4425. First National Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: national
Bank ID: 8
Charter Number: 2670
Start Date: August 5, 1904
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: bedbfb91

Response Measures

Public signal of financial health, Capital injected, Full suspension, Books examined

Other: Clearing-house intervention (issuance of certificates) and large gold shipments from London; directors signed personal guarantees to cover shortage.

Description

Multiple articles describe runs/large withdrawals on the First National Bank (Aug 1904 and April 1905 after Bigelow's misappropriation). In December 1905 the comptroller and clearing house intervened when John R. Walsh's misapplication threatened Chicago banks; newspapers report suspensions but clearing-house support, gold shipments and director guarantees prevented permanent failure and operations resumed. Classification: run led to suspension but bank was supported and reopened.

Events (4)

1. August 5, 1904 Run

Cause: Rumor Or Misinformation
Cause Details: An 'unfounded rumor' circulated that packers were using the bank's funds to pay striking employees, triggering mass withdrawals.
Measures: Kept windows open late, called in extra tellers, paid depositors in full; accepted offers of assistance from other Chicago banks.
Newspaper Excerpt: The rush of the depositors began early to-day ... 3,000 withdrew their deposits ... the bank was kept open until eight o'clock ... offers of assistance from other Chicago banks were received.
Source: newspapers

2. April 27, 1905 Run

Cause: Bank Specific Adverse Info
Cause Details: Discovery of large misappropriation by President Frank G. Bigelow (speculation/wheat losses and embezzlement) led depositors to withdraw funds.
Measures: Directors arranged immediate funds from Chicago ($1,000,000–$1,500,000), police dispersed crowd, bank kept open and closed at usual hour, public assurances issued and directors pledged personal guarantees.
Newspaper Excerpt: Following the speech a number of depositors left the bank without withdrawing their money ... $1,500,000 was coming up from Chicago for the emergency ... the bank was perfectly solvent ... the bank closed the day's business at the usual hour.
Source: newspapers

3. December 18, 1905 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Misapplication/fraud by John R. Walsh (president) created a crisis prompting clearing-house action and reported suspensions among Chicago banks; comptroller convened meeting to coordinate response and protect depositors.
Newspaper Excerpt: Comptroller Ridgely called a meeting ... it was then announced ... that the banks had suspended and that all depositors would be paid in full by the other banks of the city.
Source: newspapers

4. December 20, 1905 Reopening

Newspaper Excerpt: The Chicago clearing house ... decided to stand back of the institutions and secure the depositors ... depositors would be paid in full by the other banks of the city. (Subsequent reports describe gold shipments and clearing-house certificates and resumption of normal withdrawals.)
Source: newspapers

Newspaper Articles (15)

1. August 6, 1904 The Daily Morning Journal and Courier New Haven, CT

Article from The Daily Morning Journal and Courier, August 6, 1904

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Rush of Depositors Starts Early-Doors and Kept Open Until Eight O'Clock DeClosed Until All Those Who i manded Not Their Money Got It-Over [ 3,000 Withdrawn Accounts-Rumors Another Peace Effort. , ) of Aug. 5.-The strike in lost the e Chicago, houses was practically ate packing to-day in the excitement and sight of a run on the Drovers Trust yards tending bank, one of the stock Savings The rush of the depositors beinstitutions. bank started early to-day that one to the of an unfounded rumor had cause packers' representatives instituof the his money from the bank was withdrawn reports that the as tion and used by the packing companies new embeing adjunct in paying off their places of an who have taken the of ployes etrikers. All day long hundreds whom had the depositors, most of stood excited small accounts in the bank, When 1 only line to withdraw their deposits. there a in time came this afternoon waitclosing were at least a thousand officials persons of the their money. The the emergening for determined to meet and the place bank, called in extra tellers every depositor D cy, was kept open himself until at the window winwho presented The paying until V had been satisfied. bank were kept Nearly open two dows of 8 o'clock the to-night. the last man in before that his deposit in had been ceased line hours after paid time had coming. 3,000 full and fresh arrivals upwards of t is estimated that withdrew their dedepositors day. When t posits its height the the a It at during called the and with bank withdrew the Com- run was of its deposit and a like r mercial $100,000 National bank National bank, amount from the First any possibility ob- of the in order bank to being prevent unable to meet its to meet S 5 ligations. "We have plenty of said money Vice President had a any kind A. of Tilden, a run," after night. the bank "We had K William closed for the vaults, and bebeen $300,000 in our taken own from the down e sides over the $200,000 received offers of bank asr town banks have the First National bank d sistance Chicago, from the National Standard Park Trust S of York and the of these offers d bank of New be of accepted, New York. as we None Our have windows on hand will all e will the money we until need. all of the depositors be kept open but from the appearance instiof ended to-night." on now are things satisfied, I think the run on our strike o 1 tution Many of the workmen have deposits in d e in the packing Trust plants and Savings persons bank, who the Drovers' majority of the to-day to g but about the small their money the stock h mand gathered the business place were in who are trades- yards de- not e men doing and working connected people in a labor r district have not been plants. The of a capacity and with union, the packing the members $2,000 on deS in Teamsters' on strike, has effort was d this which are the bank, but money no to-day, t d posit to withdraw the union declaring is, made the secretary of will remain where it h that the money is as solid as a rock. conference 1 as the bank of another peace strikers were h Rumors the packers and appearance d. o between occasioned o-night exchange by the of John M. at the Live and Stock M. E. Montana Milner, president Round- dro1 Boardman secretary of the organization of 2 3 and association, an nearly 250,000 head of Up which sends each year. cattle vers to the yards yards officials knowl- and 2 that stood Althoupepresentatives the stock move, denied it is under- try to 3 packers' edge of any the peace Montana men will 4 by to-night 1 packers it increase arrange In a statement a conference. is given asserted out in that to-day's there 3 The the a considerable of yesterday. over declared was business to-night that would be that "active." the the 1 2 When union, the strike strikers from President now on returned Donnelly, to Chicago of west he from a trip a The to-day Butchers' immediately went through into leaders conference here. other labor day and when with the lasted nearly said all that another when meeting up it was to-morrow, of the it broke would be held calling a strike city e will be taken. meeting action truck in regard drivers to throughout the

