First National Bank - Chicago, IL

Bank Information

Episode Type: Run Only
Bank Type: national
Bank ID: 8
Charter Number: 2670
Start Date: August 3, 1892
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 34894282

Response Measures

None

Other: Multiple articles (Aug 2–3, 1892) report an extensive conspiracy in Chicago in which fraudulent paper was deposited at several banks (including the First National Bank of Chicago). A paying teller (George Bartels) at the Central Trust & Savings Bank absconded with cash. The story describes fraud and forged checks, not a depositor run or suspension of the First National Bank.

Description

Newspapers from August 1892 describe a fraud scheme that produced heavy withdrawals from several Chicago banks (Central Trust & Savings, Globe National, State Bank of Chicago, First National, etc.). Articles report depositors withdrawing funds and money 'locked up in tin boxes' in Chicago; no article says First National suspended or closed. Thus this is classified as a run only (withdrawals/panic) affecting First National but not leading to suspension. The fraud directly affected Central Trust; First National experienced precautionary withdrawals tied to general scare about bank failures.

Events (1)

1. August 3, 1892 Run

Cause: Local Banks
Cause Details: Depositors withdrew savings in reaction to reports of bank failures and fraudulent schemes in Chicago (general panic after frauds exposed at several banks).
Newspaper Excerpt: He stated that it was a common thing for depositors to withdraw their money, and place it in tin boxes...there were $17,000,000 locked up in tin boxes in small sums in Chicago alone.
Source: newspapers

Newspaper Articles (4)

1. August 3, 1892 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, August 3, 1892

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Article Text

PLOTTED ROBBERY. Young Chicagoans Who Were Ambitious in Villainy. AN EXTENSIVE PLAN OF RASCALITY Half of Dozen Banks to Have Been Robbed by an Ingenious System of Stealing-About $30,000, Perhaps $70,000, Obtained Before Discovery-The Boss Rascal Gets Away and Wealthy Men Who Had Vouched for the Honesty of the Scoundrels Foot the Bill. CHICAGO, Aug. 3.-The discharge of George Bartels, paying teller of the Central Trust and Savings bank, and his subsequent flight with $3,000 of the firm's cash, has unearthed a gigantic conspiracy to defrand five Chicago banks. Thescheme was partly successful and over $50,000 was secured from Bartel's former employers, but was made good by reputable men who had vouched for the integrity and business ability of the young men who had engaged in the deal. Another bank is said to have lost $20,000, which amount was also made good by the same security. Three Conspirators Arrested. Three of the men formerly connected with the Chicago Bank Note company have been arrested charged with conspiracy to defraud and the issuance of fraudulent paper. These men are William A. Forbes, N. W. Burnside and Charles M. Anson. George Bartels, the fourth man who is wanted, has left the country. Charles Nichols, a go-between, has made affidavit exposing the whole scheme as far as it is known to him. The plot is the most ingenious ever nipped in the financial arena of this city. And yet it was simple. Forbes was manager of the Chicago Bank Note company; Burnside, a son of a well known physician, was associated with Forbes, Anson was an employe of the firm. Vouched For by First-Class Men. These young men were vouched for by General Allen C. Fuller and numerous men of wealth and financial influence. They opened accounts with the Central Trust and Savings bank, the Globe National bank, the State Bank of Chicago, the First National bank and the Milwaukee Avenue State bank. Immediately they deposited checks, drafts, etc.-which have since been found to be fraudulentand later drew out the cash. By collusion with Bartels the great run of the paper was dumped on the Central Trust Savings bank. Couldn't Play Their Game Out. The system that was developed was the work of months. The teller, in the absence of the cashier, certified all paper, and the forged drafts, checks, etc., were only deposited when the higher officials of the bank were out. The same system was played on the Globe National, it is said, although Vice President Stone was not in the city yesterday to affirm or deny the statement. It is now learned that the plotters intended to pull all the banks they had deposited money with into their net and then break up and clear out. However that may be the paper came to protest too soon to admit of more extended fraud, and the ring was brought up with around turn.

