Scandinavian National Bank (Chicago, IL)

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THE CURRENCY

We complete to-day our extracts from the annual report of the Controller of the Currency, of which we printed a portion on Saturday. The limit of the National Bank issues in each State and Territory is fixed on the basis of population. resources, businees, and bank capital, as ascertained by the census. The last census required a new apportionment, as it showed a total increase in the population of the Union of more than 7,000,000 persons, and in wealth of nearly $14,000,000,000. An act was accordingly passed providing for an additional issue of $54,000,000. Of this the largest sum, $8,400,000, apportioned to any State, went to Illinois; Ohio and Kentucky each got over $5,000,000; Indiana, $4,000,000; Michigan and Louisiana each over $3,000,000; the distribution being made one-half on the population and one-half on the wealth of the country. It will be noticed that the increase all goes to the South and West, and more is yet needed to give those sections their due apportionment; to accomplish this, $25,000,000 is to be withdrawn and redeemed from the circulation of banks in New-York and New-England, and a corresponding amount authorized to banks in States that have not now their quota. It is a commonly received but somewhat erroneous opinon that the amount of currency in the hands of each individual member of the community has been on the average largely increased by the National Bank system; but this report only gives it now as, for the whole United States, $9 18 per capita, against $7 59 before National Banks existed: but the circulation of U. S. Treasury notes should be added before any conclusion is reached from these figures. The State of Rhode Island has the largest per capita circulation: $61 56; Mississippi the least:-one centexcept Florida and California, which have none. New-York has but $14 08. The National Banks have paid in the last eight years some $40,000,000 taxes to the United States; their State and national taxes for four specified years together amount to $71,000,000. The bank dividends are not so large on the average as is generally supposed: they do not exceed in the aggregate those of the old State banks; for the whole Union they but slightly exceed five per cent on invested capital. The great question of the proper reserve to be held by the National Banks is discussed in this report, and the conclusion reached that it is only the smaller and weaker banks that want to go below the present limit. Their necessities arise from putting out their funds at interest on deposit with Eastern banks-a condition which has more than once given riso to the most serious financial convulsions, as in 1857 - and a remedy proposed by the Controller is the issue of a new security by Government which will afford these banks the needful investment at interest. Not the least interesting feature of this report is the announcement that the Chicago banks, 80 far from being crippled as was anticipated after the fire by losses on discounted paper and the withdrawal of their balances, in point of fact steadily increased in business and profit, after resuming without embarrassment as soon as their safes were cool. There is a similar prospect in Boston, where the aggregate losses since the fire on bills receivable are estimated at less than three millions of dollars, which the bank surpluses will cover without touching capital or reserve. The question of usury is discussed. It appears that the penalty for its practice by National Banks is not clearly defined, and the Controller therefore declines to institute proceedings concerning it. A general law for the establishment of Savings Banks in the District of Columbia seems desirable. Locking up greenbacks is reprehended, and the New-York Stock Board and Clearing House are asked to discourage it. A table of the specie kept on hand by the banks shows it as less in October last than in many years before; as $10,000,000 against a usual average of $25,000,000. In the few cases of failure among the National Banks, the unfortunate institutions seem to be wound up with less ruinous loss to depositors and stockholders than has ever been re-

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Failure of the Scandinavian Bank

CHICAGO, Dec. 10.-The Times publishes an expose of the affairs of the Scandinavian national bank of Chicago, from which it appears that Ferd. S. Windsor, president, has been guilty of fraudulenc transactions which result in the closing of the bank with a heavy loss to stockholders and depositors. Winslow has been in Europe two months, and it is confidently asserted that he will never return. He is alleged to have been engaged in various speculations, all of which were unsuccessful. The bank did a very large proportion of the business of the Scandinavian population of this city, and its connections extended to every Scandinavian community in the west. It is stated that the causes which led to the suspension of the national bank was mainly the fact that President Winslow used up and absorbed the assets and profits of the concern in his endeavor to carry certain railroad opera tions in which he was engaged. Some three months since he went to Europe for the purpose of negotiating bonds of roads, having previously incurred liabilities based on the contemplated sales of the bonds; but, his hopes in this direction having failed, the condition of things forced upon the bank thereby seems to have marked its ruin. Mr. Spink, national bank examiner, states as his belief that the assets of the bank will fully cover its liabilities. A considerable portion of the latter are held abroad. Of the capital stock of $225,000, some $75,000 was held by a bank in Copenhagen. Winslow held $48,000 unpaid for and the balance was held in small amounts in this city and among the Scandinavians in other parts of the north.

