4438. Garden City Banking & Trust Company (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
trust company
Start Date
December 21, 1896
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
e4ad2612

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous newspaper accounts (Dec 21–23, 1896) describe a short, small run on the Garden City Banking & Trust Company triggered by its clearing connection with the failed National Bank of Illinois. The bank paid out withdrawals, opened early to meet demand, and by the following day withdrawals had ceased and deposits replenished amounts taken out. There is no mention of suspension, receivership, or permanent closure for this bank in the articles.

Events (2)
1. December 21, 1896 Run
Cause
Correspondent
Cause Details
The run was caused when it became generally known the institution cleared through the failed National Bank of Illinois (loss of confidence due to correspondent failure).
Measures
Opened doors an hour early to get run out of the way; paid out demanded funds; officers assured depositors and paid as asked; closed doors at regular closing hour.
Newspaper Excerpt
A run IS in progress on the Garden City bank, at Washington and La Salle streets, this afternoon. One hundred people are in line, waiting to withdraw their deposits. The bank is paying out as fast as possible.
Source
newspapers
2. December 22, 1896 Run
Cause
Correspondent
Cause Details
Continuing fallout from the National Bank of Illinois failure; bank anticipated run and proactively opened early to meet withdrawals.
Measures
Opened an hour earlier than usual; paid out demands; replenished funds with deposits by midmorning.
Newspaper Excerpt
Its doors were opened an hour before banking hours today, and by 10:30 the withdrawals ceased and the deposits had trebled the amount taken out.
Source
newspapers

Newspaper Articles (10)
1. December 21, 1896 Las Vegas Daily Optic Las Vegas, NM
Article from Las Vegas Daily Optic, December 21, 1896

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SOME FAILURES. That Promised Tidal Wave of Prosperity not Being Verified. CHICAGO, Ill., December 21.E.S. Dreyer & Co., one of the oldest banking establishments in this city, located at Washington and Dearborn streets, failed at 10 o'clock, this morning. The bank is in the hands of the Security Title and Trust company Dreyer refuses to make any statement. CHICAGO, Illinois, December 21.The banking firm of Wasmandorf & Heinmann, Randolph street, is announced to be in the hands of the Security Title and Trust company. WASHINGTON, D. C, December 21.The comptroller of the currency was notified, this morning, by Bank Examiner McKeon, at Chicago, that the clearing house committee in Chicago, had authorized the statement that, 110mediately upon claims against the National Bank of Illinois, which closed to-day, being approved by the receiver, they would advance 75 per cent. on their face, in order to save time. Comptroller Eckels appointed Mr. McKeon receiver, with instructions to publish notice of claims at once and also telegraph those banks having the National Bank of Illinois as their reserve agents that, if they prove claims at once, they can get 75 per cent. NEW YORK, N Y., D cember 21.President Schenck, of the Mercantile bank, one of the eastern correspondents of the National Bank of Illinois, said this morning, as regards the failure: "Some of the injudicious loans are to railroad corporations in Chicago. No business in New|York is affected by the Chicago concern's failure." WASHINGTON, D C., December 21.Comptroller Eckels to-day gave out a statement in reference to the failure of the National Bank of Illinois, in which he says: The failure is due to the in. judicious, reckless and imprudent methods followed by the officers, and not checked by the directors, though their attention had been individually called to the same. The largest source of failure is the bank's holdings of Calumet Electric street railway stock. CHICAGO, Illinois, December 21 -A run IS in progress on the Garden City bank, at Washington and La Salle streets, this afternoon. One hundred people are in line, waiting to withdraw their deposits. On the sidewalk, outside, there is a large crowd, which is increasing rapidly. The bank is paying out as fast as possible. CHICAGO, Illinois, December 21 o'clock, this morning, a large crowd had gathered around the doors of the National Bank of Illinois, and creditors discussed the probability of realizing from their deposits. On the large door, the following notice was posted: "This bank is in the hands of national bank examiners, by order of the comptroller of the currency." CHICAGO, Idinois, December 21.The failure is announced of the Roseland Savings band, on Michigan ave.

