4603. National Bank of Commerce (Chicago, IL)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 1693
Charter Number: 1693
Start Date: September 26, 1873
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 98bacd91

Response Measures

None

Description

The National Bank of Commerce in Chicago suspended with several other national banks during the financial panic of Sept. 1873 (lack of currency). It then reopened a few days later (Sept. 29) and resumed business. No discrete depositor run on this specific bank is described in the articles; the suspension is attributed to the nationwide panic and scarcity of currency.

Events (4)

1. July 1, 1869 Chartered

Source: historical_nic

2. September 26, 1873 Suspension

Cause: Macro News
Cause Details: Suspended because of lack of currency and the nationwide financial panic of September 1873; followed New York banks' suspensions and clearing-house disruptions.
Newspaper Excerpt: The Cook County City National Bank and the National Bank of Commerce have followed the example of the Union National Bank, and closed their doors.
Source: newspapers

3. September 29, 1873 Reopening

Newspaper Excerpt: The Union National, the Cook County National and the National Bank of Commerce opened their doors and resumed business at the usual hour this morning, and although they have paid out considerable money there is nothing that can be called a run upon either of them, while there have been considerable deposits made.
Source: newspapers

4. December 2, 1876 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (17)

1. September 27, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 27, 1873

Click image to open full size in new tab

Article Text

erable excitement among the business men, and the grain trade shows the effect. Mr. Coolbough, President of the Union National Bank, is severely consured by the other bankers and the whole community, as his extreme course was believed to be wholly unnecessary. 6 m.-Theffollowing is a correct list of the banks which have suspended in this city: Union National Bank. Cooke County National Bank. Second National Bank. Manufacturers' National Bank. National Bank of Commerce. ACTION OF THE CHICAGO BOARD OF TRADE. CHICAGO, Sept. 26.-The Board of Directors of the Board of Trade, at a full meeting this morning, unanimously passed the following resolution, which was greeted with applause and universally approved: Resolved, That all the rules of the Board authorizing the Board of Directors to consider and act on complaints for violation of contract be suspended, 80 far as such complaints are based on contracts for the delivery of property in future. made between the passage of this resolution and the further order of the Association: and further, that the Board shall not entertain complaints for the violation of contracts claimed to have been closed during the time indicated by reason of the non-deposit of a margin, provided that this resolution shall in no case be held to apply to any trades made in the settlement of existing contracts. RAILROARD BUSINESS MUCH IMPEDED. CHICAGO, Sep. 26.-The Chicago, Burlington and Quincy Railroad, the Illinois Central, the Miehigan Central and the other railroads doing business in this city have felt themselves forced by the suspension of the banks here this morning to discontinue the practice of taking certified checks in payment for freights. They demand currency, and in but one or two instances will accept anything else. Mr. Sargent of the Michigan Central has called upon the other roads to arrange a system of exchange of due bills, and establish a sort of clearing-house among the roads. This system has been occasionally used in the general run of business, and would be of great assistance in this emergency. Very little, if any, freight has been shipped from this city within the past two days.

