Prairie State National Bank (Chicago, IL)

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CHICAGO BANKS. Result of the Failure of Hermann Schaffner & Co. Last Week. SMALL DEPOSITORS ALARMED. Sensational Rumors by Board of Trade Brokers.-Plenty of Money in the City. CHICAGO, June 5.-The failure of Hermann Schaffner & Co.'s bank, which occurred last week, bore fruit today in well-defined runs which were precipitated on almost if not every one of the savings bankain Chicago. The first to feel the effect was the Bank of Commerce, where a great many Jewish citizens of the poorer class keep their accounts, and they bore down upon the bank at the opening hour. The tellers were doubled up and paid checks as fast as presented throughout the day. The Illinois Trust & Savings Bank, which has a larger line of this class of depositsthan any other bank in the city, amounting at times to over $12,. 000,000, put on an extra force of tellers and paid every one as rapidly as possible. The Hibernian Bank, which as the name implies, was a depositor for a large number of Irish-Americans of email means, was crowded all day, but found no difficulty in meeting all demands. The Dime Savings Bank took advantage of the rule requiring, if necessary, sixty days notice of withdrawal, and paid only a percentage of deposits today. The Globe Savings Bank applied the thirty day rule. The Milwaukee Avenue Savings Bank sustained a moderate run throughout the day and they, too, kept open house tonight. Equally spirited checking was noted upon the Prairie State National and Prairie State Savings, as well as upon Union Trust company and the Avenue Savings Bank, but in no case WAS any alarm felt by well-informed people. The situation was greatly aggravaled by a number of board of trade brokers, who for reasons of their ow n devoted themselves to the circulation of sensational rumors, in which they involved at one time or another nearly every bank in tue city and a large number of leading stock yard operators. For the first time in some months the Chicago sub-treasury has been drawn on to assist the depleted gold reserve in the East. Today one million In gold was shipped by express. There are still seven millions in gold here, and the amount is continually belog increased by Chicago banks depositing gold for currency.

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WILD PANIC ALL DAY, But Only One Failure, Private Bankers, Reported. Rumor had hardly started a story of one bank than the "dame" looked around for another victim. In this way there was a big run on the Bank of Commerce, but every comer was paid in full. President Felsenthal said the bank would pay every demand made upon it and that nobody would be asked to wait a moment for his money. The Prairie State National bank, corner Washington and Desplaines, was called on for a large amount of deposits in the savings department and paid on demand. The officers said they had been preparing for just this sort of thing. A run on the Illinois Trust and Savings bank was met by the announcement that it would keep open till 10 p. m. as long as the run lasted. There are $10,000,000 deposits in the savings department of this bank, and seven men were paying depositors. Working twelve hours a day it would take seven men 100 days to pay out the $10,000,000. There was no run on the deposit accounts. A run was begun on the Globe Savings bank at 2 p. m., and the bank immediately posted notice that its legal thirty and sixty-day limit would be the rule. At 9 p. m. there were 500 persons in line before the paying teller of the Illinois Trust and Savings bank, and the officials announced that they would continue paying until all had their money. At midnight there were 200 and the bank con-

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Scared Depositors Beseiging the Doors of Several Chicago Savings Institutions. In One Case the Police Were Called Upon to Preserve Order. One Failure and a Fair Prospect of More, Unless Confidence Is Restored. CHICAGO, June 6.-The private bank of Meadowcraft Bros. did not open at the usual hour, a notice being posted on the door to the effect that the institution was in the hands of a receiver. This failure seems to have badly scared small depositors in other banks and many of them are in the midst of fullfledged runs. At noon a run was commenced on the State Bank of Commerce, having offices on the ground floor of the Woman's Temperance temple. The lobby was packed with depositors fighting with each other for admission to the bank. The police officers were called to preserve order. The bank has a capital of $500,000. Its last statement showed deposits of $1.259,000. Much Wealth But Little Cash. A run was also started on the Dime Savings bank. at 104 Washington street. during the afternoon. This institution has deposits aggregating $600.000. and among its directors are Colonel Clowry, vice president of the Western Union Telegraph company, and ex-Senator Charles B. Farwell. President Bailey of the bank sayshe has dollar and a half for every dollar deposited. but the greater part of the money is tied up in securities. He does not know how long the bank can stand the run. but expects io pull through. The bank has a capital stock of $100,000 and a surplus of $50,000. The Hibernian bank, one of the largest institutions in the country, is also experiencing a run and is paying off depositors at the rate of three a minute. The deposits amount to $3,500,000. and they believe they can stand the run. The Prairie State National. The Prairle State National bank at the corner of Washington and Desplaines street, experienced a run during the morning and large numbers of depositors. mainly in the savings department, withdrew their money. Henry J. Evans of the New York Biscuit one of the directors of the said that there is company, bank, absolutely of the direct- no apprehension on the part ors of the bank and that all claims of depositors would be prouptly met. "The bank." said Mr. Evans, "is perfectly solid and it is as sound as any in the city."

