The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-12-22
PANIC AT CHICAGO.
Three Prive+.s Backs Are Closed on Ac.
count Of the Failure Of the National
Bank Of Illinois.

Chicago. Dec. 21.-The closing of an
institution which was considered the
second strongest national bank in Chi
cago, quickly followed by the failure
OF three private banking house,, which
did business with 1t, caused furry OF
excitement in financial circles today
and led to runs on several banks by
timid deposltors. A flood of rumors
relative to other banks and business
hrms added to the intense nervousness
which pervaded all classes of people
long after banking hours and the close
of the courts.
The banks which We're closed follow
National Bank of Illinois, capital
N,OOO,OOO; liabilities, $11 100000 +. $.
Dreyer a Co., bankers, mortgage brok-
ers and real estate dealers, liabilities
N,5OO.OOO; estimated value Of assets,
81 100000. WasmansdOrff "a Heinman
bankers and mortgage brokers. liabili-
ties, S4l6,000; estimated value of assets,
$3.50, 900. ROseland Savings bank. Rose
land, ILL.,. small capital and estimated
assets equal to liabilities.
All the private banks that closed their
doors cleared through the National
Bank of Illinois, and the big crash COM
PEELED their suspension to conserve their
assets and protect creditors. The two
private city banks went into liquida-
tion through receivership proceedings
in the courts.
Reassurng action was taken at a
largely attended meeting of the clearing
house association at which a resolution
was unanimously adopted to make ad-
vances by way of loans to creditors
to the extent of Is per cent. upon prop
erly proven claims.
The decision of the clearing house
committee to refuse clearing privileges
to the National bank Of Illinois, and
also to refuse funds by which the bank
could have gone into voluntary liquida-
ton was chiefly due to the astounding
discovery that the bank had loaned
$2.4OO,00O to the Calumet Electric Street
Railroad company on its bonds as sole
security. This loan exceeded the
banks capital and surplus. Another
account, which caused the bankers to
hesitate was stated to be near $780, .000
the debtor being L. $. Dreyer & Co.
Robert Berger, the only partner of Mr..
Dreyer,' Is sOn-in-law of George
Schneider. president of the failed Ma
tiOnal bank. There was two other big
loans which We're considered poor COLI
lateral.
The necessary sequel to this refusal
to lend aid or to continue clearing
privileges was that the big national
bank on Dearborn street failed to open
its doors this morning for public busi-
ness. This was anticipated by the ac-
ton of the clearing house committee.
but there was a small crowd of anxious
depositors waiting when card was
hung on the door reading as follows:
This bank is In the hands of ma
tional bank examiner. by order of the
comptroller of the currency"
This cheerless announcement for de-
pOsitors was quickly followed by the
posting of notices that certain pri-
vate banks and business firms would
clear through other banks, or pay
checks which had been given saturday
on the suspended institution.
The heaviest run on city banks dur
ing the day was directed at the Gar
den City Banking and Trust company.
They withstood the attack Of 200 anx-
ious depositors and tonight gave out
the statement that they were thorough
ly prepared to pay everybody who
wanted money tomorrow. though they
believed the worst was over. The
bank has s.. 200. 900 on deposit, but the
savings department is not large. Coun-
ty Treasurer Kocherberger Is direc-
tor and there Is a large amount of
county money there. The financial un-
easiness on the part of the bankers
and depOsitors has been aggravated
lately by the numerous failures of
building and loan associations and the
exposures of their financial rottenness.