2. April 28, 1905 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, April 28, 1905

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OWES EXPOSURE TO HIS BROTHER . MILWAUKEE, April 27.-The latest step in the career of Frank G. Bigelow, the former bank president who defaulted in the sum of a million and a half dollars, is the filing of a petition in voluntary bankruptcy. The revised schedules show a total liability on the part of Bigelow of $3,277,000, of which $1,975,000 is wholly or in part secured. Of the remainder $1,110,000 is a secondary liability on notes and bills discounted, in which Bigelow figures as indorser. These items are notes of the National Electric Company, the Grand Rapids Edison Company and S. W. Watkins, and are evidently connected with the financing of the National Electric Company. The balance, $192,000, represents unsecured loans, the largest one being an indebtedness of $100,000 to the Brodhead estate, of which Bigelow was executor. The assets of the bank are estimated at $1,849,800, against which a homestead exemption of $5000 is placed. The rest of the assets consist chiefly of stocks in various industrial and other enterprises and 1600 acres of coal land in Huerfano County, Colorado, valued at $100,000. The filing of the schedule revealed the fact that Bigelow, who has been looked upon as a model of business sagacity, pursued startlingly loose methods in the transaction of his private business. He was not positive of the names of several of his creditors, and had no memoranda with which to refresh his memory. Under the bankruptcy laws the turning over by Bigelow of $300,000 worth of property as a restitutionary measure to the bank is null and void, the transfer having been made within four months of the filing of the petition in bankruptcy. This, however, will not affect the bank, the directors having more than made up the entire deficiency caused by the defalcations of the president. Late to-day Judge Landis appointed the Wisconsin Trust and Security Company receiver of the bankrupt estate of Frank G. Bigelow. CHICAGO, April 27.-William Bigelow. cashier of the First National Bank and brother of Frank G. Bigelow, defaulter, accidentally exposed his brother to the directors is the story that is accepted in banking circles as the true version as to how the crime It became known Saturday night. seems that Frank G. Bigelow was called out of town Saturday and that the affairs of the bank were left in the hands of his brother. Saturday morning a telegram came addressed to Bigelow from a New York bank, stating that it was willing to take care of a draft for $50.000, even though the bank was already indebted to the New York house for $200,000. William Bigelow could not understand the matter and was more puzzled when he discovered that the New York bank was charged in the books with being indebted to the First National for $200,000. He asked the bank to explain and found that the telegram was correct. An examination of the books followed, and he found so many queer things that he decided not to wait for his brother to return, but to consult with Mr. Pfister. They immediately suspected one of the cashiers of defaulting and called a special meeting of the directors. Frank G. Bigelow returned, but did not see his brother until he reached the bank in the evening to attend the meeting. When the directors had assembled William Bigelow told what he had discovered and stated he had no idea of the amount taken or who the criminal was. Thereupon his brother arose and made the startling disclosure that he was a defaulter for more than $1,000,000.

