gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
86665638f87c136f
Response Measures
None
Receivership Details
Depositor recovery rate
14.9%
Date receivership started
1875-02-01
Date receivership terminated
1883-11-20
OCC cause of failure
Losses
Share of assets assessed as good
30.7%
Share of assets assessed as doubtful
61.8%
Share of assets assessed as worthless
7.5%
Description
Articles describe a temporary 1873 suspension and resumption, then a 1875 suspension into voluntary liquidation with a receiver appointed.
Events (6)
1.July 8, 1871Chartered
Source
historical_nic
2.September 26, 1873Suspension
Cause
Macro News
Cause Details
Part of the wider Panic of 1873/Chicago banking suspensions and use of 30/60-day rule to stem runs.
Newspaper Excerpt
The Cook County National Bank has suspended. Three other National Banks have also suspended.
Source
newspapers
3.September 29, 1873Reopening
Newspaper Excerpt
Union National, Cook County National and National Bank of Commerce, opened their doors and resumed business at the usual hour this morning, ... confidence is returning.
Source
newspapers
4.January 19, 1875Suspension
Cause
Voluntary Liquidation
Cause Details
Stockholders voted to go into voluntary liquidation; bank had unsound assets and declining deposits.
Newspaper Excerpt
The Cook County National bank of Illinois in this city suspended payment yesterday. THE COOK COUNTY NATIONAL BANK GOES INTO VOLUNTARY LIQUIDATION
Source
newspapers
5.January 28, 1875Receivership
Newspaper Excerpt
the Comptroller ... has appointed A. H. Burley receiver of that bank.
NEWS OF THE DAY. The Wisconsin State fair begins at Milwaukee to-day. The Texas editorial excursionists left Cincinnati last night for Louisville. The financial panic is reported to have seriously affected the narrow-gauge interests in Utah. The Chicago banks have taken advantage of the sixty-day privilege on their depositors. McClure's military academy, at Oakland, California, was entirely destroyed by fire Saturday night. Immediately after the cortes adjourns the Spanish government at Madrid will declare Spain in a state of seige. Thomas Tarwater, a brakeman, was run over and killed by a freight-train at Columbia, Tennessee, on the nineteenth instant. Pat Garnley, an insane man, set fire to a building in Jeffersonville, Indiana, yesterday, remained in it and was burned to death. Business generally will be suspended in Cincinnati to-day. it being proclaimed by the mayor. a holiday in the interest of the exposition. A strange and fatal disease at Kelter, in Utah, is very prevalent, producing great consternation. The patients die in a few hours. It resembles fever. Satisfactory arrangements have bee n perfected with the Ute and other tribes of Indians, hitherto in discontent, so that they will be settled upon their reservations. A Milwaukee dispatch says the financial panic of New York produces no disturbance there as yet, but the banks are preparing for any emergency that may occur the coming week. At Carbondale, Illinois, yesterday two negroes, Bill Smith and Frank Collins, remembered the Sabbath by playing cards, "fell out," resulting in the latter shooting the former through the heart. He's dead.
2.September 23, 1873The Daily DispatchRichmond, VA
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senior partner, has disappeared, causing great anxiety to his famile and friends. Search has been made in fall directions. CHICAGO. CHICAGO, September 20.-The Franklin Bank, a private banking institution, closed its doors to-day, being unable to settle at the clearing-house. The amount short was only $9,000. The vice-president of the concern says the embarros-ment is only temporary. CHICAGO, September - There is considerable of a run upon some of the banks here to-day, but they are adhering to the resolution adopted yesterday to fall back on the thirty and sixty-day rule, and are only paying sums of less than 8100. The latest reports, public and private, from New York appear to have had the effect to lessen the anxiety. BALTIMORE. BALTIMORE, September 21.-While the excitement in the New York market is watched with interest, and the brokers' offices have been visited by crowds to observe the sway and wreck of stock prices, everything has gone on calmly, and business is done at our banks in the usual way. Money continues at 10 to 12 per cent. for best paper on the street, though negotiations are limited, and are for strictly business en. gagements. IOWA. BURLINGTON, IOWA, September 20.-The Orchard City Savings Bank suspended at 12:20. PITTSBURGH. PITTSBURGH, PA., September James T. Brady & Co., bankers, and the Security Trust Company. of this city, suspended today. THE FEELING IN ENGLAND. The London Times says: " In view of the extraordinary prosperity of the United States and the high price of Government bonds the present must be regarded as a simple effort of the financial system to get rid of its dishonest element." The Daily Telegraph says stick local trouble as suspensions in New York seems to be merely the rank outgrowth of exuberant prosperity, ond accessories to progress which does not for a moment halt. LONDON, September 22.-5 P. M.-Much anxiety is manifested on all sides to hear further news from New York. Jay Cooke and McCultoch & Co. continue to pay cash in the usual manner over their counter. Among the rumors current in the Stock Exchange is one that the Bank of England holds $300,000 of Jay Cooke & Co.'s acceptances, and that the Roth-childs have $1,000,000 of. the same paper. LONDON, September 22.-4:30 P.M.10-40's are quoted at 904; new 58,911; Eries, 45. 5:30 P. M.-A dispatch announcing the closing of the New York Gold Exchange has just been bulletined. The news is accepted as an indiction of the gravity of the financial situation. and the market for American securities is again depressed.
