4481. Hibernian Banking Association (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: f2f31ca8

Response Measures

Partial suspension

Other: Bank invoked statutory notice (30/60 day rule) to limit withdrawals over thresholds; paid smaller demands on sight.

Description

Multiple contemporaneous articles (Dec 22–24, 1896) report crowds of savings depositors assembling to withdraw funds from the Hibernian Banking Association; officers invoked statutory 30/60-day notice for larger withdrawals and continued to pay small demands. Runs diminished after a few days and no suspension or closure of the Hibernian is reported in these pieces. Cause appears to be contagion from the failure of the National Bank of Illinois and general lack of confidence among small depositors.

Events (1)

1. December 22, 1896 Run

Cause: Local Banks
Cause Details: Contagion/contagious timidity following the collapse/failure of the National Bank of Illinois and general lack of confidence among savings depositors.
Measures: Invoked statutory notice rule: demands over $50/$100 required 30/60 days' notice (paid on sight for under $50); officers maintained reserves (reported 57–75% on hand).
Newspaper Excerpt: Shortly after 11 o'clock, a crowd of depositors gathered at the Hibernian banking association, in the Ashland block, to withdraw their savings.
Source: newspapers

Newspaper Articles (11)

1. December 22, 1896 Las Vegas Daily Optic Las Vegas, NM

Article from Las Vegas Daily Optic, December 22, 1896

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BANKS IN STRAITS. The Chicago Troubles not Over and St. Paul Heard From. CHICAGO, Ill., December 22 Shortly after 11 o'clock, a crowd of depositors gathered at the Hibernian banking association, in the Ashland block, to withdraw their savings. This bank was regarded as one of the strongest in the city, it having withstocd every panic. President Clark, in an interview, said that the savings bank would take advantage of the law by which demands for $50 or more must be accompanied by thirty days' notice and $100 or more by sixty days' notice. Demands of less than $50, would be paid on sight. Mr. Clark said the bank had 57 per cent. of its reserve funds on hand and could stand a run of two months, if necessary.

2. 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.

3. December 23, 1896 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, December 23, 1896

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Another Chicago Bank Has Its Troubles. Chicago, December 22.-Shortly after 11 o'clock a crowd of depositors gathered at the Hibernian Banking Association in the Ashland block corner of Clark and Randolph streets, to withdraw their savings. The bank is regarded as one of the strongest in the city, having withstood every panic. For this reason it is one of the largest depositories for savings in the city. President Clark in an interview said that the savings bank would take advantage of the law ty which demands for more than $30 must he accompanied with a 30 days' notice, and $100 or more by a 60 days' notice. Demands of less than $50 will be paid on sight. Mr. Clark said that the Dank had 75 per cont of reserve fund on hand and could stand a run of two months if necessary.

4. December 23, 1896 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, December 23, 1896

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TO-DAY'S TELEGRAPHIC NEWS The Banks. CHICAGO, Dec. 23.-The runs on the Illinois Trust and Savings Bank and the Hibernian Banking Association continues to-day, but is diminished in size. The officers of the banks look for a con. tinuation of the run to-morrow and then the end. The Christmas day rest is expected to have a general cooling effect. Business went on as usual at the other banks which have savings departments. The warrants for the arrest of E. S. Dryer and Robert Berger had not been served at noon to-day. It is believed that as soon as the bankers arrange for bondsmen, they will come from their retirement and submit to arrest. ST. PAUL, Minn,, Dec., 23.-The first critical hour of the morning has gone and the banks and business circles breathe easier. No run developed up to this writing, which is a safe indication that none will follow. In one or two banks, where many small certificate holders carry funds, there was a slight attempt to draw out funds. In every case where certificates would mature in a few days they were paid, the banks simply saving interest to the loss of the depositors. Every bank in the city is well fortified with ready cash. The action of State Treasurer Koerner in depositing a large sum in one bank threatened with a small sized run was magical. Certificate holders on seeing thousands of dollars go over the counter into the bank's he is, turned about and left without drawing their money. The district court is now considering the appointment of a receiver of the suspended Bank of Minnesota. WEST SUPERIOR, Wis., Dec. 23.The Bank of West Superior did not open its doors for business this morning, being forced into liquidation by the failure of the Bank of Minnesota. The November statement showed deposits $79,000; loans and discounts $106,971 and real estate assets $43,000.