3. May 1, 1905 Vilas County News Eagle River, WI

Article from Vilas County News, May 1, 1905

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$1,500,000 was coming up from Chicago for the emergency. He stated that there had been a misappropriation of money, but that the bank was perfectly solvent and that it could pay all of its obligations without any trouble. Following the speech a number of depositors left the bank without withdrawing their money. ### Closed at the Usual Hour. The bank closed the day's business at the usual hour, 3 o'clock, and the police in and about the bank dispersed the crowd which had assembled. Not all of those who had formed in line were able to reach the bank windows before the closing hour arrived. The second assistant cashier made the announcement that the closing hour had arrived and said the bank would open at the usual hour on Tuesday. ### Laid to Wheat Speculation. An intimate friend of President Bigelow said: "Wheat speculation has cost the Bigelows their name and the bank a large sum of money. It is a family tragedy, as well as a shock to business circles of the city. The father, Frank G. Bigelow, had Chicago speculative connections with the firm of Tracy & Co., of which his son, Gordon Bigelow, was a member. "In the late Armour-Gates wheat battle and the sharp fluctuations of the market, which have come during the last few days, Bigelow, Sr., and Bigelow, Jr., were badly caught. The family name has been of the highest in the city and the failure will come as a sad shock to all who know them." Statement from Mr. Bigelow. "I do not wish to try to excuse my action at all, nor to say anything about motives I had no right to have. The big men in our board of directors will make the bank better and stronger than ever and they are entitled to all praise and confidence. "My family has always been kept in ignorance of conditions and has not been to blame for methods of living. "F. G. Bigelow." ### Standing of the Bank. The last statement of the First National bank, made at the close of business, March 14, is as follows:

4. May 17, 1905 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, May 17, 1905

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Speculated in Wheat. It appears that Mr. Bigelow has been speculating in wheat for weeks. He had made some investments that had swept away his private fortune, and had turned to the bank's funds in the hope of recuperating his losses by deals in wheat. His son, Gordon Bigelow, was a member of Tracy & Co., brokers on the Chicago Board, and it is said that his father's investments were largely made through him. When the bank's funds were to be used Mr. Bigelow, according to the directors, effected a combination with some bookkeepers and the assistant cashier, Henry G. Goll. He took the bank's surplus and charged up the money taken to Chicago correspondent banks, but the other night, while working on the books, a bookkepeer not in the deal, discovered an incorrect entry. He notified Charles F. Pfister, of the Pfiister & Vogel Company, one of the directors of the bank, and a meeting of the directors was called, when steps were taken to prevent a collapse. Bigelow was asked to explain, and made a full confession. Chicago banks were notified, and the bank officials provided means for meeting the run which was certain. Before the public knew of the shortage $1,000,000 reached here; then, when the run was in full swing, heavily guarded automobiles brought from the railway stations another million sent by Chicago to prevent a panic. It looked as though the alarm would spread to other banks, but so carefully had the First National prepared for the event, that the fears were largely allayed. There was something of a jam at the doors, but the police kept the crowd orderly. Glass cutters chipped a hole in a big plate glass front window of the bank, and deposits were received in full view of the crowd on the streets. The full amount appropriated by Mr. Bigelow was $1,500,000, but he has made restitution in the shape of real estate and securities sufficient to reduce the amount to $1,300,000. The Board of Directors decided to meet the issue in a straightforward manner, and formulated a pledge, which was immediately signed by members of the board, whose aggregate wealth will probably approximate $25,000,000, to more than make good the shortage. The capital stock of the bank is $1,500,000, and the undivided surplus amounts to $1,200,000. The personal guarantee of the directors more than covers the defalcation, and with the surplus and undivided profits which the bank carries over and above its capital, it is announced that the institution is more solid that it was before the defalcation became known. Charles F. Pfister heads the guarantee list with $600,000.

5. December 19, 1905 The Daily Morning Journal and Courier New Haven, CT

Article from The Daily Morning Journal and Courier, December 19, 1905

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BANKS GUILTY OF TRICKERY (Continued) from First Page.) should make a simultaneous investigation. This showed that the institutions had lent a large amount, estimated all the way from $10,000,000 to $15,000,000, on the securities of the railroads that were owned almost entirely by Mr. Walsh. It is said that the paper for these loans was signed by clerks, and that the collateral was the bonds of Mr. Walsh's railroads, the Southern Indiana, the Chicago Southern, the latter an extension of the Southern Indiana, and the Wisconsin and Michigan. When the examiners had concluded their report Mr. Walsh asked for time, saying that he could raise the money to straighten out everything. He was not as successful in this as he hoped to be. When Comptroller Ridgely was informed of the situation he came at once to Chicago. Comptroller Ridgely called a meeting of the members of the Chicago clearing house and informed them of the situation. The meeting was held in the office of the president of the First National bank and continued from 3 o'clock Sunday afternoon until 5 o'clock this morning. It was then announced by the comptroller in a statement that the banks had suspended and that all depositors would be paid in full by the other banks of the city.

