4477. Hibernian Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
December 22, 1896
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
3b6741bc

Response Measures

None

Description

Articles (Dec 22-24, 1896) describe small runs on the Hibernian Bank in Chicago caused by depositor confusion after the failure of the National Bank of Illinois (similar name). The bank enforced its 60-day/30-day notice rules and remained open; the scare subsided within days. Bank charter type is not stated explicitly in the articles, so set to unknown.

Events (1)
1. December 22, 1896 Run
Cause
Rumor Or Misinformation
Cause Details
Confusion/consternation caused by similarity of name to the recently failed National Bank of Illinois; depositors believed Hibernian might be in trouble.
Measures
Enforced 60-day notice rule; smaller withdrawals over set limits required 30 days' notice; policemen preserved lines; bank publicly stated strong reserves (57%).
Newspaper Excerpt
Similar action was taken in the Hibernian Bank, where a small run was started and with a like effect.
Source
newspapers

Newspaper Articles (4)
1. December 23, 1896 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, December 23, 1896

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SURPRISED THEM. Directors of the Defunct Chiengo Bank Had No Knowledge of THE EXTENT OF CALUMET LOAN Millions Carried Unknown 10 Them, and Covered Up to Deceive the Bank ExamIner-A Confaston of Names Causes n Run on the Illinois Trust Bank, but Withdrawal. Soon Cense-Fatture of the Bank of Minnesota at St. Paul, CHICAGO, 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 the Calumet Electric, $500,000 advanced to G. A. Welgs, another son-in-law and over $800,000 of doubtful debts. Berger is a partner in the firm of E. S. Dreyer & Co., which also went into the hands of a recelver yesterday. Mr. Weise is R brewer. The losses by the failure will fall upon 1,971 Individual depositors and 350 national, state and private banks Included among the depositors are the treasurera of the city of Chicago, of Cook county, and of the state of Illinois. The depositors of the treasurers of the city of Chicago and Cook county will aggregate almost $1,000,000. The amount at the present time on deposit by the state treasurer is comparatively small. Among the depositors were many large corporations and receivers. They included the receivers of the Northern Pacifle railroad and the receiver of the whisky trust. The deposits of E.S. Dreyer & 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, ways: "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 to Dreyer & 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 magnitude of these loans. Quite a crowd of people gathered at the Illinois Trust and Savings Bank today, the similarity of the name with that of the collapsed National Bank of IIIInois deceiving many depositors and leading them to believe the Illinois Trust to be in trouble. Depositors who wished to withdraw their money were quickly formed in line and everybody else requested to leave. The bank. however, took advantage of the sixty days notice clause, and no withdrawals in sums over $100 were allowed. This had the effect of greatly decreasing the line and withdrawals soon ceased. Similar action was taken in the Hibernian Bank. where a small run was started and with a like effect.

