The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-18

rency, ana captain EuDank, OF the audi
tors department at Springfield, were
ly pleased at the action of the Chicago
banks, and stated that 1t reflected great
credit upon the associated banks of Chi
cago, which have again indicated their
ability to meet any emergency in
m =, entirely satisfactory to the pub
John R. Walsh, head Of the institu-
tions which have been declared insol-
vent, was not at the meeting. The follow.
ing were the members at the committee
meeting: J. B. Forgan, chairman; J.
J. Mitchell, j. H. Eckels, Orson B.
Smith and Ernest A. Hamill.
Payments Pledged,
In addition to the formal statement
Of the failure .and, the announcement
that the banks involved would not open
their doors this morning, the following
announcement was made, signed by the
clearinghouse committee Of the CHICAGO
Associated banks:
''To the public: Depositors of the
Chicago National bank, the Home Saw
ings bank and the Equitable Trust
their deposits will be paid in full upon
| demand.'
Statement by Ridgely.
The following statement was given
out today by Controller Of the Currency
| William M. Ridgely:
| "The action of the Chicago clearing
house banks in coming to the aid Of the
| Chicago National bank, the Home Saw
ings bank and the Equitable Trust COM
pany, has relieved a most critical stu
alton, which, if it had not been taken
promptly. in hand, might have led to
very serious consequences, not only in
Chicago, but elsewhere. The action Of
the clearinghouse banks makes it abso.
lutely certain that all the creditors of
the three institutions will receive their
money Immediately and should thus re-
lieve any apprehension on the part of
the public in regard to financial troubles
in Chicago.
Cause of the Break.
"The critical situation in which
these tire three concerns Sa . have aye been
as h msd been o due t te saS e egs
mining and. other enterprises owned
and controlled by John r.. Walsh. This
again emphasized the danger Of the
managing officers Of banks being inter.
ested in outside institutions requiring
large amounts Of money.
1.-THE controllers office has for some
time been. criticising the Chicago Ma.
tional bank and calling upon it's officers
and directors to reduce the amount OF
bonds Of Mr.. Walsh's corporations.
Promises Not Kept. ..-
''In spite Of repeated promises that
this should be done these items have
; been continued in the bank and in order
to prevent further encroach1nents it was
necessary for tho controller to take radi
cal action.
"The controller . office has for some
time been endeavoring to make an ex
animation of the Chicago National bank
simultaneously with the examination Of
the state institutions by the state bank
, examiner, but was not able to bring this
! about until few days ago. The result
! of these examinations revealed such
serious condition that it was necessary
, to take Immediate action. The CONTROL
, er telephoned from Washington instruct
- ing Bank Examiner Bosworth to brin!
, the matter at once to the attention O.
, the clearinghouse committee and left TO
! Chicago on the first train to be on hant
! to personally take whatever action wa
- necessary.
The Long Conference.
"On the arrival Of the controller il
; Chicago conference was immediatel,
uSlQ Will Vic SCdtC dutiOIlG1CS dIlO
{ clearinghouse committee, which contin
I ned from 10 O'Clock Sunday mornin
until 5 O'Clock Monday morning. i
addition to the clearing house commit
); tee, representatives Of all the clea1
u ing-house banks were called into cor
,. ference at about 7 clock Sunday. Til
: controller feels that great credit is du
tee, but to all the other clearing hous
banks, for the prompt, vigorous actio
= and the broad minded spirit shown i
meeting this emergency. +~~
The Failed Banks. =
ga nhs C in fNo7 Sn'ea 1897 VIII ab
:. ! authorized capital Of 100000, il
creased to 100000 in 1887 and $1,000
:, 900 in 1901. =-.@-.. FIR. -, u y.
J, It's resources, according to one of tn
a latest reports made t.. the controlle
e Of the currency, are $2l ,OOO,O00, : G
g, which nearly $11, 100000 are loans an
+ The liabilities include nearly $l4 900
900 in Individual deposits and $4,70O
to 900 due to other banks. ...s
ne The Home Savings bank was organ
ne lied originally IN 1867, with CAPITA
cation Of 100000. A late statement
| $4,2s2,271, Of which $3,7SS,6o6 is J:
ported as being held in municipal raj
road and other bonds. The savings d
( posits aggregate $3,9S2,653.
The Equitable Trust company WI
:, chartered by the state Of Illinois Au
. 20, 1887, to act as executor. admin
traitor, trustee, guardian, assignee I
T receiver, and to receive and execu
:, trusts Of every character. The capit
. stock is 100000. Its resources 81
q $4,612,381. The liabilities inclut
$2,7O7,563; Of deposits in trust, $40
323: certificates of deposit, $49l 81
. thru various trusts.
: Bank in Politics.
The Chicago National bank has bet
an active factor in local politics f
several wears, and the enormous fun,
- received from the taxation for Il
building and maintenance Of the drai
b age canal have been a part of its q
4 posits, and have been available for i
J! vestment by the bank. "A change W
: recently made in the political compile
j ion Of the board, and it was understot
Il that these funds would not remain
any length Of time as deposits in II
Z Chicago National bank. Their impen
ing withdrawal had much to do with Il