6. December 21, 1905 The Denison Review Denison, Dow City, IA

Article from The Denison Review, December 21, 1905

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The offense of John R. Walsh might have brought great loss and hardship to every man in Crawford county. Let us suppose that the clearing house had not come to the rescue; not only the First National but every bank in Chicago would have been subject to a great run. The country banks would have withdrawn their deposits if possible before the crash came, but if the crash had been general, they, too, would have been heavy losers. There would have been a shortage of funds for legitimate business; loans would have been called in and in spite of the law of supply and demand the price of every bushel of corn or of every pound of pork or beef in Crawford county would have decreased. These bankers, then, hold tremendous interests in their hands, interests involving millions of people beside their depositors and when found guilty the only safe course is to punish them to the full extent of the law. The Russian revolution is approaching its second stage, the next will be absolute anarchy following the deposition of the Czar, the third stage will see the Russia's gradual regeneration. It seems impossible to us that the Russian empire should remain as a unit save as an absolute monarchy The people are so various, the races so incongruous that without the strong arm of military oppression the state will fly to pieces and a dozen minor governments will spring up. This will afford pretext for Germany and Austria and Turkey to acquire new territory, an opportunity which they will sieze with avidity. It will be many years before Europe gets back to normal and the mystic "balance of power" is restored. Did you ever stop to think how much of brains and self-sacrifice there must be behind this apparently spontaneous uprising of the proletariat of Russia? There are Murats and Robespierresand perhaps Napoleons moving behind the screen of history. Men living, now unknown to us, whose e names will some day be as well known to the student of history as are the S names of the monsters and the martyrs of the French Revolution. In spite of police, of spies, of Cassacks, of S prisons and of death, the work of the d revolutionists has gone on irresistibly. Somewhere there is a great brain at e work, urging, plotting, plannng with a shrewdness far beyond that of the e emperor. Part of this history will y some day be written, but the greater part will never be known, not even by e the people who will owe their freedom to the master minds now being sarcificed for them. n d The railroads of the west have sole emnly and ostentatiously agreed that is hereafter they will obey the laws of the United States. The convention nt was duly signed and sealed and broadff ly heralded. No longer will the railbe roads be criminals-and if they are nthey will tell on each other, so runef neth the agreement. Now that the cy penitentiary does not stare them in nthe face, nothing but a paltry fine, they will be good. They have been criminals. iff Alas; Alack. Sry shippers. They were forced to it by the greedy bBut now! he Oh, Joy! ur us They will be good. of The whole farce is an insult to the en American people, and yet these self confessed criminals have the effronter to ask the people to leave the rat making power in their hands alone a go they are the only ones having tha a "intimate knowledge" of the ques is. tion necessary to fix rates with fair an ness and justice to all. ck Bah!

7. December 21, 1905 The Denison Review Denison, Dow City, IA

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EDITORIAL It is so long since conditions have been normal in the Review office that we confess that our editorial department has been somewhat neglected. It is hard to collect one's thoughts when the collection has to be taken in a room filled with the noise of machinery and the confusion of building and plumbing and the like. We would like that our editorial columns should be more than a collection of cheap witticisms on the events of the day, more than a rehash of the dailies and more than a running, endless, useless and purposeless controversy with other papers. To avoid these ruts is difficult. To discuss the tariff is to become involved in bootless argument under present conditions-and yet there is a good deal of hypocrisy about the tariff question. There are several facts that are conceded on all hands, first, that the protective policy is the one best adapted to America, and second, that the present schedules are faulty in many places. Granting these two premises, there should be no difficulty in revising the tariff. But there is. Why? Because we do not trust each other or ourselves. Because recent revelations have made us distrustful of those in high position. Because the east distrusts the west, capital distrusts labor and the farmer distrusts both. If we felt sure that the Congress was composed entirely of honest and unselfish men it would cause hardly a ripple in the business world were the tariff revision undertaken. It is because the "special interests" have overreached themselves until they have aroused an antagonism which they well may fear, because they have themselves forced the alignment of those favoring corporate interests and those against them. Were the question of tariff revision left to the Supreme court there would be no fear, but every one dreads the uncertainties and the procrastinations of congressional action. In other words the most violent stand patters would welcome tariff revision in many instances, could it be done over night, while the revisionists are forced to admit that the chief danger in carrying out their policy is the delay and uncertainty of congressional processes. Thus it would seem that the tariff question like the railroad rate question, the insurance question and every other question leads us back to the absolute necessity of wiping out the "special interest" control from our government. Tariff revision is thus subordinate to the greater issue of electing honest as well as capable men to office. *** The First National Bank of Chicago has failed, carrying down with it a number of subordinate institutions. The Chicago clearing house, after an all night session, decided to stand back of the institutions and secure the de positors. It was not philanthropy which prompted this action, but proba bly the knowledge that they were al in the same boat and that if this bank was unprotected a general panic would follow. Comptroller Ridgely, who had the affairs of the fallen bank in charge i quoted as saying, that John R. Walsh the president, was doubtless guilty 0 fraudulent banking, but that as no on would lose anything he would probab ALL ly not be punished. We regret that goverment official should be guilty o such a statement. Mr. Walsh un doubtedly used the funds of his depos itors to back his private speculations He made them take the risk while h stood to win if any profits arose Banker Bigelow is in the penitentiar for the same offense. His investment turned out badly and the depositor lost. Mr. Walsh's investments prov ed too much for him to carry, but th depositors may come out even. Ac cording to Mr. Ridgely, the degree o guilt depends wholly upon the degree of success. Had Mr. Walsh made millions by the use of depositors' funds he would have been a great man, as he plays even he is an unfortunate man, had he lost heavily he would have been a fel on. It is this tendency of public opinion which has fostered the spirit of wild speculation which has been ram pant for the past few years and which if continued will bring panic and des titution to this country in spite of any industrial or agricultural prosperity

