4507. Illinois Trust & Savings Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
October 28, 1907
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
dbe5df34

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected

Description

Multiple contemporaneous articles (Oct 28–31, 1907) report heavy notices and many depositors lining up at Illinois Trust & Savings Bank and the bank paying by check and enforcing 30/60-day notice. The bank did not suspend or close in these reports; measures taken were precautionary responses to the 1907 financial panic (action by eastern banks), so this is classified as a run that did not lead to suspension.

Events (1)
1. October 28, 1907 Run
Cause
Macro News
Cause Details
Precautionary withdrawals and notices driven by the broader 1907 financial panic and actions by eastern banks; local banks adopted check-paying and clearing house certificate arrangements.
Measures
Bank paid depositors with its own checks instead of currency; enforced 30- and 60-day notice rules for savings withdrawals; participated in clearinghouse certificate arrangements to preserve cash.
Newspaper Excerpt
Within an hour after the opening of the doors fully 400 people were lined up at the withdrawal windows of the Illinois Trust & Savings bank
Source
newspapers

Newspaper Articles (9)
1. October 28, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 28, 1907

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PAYING WITH CHECKS. Chicago Banks Are Hanging On to Their Cash. Chicago, Oct. - -The banks of this city are today largely upon a checking basis. They refuse to pay out large amounts of currency, and will not return to paying in cash until the finan-cial condition in the east improves. Depositors seeking today to withdraw money were given checks of the bank instead of cash. Commercial depositors are allowed to draw the full amount of their balances, but must accept the bank's checks instead of currency. The rule requiring savings bank depositors to give thirty days' notice before drawing out less than $100, and 60 days' notice before drawing out more than $100 was also put in force. The local banks declare they were compelled to adopt these rules because of the action taken by the banks in the east, which would soon have drained this city of its cash resources. Within an hour after the opening of the doors fully 400 people were lined up at the withdrawal windows of the Illinois Trust and Savings bank, which has the largest number of savings accounts in the city. Depositors were allowed, if they wished to take out sums under $100, but for all amounts over, the full legal notice was required. The majority of those in the banks during the early part of the day gave notice of their intention to draw money. There was no excitement. In the Hibernian Savings bank about 100 people had given notice of withdrawal by 11 o'clock and many more were waiting in line. At all other savings banks business appeared to be on a normal basis. Depositors having checking accounts did not appear to be worried in the least by the situation and business proceeded upon normal lines in all the banks.