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FINANCIAL PANIC

Chicago Banks the Victims of Wild Unfounded Rumors. CHICAGO, June 6.-Wild and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National bank, the State Bank of Commerce, the Hibernian Savings bank, the Dime Savings bank, the Union Trust Company's bank and the Illinois Trust and Savings bank. Under the circumstances it is no small. tribute to the sagicy, soundness and foresight of Chicago bankers to say that all withstood the strain. Where the rumors sprang from is a mystery. It is a mystery how they spread, for wildfire is no quicker in its flight than rumor when she takes a fiing at the banks.

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THE CHICAGO FLURRY

The Runs Continue But a Better Feeling of Security Prevails. CHICAGO, June 6.-A run began to-day upon the Globe Savings Bank, which has savings and individual deposits to a total of about $600,000. Its oflicers, however, were prompt in announcing that thirty days' notice would be 10. quired, and savings depositors had consequently to be content with giving notice of their intention to draw out next month. A large number of those who have withdrawn their money from banks within the past twenty-four hours have deposited in safety deposit vaults, and it is now almost impossible to secure lock boxes at any of these institutions. The crowd about the Prairie State National Bank and the Prairie State Savings and Trust Company was even greater than that of yesterday. The former institution suffered but little today, however, as the depositors are business men who have implicit conddence in the stability of the bank. Both institutions met all demands. This afternoon the crowds surrounding the different banks diminished and a measure of confidence seemed to have been restored to savings depositors. No body has attempted to assign any reason for the runs other than distrust. SPOKANE, Wash., June 6. - The Bank of Spokane Falls closed its doors yesterday morning. It was a private institution owned by A. W. Cannon, who is reported to be worth in the neighborhood of $3,000,000. Mr. Cannon is also president of the First National Bank of Palouse, and vice-president of the Washington National Bank, of Spokane. The deposits and correspondence with other banks make the liabilities over $300,000 The six national banks of this city are not affected by the failure, and all were appealed to by the private bank and refused assistance.

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LATER

THE village of Woodington, O., was almost entirely leveled by a cyclone and many persons were injured and Mrs. Mary Smith was killed beneath her building. NEARLY 400 delegates were in attendance at the opening session of the world's temperance congress in Chicago. THE office of the Hustler, a paper in Breathitt county, Ark., that advocated local liquor license, was blown up by dynamite. THE Savings bank at Sandusky, O.,' with liabilities of $205,000, closed its doors. IN a runaway at Kalamazoo, Mich., Mrs. L. A. Fagan was thrown from a wagon and killed and Mrs. T W. Murphy and Mrs. Ellison were fatally injured. CHOLERA was said to be spreading rapidly in Asiatic Turkey. THE fire loss of the United States and Canada for the month of May is estimated at $10,427,000. This is about a million greater than the aggregate for May, 1882. THE president authorizes the statement that he will call an extra session of congress early in September. THE People's bank at Bentonville, Ark., was robbed by six men of $10,000. THE Kansas Grain company at Kansas City, Mo., which claims to be the greatest buyer of grain from producers in the world, has failed. THE supreme court of Nebraska acquitted the state officials, against whom impeachment proceedings were brought. THE Merchants' national bank of Fort Worth, Tex., with a capital of $250,000, closed its doors. EPHRAIM DOMEDLAN, a Braceville (III.) miner, killed his wife and then blew out his own brains. Whisky was the cause. EIGHTEEN persons were injured in a wreck on the Iron Mountain road near Mill Spring, Mo. THE house of John Redding, a Kentucky farmer, was struck by lightning and three of its occupants instantly killed. THE president has appointed Charles W. Dayton as postmaster of New York. THE private banking house of Meadowcroft Bros. in Chicago suspended, and runs were made by frightened depositors upon the Bank of Commerce, the Prairie state national bank, the Prairie State Savings and Trust company, the Union trust bank, the Hibernian bank and the Illinois trust and savings bank, but these institutions met all demands promptly.

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RUN ON MANY CHICAGO BANKS

Excited Depositors Clamor For Their Money. CHICAGO, June 6.- Wild and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago Monday. Those chiefly affected were the Prairie State National bank, the State Bank of Commerce, the Hibernian Savings bank, the Union Trust Company's bank and the Illinois Trust Savings bank. Under the circumstances it is no small tribute to the sagacity, soundness and foresight of Chicago bankers to say that they all withstood the strain. Where the rumors sprang from is a mystery. Whether malice or ignorance inspired the rumors is unknown, but whichever it was the effect was instanteous and widespread. Fortunately the effect was confined to uncomfortable crowding in the banking rooms, to pushing and hauling among excited depositors seeking to withdraw their money, and to the gathering of curious crowds upon the sidewalks outside the banks.

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THE THROES OF A PANIC

Failures Follow Each Other Thick and Fast.

RUNS ON THE CHICAGO BANKS.