8. September 14, 1906 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, September 14, 1906

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LOOMIS AND HIS 0. K. He Approves Compromise in the Devlin Bankruptcy. Referee N. H. Loomis this morning entered a decree in the United States district court1sauthorizing the compromise between the Corn Exchange National bank of Chicago and the trustees of the Devlin estate which the trustees recommended and by which the former turns over to the trustees notes, interest coupons and drafts in return for which the trustees convey all right, title and interest in the collateral security held by the bank to cover the loans. There was a whole lot of juggling with figures in the original transaction, spurious fictitious values which on paper would take away one's breath but when simmered down did not represent very much after all. The face value of the securities held by the bank approximate $850,000 but their real value will not exceed $150,000. The loan itself amounts now to about $152,780 with accrued interest. The Devlin estate is really the gainer by the compromise for the value of the securities is less by almost $3,000 than the notes of the Devlin Coal company, the Mount Carmel Coal company, Toluca, Marquette and Northern Railway company, Southwestern Fuel company, and interest coupons on the Devlin Coal company and the Toluca, Marquette and Northern. The face value of these were $420,000 and most of them were drawn during the spring of 1905. The bank had filed suit in the district court at Cook county, Illinois, but will withdraw this suit upon learning of the compromise. It will pay the court costs. The ten days for creditors of the Devlin estate to file objections for the setting aside of the compromise between the trustees and the receiver of the First National bank made last Saturday and approved by Judge Pollock expires next Tuesday. The advertisement for the sale of the properties held by the trustees will be made soon after, the latter part of the week. Bids will be asked for.

9. May 2, 1907 Gilpin Observer Central City, CO

Article from Gilpin Observer, May 2, 1907

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Oranon, MO., the boner or the engine injurexploded, kiling three trainmen, the ening LWO others, and wrecking gine and caboose. is a serious lack of farm There in the Northwest according Northhands to reports received by the Great ern railroad. Two thousand prairie dogs at $3 South each been contracted for in have Dakota have by English lords who on exterminate the rabbits and hares and their shooting reserves in England are languishing for sport. Russo-Japanese negotiations The the fisheries question are reported to on have resulted in a satisfactory agreement. lawsuit that has been in the A 32 years was recently again Misargued courts in the Supreme court of souri. The motermen and conductors car on Salt Lake City, Utah, street struck the lines to the number of 450 have following a refusal of the company officials to arbitrate their differences. effective A new schedule to become rural 1, increases the pay of the 25 July free delivery carries from 9 to of per cent, based upon the number miles traveled. The trial of Binger Herman former office commissioner of the general land charge of destroying public re- records on a after continuing 12 weeks, sulted in a verdict of acquittal. The Sedalia, Mo., Busines Men's with association has signed a contract a St. Louis shoe company by which Sedalia. branch a factory will be built at of A plan is being formed in six by the principal wheat growing states for the farmers to hold their wheat one dollar per bushel. sensation was created in Joplin, police A by the discovery that the were enjoying a lounging room furnished force Mo., which luxuriously dis- had been donated by saloon keepers, of the solute women and gamblers city. Public sentiment was thorough- will ly aroused and the grand jury investigate. letter written by President ChiRoosevelt In a to the chairman of the the Moyer-Haywood conference ascago president stands by his former actions sertions and declares that the are the friends of the accused men are flagrantly of improper. in that they in trying to influence judge and jury the coming trial. Charge C. King, president of the S. First National bank of Scotland, Chicago has been arrested in the charged D., with having misapplied recently funds of the bank, which failed. The Zoeller packing plant at Pitts- by Pa., was recently destroyed pounds fire. burg, Five hundred thousand entirely lard in one building was at of consumed. The loss was placed $300.000. The supreme court of Kansas has H. appointed Judge S. H. Allen, G. all Whitcourt and Judge T. F. Garver, Kanof Topeka, as receivers for the A property of various breweries. sas joint bond of $45,000 was required. Secretary Wilson, by executive and orhas created the board of food shall der, inspection, whose duty it food be drug to adminiter the national pure law. The president heartily approves the plan. Frank H. Butler, a steamer deck- with has been arrested charged son hand, the murder of the four-year-old disof Dr. Horace N. Marvin, who Dover, appeared from his home in Del., March 4. A recent bulletin issued by the secof the Oklahoma board of agretary riculture states that the wheat crop is only 60.8 per cent and the oats crop 30 per cent. A movement has been started day in Milwaukee, Wis., to set aside a the May on which every union in Presicountry in is to protest against that dent Roosevelt's assertion Moyer, Haywood and Debs are unde sirable citizens. Four million bushels of coal from were shipped down the Ohio river Pittsburg in one day recently, break- the ing all records for this time of year. The suit of the Copper Range Con- C. solidated Mining company Colbert othThomas W. Lawson and been settled out Burrage, ers, has of court. service The government forestry this has issued a circular saying that between country consumes every year than three and four times more wood is grown in all its forests in the same time. Miss Violet Spencer, of Alton, III., recently attacked by a negro the near abwas her home and slashed across cloak domen with a razor. A heavy Several was all that saved her life. suspects have been arrested.