2. October 28, 1907 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 28, 1907

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Largest Institution of the Kind in the City in Danger. NOTICE IS DEMANDED Depositors Allowed but Part of Their Cash Gold is Purchased in London. Chicago, Oct. 28.-Within an hour after the opening of the doors fully 400 people lined up at the withdrawal windows of the Illinois Trust & Savings bank, which has the largest number of savings accounts in the city. Depositors were allowed. if tney wished, to take out sums under $100, but for all amounts over, the full legal notice is required. The majority of those in the bank during the early part of the day gave notice of their intention to withdraw money. There was no excitement. Many Give Notice. In the Hibernian Savings bank about a hundred people had given notice of withdrawal by 11 o'clock and as many more were waiting in line. At the other savings banks business appeared to be on a normal basis. Depositors having checking accounts did not appear woried in the least by the situation, and business proceeded upon normal lines in all banks. Cortelyou Hears Good Reports. Washington, Oct. 28.-Secretary Corstated very telyou reassuring today reports he had from received New York, Chicago and other points, and that everywhere confidence was being restored and conditions much improved. Kansas City Bank Closes. Kansas City, Oct. 28.-The Bankers' Trust company, with deposits of $800,000, closed Hughes said they this had morning. decided to Cashier close temporarily because of clearing house certificates, Buying Bar Gold Abroad. London, Oct. 28.-The United States secured all the bar gold offered today in the market, totalling nearly $5,000.000. The price was $19.50. This is 2 1/2 cents higher than previous quotations, indicating the keenest of competition. Both Paris and London bid against the United States. Keep Money Out of Stock Market. New York, Oct. 28.-Any disposition to secure money obligations for the purpose of operating in the stock market was frowned upon and business kept at a low ebb. The delay in the appearance of supplies of money there caused no anxiety, as intimations were given loans would be carried over another day and money would be supplied when needed most. Prices continued to show an advance. Affects Grain Prices. Chicago, Oct. 28.-The financial condition in New York and the action of local banks in deciding to issue clearing house certificates and to demand full legal notice on the withdrawal of time deposits, caused a weak market 10 all the grain pits today. Wheat de clined 4 cents, corn 1 cent, and oats 11/6. Selling was in quite large vol time, but the demand slack. Buyers were extremely reluctant to take hold Duluth Board Suspends. Duluth, Oct. 28.-Trading in grain was suspended on the board of trade this morning owing to money condi tions. No sales were made in either cash grain or options, although the trading room was open and members were on the floor. Business will no be resumed until conditions improve Country elevators are being advised not to buy grain. Cashier Suicides. Akron, Ohio, Oct. 28.-The Dolla Savings bank was closed today by 01 der of the directors until after the fu neral of Fred A. Boron, cashier, who committed suicide yesterday. In th meantime an investigation of Boron' accounts is going on and a movemen is on foot to have the other banks C the city take this institution over. Th 60-day limit has been ordered enforce on all savings accounts in all banks.

3. October 29, 1907 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, October 29, 1907

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CHECKS GIVEN OUT IN LIEU OF CASH TO INSURE PROTECTION FOR DEPOSITORS AND FINANCIAL CONCERNS, NEW YORK SHOWS A RETURN OF CONFIDENCE FINANCIERS BEGIN A NEW BUSINESS WEEK IN HOPEFUL FRAME OF MIND-RUNS ON BANKS OF NO MOMENT NOW. Washington, D. C., Oct. 28.Secretary Cortelyou stated today that had received very reasfrom suring he reports New and that York, Chicago and other points everywhere confidence is being restored and conditions much improved. -0Oct. 28.-The are largely upon a Chicago, today banks check- of the ing They have of to pay out and will not city refusing basis. taken large return amounts the to step the of doing until condition In all the banks of former currency the financial manner business in belonging the east House with it the to improves. affiliated the Clearing depositors association seek- were or ing today to withdraw money given the checks of the bank itself, instead of actual cash. Depositors were allowed to draw the full amount of their balances, but they were compelled to accept the banks' checks instead of currency Savings Deposits to Give Notice. The rule requiring savings banks depositors to give thirty and sixty days' notice. was also put in force The banks declare they were compelled to adopt these rules because of the action taken by the banks in the east, which would soon have drained this city of its cash resources. Chicago Money to Be Kept There. The details of the plan were worked out at an all day conference of bank presidents yesterday in the headquarters of the clearing house the top floor of the Northern Trust company on building. Arrangements were completed for the exchange of R clearing house certificates between banks in payment of daily baland methods for with . cases that may tne novel ances exceptional the situation. dealing arise in the unanimous of t It bankers was conclusion opinion of the at the the that the precautionary t will S banks from being al measures conference cago adopted prevent demand drained Chi- of the outside for fwhile at the same runs local institutions 1, money on their the cash by time will be made impossible a Forgan Gives Views. :"I think the stringency will be of said In of the First es as he left the short bank. gan, president duration," meeting. James National B. dozens "The Foraction taken in Chicago and of other cities throughout the counwill tend to bring the trouble to r being brought an acute S. at once it will be al a stage try head. By remedied few to days all the sooner. I think in a we 16 shall see signs of the reaction that d will bring relief. r, will have money flowing from our g are out in into being Ve soon Chicago shipped and products sold in that for other of the country and Chicago a position at more eign lands. fortunate parts could not this remainel be time. in Our financial condition has sound throughout the unsettled conditions and in addition thereto we have taken precautions to prevent the d depletion of our resources by outside needs. All we have to do now is 19 await calmly the turning of the tide to more favorable conditions.' Mr. Forgan announced that the banks of Des Moines, Cedar Rapids, Duluth, Minneapolis, St. Paul, Omaha and Lafayette, Ind. have notified Chicago of the adoption of a clearing house certificate basis. * Chicago Markets Affected. * Chicago Oct. 28.-The financial condition in New York and the action of banks in deciding to is. sue house to notice on time demand the clearing local full legal certificates the and with< a in all the to cents, weak day. drawal market Wheat of, declined deposits grain four caused pits cent and oats one and one Selling was a corn eighth one cents. demand in quite nt large volume, but the was slack and buyers were extremely re 3 luctant to take hold. 'nBanks Not Warned. to Within an hour after the opening et of the doors fully 400 people lined up at the withdrawal windows of the 11linois Trust Savings bank, which has the largest number of savings acng counts in the city. The depositors te were allowed, if they wished, to take nt out sums under $100, but for ail ee amounts over that full legal notice ol in bank of was the required. during The majority the early of part those of the day gave notice