3.September 23, 1873The New York HeraldNew York, NY
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Run on the Chicago Banks. CHICAGO, Sept. 22, 1873. There is considerable of a run upon some of the banks here to-day, but they are adhering to the resolution adopted yesterday to fall back upon the thirty and sixty day rule, and are only paying on sums of less than $100. The largest assemblage appears to be gathered at the States Savings Institution, but so far the crowd has been very quiet and orderly. The latest reports, public and private, from New York, appear to have had the effect to lessen the anxiety which was manifested this morning among many bankers and business men.
4.September 26, 1873Wilmington Daily CommercialWilmington, DE
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From Chicago, TWO BANK FAILURES REPORTED. CHICAGO, Sept. 26. The Second and the Manufacturers' National Banks have failed. STILL MORE SUSPENSIONS. The Cook County National Bank has suspended. Three other National Banks havealso suspend ed.
List of the Failed Banks. CHICAGO, Sept. 26. The following is it correct list of banks which have suspended in this city: Union National Bank, Cooke County National Bank, Second National Bank. Manufacturers' National Bank. and National Bank of Commerce.
6.September 29, 1873The Rock Island Daily ArgusRock Island, IL
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A Better Look There seems to be a more hopeful financial feeling in New York and Chicago. The Union National and the Cook County National resumed this morning. The Union National is the bank with which the First National in this city does business and of course that releases their balances SO they can be used. Mitchell & Lynde do business with the First National, in Chicago, and that bank did not suspend at all. The Third National, in Chicago, has suspended. That is the bank with which the Rock Island National does business-but it is believed to be a perfectly sound institution, and the suspension is thought to be merely temporary. The question is being raised as to the effect of these suspensions. It is held by some that it vitiates their organization and will compel them to wind up, if prosecuted. But we presume no one will be technical if they resume very soon. The Moline National (Wheelock's bank) has got the "age" of all of them in this county, for that institution never suspended at all.
LIST OF FAILED BANKS.-Chicago. Sept. 26.-The following is a correct list of banks which have suspended in this city; Union National Bank, Cooke Couny National Bank, Second National Bank, Manufacturers' National Bank of Com. merce.
Prospects in Chicago. RESUMPTION OF SUSPENDED BANKS. CHICAGO, Sept. 29. Financial prospects in this city this morning are decidedly brighter. Union National, Cook County National and National Bank of Commerce, opened their doors and resumed business at the usual hour this morning, and although they have paid out considerable money, there is nothing that can be called a run upon either of them, while there have been considerable deposits made. The influx of currency from New York and from the country continues to be larger -not less than three millions having been received during Saturday and Sunday. Of this incoming currency a good proportion goes directly into the banks and the rest into the hands of commission merchants for the purchase of grain by outside parties. But it all tends to relieve the present stringency. So tar as can be learned there is no urgent demand from country banks upon their correspondents here, and in all quarters confidence appears to be returning. This view of the situation is based upon interviews with a number of prominent bankers and business men.
9.September 30, 1873Chicago Daily TribuneChicago, IL
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LAWRENCE, KS.
Special Dispatch to The Chicago Tribune.
LAWRENCE, Ks., Sept. 20.-Financial matters are looking brighter. The news of resumption by the Chicago banks is hailed with delight. Our banks have paid without suspension through the panic.
10.September 30, 1873Chicago Daily TribuneChicago, IL
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SAN FRANCISCO.