10. May 3, 1907 The Springfield Herald Springfield, CO

Article from The Springfield Herald, May 3, 1907

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president stands by his former assertions and declares that the actions of the friends of the accused men are flagrantly improper, in that they are trying to influence judge and jury in the coming trial. Charge C. King. president of the bank of been arrested in D., First has National Scotland, Chicago the S. charged with having misapplied funds of the bank, which recently failed. The Zoeller packing plant at Pittsburg, Pa., was recently destroyed by fire. Five hundred thousand pounds of lard in one building was entirely at consumed. The loss was placed $300.000, Four million bushels of coal were shipped down the Ohio river from Pittsburg in one day recently, breaking all records for this time of the year. The supreme court of Kansas has appointed Judge S. H. Allen, G. all H. Whitcourt and Judge T. F. Garver, of Topeka, as receivers for the Kan- A sas property of various breweries. joint bond of $15,000 was required. Secretary Wilson, by executive orhas created the board of food and drug der, inspection, whose duty it shall be to adminiter the national pure food law. The president heartily approves the plan. Frank H. Butler, who was charged at the murder of the Marvin boy has been for want of with custody, Dover. Del., sufficient released from evidence*against him. Frank H. Butler, a steamer deck- with hand, has been arrested charged son the murder of the four-year-old of Dr. Horace N. Marvin, who disappeared from his home in Dover, Del., March 4. A movement has been started in Milwaukee. Wis., to set aside a day the May on' which every union in country in is to protest against Presi- that dent Roosevelt's assertion Moyer, Haywood and Debs are undesirable citizens. A recent bulletin issued by the secof the Oklahoma board of agriculture retary states that the wheat crop is only 60.8 per cent and the oats crop 30 per cent. The Kansas supreme- court Gen- has granted the petition of Attorney in eral Jackson for a receivership the ouster injunction cases against been the brewery companies who have to doing business in Kansas contrary the prohibitory law. The main features at the opening the the Jamestown exposition were spectacular of naval display and the The address of President Roosevelt. exposition itself was not ready exercises for visitors when the opening were held. The suit of the Copper Range Con- C. solidated Mining company Colbert othBurrage, Thomas W. Lawson and court. ers, has been settled out of The government forestry service this issued a circular saying that between has consumes every year than country three and four times more wood same is grown in all its forests in the time. Miss Violet Spencer, of Alton, near III., was recently attacked by a negro the abhome and slashed across cloak her with a razor. A heavy Several domen was all that saved her life. f suspects have been arrested. Superior Judge Hebbard. of San Francisco. has sworn to a complaint Attorney against Assistant District Heney charging criminal libel. W. H. Harroun, ex-president of of the St. Harroun Eelevator company forgery Joseph. Mo., pleaded guilty to sentenced fourth degree and was later in to the 18 months in jail. He was paroled. Maier. a Topeka jointist has He Chris pardoned by Gov. Hoch. in been a $1,000 bond never to engage gave the liquor business again. new field gun with which armed the The artillery is being has Japanese an effective range of about 8,500 yards. Each gun costs $5,000. Washington advices are to the ef- in the peace negotiations have fect that in Central America progress to a deadlock and that a recome of hostilities seems probable. Amernewal Architectual league of WashThe holding a convention in from ington ica is with delegates present all sectons of the country. the instigation of the depart- States At of agriculture the United Kan., ment attorney at Topeka, the district commence 41 suits against of will Island railroad for violation 28-hour Rock livestock shipping law. French arsenal at Toulon was of The damaged to the extent to recently by a fire which is believed have $900,000 been of incendiary origin. recent decision of the statute United By a supreme court the solicit States it a misdemeanor to in making for intoxicating liquors been Kansas orders is held constitutional. filed in the federal Suit has Tulsa. I. T., by a minor in court at Indian. involving property be the Glenn Creek Oil pool estimated to worth $1,000,000. Gov. Hoch. of Kansas, has an-

11. October 31, 1907 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, October 31, 1907

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Much Gold for Chicago. Chicago, October 30.-Savings depositors who had given notices of their desire to withdraw their funds, returned today in a that the nolarge numbers and of tices be cancelle. ce was given such patrons that aly would the it that interest notices be disregar on the accounts by the notices e as though the would be paid tl filed. President notices had not National bank said Forgan of the that he had ord ,000,000 in gold from London. On y / the First National 4,000,000 in gold. John bank arrange DE t of the Illinois Trust J. Mitchell, p announced today that and Savings he had arry o secure $500,000 in gold direct from on. The total gold engaged for the week so far by Chicago bankers is $3,500,000.