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A CHICAGO BANK FRAUD

CHICAGO, Dec. 10.-The Times, to-day, publisbes an exposé of the affairs of the Scandinavian National Bank of this city, from which it appears that Ferd. 9. Winslow, the President, has been guilty of frandulent transactions, which will result in the closing of the bank to-day, with a heavy loss to the stockholders and depositors. Winslow has been in Europe for the past two months, and it is confidently asserted that be will never return. He is alleged to have been engaged in various speculations, all of which appear to have proved unsuccessful. The bank did a very large proportion of the business of the Scandinavian population of this city, and its connections extended to every Scandinavian community in the West. It will be immed. ately placed in the hands of a receiver.

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A HUGE SWINDLER

President Winslow an Expert at Bank Smashing-The Scandinavian Community Fearfully Swindled. CHICAGO, December 10.-The Times to-day publishes an extosse of the affairs of the Scandinavian National Bank, of this city, from which it appears that Ferd. S. Winslow, the President, has been guilty of fraudulent transactions, which will result in the closing of the bank this morning, with heavy loss to the stockholders and depositors. Winslow has been in Europe for the past two months, and it is confidently asserted that he will never return. He is alleged to have been engaged in various specuall of unsuccessful. a lations, proved which The appear bank to did have very large proportion of the business of the Scandinavian population of this city, and its connections extended to every Scandinavian community in the West. It is stated that the causes which led to the suspension of the Scandinavian National Bank of this city are mainly that President Winslow used up and absorbed the assets and profits of the concern in an endeavor to carry out certain railroad operations in which he was engaged. Some three months since be went to Europe for the purpose of negotiating the bonds of the roads having previously incurred liabilities based on the contemplated sale of those bonds, but his hopes in this direction having failed, the condition of things forced upon the bank thereby seems to have worked its ruin. Mr. Spink, National Bank Examiner, states it as his belief that the assets of the bank will fully cover its liabilities. A considerable portion of the latter are held abroad. Of the capital stock of $225,000, some $75,000 were held by the bank in Copenhagen. Winslow held $48,000 unpaid and the balance was held in small amounts in this city, and among the Scandinavians in other parts of the Northwest. The amount due depositors is stated at $225,000. Almost the entire business of the Scandinavian population in this in R city was done with this bank. The bank will be immediately placed 15 in the hands of a receiver. The entire la li assets, good, bad and indifferent, are I placed at $536,513; the liabilities are $422,000, aside from the capital stock.

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CHICAGO

CHICAGO, December 10.-The Times to. day publishes an expose of the affairs of the Scandinavian National Bank of this city, from which it appears that Ford S. Winslow, the President has been guilty of fraudulent transactions, which will result in the closing of the bank this morning, with a heavy loss to the stockholders and depositors. Winslow has been in Europe for the past two months, and it is confidently asserted that he will neverreturn. He is alleged to have been engaged in various speculations, all of which appears to have proved unsuccessful. The bank did a very large proportion of the business of the Scandinavian's population of this city, andits connections extended to every Scandinavian community in the West. It is stated that the causes which led to the suspension of the Scandinavian National Bank of this city, are mainly that President Winslow used up and absorbed the assets and profits of the concern in an endeavor to carry certain railroad operations in which he was engaged to some three months since. He went Europe for the purpose of negotiating bonds of the roads, having previously incurred liabilities based on the contemplated sale of those bonds, but his hopes in this direction having failed, the condition of things forced upon the bank thereby seemd to have worked its ruin. Mr. Spinel, national bank examiner, states as his belief that the assets of the bank will fully cover its liabilities. A considerable portion of the latter are held abroad. Of the capital stock of $225,000, some $75,000 was held by a bank in Copenhagen; Winslow held $18,000 unpaid for, and the balance was held in small amounts in this city among Scandinavians and in other parts o! thre Northwest. The sum due the depositors is stated at $225,000. Almost the entire business of the Scandinavian population in this city was done with this bank. The bank will immediately be placed in the hands of a receiver. The entire assets, good, bad and indifierent, are placed at $536,516, and the liabilities at $422,000, aside from the capital stock. Ira T. Munn and Geo. W. Scott, of the elevator firm of Munn & Scott, were before the Criminal Court today on the charge of fraudulent dealing, and were held to bail in $10,000 each.