2. August 6, 1892 Mineral Point Tribune Mineral Point, WI

Article from Mineral Point Tribune, August 6, 1892

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Article Text

A Gigantie and Deep-Laid Scheme to: Rob Chicago Banks is Usearthed. Five Institutions to be DefraudedGeorge Bartels at the Bottom of the Affair. Exposition of the Plan-Three Men Are Arrested Charged with the Crime. CHICAGO, Aug. 2.-The dishonorable discharge of George Bartels, paying teller of the Central Trust and Save ings bank, and his subsequent fight with $3,000 of the firm's cash, has unearthed a gigantic conspiracy to defraud five Chicago banks. The scheme was partly successful and over $50,000 was secured from Bartels' former employers, but was made good by reputable men who had vouched for the integrity and business ability of the young men who had been engaged in the deal. Another bank is said to have lost $20,000, which amount was also made good by the same security. Three of the men formerly connected with the Chicago Bank Note company have been arrested charged with conspiracy to defraud and the issuance of fraudulent paper. These men are William A. Forbes, N. W. Burnside and Charles M. Anson. George Bartels, the four th man who is wanted, has left the country. Justice Wheeler isv sued the warrants and the preliminary hearing is set for Thursday morning. Teller Putnam of the Globe National bank, has also been Implicated in the conspiracy by Charles R. Nichols, the go-between, who has made affidavit of his part in the criminal plan. The whole scheme, as far as it is known to him, has been exposed and is a matter of record. A bill in chancery asking for the appoint ment of a receiver for the bank note concern, filed by John B. Gribles, former president of the company, also throws light upon the shady methods of the individuals under suspicion. The plot is the most ingenious ever nipped in the financial arena of this city. The plan was simple. Forbes was manager of the Chicago Bank Note company; Burnside, a son of a wellknown physician, was associated with Forbes. Anson was but an employe of the firm. These young men were vouched for by General Allen C. Fuller and numerous men of wealth and financial influence. They opened accounts with the Central Trust and Savings bank, the Globe National bank, the State bank of Chicago, the First National bank and the Milwaukee avenue State bank. Iminediately they deposited checks, drafts, etc., which have since been found to be fraudulent, and later drew out the cash. By collusion with Bartels the great run of the paper was dumped on the Central Trust Savings bank. The system that was developed was the work of months. The teller, in the absence of the cashier, certified all paper, and the forged drafts, checks, etc., were only deposited when the higher officials of the bank were out. The same system Was played on the Globe National. it is said, although President M. E. Stone was not in the city to-day to affirm or deny the statement. It is now learned that the plotters intended to pull all the banks they had deposited money with into their net and then break up and clear out. However that may be, the paper came to protest too soon to admit of more extended fraud and the ring Was brought up with a round turn. The amount the Central Trust and Savings bank found itself short was nearly $50,000. The bank officials had taken every precaution to secure themselves, for while they had been compelled to accept the forged papers of their customers, they were suspicious early in the game. When the end came Allen a Fuller, who is said to be worth over $10,000,000, and Dr. Burnside, nis brother-in-law, both of whom had had implicit confidence in the men paid all the shortage

3. August 12, 1892 Hot Springs Weekly Star Hot Springs, SD

Article from Hot Springs Weekly Star, August 12, 1892

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Article Text

TO ROB THE BANKS. An Extensive Conspiracy Brought to Light in Chicago. Chicago special: The flight of George Vartels, paying teller of the Central Trust and Savings Bank, with $3,000 of the bank's cash. has unearthed what seems to have been an extensive conspiracy to defraud five Chicago banks. The scheme was partially successful, and over $50.000 was se-, cured from Vartel's employers, but has since been made good. Three men formerly connected with the Chicago Bank Note Company have been arrested. charged with conspiracy to defraud. These are William A. Forbes, N. W. Burnside, and Charles N. Anson. Vartels was the fourth man wanted. Forbes was manager of the Chicago Bank Note Company. Burnside, the son of a well known physician, was associated with Forbes. Anson was in the employ of the firm. The young men had been vouched for by numerous men of wealth and financial influence, and on the strength of this bad opened accounts with the Central Trust and Savings Bank, the Globe National Bank, the State Bank of Chicago, the First National Bank and the Milwaukee Avenue State Bank. Immediately they deposited checks, drafts, etc., which have since been found to have been fraudulent. and later drew out cash. By collusion with Teller Vartels a great run of paper was dumped on the Central Trust and Savings Bank. It is said that the plotters intended to pull all the banks they had money deposited with into their net and they break up and clear out, but their paper came to protest to soon. Vartels disarmed suspicion by ingeniously informing the bank officials that he was suspicious that the note company was "kiting," and suggesting that a general guarantee of all transactions be secured from the wealthy Dr. Burnside.

4. August 9, 1893 Wheeling Register Wheeling, WV

Article from Wheeling Register, August 9, 1893

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Article Text

A HOPEFUL VIEW OF THE SITUATION EXPRESSED BY MR. JOHN G. HOFFMANN, SR. The Present Depression Will Be Removed, and the Reaction Will Bring About a Season of Prosperity. Mr. John G. Hoffman, Sr., one of Wheeling's most prominent citizens and most prudent and successful business men, returned yesterday from a business trip, and was seen at his home last night by & REGISTER reporter. Mr. Hoffman visited his large tannery at Gormania, W. Va., before leaving for the West. He visited his harness and leather establishment at Des Moines, Ia, which is the only concern of its kind in the West at present in operation. Both of the tanneries in which Mr. Hoffman is interested are running with a full force of workmen. Mr. Hoffman is of the opinion that the present situation throughout the country is very grave, but takes a very bright view of the future, and gives reasons for the faith that is within him. In the early months of the present year, his different plants did a bigger business than at any time in their history. At present he has a large amount of hides in hand, which are being tanned and converted into articles of merchandise at the factory in the West. He states that the demand for the product of the factory is very weak, and the goods are being stored away in his large warehouse. "But the reaction will come," continued Mr. Hoffman. "I have received a letter from & relative in Europe, in which he states that farm products, owing to a long drouth, will be practically & failure, and that farmers are killing their cattle for the meat. I am of the opinion that but little meat will be sent abroad, but Europe will make & demand upon us for farm products, and the balance of trade will turn in our favor. They will send their money here, and it will do a great deal to relieve the present financial stringency. "It is only the scare among the poor people which is rosponsible for the present condition of affairs. When they found factories closing, and heard and read of bank failures, there was a natural feeling of alarm throughout the country, and the workingmen and people in moderate circumstances hastened to withdraw the small savings which they believed to be in danger. The amounts of the deposits withdrawn are generally small, but reach an enormous sum in the aggregate. While in Chicago I had a conversation with the President of the First National Bank of that city, who informed me that there were $17,000,000 locked up in tin boxes in small sums in Chicago alone. He stated that it was a common thing for dépositors to withdraw their money, and place it in tin boxes, to be deposited again for safe keeping. With these sums taken out of circulation, and the millions locked up in the banks in the East, the cause for the present condition of the money market is apparent.