2. December 23, 1896 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, December 23, 1896

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tation and standing of his bank. He believed that the run would soon spend itself. and the fact that there was a small line at the close of banking hours bore out his statement. The last statement of the bank to the Auditor of Public Accounts showed resources of $30,900,856; capital and surplus, $4,000,000; time deposits, $14.784,841; demand deposits, $11,715,974. HIBERNIAN BANK. The run on the Hibernian Bank began a little later, there being no waiting line until 11 o'clock. Small depositors who could not afford to take chances composed the bulk of the crowd, which extended from the paying-teller's window out on the second floor of the Ashland block. Policemen were needed to preserve the line intact and out of the way of other customers of the bank. The sixty-day rule was enforced from the start. There were 150 people in line until near the closing hour. The bank has withstood every panic. and on this account is considered strong and has attracted a heavy savings account. President Clark said the bank had 57 per cent. of its reserve fund on hand, and could stand a run of two months, if necessary. Depositors of from $50 to $100 were required to give thirty days' notice, under the bank rule, and when this is known there is not expected to be much of a run to-morrow. In compliance with orders from Comptroller Eckles, the bank examiner, McKeon, receiver of the National Bank of Illinois, began to-day to make arrangements with City-Treasurer Wolf and other custodians of public funds in the bank to issue to them certificates for such amount of their deposits as clearly appeared to be due them, so as to enable them to. take advantage of the clearirg-house offer to advance 75 per cent. This applies only to public funds. A report was current to-day that the loans of $500,000 each to Robert Berger and George A. Weiss, both sons-in-law of President Schneider, of the failed national bank, were unsecured. It was said that the Weiss loan is secured by the American Brewing Company's bonds, Mr. Weiss being president of the company. None of the bank directors could be found who had seen such bonds. The Dreyer loan is said to be secured by real estate, which the Clearing-House Committee threw out as worthless. It is claimed that most of the directors were ignorant of the $900,000 additional loan on Calumet Electric securities. WARRANTS OF ARREST. Warrants were sworn out before Justice Hall this evening for the arrest of E. S. Dreyer and Robert Berger, of the banking firm of E. S. Dreyer & Co., which failed here yesterday. The warrants charge the bankers with violation of the banking laws of Illinois, by receiving deposits atter the institution was insolvent, and were sworn out by Frank Kennedy, a saloon-keeper, on Dearborn street. He claims to have made a deposit in the bank after it had become insolvent. Robert Berger, one of the partners, is a son-in-law of George Schneider, president of the defunct National Bank of Illinois. The warrants have been placed in the hands of officers, and the arrests will probably be made before morning.

3. December 24, 1896 The Norfolk Virginian Norfolk, VA
Article from The Norfolk Virginian, December 24, 1896

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he Law is Trying to Fix the Blame for the I Big Chicago Failure. FCEIVED DEPOSITS AFTER FAILURE 9 the Charge Brought-They Were Admitted to Ball-Runs on Two of the Banks Continue-A Remarksblc Record of Failures throughout the Country Yesterday. Chicago, December Charges and counter charges in connection with the management of the National Bank of Ilinois were made to-day and engrossed he attention of the financial community o the exclusion of the days events surrounding the big financial collapse. The public scare is practically over and a complete restoration of confidence seems to have been effected. BANK OFFICERS ARRAIGNED By arrangement of the police department, counsel for the defendants and Justice of the Peace W. T. Hall, the acused private bankers Edward S. Dreyr and Robert Berger. entered Justice Hall's private courtroom this afternoon. Detective Fay who held the warrants which F E. Kennedy, a saloon keeper and depositor at Drever & Co.'s bank, had sworn to. announced that the men vere under arrest. The charge in each ase is that the bank received a deposit if $153 at the close of business last Saturday, knowing at the time that they were insolvent. The defendants were accompanied by Adolf Kraus, their lawyer, and Charles 1. Wacker, of the Wacker & Birk Brewng Company The latter signed the bond of the bankers in the sum of $500 each for their appearance in Justice Hall's court January 2. Kennedy says 10 is acting for himself only. but his action is regarded as premature and III& advised by those who believe Dreyer Co.'s failure could not be foreseen. A SHORT RECEIVERSH!P. The shortest bank receivership on record-forty-eight hours-was that of John H. Nichols, who was appolited reeiver Monday afternoon for Frederick Veirzma, proprietor of the Roseland Savings Bank of Roseland, which cleard through the National Bank of IIIInois, The receiver appeared before Judge Maney this afternoon and reportd there were assets of $83,000 in cash and real estate and liabilities of $51,600. SufIcient money had been raised to carry on the business and the judge dischargd the receiver. The bank will open its loors to-morrow morning. THE RUNS KEPT UP. The runs on the Illinois Trust and Savings and Hibernian banks continued to-day in lesser degree. and when the usual hour arrived there was not enough of it line at each bank to dignify the seare as : run. No vestige of the exeitement is expected after Christmas day. The officers of the Illinois Trust were so confident that the run on their bank had come to an ignoble end that after paying out under the GO day notice rule for depositors of over $100 for an hour or so. decided to remove all restriclinis and began payment in full 10 all depositors in line. At the Hibernian bank the notice was adhered to. A staff of accountants, in charge of an expert. was put to work during the day it the Dreyer & Co. and Wasmandorff S Heinmann banks. and next week a report is expected which will give an inelfigent Idea of the condition of both houses. A SCAPEGOAT. Vice-President Hammond, who Is charged with pulling the wool over the yes of the directors of the defunct National Bank, would not talk for publicaNon when seen to-day at his Evanston home, but a friend. speaking for him. sadd: W. A. Hammond is to be made the scapegent of the failure of the bank He is a broken man to-day but he is not any more to blame for the amount of money loaned on Calumet Electric seenHty than are the members of the Finance Committee of the bank and its directors. It was necessary for the purposes of a man connected with the South Chicago City Railway and an officer of one of the biggest banks in Chicago, to depreciate Calumet road stock and to this end these two men accomplished the wreck of the National Bank of Illinois. Every member of the Finance Committee and directors of the failed bank knew he full amount of the Citlumet loan and hoped to make individual fortunes on the success of the venture. They were given stock of the road and the purpose of the !cal was to sell the property and besides paying the bank loan. make a neat sum for the directors. There has been a harp contest between the General Elecand South Chicago City Railway Companies to get control of the Calunet bonds. The latter road will be worth $5,000,000 in five years and the outdiders who ruined the bank knew it. but