5. December 23, 1896 The San Francisco Call San Francisco, CA

Article from The San Francisco Call, December 23, 1896

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But Small Depositors Cause a Run on Some of Chicago's Institutions. Unexpected Failure of the Bank of Minnesota, but Creditors Will Be Paid in Full. CHICAGO, ILL., Dec. 22.-A steady run of savings depositors on the Hibernian Banking Association and the Illinois Trust and Savings Bank and the failure of the Angus & Gindele Contracting Company, which is credited with getting a loan of $250,000 from the failed National Bank of Illinois, comprised the developments of to-day in connection with the financial flurry. The associated banks have taken prompt, thorough and conservative action to avoid a serious scare on the part of the public, which has millions of dollars in savings accounts deposited with city banks. The Illinois Trust leads all the local banks in its savings deposits, having nearly $12,000,000. The Hiberaian Bank has less than $3,400,000 of such accounts. The solid showing made by the banks which did not lean on the collapsed National bank had a reassuring effect on the public to-day when the morning papers were perused, and the general feeling in the banking community was that the worst was over so far as those institutions were concerned. At a conference of the savings banks of the city, which was held when the runs began at the Hibernian and Illinois Trust banks, it was unanimously agreed to adopt an unusual means toward checking what might become an epidemic of apprehension. Instead of attempting to allay the scare by paying all demands in full on the spot, which has proven to be an unwise policy in the past, the banks decided to stand upon their statutory rights and demand notice of sixty days in case of all withdrawals exceeding $100. John Angus, president of the Angus & Gindele Contracting Company, appeared in the Superior Court this afternoon with a bill petitioning for the appointment of a receiver. He made George A. Gindele, secretary and treasurer of the company, defendant for the purpose of obtaining a receivership, and substantially the same allegations were made as in the DreyerWasmansdorff case yesterday. The financial condition of the company was said to be such that a receiver was needed at once to conserve the assets and protect all interests. The answer filed by Gindele admitted the substance of the petition and Judge Horton did not hesitate to appoint William Hill receiver. According to the statement made by the attorneys for the company the assets are estimated to be worth $300,000, and liabilities are placed at $250,000. These figures are believed to be largely guesswork, however, and exaggerated in case of the assets. It is said the firm owes the National Bank of Illinois alone $250,000 for money borrowed, and the security is said to be of a class which will be slow to realize on. The present partnership was formed in 1888. The company had a large contract on the drainage canal, and was the principal owner of the Security building at Madison street and Fith avenue, which was built by the firm. Mr. Angus 18 president of the Security Deposit Company, which owns the building, and Mr. Gindele is the treasurer. The capital stock of the building company is $500,000. There is a mortgage for $180,000 on it, and it is bonded for $150,000, secured by second mortgage. This building is believed to be the bestrasset of the contracting company. It has been in financial trouble for a long time. Part of the Lake-street Elevated Railroad was built by the firm. The only reason which can be thought of by the officers of the Illinois Trust and Savings Bank for the run on that bank, apart from the general one of conagious timidity, is that ignorant people, hearing or reading of the failure of the National Bank of Illinois, got it confounded with the only other bank of the city which has the word Illinois in its title. In fact, many money-seeking depositors who hurried from their homes admitted, when they reached the waiting line, that they had heard the bank had failed, while money was being paid out and received under their eyes. Meddlesome busybodies and fool friends, who had wrought on the fears of depositors and had even accompanied them to the bank, were ordered by police officers and bank detectives to await their friends outside. The line of men and women who wanted their money numbered 200 during most of the five hours the bank was open, and the curious crowd of spectators added to the excitement. Where deposits exceeded $100 that amount only was paid and the sixty days' notice enforced as to the remainder. While President John J. Mitchell said the \bank had money enough to pay all depositors in full he declared the sixtyday rule decision would not be misinterknew the reputation

6. December 24, 1896 The Record-Union Sacramento, CA

Article from The Record-Union, December 24, 1896

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CHICAGO FINANCIAL FLURRY. Public Scare Over the Bank Failure Practically Over. CHICAGO, Dec. 23.-Charges and counter-charges in connection with the management of the National Bank of Illinois were made to-day and engrossed the attention of the financial community to the exclusion of the day's events. The arrest of Bankers Dreyer and Berger, the discharge of the receiver of the Roseland Bank and the continuation of the savings depositors' run on the Illinois Trust and Savings Bank and the Hibenrian Banking Association were the principal developments. The public scare is practically over, and a complete restoration of confidence seems to have been effected. The Roseland Bank of Roseland, which cleared through the National Bank of Illinois, and which went into the hands of a receiver on Monday, was turned back into the hands of its officers, and will open its doors to-morrow morning. The runs on the Illinois Trust and Savings and Hibernian Savings Banks continued to-day in a lesser degree, and when the usual closing hour arrived there was not enough of a line at either bank to dignify the scare as a run. Not a vestige of the excitement 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 sixty-day notice rule the deposits of over 100 depositors, decided to remove all restrictions, and began paying in full. At the Hibernian Bank the rule was adhered to.