4. October 29, 1907 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, October 29, 1907

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NOT GIVEN ACTUAL CASH. Chicago Depositors Paid by Check on Withdrawal. Chicago, Oct. 29.-The banks of this city are largely upon a checking basis. They have taken the step of refusing to pay out large amounts of currency and will not return to the former manner of doing business until the financial condition in the East improves. In all banks belonging to the Clearinghouse association or affiliated with it depositors seeking to withdraw money were given checks of the bank itself instead of the actual cash. The depositors are allowed to draw the full amount of their balances, but they were compelled to accept the bank's checks instead of currency. The rule requiring savings bank depositors to give thirty days' notice before drawing out less than $100 and sixty days' notice before drawing out more than $100 was also put in force. The local banks declare that they were compelled to adopt these rules because of the action taken by the banks in the East, which would soon have drained this city of its cash resources. Within an hour after the opening of the doors fully 400 people were lined up at the withdrawal windows of the Illinois Trust and Savings bank, which has the largest number of savings accounts in the city. Depositors were allowed, if they wished, to take out sums under $100, but for all amounts over this the full legal notice was required. The general agreement on the part of the banks to protect their supplies of currency affected the city government. City Treasurer Traeger ran short of cash and City Comptroller Wilson stopped the payment of the salaries of city employes by checks on the city treasury.

5. October 29, 1907 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, October 29, 1907

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NOT GIVEN ACTUAL CASH. Chicago Depositors Paid by Check on Withdrawal. Chicago, Oct. 29.-The banks of this city are largely upon a checking basis. They have taken the step of refusing to pay out large amounts of currency and will not return to the former manner of doing business until the financial condition in the East improves. In all banks belonging to the Clearinghouse association or affiliated with it depositors seeking to withdraw money were given checks of the bank itself instead of the actual cash. The depositors are allowed. to draw the full amount of their balances, but they were compelled to accept the bank's checks instead of currency. The rule requiring savings bank depositors to give thirty days' notice before drawing out less than $100 and sixty days' notice before drawing out more than $100 was also put in force. The local banks declare that they were compelled to adopt these rules because of the action taken by the banks in the East, which would soon have drained this city of its cash resources. Within an hour after the opening of the doors fully 400 people were lined up at the withdrawal windows of the Illinois Trust and Savings bank, which has the largest number of savings accounts in the city. Depositors were allowed, if they wished, to take out sums under $100, but for all amounts over this the full legal no. tice was required. The general agreement on the part of the banks to protect their supplies of currency affected the city government. City Treasurer Traeger ran short of cash and City Comptroller Wilson stopped the payment of the salaries of city employes by checks on the city treasury.