2. September 27, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, September 27, 1873

Click image to open full size in new tab

Article Text

PANIC PARAGRAPHS. The New York stock exchange remained closed yesterday. I IThe Vicksburg banks have suspended for thirty days as a precautionary measure. A Washington telegram yesterday announced the suspension of the banking firm of Faut, Washington & Co. Cincinnati financial matters have resolved into a state of delightful quietude beautiful to contemplate. The governing committee of the New York stock exchange have resolved to give twenty-four hours notice of its opening. Fort Wayne, Indiana, boasts that quiet reigns in financial circles, and that banks are and will continue business as usual. The Peoples' bank of South Carolina, the Peoples' savings bank, and the South Carolina loan and trust company, at Charleston, have suspended. Currency payments at the National bank and other State banks pay as usual. At Little Rock, yesterday, the excitement continued over the city money. The reported suspension of banks in St. Louis and other places continues. Everything is at a standstill. Very few parties take city money, and no greenbacks are in circulation. At Baltimore yesterday, William Fisher & Sons, who are among the leading stock and gold brokers of that city, closed their doors, and say they have been forced by the delinquencies of their customers to suspend business until they can collect what is due them. They expect to pay every obligation in full, and only ask a short indulgence. In New York, yesterday, Senator Morton, being asked to give his opinion as to the present financial panic, said that his conviction was that the worst was over. "I do not expect the affair to subside all at once," he added, "but my feeling is entirely hopeful." Referring to the suggestion that the government ought to come to the reseue, he said the government will do all It can, but it must not evade the law. In New York yesterday the police were called upon to disperse all groups which threatened to interfere with sidewalk traffic. The brokers were by this means driven into the road, but they fared no better there. The police ordered trucks to be driven through the crowd, and so compelled the brokers to scatter in all directions. Driven from the road, some of the most inveterate speculators and curb-stone brokers adjourned to the gold exchange court, and held high carnival there for about rifteen minutes when the sergeant of the police, with half a dozen men, drove them helter-skelter from their refuge. A Chicago telegram yesterday announced that the Union national, Second national and Manufacturers' national banks have suspended. A notice on the door of the former says that the bank has abundant securities, but is compelled to suspend payment on account of the lack of currency until able to realize. Nothing has been lost from the failures, and depositors will be made safe. The Cook county City national and National Bank of Commerce have followed the example of the Union national and closed their doors. There was a run for an hour on the Corn Exchange bank, but as everything was paid the run was soon stopped. Some who drew have redeposited. The bank is considered very strong. Other national banks are paying regularly. There is considerable excitement among business men, and the grain trade shows some effect. Coolbaugh, president of the Union national, is severely censured by other bankers and the whole community, As his extreme course was wholly unnecessary, it is suggested that there must be something rotten in his bank, though it has been regarded very strong.

3. September 27, 1873 Eureka Daily Sentinel Eureka, NV

Article from Eureka Daily Sentinel, September 27, 1873

Click image to open full size in new tab

Article Text

ILLINOIS. CHICAGO, Sept. 26. It is just announced that the Union National Second National and Manufacturers' National Banks. have suspended. A notice on the dcor of the former savs the bank has abundant securities, but is compelled to suspend payment on account of lack of currenev until able to realize. Nothing has been lost from failures. and depositors will be made safe. The Cook County, City National and National Bank of Commerce, have followed the example of the Union National Bank. and closed their doors. There was a run for an hour on coin at the Exchange Bank. but. as everything was paid. the run stopped. Some who drew have redeposited. This bank is considered very strong The other National Banks are paying regularly. There is considerable excitement among business men, and the grain trade shows the effect. Coolbaugh, President of the Union National Bank. IS severely censured by other bankers and the whole community. It is suggested that there must be something rotten in his bank. though it has been regarded as very strong.

4. September 27, 1873 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, September 27, 1873

Click image to open full size in new tab

Article Text

EXCITEMENT IN THE GRAIN TRADE. CHICAGO, Sept. 26.-It is just announced that the Union National, Second National and Manufacturers' National Banks have suspended. A notice on the door of the former says that the bank has abundant securities, but is compelled to suspend payment, on account of lack of currency, until they are able to realize. Nothing has been lost by failures, and their depositors will be made secure. CHICAGO, Sept. 26.-The Cook County City National Bank and the National Bank of Commerce have followed the example of the Union National Bank, and closed their doors. There was a run for an hour on the Commercial Exchange Bank, but as everything was paid, the run soon stopped. Some who drew have redeposited. This bank is considered very strong. The other National banks are paying regularly. There is considerable excitement among the business men, and the grain trade shows the effect. Mr. Coolbaugh, the President of the Union National Bank, is severely censured by the other bankers, and the whole community think the course proposed by him wholly unnecessary. It is suggested that there must be something rotten in his bank, though it has been regarded very strong.