Special Dispatch to The Chicago Tribune.
SAN FRANCISCO, Sept. 20.-To-day was devoted almost exclusively to collections and legitimate channels, and the result inspirod confidence. Tho resumption of business by the Chicago banks was the subject of much congratulation, showing the panic had no serious effects on Western finance and stability. This, with the promptness with which to-day's matured obliga- tions were mot, has reopened the current of exchange, which resumed with some briskness. Coin drafts on New York sold at ¾ to 1 por cent; telegraphic transfers at 2 por cent. The panic has fully demonstrated the unadvisability of stock speculations. Capitalists are more unwilling than ever to invest in outside real estate, preferring legitimate enter- prises and staple products. The panic is charged
11.October 2, 1873The Saline County JournalSalina, KS
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There was a bett er state of feeling financially yesterday than there has been since the commencement of the panic. The reports that the Chicago and St. Louis banks would resume this morning was interpreted as a cheering indication that the worst was over. This is probably the case. Indeed, there are evidences on all sides that reason is resuming its sway. Currency is flowing in a steady stream to the West, and mon. ey will soon be abundant.-Lawrence Journal, Sept. 30th.
SUSPENSION OF THE CHICAGO BANKS. - A
A telegram received Saturday from Chicago announces that all the banks in that city have suspended.
13.October 9, 1873Iowa VoterKnoxville, IA
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The West. The Chicago Journal of the 25th says that it had become necessary to say that the banks of Chicago had not suspended payment or closed their places of business. The action of the preceding night was not in consequence of a panic but to prevent a panic. They had not ceased business, were continuing to receive deposits and pay out such sums as might be needed for ordinary business transactions, but where sums were demanded to board or withdraw from business operations they had resolved to delay the payment of these until the financial storm had passed. The currency stringency in that city had had the effect to bring the extensive hog and cattle trade to a stand still, it being impossible to make cash sales. The Union Live Stock Yards contained 30,000 hogs and 10,000 head of cattle, all that the yards could possibly accommodate, and the live stock commission merchants had notified the railroads and country shippers that no more live stock would be received until further notice. The Cincinnati Clearing-House Association adopted on the 25th a resolution substantially the same as that adopted on the 24th by the banks of Chicago. A dispatch from Kansas City, Mo., of the 25th, says that the banks of that city had suspended. A dispatch from St. Louis, of the 25th, says that the banks of that city had held a meeting on the evening of that day and resolved to adopt the plan of issuing Clearing-House certificates. A Detroit dispatch of the 25th announces that the schooner W. J. Whaling had been beached at Grand Haven, Michigan, on the forenoon of that day. Vessel and cargo were a total loss. Two of the crew were drowned. The Inter-State Industrial Exposition was formally opened at Chicago on the evening of the 25th. The huge structure was thoroughly packed. It was estimated that fully 20,000 persons were in. Dedicatory speeches were made by U.S. Senator Logan, ex-Governor Oglesby and others. The 26th was Chicago's "Black Friday." The Union National, the Second National, the Manufacturers' National, Cook County National, and the National Bank of Commerce, all closed their doors on the morning of that day. The Board of Trade of that city had adopted a resolution prohibiting dealing in grain options for the present, on the ground that such dealing had a tendency to depress prices. In view of the present monetary situation and the difficulty of drawing city deposits, the Board of Public Works had decided to temporarily suspend work on all sewer improvements not actually commenced. A meeting of the associated banks had been held in the afternoon to discuss the question of issuing loan certificates, but no conclusion had been reached. A dispatch from San Francisco of the 26th says the Independent State Convention had nominated E. W. McKenstry for Justice of the Supreme Court. The Convention adopted resolutions that the opponents of organized corruption form themselves into a political
14.January 19, 1875The StarCincinnati, OH
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LAST EDITION. BY TELEGRÅPH. Bank Suspension. CHICAGO, Jan. 19.-The Cook County Mational bank of Illinois in this city suspended payment yesterday.
