The Oskaloosa herald., 1905-12-21
JOHN R. WALSH'S
THREE BANKS FAIL
FINANCIAL cHAeH M CHICAGO
DUE 70 SPECULATION,
DEposrroRs WILL NOT IosR.
Associated Banks o. Chicago Com,
10 the Rescue ard Are Pay.
Ing Every Claim a. Fact
as They Can.
s~crIppsMcRae Telerrnm.

ScrippsAMcRae Telegram.
Chicago. Dec. is.--John Il. walsh's
three banks, the Chicago National,
the Homo Savings and the Equitable
Trust company, were declared insoiv'
ent last night and public announce
ment Of the failure was made this
morning by the Associated Banks OF
Chicago. Immediately the three in.
stitutlons were besieged by deposit.
ors demanding their money, and a,
times the crowds became bowling
mobs, Tho most demonstrative crowd
was gathered about the Home Saw,
irgs bank, where the majority OF the
depositors were poor people, and the
stunt demanded were smaller than al
the other institutions.
All Claims win Be Paid.
The Associated Banks Of Chicago
have posted notices guaranteeing tc
make good every liability and pay
every claim. The Chicago National
had sixteen million dollars in de
posits, The Home Savings had -four
millions, belonging to $4,000 deposit
ors. The total liabilities OF the three
Institutions Is thirty-six millions Of
dollars. The directors of the Walsh
banks and the bankers of the city
turned owe securities OF three mil
lion dollars and guaranteed the re
mainder.
The. banks opened at the usual houl
this morning and paid ~deposltors al
fast as they could. They received ne
money on deposit. Clearing house
officers were in charge of the banks.
Speculation Causes Failure.
Private speculation, operations II
railroads, coal lands, quarries anC
other side lines are said to be thu
cause of failure. Comptroller OF thu
Currency Ridgely has been In thu
city three days, making an investiga
ton. Sunday afternoon he called
meeting of the other bankers OF tn,
city at the office OF President Forgan
Of the First National. The meeting
lasted from Q p. M. 10 $3.50 this morn
ing, with the result that the Associat
ed Banks OF Chicago agreed TO take
charge and make all deposltors whole
The announcement OF the failures and
the intentions OF the other banks wal
made at four o'clock this morning ant
spread like wild. fire over the city.
II is predicted that aside from the
institutions directly concerned the
failure will have no bad effect on any
other bank, or upon the business stu
alton in Chicago.
Police Direct Crowds.
Chief Of Police Collins was presen,
in person all day with a detail OF 20
lice directing the excited crowds. Mr.,
Walsh arrived. early but refused To
talk. His biother-in-law stated that
depositeIs would all DO paid, but ne
could not 'ay how the stockhold ara
would fare. The last statement OF
the Chicago National showed re-
sources and liabilities amounting TO
$~19,S54,198.9S. The Home Savings
Bank showing was s3,o48477.13.
sWaish's Remarkable Career.
Walsh was born in Ireland In 1887
and came to Chicago in early life. Ae
began as clerk for a news dealer and
finally formed the American News
Company. He became interested in
innumerable enterprises. He has tor
long time been considerable OF q fac
tor In politics. He has been Ill for
three months, and is weak and re-
duced in vitality.
The Comptroller Of the Currency
says he blames the railway invest
ments principally 4or his failure.
Ridgeway says he mas tried for some
time to get a simultaneous investiga-
ton by the state and national author
tiles of the Home Savings and Chicago
National Banks. When he succeeded
he found conditions requiring radical
action.
Walsh resigned the presidency OF
the Chicago National at a meeting OF
directors held this morning.