12. November 6, 1907 Vernon County Censor Viroqua, WI

Article from Vernon County Censor, November 6, 1907

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DEPOSITORS K!LL THEIR NOTICES Chicago, Oct. 31.-Savings depositors who had given notice of a desire to withdraw funds returned yesterday in large numbers And asked that the notices be cancelled. Assurance was given such patrons that not only would the notices be disregarded but that the interest on the accounts affected by the notices would be paid the same as though the notices had not been filed. President Forgan of the First National said he had ordered $1,000,000 in gold from London. This will come to Chicago direct and be credited to the First National's London account. Tuesday the First National arranged for $2,000,000 in gold, but this was against merchandise then in transit. Yesterday's importation was in the nature of a transfer from London to Chicago. John Mitchell, president of the Illinois Trust and Savings bank, announced that he had arranged to secure $500,000 in gold direct from London. He said that while foreigners had been striving to prevent exportations of gold, American bankers are getting it in fairly large amounts. The total gold engaged for the week so far by Chicago bankers is $3,500,000. Comptroller Helps Circulation. Washington, Oct. 31.-Comptroller Ridgely yesterday issued an official statement which says: "The comptroller's office will in every proper way facilitate the immediate increase of national bank note circulation. With this end in view all such national banks as have an amount of bonds in the hands of the treasurer of the United States to secure deposits and also have any available capacity for increased circulation will be allowed to substitute other bonds satisfactory to the secretary of the treasury as a basis for the government deposits, provided the government bonds thus released are used to increase circulation."

13. February 21, 1908 The Guthrie Daily Leader Guthrie, OK

Article from The Guthrie Daily Leader, February 21, 1908

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FORGAN AND VESTED RIGHTS James R. Forgan, president of the First National bank, Chicago, supposed to be the strongest bank in the I Central states, If not in America. has written an open letter to William Jennings Bryan, stating that the sunport given the bank guaranty law is unfair, unstatesmanlike and against all public policy. Mr. Forgan goes to some length in stating the value of the shares of stock in" his bank are worth two dollars for one. He insists the management of that Institution and the wisdom of its directorate have won for the bank a name and fame worthy of being made much of, insisting, also. that any at tempt to place all banks on the same level, makes of the speculator the same kind of banker the men who have weathered all financial storms. and retained the confidence and good will of the people throughout all the times, good or bad. Mr. Forgan also relates it is unfair to the stockholders of his bank to have it insured by a state, and thus permit the little bankers who have not the capital or foresight to stem financial gales, to become on a parity who his and like concerns. All of which is interesting, but con tains no element of fact, and in no way considers the Interests of the great depositing public; the losers in all cases of failure. Last fall a certified check on the Forgan bank was turned down in a city not one hundred miles from Guthrie. The check was properly cer tifled to, and called for $3,200.00. The holder had taken the check because of alleged convenience, and, when he needed money, had as well been possessed of some cigarette paper. The stockholders of the Chicago bank may have been serene, trustful and filled with a tremendous confi dence, but the poor traveler, out here in a land where all men are considered honest until proven otherwise, had to wire a relative to send him a few dollars by American Epres. before he could pay his laundry bills. Moreover, Mr. Forgan, as a depository for certain country banks, had some $40,000,000.00 of other bank moneys, and he kept it throughout the panic, Issuing clearing house certificates thérefor. If it were not for being a plain, vulgar way of stating a fact. The Leader would assert Mr. Forgan received cash from others, and, gegin here in return, he actually asked the people to receive clearing house certificates until such time as he felt called upon to hand back the actual cash. Mr. Forgan chirrups of vested rights. The pirates who sailed the Spanish Main were the original vested rights champions and they held whatever worked their pockets bad, was against the law of the Main. They were not as strong on prayer and writing open letters, but the same selfish motive actuated them as does make of the many men in our country the chirruping birds of wall and lamentation. A bank is sound and good in proportion to what It can pay on the dollar deposited, and what good it works for the community. If It be run for the simple purpose of making dividends to the shareholders. well and good, but, when such is the case, It is not fair they raise a howl over a measure enacted that the men who deposit their all may have assurance they, too, can have their money when they get the idea they wish to use some of it. Of the 8,000,000 people in these United States, but a small number of them are stockholders in a bank of any description. Shall this vast majority continue the prey of the banks which break each year, that the sharehold ers may reap a larger dividend, or shall these depositors have the protection, surety and safety guaranteed