7. December 24, 1896 The Scranton Tribune Scranton, PA

Article from The Scranton Tribune, December 24, 1896

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CHICAGO BANK TROUBLES. The Arrest of Dreyer and Berger for Receiving Deposits When Knowing Their Bank Was Insolvent. Chicago, Dec. 23.-Charges and councharges in connection with the man- Illiter of the National bank of the agement were made today and engrossed to nois attention of the financial community surexclusion of the day's events rounding the the National Bank collapse. arrest of Bankers Dreyer and of The the discharge of the receiver Berger, Roseland bank and the continuation the the the savings depositors run on the of Illinois Trust and Savings bank and Hibernian Banking association. were principle developments. The and pub- a the scare is practically over complete lie restoration of confidence seems to be effected. arrangement of the police depart- and By counsel for the defendants acment, of the peace, W. T. Hall. the cused justice private bankers. Edward S. Justice Dreyand Robert Berger, entered o'clock er private court room at 2 who Hall's afternoon. Detective Fay, this the warrants which F. E. Kennedy. held saloon keeper and depositor at Dreyer a Co.'s bank had sworn to. announced The & the men were under arrest. banker that is each case is that the close charge a deposit of $153 at the received business last Saturday. knowing The at of time that they were insolvent. defendants the were accompanied by Adolf H. their lawyer, and Charles Brewing Kraus. of Wacker & Birk bond Wacker. The latter signed the each company. the bankers in the sum of $500 Hall's of their appearance in Justice actfor Jan. 2. Kennedy says he is is court for himself only. but his action advised ing regarded as premature and ill & Co. those who believe the Dreyer this by could not be foreseen. In the connection failure Levy Mayer. counsel for National bank of Illinois. and Dreyer and Berger, said this afternoon: Dreyer & company cleared through the National bank of Illinois. At the of business Saturday afternoon close was not the slightest doubt shadow enterthere tained by the firm or even the not go suggestion that they would Withof a usual Monday morning. on as clearing bank they could not posout a open up. The end of the Nation- as it sibly of Illinois was as sudden al bank amazing. As one of its counsel that I was the slightest intimation the had not was any suspicion against Dreythere until late Saturday night. Sunbank Company did not know until danger. er & that their clearing was in resulted day then took steps which as They receivership. The agitation precipiin the has made some people their present and hasty in their criticism, the extate and their advice. When receiver action has subsided and the into citement a thorough investigation be has made and then only will people the estate to calmly pass judgment. bank of in a position causes for the National will no The failure and its condition the Illinois in due time be placed before bonds, doubt These Calumet Electric dwindled public. have all of a sudden have for which insignificant an asset outinto so been coveted by some bonds some years and the interest on these siders has always been promptly met." The shortest bank receivership on

8. December 24, 1896 The Norfolk Virginian Norfolk, VA

Article from The Norfolk Virginian, December 24, 1896

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THERU CONTINUES. Chicago Financial Affairs Are Still Unsettied. Chicago, December 23.-The run continues on the Illinois Trust and Saving Bank and the Hibernian Banking As. sociation, as expected by the officers of both institutions. but is diminished in size. About half the number yearerday were in line to-day at the Illinois Trust Bank, all being savings depositors whose accounts did not average enough to disturb the equanimity of the bank officers. At the Hibernian Bank the crowd of people. mostly women. was somewhat less than yesterday, and their deposits did not average $100 each. Considering the bank has 23,000 savings depositors, a falling off of two or three thousand timid ones is to be expected. The Christmas day rest is expected NO have a general cooling effect. Business went on as usual at the other banks, which have savings departments.

