The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-20

Much has been said by those who cry
calamity" because of the bank failures
in the West. Those failures have pee'
disastrous. but the facts show that they
were due not to political causes, but to
speculation ana bad management.
The trouble began when Moore Broth
orc WHO MANIPULATED the Diamond Match
Trust went down. These men manag
TO get control Of all the large match fac
tories I'm the country and capitalized
them. The stock showed good dividends
and for time an went well. The ca pl-
tal stock of This company was ten million
dollars. seven millions of which was
water BY reason of its dividends how
ever. IL found a ready sale ana at enc
time the promoters thought they were
going to capture the match business OF
the whole world. aud TO organize trusl
worth S50.OOO.OOO But an evil day came.
the Match Trust collapsed. and MoorS
Brothers. who were worth 100000. came
out of the wreck 100000 I'm debt. The
Chicago Stock Exchange was closed, and
the stock which had been selling one day
al SOP was quoted the next day at 500.
Everybody VINO held il suffered, and just
how many banks were injured in this
deal will probably never be known.
John w. Doane, who had long been
president of the Merchants Loan and
Trust Company was forced to retire and
Edison Keith. prominent bank director.
ended his troubles by jumping into the
lake This was a mighty blow TO Chi
cage, and as we have said, was the be-
ginning Of its troubles.
But the worst was yet to come. on
the morning Of December 2lst. the Ma
tonal Bank Of Illinois closed its doors
1t was one Of the strongest institutions
in the West 1t had four thousand de-
posltors. was the government depository
and also for nearly one hundred small
banks scattered over the Northwest.
Its deposits amounted to $500 coo, and
the immense sum of 100000 was in
volved in its failure. The trouble of this
great institution began when in a spirit
Of speculation Il agreed to advance money
to one Jacobs. who planned an electric
railroad to be known as the Calumet Sys-
TEN.
First, 100000 was advanced and an
other sum of 100000 and still another un-
Ill the whole sum amounted to &,il5,o0l
The road proved to be a failure and the
bank could not sell it to advantage. l.
Ittf 80
purpose to say that the inevitable crash
finally came. The bank carried down
several large financial institutions of Chi
cago. and another man, who was ruined
by its failure. committed suicide.
But the end was not yet. The fall
of the National Bank of Illinois and insti-
tutlons Immediately connected with it
caused run on other banks, which were
already under suspicion. Then the Atlas
National Bank went into liquidation, and
il was discovered that the loans 10 its
directors amounted to more than its en-
tire capital stock. The failure OF the
Atlas caused the Van Nortwick failure.
which was one OF the most disastrous
yet. over 100000 being involved therein.
Van Nortwick was a director in the Atlas
Bank and borrowed 10 the extent OF
S2lOOOO. John l.. Norton. was another di-
rector. lie was borrower to the OK
tent OF $4,000. and he also went down
with the Atlas and his failure involved
loss OF 5000
The shock was felt as far as St Paul
and Minneapolis. and suspicion was RAISED
In those cities against some Of the bank