4. December 26, 1896 The Diamond Drill Crystal Falls, MI
Article from The Diamond Drill, December 26, 1896

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CHICAGO BANK TROUBLES. Practically Ended-Placing the Blame for the Crash. Chicago, Dec. 24.-Charges and coun charges in connection with the man of the National Bank of Illi were made Wednesday, and en the attention of the financial mmunity to the exclusion of the day's surrounding the big national collapse. The arrest of Bankers and Berger, the discharge of the eiver of the Roseland bank and the atinuation of the savings depositors on the Illinois Trust and Savings and the Hibertian Banking asso were the principal develop The public scare is practically and a complete restoration of con seems to have been effected. S. Dreyer and his partner, Rober of the banking firm of E. S & Co., which failed on Monday for whom warrants had been issued arging them with receiving a deposit owing their bank to be insolvent themselves up Wedneseday. Sub quently they were released by Justice in $500 bonds each, pending the aring of their case, which will take on January 2. Adolph Kraus, the vyer, and Charles H. Wacker. 1 were their bondsmen. The shortest receivership on record hours, was that of John H. Nichols was appointed receiver Monday aft for Frederick Wiersema, pro of the Roseland savings banl Roseland, which cleared through the tional Bank of Illinois. The receiv appeared before Judge Haneey ednesday afternoon and reported were assets of $83,000 in cash and estate and liabilities of $51,600 fficient money had been raised to on the business, and the judge dis arged the receiver. The bank wil its doors this morning. The runs on the Illinois Trust and vings and the Hibernian banks con Wednesday in lesser degree, and the closing hour arrived there not enough of a line at either banl dignify the scare as a run. N of the excitement is expecte Christmas day. The officers o Illinois Trust were so confiden the run on their bank had come t ignoble end that after paying ou the 60-day notice rule for de of over $100 for an hour or so de to remove all restrictions and be payment in full to all depositors ii At the Hibernian bank the notic adhered to. staff of accountants, in charge o expert, was put to work during th at the Dreyer & Co., and Wasmans & Heinemann banks and nex a report is expected which wil an intelligent idea of the condition both houses. Pending instructions from Comp Eckels, Bank Examiner McKeo taken no steps as yet to criminall osecute William A. Hammond, sec vice-president of the National Ban Illinois. His arrest, however, is sai be a certainty, and the charge which be preferred against him is thn violating the national banking laws Other officials are also believed t had at least a guilty knowledge o same transactions. Presiden hne:der's lips were closed, it is us by allowing the debts of his son law to the bank to overstep all lega The rival banks of the National Ban Illinois in Chicago have profited b failure. This institution had one o largest and most profitable countr rrespondences in the west. On it were also some of the stronges in New York, Boston, Philade Cleveland, Cincinnati, St. Loui Kansas City, and in the west man the largest German-American bank interests transacted their outsid siness through the National Ban Illinois. The bulk of this corre ondence was absorbed by the othe a day after the failure. Before the clearing-house committe taken its final action Sunday after