2. December 22, 1896 Birmingham State Herald Birmingham, AL
Article from Birmingham State Herald, December 22, 1896

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GREAT CHICAGO FAILURE National Bank of Illinois Goes to the Wall. IN A RECEIVER'S HANDS Three Other Concerns Carried Down by the Monster Crash. METHODS IMPRUDENT RECKLESS, Caused the Big Concern to Go, Says Comptroller Eckels-His Statement of the Matter-Mad Rush on Smaller Institutions. Chicago, Dec. 21.-At 10 o'clock this morning a large crowd gathered around the doors of the National Bank of Illinois, and creditors discussed the probability of realizing from their deposits. On the large door leading to the counting room the following notice was posted: "This bank is in the hands of the national bank examiners. "By order of the comptroller of the currency." Posted over the doors and walls in the corridors were notices from various depositors of the bank stating that checks given on the bank Saturday would be paid by the signers. Shortly after 10 o'clock the announcement was made of the failure of E. S. Dryer & Co., an old established banking institution on the southwest corner of Washington and Dearborn streets. Wasmansdorff & Heinemann, bankers at 145 and 147 Randalph street were carried down by the financial crash today and closed their doors. Judge Freeman appointed the Security Title and Trust company receiver for E. S. Dreyer & Co., and Wasmansdorff & Heinemann. The receiver for Dryer & Co. was appointed on a bill filed by E. S. Dreyer in the superior court this morning asking for a dissolution of the partnership and a distribution of the assests. Robert Berger was made defendant. The court was told that the assets were $1,500,000, and the liabilities $1,250,000. The bill says that the partners have agreed to close up the business, but have been unable to agree as to the manner in which it is to be done. The bill also says that the assets consist of real estate, real estate mortgages, stocks, notes and accounts receivable, while the liabilities are open accounts and certificates of deposits. There has been great depression in the value of real estate recently, the bill says, and unless the assets are handled in a conservative and careful manner great loss will result. Therefore a receiver is asked for to close out the business. By a conservative handling of the estate, the complainant says, the assets can be made to realize $150,000 more than the liabilities. None of the officers of E. S. Dryer & Co. was. at the bank today, and the creditors of the institution could get no information as to the failure. The receiver for the firm of Wasmandorff & Heinmann was appointed at the request of Otto Wasmansdorff, senior member of the firm. He appeared in the superior court and named his partner. William Heinemann, as defendant. The assets are given as $550,000, with liabilities of $415,000. The complaint says that a receiver can admister the assets so as to produce a surplus of about $100,000. The failure is also annuonced of the Roseland Savings bank, at No. 106 Michigan avenue. Frederick Wielrzma is at the head of the bank. The bank did business with the National Bank of Illinois. A run on the Garden City Banking and Trust company's bank in the Chamber of Commerce building was caused by the fact becoming generally known that the institution cleared through the failed National Bank of Illinois. The line of fearful depositors was not long, and withdrawals were promptly made until the regular hour for closing the bank, 3 o'clock. The doors were then closed, and only those depositors who were inside were paid. At the Illinois Trust and Savings, and the American Trust and Savings banks there were small lines of men and women who were anxious to get their money in hand, and the bank officers were glad to pay it out, as the withdrawals in the savings departments meant a gain of interest money which would be due January 1. Both these nks are regarded as financially impregna ble.

3. December 22, 1896 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, December 22, 1896

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INATIONAL BANK OF ILLINOIS, Where the Loss Will Fall-The Excitsment Dying Out, CHICAGO, Dec. 22.--The assets of the National bank , of Illinoie, which closed yesterday, are said to include in addition to the $2,475,000 loaned to the Calumet E ectric, $500,000 advance I Robert Berger, a son-in-law of Presi. dent George Schneider; $500,000 advanced G. A. Weise, another son-inlaw, and over $100,000 doubtial debtr. Berger is a partner of the firm of E. S. Dryer & Co., which also went into the hands of & receiver yesterday. Weiss is a brewer. The losses will fall upon 1,971 Individual depositors and 350 national, state and private banks. The deposits of the treasurers of Chicago and Cook county aggregate almest $1,000,000. The amount at the present time on deposit by the state tressurer is compara. tively small. Among the depositors were many large corporations and receivers. They included the receivers of the Northern Pacific railroad and receiver of the whiskey trust. The deposits of E. S. Dryer & Co. include the funds of the West Park beard. Theamount was about $810,000. NO MORE EXCITEMENT. CHICAGO, Dec. 22.-- The excitement attendant upon the collapse of the National Bank of Illinois and three dependent banks appears to have died out today. Runs were made yesterday on several banking institutions, notably the Garden City Banking & Trust company. Its doors were opened an hour before banking hours today, and by 10:30 the withdrawals ceased and the deposite had trebeled the amount taken out. The withdrawals at other banks were few. It is generally expected Bank Examiner McKeon will be appointed receiver permanently of the National Bank of Illinois.