Excited Depositors Clamor For Their Money—The Illinois Trust and Savings Bank Kept Open All Night—The Plankinton to Be Investigated.

CHICAGO, June 6. — Wild and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago Monday. Those chiefly affected were the Prairie State National bank, the State Bank of Commerce, the Hibernian Savings bank, the Union Trust Company's bank and the Illinois Trust Savings bank. Under the circumstances it is no small tribute to the sagacity, soundness and foresight of Chicago bankers to say that they all withstood the strain. Where the rumors sprang from is a mystery. Whether malice or ignorance inspired the rumors is unknown, but whichever it was the effect was instantaneous and widespread. Fortunately the effect was confined to uncomfortable crowding in the banking rooms, to pushing and hauling among excited depositors seeking to withdraw their money, and to the gathering of curious crowds upon the sidewalks outside the banks.

Unfounded Rumors.

One of the earliest and apparently the most malicious rumor of the day was to the effect that John M. Smythe, the large furniture dealer on West Madison street had failed. There was no truth in the report and the managers of the concern could assign no reason for its having been started. Other similar rumors of financial troubles were found to be without basis when traced down, but they had spread far and wide before they could be successfully contradicted, and the movement on the city banks began.

Depositors Were Paid In Full.

It was the small depositors of savings—the people with from $50 to $500 to their credit—who soon filled many of the banking rooms and began to clamor for their money. In every case they found greatly to their comfort that the cashiers were prepared for them and ready to hand out dollar for dollar, and it then became a question merely of standing in line to await turns at the paying teller's wickets. All who came up to 3 o'clock, the regular hour for closing the banks, were ranged in line, and when the doors were shut the payments proceeded just the same until the last depositor within the bank walls had received the amount due him.

Tried to Allay the Panic.

Early Monday afternoon the Illinois Trust and Savings bank posted a notice saying the bank would remain open until 9 o'clock at night to pay depositors, and that the commercial branch of the institution would remain open until the same time to pay checks. Later it was announced that the bank would keep open all night, if necessary, to accommodate those who wished to withdraw their money. These notices had no effect, however, in allaying the panic, and the bank continued to pay off depositors as rapidly as the seven tellers could pay out the money.

Took Advantage of the Law.

The Globe Savings bank posted a notice that it would take advantage of the law requiring from 30 to 60 days notice for the withdrawal of savings deposits. There was no serious run on the bank, but its officers decided to protect themselves as far as possible. The concern is controlled by New England people.

A run was started Monday morning on the Milwaukee Avenue State bank. Along toward 11 o'clock it quieted. Then the people learned of the Meadowcraft failure and the run began again. The bank met all demands and the officers say that they are ready to withstand another run.

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Run on the Prairie State National. CHICAGO, June 6.-The Prairie State National bank, corner Washington and Desplaines streets, experienced a run Monday and a large number of depositors, mainly in the savings department, withdrew their money. Henry J. Evans, of the New York Biscuit company, one of the directors of the bank, said that all claims of depositors would be promptly met. "The bank," said Mr. Evans, "is perfectly solid and is as sound as any in the city.

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South and West

JOHN C. MINING, Town Treasurer of Fort Jennings, Ohio, has disappeared with $5000 cash, and an additional shortage of $10,000 has been discovered. WILD and unfounded rumors of impending financial disaster seaused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National Bank, the State Bank of Commerce, the Hibernian Savings Bank, the Dime Savings Bank, the Union Trust Company's Bank and the Illinois Trust and Savings Bank. Meadoweroft Brothers, private bankers of Chicago, failed with liabilities estimated at $450000. THE Bank of Spokane, Washington, has failed. It is a private institution, owned by A. M. Cannon, who is reported to be worth $3,000,000. The Sandusky (Ohio) Savings Bank assigned, The Merchants' National Bank, of Fort Worth, Texas, capital $250,000, has failed. THE Infanta Eulalia reached Chicago from New York: much enthusiasm was shown by the crowds that lined the route from the railroad station to the hotel. A SKIFF containing Alexander McCloud and Robert Anderson was upset in a whirlpool at Boundary City, Wyoming. The men were drowned. SERGEANT O'LEARY, of the United States Army, was shot and mortally wounded by Private Roberts, in Fort Sherman, Idaho. Jealousy over promotion was the cause. THE New Albany (Ind.) Banking Company has suspended payment. MAYOR HARRISON. of Chicago, gave a breakfast and reception for the Infanta she was the guest of President Higinbotham, of the World's Fair Directory, in the evening. THE business portion of Fargo, North Da. kota, was destroyed by fire: 2200 people were rendered homeless. Loss, $2,000,000. FIRE broke out on Page street between Baker and Lyon streets. San Francisco, Cal., and in less than an hour a whole block had been totally consumed. Three firemen were instantly killed by falling walls. THE Princess Eulalia paid her first visit to the World's Fair, going to the grounds in the afternoon and again in the evening.