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BANK SUSPENSION

The National Scandinavian Bank of Chicago To Be Placed in the Hands of Receiver-The President Charged with Carrying on Transactions of a Rockless and Unproutable Character and Absorbing All the Profits. CHICAGO, Dec. 10, 1872. The Times to-day publishes an exposé of the affairs of the Scandinavian National Bank of this city, from which it appears that Ferdinand S. Winslow, the President, has been guilty or fraudulons transactions, which will result in the closing of the bank to-day, with a heavy loss to the stockholders and depositors. Winslow has been in Europe for the past two months, and it is confidently asserted that he will never return. He is alleged to have been engaged in various speculations, all of which appear to have proved unsuccessful. The bank did a very large proportion of the business of the Scandinavian population of this city, and its connections extended to every Scandinavian community in the West. It 18 stated that the exact causes which led to the suspension of the bank was mainly the fact that Winslow used up and absorbed the assets and profits of the concern in an endeavor to carry certain railroad operations ID which he was engaged. When he went to Europe it was for the purpose of negotiating the bonds of the roads, having previously incurred liabilities based on the contemplated sales of those bonds. Bat his hopes in this direction having failed, the condition of things forced upon the bank thereby seems to have worked its ruin. Mr. Spink, National Bank ExamIner, states as his belief that the assets of the bank will fully cover its liabilities. A considerable portion of the latter are held abroad. or the capital stock of $225,000 some $75,000 was held by a -bank in Copenhagen, Winslow held $48,000 unpaid for, and the balance was held in small amounts in tnis city and among the Scandinavians in other parts or the Northwest. The amount due to depositors is stated at $225,000. The bank will be immediately placed in the hands of a receiver. The entire assets, good, bad and indifferent, are placed at $536,516, and the liabilities at $422,000, aside from the capital stock.

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A Rich Fugitive.

CHICAGO, December 12.-Dispatches received in this city yesterday state that Winslow, the fugitive President of the suspended Scandinavian Bank, of this city, is in China, where it is stated he went a month ago, taking with him some twenty thousand dollars.

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BANK RECEIVER APPOINTED

-Thmas - P. Tallman has been appointed receiver of the Scandinavian national bank at Chicago. The Controller of the Currency is of the opinion that the bank will pay to creditors in full, leaving the losses to fall entirely upon the shareholders.

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CHICAGO

a Tronble among the Gas Employes. CHICAGO, December -The - gas companies of this city are anticipating trouble among their employes on Monday, on account of the proposed reduction of wages by the Northside Company, which supplies the north and south divisions of the city with gas. The men have been rcceiving 83 per day, and the officers of the company propose to radace them to $21 50. A committee of employes have notified the officers that they will not submit to the reduction, and the workmen of the Westside Company declare that they will also strike it the wages of their fellow laborers are reduced. The companies assert their ability to procure plenty of men at $2 50 per day it they are not interfered with by the strikers, and the aid of the police will be given them to pro. vent this. It has been ascertained that F. II. Winslow, President of the suspended Scandinavian National Bank, is in Italy.

