes the Bank.

CHICAGO. Dec. 2l.-The National Bank
of Illinois, generally considered one Of the
strongest financial institutions In the west
closed its doors today, the failure dragging
down three other concerns, T.. $. Drcyer q
Co: Wasmanslorfr, Hoincmann co.. and
tho Roseland bank. The failure Of the Ma
tona Bank Of Illinois was due to the fact
that its entire capital Of $20oO0o) and
100000 over and above its surplus Of $780,
600. had been loaned on Calumet Electric
stock. In addition. 100000 was loaned to
Dreyer & Co., who had spread their capital
out so extensively that they were unable
to concentrate it in time to same themselves
The other failures were due to the locking
up of assets held by the National Bank OF
Illinois, and which were not available when
that institution closed it's doors. No fur
ther trouble is expected, as the Clearing
House association has agreed to pay 10 per
cent of the deposits in the National Bank
OF Illinois. and at the meeting Of the clear
ing house committee this afternoon all OF
the banks reported themselves in good con
dition. and none of them asked for the aid
that would have been freely extended had
IL been asked 1t is probable all of the
banks will resume with the exception OF
the National Bank of Illinois, and all de-
positors will be paid in full.
The National Bank OF Illinois was one
of the oldest and best known banking in
stitutions in the city. with assets OF be
tween $4,000 600 and Sl5O0O00O The fol-
lowing notice was posted on the doors be
fore the opening Of banking hours:
This bank is in the hands of the ma
tional bank examiner by order OF the comp
troller of the treasury
This action was decided upon at meet
Ing Of the directors of the bank last nght,
after the bank had been suspended from
the Clearing House association OF chicago
at a meeting of the clearing house com
mittee held earlier in the day.
or 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 f. 5. Dryer d
Co.. and Wasmansdorff d HCinemann. These
two institutions are mortgage loan banks
and savings societies In a small way, ana
their failure is not expected to affect any
business houses. The assets Of p. ;. Dryer
& CO. are given at $l,oe),0oO, with liabilities
of $l2OOOoO. The figures for WasmansdorH
e. Hcnemann are, approximately. assets
$65O,OO0; liabilities, 100000 The Security
Title and Trust company was appointed re
ceiver for both firms.
Six banks have made ARRANGEMENTS to
clear through other banks, and the balance
of the sixteen are making similar arrange
mcnts as fast as possible. The failure was
a great surprise in financial and business
circles.
REFLECTS ON THE OFFICERS
The causes Of the suspension, as given in
the resolutions adopted by the clearing
house committee are "unwarrantable and
injudicious loans" through which "the cap
ital and surplus Of said bank is seriously
imperiled If not absolutely lost The
statement was made that a loan Of about
81 900 to the Calumet street Railroad
company, OF which J. w. Farson OF Farson,
Leach q Co. Is president, had caused the
National Bank OF Illinois to suspend. MIR
Farson declined to make a 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. The last statement Of the bank
showed deposits, $12,175,766; loans $)l99-
642; cash resources, Si,9S3,2 ,2O2.
II Is thought probable that none of the
depostors will suffer by the suspension. rs
the bankers who We're present at the meet
ing OF the committee have recommended for
consideration the proposition to advance 70
per cent on all adjusted claims against the
National Bank of Illinois. In addition to
this they have agreed to use their in
nuence with all other members Of the Clear
Ing House association to accept all such
claims collateral at the same ratio.
The National Bank of Illinois was organized
In August 1871, with a capital stock OF
100000, which was subsequently increased
to 81 600 600 II was regarded as one OF the
strongest financial institutions i'm the city
The Press club is one of the sufferers by
the suspension. all the proceeds OF the ad-
vance sale of tickets for the foot ball game
between the Carlisle Indians and the Uni
yersty OF Wisconsin eleven, which was held
under the management of the Press club.
amounting to over $4,000, having been de
posted Saturday.
1t was announced that the Drovcrs' Ma
tlonal bank. which cleared through the Ma
tlonal Bank Of Illinois will clear through
the Commercial National. The West Side
bank will also clear through the Commercial
National
The suspension had but little effect either
In the wheat pit or on the Stock exchange.
Wheat, indeed. showed strength after the
opening &-ccnt decline and the stock market
was dun and only fractionaly lower
Neither the bank examiner nor any Of
fcer Of the National Bank OF Illinois will
make any statement mt present.
One Of the leading bankers and fnancers
of this city at noon today said 20 an AssO-
ciated press reporter: THE failure of the
National Bank OF Illinois has created no
disturbance OF consequence I'm financial cir
Cles here One or two private bankers who
We're really nothing but mortgage dealers
have failed hut this is only natural ronsc-
quenCo Of shrinking real estate values"
Tho principal source OF trouble Of the