9. December 24, 1896 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, December 24, 1896

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DREYER AND BERGER ARRESTEDThe Receiver of the Roseland Bank Discharged - Continuation, But Gradual Dimination of the Runs on Savings Institutions. CHICAGO, ILL., December 23.-Charges and counter-charges in connection with the management of the National Bank of Illinois were made to-day. and engrossed the attention of the financial community, to the exclusion of the day's events surrounding the big national bank collapse. The arrest of Bankers Dreyer and Berger, the discharge of the receiver of the Roseland Bank, and the continuation of the savings depositors' run on the Illinois Trust and Savings Bank and the Hibernian Banking Assoclation were the principal developments. The public scare is practically over, and a complete restoration of confidence seems to have been effected. By arrangement of the Police Department. counsel for the defendants, and Justice of the Peace W. T. Hall, the accused private bankers, Edward S. Dreyer and Robert Berger, entered Justice Hall's private court-room this afternoon. Detective Fay, who held the warrants which F. E. Kennedy, a saloon-keeper and a depositor at Dreyer & Co.'s bank, had sworn to, announced that the men were under arrest. The charge in each case is that the banker received a deposit of $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 H. Wacker, of the Wacker & Birk Brewing Company. The latter signed the bond of the bankers in the sum of $500 each for their appearance in Justice Hall's court January 2d. Kennedy says he is acting for himself only, but his action is regarded as premature and ill-advised by those who believe the Dreyer & Co. failure could not have been foreseen. The shortest bank receivership on record-forty-eight hours-was that of John H. Nichols, who was appointed receiver Monday afternoon for Frederick Wiersema, proprietor of the Roseland Savings Bank, of Roseland, which cleared through the National Bank of Illinois. He appeared before Judge Hancy this afternoon, and reported that there were assets of $83,000 in cash and real estate, and liabilities of $51,600. Sufficient money had been raised to carry on the business, and the Judge discharged the receiver. The bank will open its doors to-morrow morning. RUNS DECLINING. The runs on the Illinois Trust and Savings and Hibernian banks continued to-day in lesser degree, and when the usual closing hour arrived there was not enough of a line at either bank to dignify the scare as a run. No vestige of the excitement is expected to remain after Christmas-Day. The officers of the IIlinois Trust Company were so confident that the run on their bank had come to an ignoble end, that, after paying out under the sixty-days'-notice rule for depositors of over $100 for an hour or so, they decided to remove all restrictions, and began payment in full to 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 at the Dreyer & Co., and Wasmansdorfe & Heinemann banks, and next week a report is expected which will give an intelligent idea of the condition of both houses. Vice-President Hammond, who is charged with pulling the wool over the eyes of the directors of the defunct national bank. would not talk for publication when seen to-day at his Evanston home; but a friend, speaking for him, said: "W. A. Hammond is to be made the scapegoat 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 the Calumet Electric security than are 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 the Calumet-road stock: and to this end these two men accomplished the wreck of the National Bank of Illinois. Members of the Finance Committee and2directors of the failed bank knew the full amount of the Calumet 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 deal was to sell the property: and, besides paying the bank loan make a neat sum for the directors. There has been a sharp contest between the General Electric and South Chicago City Railway companies to get control of the Calumet bonds. The latter road will be worth $5,000,000 in five years, and the outsiders who ruined the bank know it: but they wanted to buy the bonds cheap."

10. December 24, 1896 Birmingham State Herald Birmingham, AL

Article from Birmingham State Herald, December 24, 1896

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RUNS ON BANKS Continue in Chicago, But in a Modified Form. Chicago, Dec. 23.-The run on the Illinois Trust and Savings Bank and the Hibernian Banking association continues today, as expected by the officers of both the institutions, but is diminished in size. About half the number of yesterday were in line at the Illinois Trust Bank, all being savings depositors whose accounts did not average enough to disturb the equanimity of the bank officers. At the Hibernian bank the crowd of people, mostly women, was somewhat less than yesterday and their deposits did not average $100 each. Considering the bank has 233,000 savings depositors, a falling off of two or three thousand timid ones is to be expected. The officers of the bank look for a continuation tomorrow and then the end. The Christmas day rest is expected to have a cooling effect. Business went on as usual at the other banks which have savings departments.

11. December 30, 1896 Echo De L'ouest Minneapolis, MN

Article from Echo De L'ouest, December 30, 1896

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Presque une Panique PLUSIEURS GROSSES FAILLITES AUX ETATS-UNIS LA NATIONAL BANK OF ILLINOIS EN BANQUEROUTE. CHICAGO-Une véritable panique financière a failli avoir lieu: 08 n'est que grâce à l'association dé la Clearing House que ce désastre a été évité. La première failiite de la jouruée a été celle de la National Bank of Illinois dont l'actf était d'environ $1,500,000. La cause de cette suspension est, comme dans presque toutes les banques, des prêts DON garantis et mal placés. Puis il y eut un concours géneral de demandes dans nombre d'autres institutions financières, mais ces dernières étaient prêtes à payer. Les déposants alarmés conti nuent à faire la course aux gui chets de banques; on signale la fermeture de la Hibernian Banking Association, de la Illinois Trust & Saving Bank ot la faillite de la Angus & Gindele Contract ing Co. L'association des banques a eu une réunion importante et on a résolu de prendre les moyens les plus immédiats et efficaces de remettre un peu la confiance au public, qui possède pour des millions de dollars de comptes en dépots dans les banques de la ville. L'Illinois Trust à elle seule a plus de douze millions de dépôts a'épargne. John Angus, le président de la Angus & Gindele Contracting Co. a déposé son bilan en cour supérieure; son actif est d'environ $300,000 et son passif de $250,000. On a demandé l'arrestation de E.S. Dwyer et de Robert Berger, de 18 banque E.S. Dwyer & Cie, qui & fait banqueroute. Le mandat d'arrestation accuse ces banquiers d'avoir enfreint les dispositions de la loi des banques ae l'Illinois en recevant des dépôts après que la banque fat en faillite.