4. December 22, 1896 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 22, 1896

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TO-DAY'S TELEGRAPHIC NEWS The Chicago Banks. CHICAGO, Dec., 22.-Without any apparant cause, except for the fact that & general lack of confidence had pervaded the timid depositors in the savings department, a heavy run on the Illinois Trust and Savings Bank, in the Rookery Building, began as soon as the doors were open for business this morning both men and women being in line. There is not the slightest connection between the failed National Bank of Illinois and the Illinois Trust Co. The bank anticipated a run to-day and there is such a heavy reserve fund of idle money in the vaults that President Mitchell has no misgivings as to the ability of his bank to pay a few millions if necessary. The bank does the largest trust and savings business in the city and has a capital and surplus of $4,000,000 At the Graden City Banking and Trust Company's bank, the run of yesterday had practically run out its length. The bank officers said they did not expect any more trouble. At the other national, private and State banks there was the ordinary transaction of business with no more people paying their respects to the paying teller than to the receiving teller. In banking circles the general opinion is that yesterday's failures will end the present trouble. Shortly after eleven o'clock a crowd of depositors gathered at the Hibernian Banking Association, to withdraw their savings. This bank is regarded as one of the strongest in the city. President Clark said that the savings bank would take advantage of the law by which demands for $50 or more must be accompanied with a thiry day notice and $100 or more by a sixty-day notice. Demands of less than $50 will be paid on sight.

