Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-12-21
THE WALSH sMAsH-uP.

Though the word "smash-up IS mott
endorsed by the most careful gram
|, marians, 1t expresses more accurately
than any other the exact nature OF the
financial event that caused Chicago
Business circles Monday to stand
aghast and sent many ripple OF sur
prise across the usually tranquil face
of the whole middle west. Even New
York's financial barometer, the Wall
street market, was panicky when 1t
was found that because OF this one
mans wild speculations three banks,
supposed to be among the strongest
in Chicago were compelled to wind
up their affairs.
It was John R. Walsh's own partic-
ular private smash-',p. 1t will not
catch a single depositor in any OF his
banks for d solitary cent OF loss. chi
cago and her financial interests may
we'll feel proud Of the manner IN
which the clearing house ASSOCIATION
came to the front with assurances
\ backed by millions of dollars, that the
creditors of the three insolvent lnstl-
buttons would not lose anything. ~
testifies eloquently to the splendld
condition of the country-th1s readl-
ness with which the Chicago bankers
rallied to the support of the pubic,
for it was the public and not Walsh
that they protected. Walsh is bank
rupt-..broke'' would be more ex-
pressive term. This fact was made
clear during the meeting of bankers
which lasted from o'clock Sunday
afternoon until O'Clock Monday
morning. No amount of money could
save him from bankruptcy and posi-
70 S1-r
bilities in the form of charges IN
court. But. the bankers thought Of
his duty to the public and Immediately
decided that the duty was theirs as
we'll. They ascsrtained that there
was a shortage in his banks of about
100000 and Immediately the clear
ing house association announced that
IT would make good that amount or
| any other amount that was found to
be lacking.
AS a matter of course, and as was
fully expected, run on the banks
took place, but every one of the anx-
ious depositors was paid in full. Ex-
ira. clerks were employed to facilitate
/ the work of paying out money. There
.iyas money piled high upon the coun-
LWers Coin and bills we're plentiful
Vand as fast as pass book was slip
4 ned under the window the full amount
for which it was good was given to
the depositor At the Home Savings
bank. where the state laws gave the
institution the right to demand sixty
DAYS notice of withdrawal, the statute
was not invoked, and when the money
was asked for it was paid without a
word.
The failure is the failure of Mr.,
Walsh and not of the banks He had
secured loans that made the condition
of the banks unsafe, and the banks
consequently had to be closed to de-
POSTS But all this was done in a
legal and formal way, and the credit
\ Of Chicago's banking fraternity was
s7ot Impaired in the least. The
4 ,rompt work of those bankers there
4 effects credit upon the banking fra
{s ;ernity of the whole middle west and
t1f the nation itself.
!, Mr.. Walsh's smash-up is the result
u Of unwise business ventures. Person
4 ally he is down and out" in bust
ness way, but the men and women
who entrusted their savings to. the
banks he dominated are not to lose
a farthing. Such action is reassur-
ing to the general public. + means
that financial conditions on the whole
! are good. 1t means that the moneyed
] institutions, the institutions that deal
in money are on a firm foundation.