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Telegraphic Brevities

New York, December 8.-The editorial and composing rooms of beevening Express were destroye by fire this evening. There is the best authority for contrudicting the report that A. Oakey Hall will become editor of the Herald. Sait Lake, December 9.-Artnugements are making to build a narrow-gauge ruil road from this place to Echo City, on the line of the Union Pacific, it distance of 43 miles. The chief projector is oneof the sons of Brigham Young. Chicago, December 9.-A Washington special of to-day says it is certain that Vice President Colfax has under consideration an offer from persons holding a controlling interest in the New York Tribune of an offer to accept no editorial position on that paper after the 4th of March next. Omaha. December 9.-The first train will cross the Platte bridge to-morrow, connect. ing this city with South Platte county. Baltimore, December 9.-Jesse Hunt a prominent citizen, died on the 8th inst. John A. Dix has resigned as uss Erie Di. rector. Henry N. Smith has resigned the Presidency of the Hannibal and St. Joseph rail. road. and E. Higgins has been appointed in his place. Jay Gould also resigns as Direc. tor of the same road. The President nominated Wm. Cary, of Galena, Ilis.. U.S. Attorney for Utah vice Geo. C. Bates. Chicago. December9.--The Scandinavian National Bank of this city has suspended. Columbia, S. C., December 10.-John J. Patterson was elected United States Senator on the first ballo: A resolution is up before the Massachu setts House condemning Summer's resolution in regard to erasing names of battles for the Union. The Viscountess Beaconsfield wife of D'lerach is fatally ill. The Credit Mobilier investigation is being held with closed doors. It is said a Syndicate of German Bankers are ready to take the entire 4. 41 and 5 per cent funded loan of the United States at 21 per cent commission. The Fifth Avenue Hotel loss is: On build. ing $10.000; on furniture $80,000. Very great blame is attached to the proprietors. The New York Herald heads its lending article. "The Fifth Avenue Holacaust.' "Was it Criminal? Was it Murder !" and thoroughly condemns the authorities of the Hotel. Henry McNulta is found guilty and sen. tenced to death at Peoria, Ilis., for the mur. der of his wife at Chillicothe. On Tuesday dreadtul gales occurred at Versailles and Paris. Great damage was done. The ship Franklin. from Hamburg to San Francisco, with many emigrants on board stranded and went to pieces in the North Sea. 80 persons perished. The.deficiency appropriation bill allows $1,639,000. J. H. Fairchild, is appointed Agent nt the Siletz Agency. Oregon. Sec. Robeson recommends the building of ten new war vessels. 430 Italian emigrants, arrived in New York Thurman 1,000 more are nwaiting transportation. The condemned war vennel Guerrierre was rold nt Breaklyn Navy Yard Thursday for $54,000. and the Alimny for $48,000. i The steamer St. Lamis. from New Orienns to New York, sunk at sen Dec. 9th. Crew and passengers all saved. F

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CHICAGO

CHICAGO, December 14.-Thomas P. Talman, Cashier of the Traders' National Bank, has been appointed receiver of the Seandinavian National Bank. The Controller of Currency expresses the opinion that the assets of the bank will pay its creditors in full, and the losses will have to be borne by stockholders. 1. A scaffolding twenty feet high, in Foley's billiard hall, South Clark street, upon which ten plasterers were at work, fell yesterday afternoon. Three of the men were so seriously injured that their lives are despaired of.

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TRAVELS OF A BANK PRESIDENT

CHICAGO, III., Dec. 13, 1872. Mr. Winslow, President of the suspended Scan. dinavian Bank, is now reported as being in Italy.

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MONEY AND COMMERCE.

MONETARY.

FRIDAY EVENING, Dec. 13. The demand for money in the local market continues active, and is in excess of the supply at the command of the banks. Merchants, however, report tolerable success in collecting in the country, and the liquidation of indebtedness of country merchants to city merchants, and of the West to the East, is progressing satisfactorily. There is considerable good paper in the open market yet at 1¾ per cent per month.

New York Exchange was weaker to-day, owing to the large supply on the market. Sales were made between banks at from par to 25c per $1,000 premium.

THE RECENT "WINSLOW FAILURES."

The Scandinavian Savings Bank, No. 17 Milwaukee avenue, which failed from the same cause that brought about the failure of the Scandinavian National Bank, had only $60,000 of deposits, but this sum belongs to 200 depositors who are much excited about it. The bank has assets that will realize 40 per cent of the deposits. The more the affairs of the Scandinavian National Bank are investigated, the more it is apparent that the concern is rotten, root and branch. It is now understood that among the "bills discounted" by the bank are $70,000 of notes made by two parties, one of whom is prominent in the present closing up of its affairs, and the other of whom is likely to be appointed Receiver. These notes were made in a real estate transaction last spring, and have one, two, three, four, five, six, seven, and eight years to run. There is reason to believe that these notes were taken by the bank recently, or at least long since Winslow, the decamping President, left for Europe. Whatever censure Winslow may be entitled to, he should not be made the scapegoat for others who have manipulated the affairs of the bank so as to use the money of its depositors for their private speculations. Notwithstanding the books of the Scandinavian National Bank showed it had $42,000 cash on the evening of Dec. 9, the date when the bank closed its doors, it is questionable whether it had any considerable sum of either money or available exchange on Dec. 10. If Comptroller Knox understands, as he should, that the Bank Examiner is interested in putting the best possible aspect on his neglect to discover the rotten condition of the Scandinavian National Bank months ago, he will also understand that he should not be governed too much by the recommendations from that quarter touching the appointment of a Receiver.