15.January 20, 1875New-York TribuneNew York, NY
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THE CHICAGO BANK SUSPENSION. THE COOK COUNTY NATIONAL BANK GOES INTO VOLUNTARY LIQUIDATION - UNCOMMERCIAL CHARACTER OF ITS BILLS RECEIVABLE-ITS SECURITIES NOT READILY NEGOTIABLE. CHICAGO, Jan. 19. - The decision of the stockholders of the Cook County National Bank of Chtcago, Monday evening, to go into voluntary liquidation has excited no surprise in business circles in this city. It has long been believed to be in an unsound condition, and its failure endangers no interest here. What the effect on the State National Bank of Des M ines may be is uncertain. Mr. Allen's present banking house in Des Moines closed its doors to-day, and the New-York house, Allen, Stephens & Co., is thought here to be in a dubions condition. The value of the assets of the bank cannot be determined until the Government examiner has concluded his investigations. Its deposits have run down from $1,150,000 at the date of its last statement, Dec. 31, 1874, to about $850,000, or about $300,000 in a fortnight. About $400,000 is due to Iowa bankers. and about $200,000 to city depositors. The immediate cause of the suspension is said to be the refusal of the Charter Oak Life Insurance Company to allow the bank to continue to draw on It for advances promised on the security of Iowa mortgages. Senator Logan was a stockholder in the bank, and it was made a Government depository for $150,000, but it never realized what was expected from its political connections. The bank has had some newspaper affiliation, that were unprofitable. It was also associated with railway speculations, and the disastrous corn corner of last Fall, and in general the management showed an unsafe tendency to go outside of regular banking operations. Mr. B. F. Alten, its President, QWNS most of the stock of the bank, and intends to devote as much as necessary of his private fortune to paying off the depositors. He has had the reputation of being worth $3,000,000 or $4,000,000, but this is now believed to be far boyond the mark. His means are almost all in mortgages on Iowa lands, in Iowa lands, and in is vast miscellany of speculative stocks and bonds. The bank was seriously hurt by the panic, and has failed to recover, owing to the uncommercial character of its bills receivable, and the unnegotiable character of its securities. The great bulk of its capital and deposits are probably in such securities. Tue notice posted on its doors informs the public that it is owing to non-receipt of promised and expected aid that the shereholders have voted to go into liquidation under the National Currency act. Depositors are assured that their payment in full 18 only & question of time. DES MOINÉS BUSINESS MEN EXPRESS CONFIDENCE IN MR. B. F. ALLEN. CHICAGO. Jan. 19.-A special dispatch from Des Moines, Iowa, says a meeting of business men of that city to-day adopted resolutions expressing entire confidence in the ability of Mr. B. F. Allen, President of the Cook County National Bank, to pay all creditors of these institutions. Mr. Allen is a gentleman possessed of large personal wealth. having, it is stated, in addition to other property, 60,000 acres of valuable land in Iowa, entirely clear of incumbrances, and it is confidently asserted by those in a position to know that no creditor of the bank of which he was President will lose a dollar.
16.January 28, 1875Knoxville JournalKnoxville, IA
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The Cook County National Bankof Chicago, of which B. F. Allen, formerly of Des Moines, was President, gave notice of suspension and going into liquidation under the National Banking law, on the 19th. Mr. Allen owned two-thirds of its stock. He assures his depositors that they will be paid in full. He has since resigned the Presidency of two banks at Des Moines.
17.February 3, 1875Ottumwa Weekly CourierOttumwa, IA
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The Cook County Bank. CHICAGO, Jan. 28 - A Wa-hington special says the Comptroller, having received a report from Bank Examiner Spink, in regard to the condition of the Cook County National Bank, has appointed A. H. Burley receiver of that bank.
18.May 18, 1875The StarCincinnati, OH
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LAST EDITION. BY TELEGRAPH. Philadelphia, May 18.-The suspension of Chandler, Hart & Co,, one of the largest boot and shoe firms of this city, is announced to-day. Their liabilities will amount to $125,000. WASHINGTON, D.C., May 18.-The National Lodge Knights of Pythias is now in session here, representing thirty-four State jurisdictions. It is presided over by Supreme Chancellor Davis. TYRONE, PA., May 18.-Mingo Parks, the leader in the present mining disturbances here, has fled the country to avoid arrest.-Several boxes of arms and ammunition passed through here yesterday for Clearfield county. LONDON, May 18-The City and County Bank of London suspended payment today. The failure is not regarded na important, and created no excitement. The paid-up capital of the bank is £28,000.The Erie. Railroad report was published here to-day. NEW YORK, May 18.-There are rumors to-day that frauds in importations of crape and mourning goods have been discovered, having extended. through the past two years. An appraiser in the Department of Customs in this city and one of the examiners has resigned. WASHINGTON, May 18.-A Havana letter states that highway robbèries and murders are S0 frequent lately in the streets of that city, that the acting Captain General, who was himself robbed in the street, of his watch and jewelry, worth fourteen hundred dollars, has ordered all culprits hereafter to be tried by military authorities. MEMPHIS, May 18.-Major John Pressley Strange, for many years a leading dry-goods merchant of this city, and during the late war Adjutant General on the staff of Lieut. Gen. Forrest, died last night, of consumption, aged 53 years. His death has cast a gloom over the city, as few men were so universally admired and respected as was the deceased. CHICAGO, ILL., May 18.-The published statement of the National Banks in this city show' that there has been an increase of $3,600,000 in the loans, and an increase of $186,000 in the deposits, also an increase of the capital surplus of $125,000 since March 1st. There has been an apparent decrease of capital during the year of $404,000, owing to the closing up of the Cook County National and Mechanics' National.