6. October 30, 1907 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, October 30, 1907

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IN WEST BE EXCELLENT t. 29.-The financial connout the west was today in general to the banks and ority of business interests. In money centers today the check rtificate plan was used and the were holding as closely as possible heir issues of currency. he banks in Kansas reported themelves in a strong position, many of them having fully 50 per cent in excess of the ordinary legal reserve. Out of 400,000 savings depositors in Chicago only 1500 made application to withdraw their accounts or gave notice of a desire to withdraw. The clearing house issued to its members $8,000,000 in certificates. The debit balances which had to be settled with the certificates were far smaller than usual, approximating barely $1,500,000. John J. Mitchell, president of the Illinois Trust and Savings bank, which has the largest number of savings accounts in the city, said today: "We are perfectly satisfied with the turn affairs took yesterday. The bank received notice from 809 depositors who wanted cash. As an offset to that we received eighty-nine savings deposits aggregating a sum in excess of the amount for which withdrawal orders were recelved. Under the circumstances, I think the situation is surprisingly strong."

7. October 30, 1907 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, October 30, 1907

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Few Wish to Withdraw. Out of 400,000 savings depositors in Chicago only 1,500 made application for withdrawals of their accounts, or gave notice of a desire to withdraw. The clearing house issued to its members $8,000,000 in certificates. The debit balances which had to be settled with the certificates were far smaller than usual, approximating barely $1,500,000. John J. Mitchell, president of the Illinois Trust & Savings bank, which has the largest number of savings accounts in the city, said today: "We are pleased and satisfied over the turn affairs took yesterday. This bank received notice from 809 depositors who wanted cash. As an offset to that we received 89 savings deposits, aggregating a sum far in excess of the amount for which withdrawal orders were received. Under the circumstances I think the situation is surprisingly strong." Excitement Had Vanished. The day opened quietly at the Hibernian Savings bank, which yesterday had the only trace of excitement in the banking situation. A few depositors were at the door when the bank opened, but a number of them went away without giving a notice of a desire to withdraw funds. All the other banks in the city which had savings accounts business appeared to be on an adequately normal basis, there being no more people around than usual. At all of the national banks the officers reported that the check and certificate system had worked in a satisfactory manner and no trouble of any kind was anticipated. Throughout the west generally it was reported that the financial condition is sound and that there is no appearance of a run upon a bank anywhere. At a meeting of the Chicago clearing house association it was decided that the situation was generally satisfactory, and it was agreed that the policy of paying large amounts in checks should be continued for a few days. Gold for Chicago. James B. Forgan, president of the First National bank, said the most singular event he ever heard of in relation to the financial outlook was the notification by London agents that $2,000,000 in gold had been started for Chicago. This gold was in payment for shipping from Chicago of cattle, grain and provisions. "For a few days Europe did not respond with cash," said Mr. Forgan, "but today our London agents cabled that $2,000,000 in gold had been turned over to them and, that it had been started for Chicago. The fact that gold is coming in such large quantities and that merchandise and provisions are en route to the European markets in such heavy lots is indicative of a big advance. On Sunday I understand the National City bank of New York received $3,500,000 in gold, and now that the First National of Chicago is getting an allotment, the indications are that the tension is much relieved. This gold, when it reaches our bank, will be used to expedite other shipments abroad. The foreign markets for our foodstuffs are good, and fairly high prices are ruling. Other shipments of gold are promised and while they will not be of daily occurrence, they will come our way pretty steadily." J. Ogden Armour said that the gold shipment from London was the most encouraging feature of the day's developments. "Cattle, grain and provisions are being moved to Europe," he said, "and today's shipment of $2,000,000 in gold toward Chicago is in payment for some of Chicago's goods. Money is flowing our way, and that is suggestive of better feeling all around. It is well to add that prices for grain and foodstuffs are strong. My grain company, I was informed this afternoon. is sending large amounts to Europe. Corn, too, is high and the farmers never were more prosperous."

8. 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.

9. 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."