THE OIL MONOPOLY

is one of the instances showing the characteristic financial tendencies of the times to concentrate money and power. The movement to make a monopoly was begun by the refiners, who proposed to enrich themselves by bearing the market for crude oils and bulling the market for refined. The principle on which this monopoly was started is precisely the same as that of the trades-unions, and the action of the ring of refiners was the same as that in trade strikes. The producers of oil, however, found that they were to be made one class of victims, and, in self-defence, they formed a ring of their own, the avowed purpose of which is to reduce the production and increase the price of the crude article. They agreed to pump their wells only to a certain extent, and thus control the production. In order to have harmonious working, they were obliged to pool the earnings, and thus the whole oil-producing region has become, practically, the property of one consolidation. The producers' "ring" has had power enough to break up the refiners' first "ring," but has finally taken some of the refiners into its good graces, and now rules the whole oil market for both crude and refined. A refiner who is a member of the present monopoly, endeavors to excuse it in a letter to an Eastern paper, by saying that the object of the combination is "simply to obtain what is justly their due, and what, for over two years, have been deprived of-viz.: a fair compensation for the capital employed, and the risk run in carrying on their business. A manufacturer who finds an over stock on his hands, will naturally stop producing until the regular demands of trade relieve him. Why should not a refiner, or a body of refiners, do the same with their goods? It is straight-forward, legitimate business. And when the refiners of the country took this step, and called upon the producers to stop pumping for thirty days, to prevent forced sales below cost price of the surplus of both crude and refined, it was a measure of prudence and not for extortion."

This argument seems plausible enough, but it is just that used by every monopoly. The trouble is that strikers, trades-unions, and other monopolies never know when they have got "what is justly their due," but when they have the power they take good care to get enough. A combination of manufacturers and producers who have a monopoly of any special article, like that of oil, however, do not simply allow their own property to lie idle, but they prevent any one else from going into the business who might be willing to do it for a smaller profit.

LOCAL STOCK AND BOND MARKET. Messrs. Lunt, Preston & Kean quote as follows this afternoon:

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JOEL D

HARVEY has been appointed receiver of the Scandinavian national bank in Chicago, vice Thos. P. Tallman declined. -

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Abbreviated Dispatches

The number of hogs packed at Chicago during the present season to date was 623,793. A Memphis dispatch says that the loss by the ice gorge will not exceed $500,000. Lobenz's gold chain factory in Philadelphia was robbed on Sunday of $3000 worth of gold chains. Joel D. Harvey is appointed receiver of the Scandinavian national bank at Chicago, vice I. P. Fellman, resigned. The grand jury in session at Paterson, N.J., adjourned without finding an indictment against Wm. Collier, arrested for setting his rolling mill on fire, nor against the two silk weavers in jail for alleged conspiracy. The accused were dismissed.

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The Coming State Dinners

The President will give his first State dinner on the 8th of January, the guests being members of the Cabinet and their wives, Vice President and Mrs. Colfax, General and Mrs. Sherman and Admiral and Mrs. Porter. State dinners will be given at the White House every alternate Thursday during the session. Reports of National Banks Called for. The Comptroller of the Currency has called for the reports of the condition of the national banks at the close of business on Friday last, the 27th inst. Receiver Appointed. Joel D. Harvey has been appointed receiver of the Scandinavian National Bank at Chicago, vice T. P. Tallman, declined. Boutwell's Resignation Denied. The truth of the statements telegraphed hence that Secretary Boutwell has written a letter of resignation as Secretary of the Treasury, to take effect February 15th, is denied at the Treasury Department. No one in the Ex. ecutive Mansion has heard anything of the kind. A Pardon. The President has pardoned Richard Collins of North Carolina, now serving a term in the Albany Penitentiary for ku-kluxism.

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I'd NO

103. Dividends Declared. W ASHINGTON, April 29.-The Controller of the Currency has declared a dividend of 32 per cent. in tavor of the creditors of the Unadilla Bank, Unadilla, N. Y. : also a dividend of 25 per cent. in favor of the creditors of athe Scandinavian National Bank, of Clricago, payable as soon as the schedule of creditors can be prepared and examined. The Controller has also directed the receiver of the Eighth National Bank, of New York, to make requisition of 54 per cent. upon the shareholders of that bank to supply the deficiency required for the full payment of the creditors. A small requisition is also to be made upon the shareholders of the Farmers and Citizens Bank, of Brooklyn, for the same purpose.