The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-12-22

] III VueA t4iC Atill4lCi pt1alh-
The suspension had but little effect
either in the wheat pit or on the stock
| exchange. Wheat. indeed, showed
strength after the opening sc decline
and the stock market was dull, and only
fractionaliy lower
Neither the bank examiner nor any OF
the officers of the National Bank Of Hi
nois will make any statement.
THE PRINCIPAL TROUBLE.
Chicago, Ill. Dec. H.-The principal
source of trouble of the National Bank OF
Illinois was a loan OF 81, 900 to the
Calumet Electric Railway company.
This, with three or four over-,oans,
threatened severe losses and the clearing
house committee saw no way but to sus-
pend the bank The loss in liquidation
viii be small, if any, to depositors- II
Is not probable that the bank will re-
sumo business.
A director of the National Bank Of Illi-
nois stated today that the loan made to
the Calumet Electric Street Railway com
pany ($2, 400, 00O was without the know
ledge of the directors The efforts made
TO dispose of the Calumet stock, which
was held as security for the loan, drew
attention to it and brought about the in
vestigation with resulted in the bank s
suspension.
One Of the leading bankers and finan-
clerS OF this city as noon today said to
an Associated Press reporter:
The failure of the National Bank OF
Illinois has created no disturbance of con
sequence in financial circles here. One
or two private bankers, who were really
nothing but mortgage dealers, have fail
ed. but this is only natural consequence
of shrinking real estate values
CLEARING HOUSE ACTION.
Chicago, H., Dec. 21-At a meeting of
the clearing house banks held after the
close OF business this afternoon, upon the
recommendation Of the clearing house
committee who had made thorough ex-
animation of the affairs of the National
Bank Of Illinois, the clearing house
banks agreed to advance 10 per cent on
all claims against the National Bank OF
Illinois which shall have been certified
to by the receiver as being on deposit in
that bank The general sentiment of opin-
ion was that the depositors would receive
their money in full. The bank now has
on hand, in cash means, nearly 40 per
cent of their liabilities. No banks re-
quested any assistance from the clear
ing house. The bank statement, publish
ed today, on the call of the comptroller
of the currency at the close of business
on the 18th instant show very strong
reserves. There has been very little ex-
element today in banking circles in this
city.
The following resolutions were adopted
at the meeting:
Resolved, That the clearing house
committee. after calling to their aid such
other persons as they may desire, be re-
quested 10 formulate a plan which will
enable creditors Of the National Bank of
Illinois to avail themselves of the offer
of the associated banks TO make advances
by way of loans to said creditors to the
extent of 10 per cent upon properly
proven claims
The chairman of the clearing house
stated that the willingness of bankers to
do this was so evident that ii is not pro-
bable that any formal organization TO ac-
comp,ish the object will be necessary, al
though the committee appointed will give
prompt attention TO the duty imposed
upon them.
ECKLES HEARD FROM.
The following dispatch was received to
day by the president of the clearing house
committee:
Washington. D. c., Dec 81, 1896.
Il have appointed Bank Examiner Nc
Keen temporary receiver of the National
Bank of Illinois and instructed him to
publish notice for creditors to prove their
claims. He informs me that the clearing
house committee agrees to advance rs per
cent on evidence of claims. Notice will
be published at once. and il claims are
proven Immediately l shall within thirty
days be able to pay very considerable
dividend. l appreciate the action of the
clearing house in offering TO advance on
such certificates
(SiPned JAMES TT ErUr