14. September 29, 1920 The Idaho Republican Blackfoot, ID

Article from The Idaho Republican, September 29, 1920

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something that happened ten years after the other events that I told you about when he used his fortune to prevent a panic and to keep business stabilized. You may wonder why I am saying so much about Marshall Field, but to me he is a dictionary of good business principles and we ca.. afford to saturate ourselves in them. We can afford to study his operations a great deal and take plenty of time to let it soak into us. What I told you about how he prevented a painic during the world's fair applies in some measure to a condition right here in Bingham county at the present time. This other story that I am going to tell you is a little different but it applies to a set of circumstances that confront somebody in Bingham county right now. Thoughtful persons will see the connection and will draw a lesson from it and apply it to their business transactions, to their own advantage and the advantage of their fellow men in the county. # Walsh Bank Failure About the beginning of the present century John R. Walsh was the president of the First National bank of Chicago. It was a very strong bank and Mr. Walsh was a big man in business. He conceived a plan to build a connecting line with the Chicago & Central Illinois railroad to tap the coal mines of Central Illinois and taking a direct short cut into Chicago. It was a good enterprise, a bold stroke and was capable of releiving some of the other roads of their burdens of freight, and quickening the delivery of coal into Chicago. Mr. Walsh thought he could build the road and he went about it with his private fortune. When his own money was used up he used the bank's money, loaning it to himself and his railroad company. In doing this he violated the banking laws more severely than the Anderson bank at Idaho Falls violated the banking laws when it loaned upwards of a hundred thousand dollars to A. J. Stanger, who went about buying sheep and writing checks on the Anderson bank when he had no money to his credit. It was against the law for the Anderson bank to loan more than $40,000 to any one man. It was a violation of the laws for Mr. Walsh to take money out of the First National Bank of Cnicago to back his railroad enterprise. Before the road was completed Mr. walsh and the bank were in so deep that they were financially embarrassed and had to give an accounting and 'fess up. If Mr. Walsh had succeeded with his enterprise he would have come thru all right and he would have been considered a great man. # Big Bank Failure Mr. Walsh failed and the bank failed for many millions. Big failures like this are what start financial panics. When one firm cannot pay, another firm depending on them canot pay and many other firms depending on them fail, and so the damage goes on down the line until everybody connected wtih it fails. Then all the firms depending on these firms are embarrassed, they cannot pay their employes and their various other obligations, work stops pay checks do not come any longer, families go hungry, and there is a condition which we call a panic. # Consternation Among Bankers The First National Bank of Chicago was such a large bank, such a financial pillar for all the other banks in the city, that they called a meeting to see what could be done. It was a terrible surprise to find that this man walsh had goth in so deep and was involved in criminal charges. It was a terrible shock to all the other bankers to find that what was supposed to be one of the best banks in town was involved in failure and that involved them and they too, might fail. All of the enterprises depending on their own banks might fail and as they considered the matter there seemed to be no end to the failures that were likely to follow. These men sat in conference all day and all night trying to plan some way to prevent the failure. This tremendous amount of debts was no obligation of theirs and it was a criminal affair. The men responsible for it could not pay and it was not their own debt to pay, so they spent a great deal of time going over the matter to see how it all came about. But after they had been in conference twenty-four hours they were still confronted with the fact that the firm had failed and that unless something was done pretty quick, other firms would fail

15. March 6, 1933 Chicago Tribune Chicago, IL

Article from Chicago Tribune, March 6, 1933

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CLEARING HOUSE SCRIP AIDS CITY IN PANIC OF 1907 Recall Successful Operation of Certificates. Issuance of clearing house certifiChicago during money panic recalled yesterday many banking authorities considered adoption of the system operated satisfactorily quarter century ago. famine forced Chicago deposit the 1907 October of and demand for some medium exchange the special of Bankers for begged revision the laws. were advocated. Plea for Certificates. On the John late R. Thompthen county treasurer. the late Forgan, president the National bank. joined in for certificates. officials of the clearing they would adopt the proposal the movement sufficient impetus. Business leaders announced they would accept the certificates. Labor unions and other workers joined in the demand. For time agitation ceased when $3,500,000 gold was brought First National bank from London. It carried across the ocean on the Lusitania which was sunk torpedo ten years later in the greatest marine tragedies the Only Temporary Relief. This offered only temporary relief cry for certificates sumed. On Nov. the first cates [about $200,000 worth] were leased. Within three days there more than of the checks in circulation. The certificates were issued in $1, and $10 each denomination on paper of color. In appearance they resembled They Stocks bonds total value onethird than the amount of the certificates circulation were deposited for the checks. The certificates ac. cepted throughout the city and them found they back to the banks deposits. Spreads to Other Cities. Soon the plan spread to other cities also proved Within two weeks Banker Forgan initiated resume currency After with banks in the midwest the certifi. from circulation. By the middle of Decem ber, at the expiration of the period of had to reney payment. With resumption of currency payments deposits with drawals almost normal course the great panic of 1907 became history. D. Kelly. president of The Fair store, who was the organizers of the plan the clearing house certificates recalled those times last night. The clearing house certificates worked." said Kelly. turned out to be very practical."