5. December 23, 1896 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, December 23, 1896

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soon after receiving the notice. The Bank of Minnesita was the oldest in the city and one of the best known throughout the west. It had many correspondents, among them the National Bank of Illinois, but it was stated tonight that the failure of the Chicago bank had nothing to do with the closing of this concern. The small bank at the stock yards that closed as a result of the other failure was a branch of the Bank of Minnesota, but no other local banks are at all affected by the failure. CHICAGO'S FAILURES. Washington, Dec. 22.-Comptroller Eckels received a telegram early in the afternoon stating that everything was quiet in Chicago but containing no other news. He said he did not care to talk concerning the situation and that he did not know yet whether or not there would be any criminal proceedings brought on account of the revelations concerning the failure. The first duty of examiners placed in chargeof failed national banks, he said, was to ascertain whether there had been any criminal violations of the law. He had received no report of any as yet but if the examiner did find and report such violations, measures would be taken, of course, to prosecute the parties reported. EXCITEMENT SUBSIDES. Chicago, Dec. 22.-The excitement attendent upon the collapse of the National Bank of Illinois and its three dependent banks, appeared to have died out today. Runs of more or less magnitude were made yesterday on several banking institutions. notably the Garden City Banking and Trust company. The doors of that institution were opened an hour before banking hours today, but by 10:30 a. m. withdrawals had ceased and deposits had trebled the amount taken out. Withdrawals at other banks were few and far between. It is generally expected that Bank Examiner McKeown will be appointed receiver permanently for the National Bank of Illnois. LOANED TO SONS-IN-LAW. Chicago, Ill. Dec, 22.-The assets of the National Bank of Illinois, which closed its doors yesterday, are said to include in addition to the $2,475,000 loaned to Robert Berger, a son-in-law of President George Schneider, $500,000 advanced to G. A. Weiss, another son-in-law, and over $800,000 of doubtful debts. Berger is a partner in the firm of E. S. Dryer & Co., which also went into the hands of a receiver yesterday, and Weiss is a brewer The losses by the failure will fall upon 1,971 individual depositors and 350 private state and national banks. Included among the depositors are the treasurers of the city of Chicago, and of the state of Illinois. The deposits of the treasurers of Chicago and Cook county will aggregate almost $1,000,000. The amount at the present time on deposit by the state treasurer is comparatiely small. Among the depositors were many large corporations and receiers. They include the receivers of the Northern Pacific rail road and the receiver of the whisky trust. The deposits of E. S. Dryer & Co., include the funds of the West Park board. The amount at the time the bank closed was about $310,000. Robert E. Jenkins, one of the directors of the National Bank of Illinois, says: "The directors did not know the size of the loan on the Calumet Electric. The discovery of the condition of the loan was as much of a surprise to me as to the public. The same is true of the loan of Dryer & Co. The directors were unaware of the loans, which appear to have carried the bank down, or were, until the latter part of last week. I do not care to say who I believe was to blame for the directors being kept in the dark as to the mangnitude of these loans." CITY OF CHICAGO'S FUNDS. Washington D. C. Dec. 22.-Mr. Eckles, the comptroller of the currency. received a telegram today from Mr. McKeon. the receiver of the National Bank of Illinois, stating that the books of the bank show that quite large sums of public funds belonging to the city of Chicago were on deposit. In reply the comptroller sent Mr. McKeon the following telegram. "Your telegram relative to public funds received. You may make arrangements with depositors thereof to issue to them at once certificates for such amounts of their deposits as an examination of the books of the bank makes clear is due them. This will enable them to avail themselves of the offer of the clearing house to advance 75 per cent and SO prevent embarrassment in meeting public expenditures." BANK STATEMENT. Chicago. III., Dec. 22.-Under the general call issued by the comptroller of the currency, the national banks of this city have prepared a statement showing their condition at the close of business Dec. 17. The last previous statement was made Oct. 6. The fourteen banks show total loans of $63,639,323, as compared with $63,665,693 Oct. 6. a loss in loans of $25,470. The total deposits are $94,341,352. as compared with $37,361,503, a gain of $10,354,186. The legal requirements in reserve is 25 per cent. or for the fourteen banks. $23,597,863, while there is held $47,896,089 in excess of the legal requirement of $24,-

6. December 23, 1896 The Copper Country Evening News Calumet, MI
Article from The Copper Country Evening News, December 23, 1896

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LOANS BY THE MILLION The Way the National Bank of IIlinois Made Them. TRUE CAUSE OF THE SUSPENSION. Directors Claim They Were in Ignorance of What Was Going on and Were Misled by Manipulated Accounts-Rivalry Between Street Car Lines Was the Means of Bringing Matters to a Climax -Run on the Garden City Bank. Chicago, Dec. 23.-There was a feelIng of confidence in banking circles Tuesday morning which was noticeable togthe most casual observers who called at the big institutions. This feeling was not confined alone to the banks, but extended to the mercantile houses. At the sheriff's office, which often acts as a pulse to the heart of trade, the utmost confidence was expressed that with the suspension of the Bank of Illinois, Dreyer & Co., the Roseland institution, and Wasmansdorf & Heinemann the suspensions had ceased and nothing more remained to be done than to straighten out the stangled affairs of those institutions. Probably more interest centered in the Garden City bank Tuesday than in any other of the concerns. As early as 8 o'clock there was a small crowd of depositors waiting to be admitted. Mr. Buehler of the bank was early on hand and the teller paid out all money that was demanded. At no time did the demand amount to a run. Mr. Buehler and President Gilbert, as well as the bank's attorney, declared without reserve that they would pay out every cent asked of them and that there was not the slightest occasion for alarm.

7. December 23, 1896 The Evening Herald Shenandoah, PA
Article from The Evening Herald, December 23, 1896

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More Failures in Chicago. CHICAGO, Dec. 23-The failures of Angus & Gindele, general contractors: the American Brewing, Malting and Elevator company, the George A. Weisse Malting and Elevator company and George A. Weisse individually, all of these being due to the collapse of the National Bank of Illinois, and small runs on three banks were the echoes yesterday of the bank failures of Monday. Runs were made. on the Garden City Banking and Trust company, the Hibernian Savings bank and the Illinois Trust and Savings bank, and none of the runs was of much importance. Before the close of banking hours the excitement had completely died out.