19.February 20, 1876Chicago Daily TribuneChicago, IL
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The Receiver of the Cook County National Bank, which closed its doors in January of 1875, has just made a detailed statement of its condition, from which it appears that the assets are valued at $345,64S, while the admitted liabilities amount to $948,650. The disputed liabilities are $1,281,429, and the assets held as collaterals are estimated at BCSS,081. The real estate is valued at a low price, but its character is such and it is so incumbered that it will not sell at the valuation put on it at present.
Indicted for Perjury and Frand. CHICAGO, April 23. - The grand jury of the Criminal Court found indictments against B. F. Allen, late President of the Cook County National Bank for perjury and fraud. Allen was before the grand jury to-day testifying against Blennerhasset, Stephens & Co., who it is claimed were cognizant of all the movements made by Allen's bank. His testimony was corroborated by receiver Bayler and Mr. Cleveland.
21.May 1, 1877The SunNew York, NY
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Biennerhasseit Indicted. CHICAGO, April 30.-The indictment of Mr. Blennerhassett, of the New York firm of Blennerbasset & Stephens, for perjury in connection with the Cook County National Bank affair. contains two counts. and if is the charges are proved. the maximum punishment $2.000 the and imprisonment with hard labor for five years B. F Ailen of Des Moines and Burley, receiver of the bank, are the chief witnesses against him.
22.March 3, 1880Daily GlobeSaint Paul, MN
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U. S. SUPREME COURT. A Batch of Opinions of Interest to National Bank Officers and Assessors. WASHINGTON, March 2.-The following opinions have been rendered by the supreme court: No. 270-The Central Trust Company, New York, receivers, etc., appellant, vs. the First National Bank of Wyandotte. An appeal from the eircuit court of the United States for the northern district of Illinois. This was a suit brought by the Wyandotte bank to recover possession of a certain note for $5,000 with collaterals given by it to the Cook County National bank of Chicago, and by the latter transferred in violation of an agreement with the Wyandotte bank to the New York State Loan & Trust company, of which plaintiff in error is receiver. This court holds First-That as between the complainant and the Cook County bank there is a prefect defense against the note to the extent of $4,868, which amount stood to the credit of the Wyandotte bank on the books of the Cook County bank at the time of the latter's failure. Second-That plaintiff in error can claim no more or greater right than the Cook County bank had, and that complainants are therefore entitled to a return of the note and collaterals on the payment of the sum of $132. The decree of the lower court is therefore affirmed, with costs.
23.March 18, 1890Pittsburg DispatchPittsburgh, PA
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A BANK WRECKER RETURNS. D. D. Spencer Returns to Chicago After an Absence of Thirteen Years. CHICAGO, March 17.-D. D. Spencer, to whose bad management was attributed the ruin and misery which followed the collapse of the Cook County National Bank and the State Savings Institution in 1877, arrived in Chicago after an absence of over 13 years. As a banker Spencer's career is without a parallel in the history of Chicago and almost of the entire country. In the ruin of the institutions which collapsed under his management, the savings of many hundreds of people were swallowed up, and widespread misery were entailed. As President of the State Sayings Institution he loaned immense sums to himself on promissory notes and worthless paper, with the result that the institution soon went down. The Cook County National Bank had failed in the panic 0! 1872. Just before the crash of the State Savings Institution Spencer absconded and located in Stuttgart, Germany, where he has lived since that time until recently, when he returned to this country. The indictments which were found against him at the time of the failure have long been stricken from the docket.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