8. December 23, 1896 The Houston Daily Post Houston, TX
Article from The Houston Daily Post, December 23, 1896

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Assignments and Runs Made. Chicago, December 22.-The failures of Angus & Ginglee, contractors, the American Brewing, Malting and Elevator company, the George A. Welss Malting and Elevator company and George A. Welos, individually, all of these being due to the collapse of the National Bank of Illinois and small runs on three banks were the echoes today of the bank failure of yesterday. Runs were made on the Garden City Banking and Trust company, the Hibernian Savings bank and the Illinois Trust and Savings bank. None of the runs were of much importance. The Illinois Trust and Savings bank is sudd to have $9,000,000 in cash on hand and was today loaning money instead of, as in 1893, calling loans to meet the demands of the savings depositors. The American Brewing. Malting and Elevator company, the George A. Wetss Malting and Elevator company and Geo. A. Wellss assigned this evening in the county court. The assignee of the American Brewing, Malting and Elevator company is the Chicago Lime and Trust company and that company is the assignee of Welss. No statement was filed as to the assets and liabilities. The failure of hese corporations was the result of the failure of the National Bank of Illinois. The two companies were borrowers from the bank and were indebted to the bank to the amount of half a million dollars. Judge Horton, earlier in the day, appointed a receiver for the general contracting firm of Angus & Ginglee on the application of John Angus. one of the members of the firm. The assets of the concern were placed at $300,000 and the liabilities at $250,000.

9. December 24, 1896 The Austin Weekly Statesman Austin, TX
Article from The Austin Weekly Statesman, December 24, 1896

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A FLURRY IN CHICAGO. Chicago, Dec. 22.-The failures of Angus & Ginglee, contractors, the American Brewing, Malting and Elevator company, the George A. Weiss Malting and Elevator company and George A. Weiss, individually, all of these being due to the collapse of the National Bank of Illinois, and small runs on three banks, were the echo today of the bank failure of yesterday. Runs were made on the Garden City Banking and Trust company, the Hibernian Savings bank and the Illinois Trust and Savings bank. None of the runs were of much importance. The officers of the Garden City Banking and Trust company had expected that a run would be made on their institution and were ready to meet it. They threw open the doors of the bank an hour earlier than usual, as they said they wanted to get the run out of the way. Quite a crowd of depositors had gathered at the doors before they were opened and as soon as the bank was ready for business the depositors gave the paying tellers all they cared to do. The run kept up with energy for over an hour and then died away. At the close of banking hours the officers of the institution announced that during the day the amount of money taken in was treble that paid out. The run on the Hibernian Savings bank was of short duration, as the officers declined to make any payment on time deposits unless given the legal sixty-day notice. They said this was not because they were not prepared to pay all depositors in full, but because they wished to avoid embarrassments to smaller bankers who migh tnot be prepared to pay all their depositors at once and who might be placed in an embarrassing position if the stronger banks were paying all demands for time deposits. There was a slight run on the Illinois Trust and Savings bank shortly after it opened, the similarity of its name with the National Bank of Illinois having led some depositors to believe that the former was embarrassed. Before the close of banking hours the excitement had completely died out and the giving of notice was sanctioned by the clearing house, and the object was the Illinois Trust being the strongest savings bank in the city-to give the smaller ones the opportunity to point to its action as an excuse for giving the notice themselves, which they did, and thus stopped a run on any of the savings banks. The Illinois Trust and Savings bank is said to have $9,000,000 in cash and securities on hand.

10. December 24, 1896 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, December 24, 1896

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ALMOST A PANIC. Several Failures and Financial Distrust Makes Excitement in Chicago. CHICAGO. Dec. 23.-The vailures of Angus & Gildele, general contractors; the American Brewing, Malting & Elevator Co.; the George A Weisse Malting & Elevator Co., and George A. Weisse, individually, all of these being due to the collapse of the National Bank of Illinois, and small runs on three banks, were the echoes yesterday of the bank failures of Monday. Runs were made on the Garden City Banking & Trust Co., the Hibernian savings bank and the Illinois Trust & Savings bank, but none of the runs were of much importance.