5. September 27, 1873 Pioche Daily Record Pioche, NV

Article from Pioche Daily Record, September 27, 1873

Click image to open full size in new tab

Article Text

Telegraphic Dispatches SPECIAL TO THE PIOCHE DAILY RECORD. Eastern Dispatches. The Finances-- Disappointment at the Action of the Government--Lo Bonds Found-Alabama Bank Suspended-=Georgia Financies-Phila delphia Races: Goldsmith Maid Heats Fullerton - New Jersey Bank Suspends-913,000,000 - of Greenbacks Disbursed since Saturday - Arrival of Wilkie Collins-Banks Suspended - Bank Closed in Washington. NEW YORK, Sept 25. There has been no panic on Wall street but a quiet The action of pression. to-day, the feeling Government of dein its bond even suspending purchases, intense if it is to be temporary, creates A of the states disappointment. Secretary Treasury telegram from that vis- the his official duties will prevent him from iting New York and consulting with the Clearing House Committee. the examination During this Union morning Trust of the large safe of the a box belonging to Company, found the missing to Secretary was opened and contain $25,000 in United States bonds which had been supposed to be lost. Howes & Macy have resolved to open their doors and solicit special deposits on trust obligations, to be paid as fast as they can realize on the securities of foreign exchange. NEW YORK, Sept. 25. The London Times of the 12th has the from Verdun, dated 11: "An incident Sept. following telegram occurred become yester- pubwhich did not or it might day licly known, happily have produced much excitement. At 11 o'clock, at the moment when financial questions were believed to be entirely settled, the Germans suddenly declared that another million francs was due them for having kept up the postoffice on behalf of the French Government during the occupation of French departments. On being asked to give details of this claim they replied that they had accurately estimated what was due them, and if the million was not paid they would prolong the ocThe matter was cupation. to Government, and immediately referred the upon an order from Versailles the Receiver of Taxes at Verdun this morning paid the sum claimed. SELMA, Ala., Sept. 25. The Selma Savings Bank suspended to-day. Assets are believed ample to pay all liabilities, and save the capital stock nearly entire. SAVANNAH, Ga., Sept. 25. on the and Trust has on The Company run Savannah ceased. Bank That the Bank of Georgia continued up to the hour of closing. Both are thought to be fully able to meet all demands. Other banks are proceeding as usual, The ex25 eitement is diminishing 680 100 100 trustee To wart Thos, Truste Hart Than PHILADELPHIA, Sept. 25. The race for a purse of $5,000, bey a tween Goldsmith Maid and Judge Fulr. lerton was won by lhe Maid. Timele 2:22, 2:21 1/2, 2:23 1/4 ATLANTA, Ga., Sept. 25. y The Dollar Savings Bank suspended to-day. ror NEWARK, N. J. Sept. 25. The State Bank at Brunswick suspenThis is the bank crippled e by of ded the to-day. irregularities Appleton, Cashier. is NEW YORK, Sept 25. k The actual disbursements of greene backs for the purchase of bonds by the Sub Treasury since Saturday, are $13, ot 000,000 r. h, Wilkie Collins is among the arrivals is from Europe to-day. eCHICAGO, Sept. 26. e, It is announced Union just that the s, Second National, National 1facturers' National, banks have and suspend Manuay ed. A notice on the door of the former atsays the bank has abundant securities, ce but is compelled to suspend payments, in on account of the lack of currency until nt it will be able to realize. Nothing has ne been lost from the failures, and deposito tors will be made safe. The Cook County, City National, and National Bank of Commerce have fol ay lowed the example of the Union National n8 and closed their doors. There was he run for an hour on the Commercial Ex

6. September 27, 1873 The Rutland Daily Globe Rutland, VT

Article from The Rutland Daily Globe, September 27, 1873

Click image to open full size in new tab

Article Text

List of the Failed Banks. CHICAGO, Sept. 26. The following is it correct list of banks which have suspended in this city: Union National Bank, Cooke County National Bank, Second National Bank. Manufacturers' National Bank. and National Bank of Commerce.

7. September 27, 1873 The New York Herald New York, NY

Article from The New York Herald, September 27, 1873

Click image to open full size in new tab

Article Text

Iowa Merchants Approve the Action of the Chicago Banks. CHICAGO, III., Sept. 26, 1873. Despatches from the best informed sources, received at the office of the Associated Press in this city from most of the principal cities in Illinois and Iowa, in reference to the present financial troubles in the East, concur in saying that the action of the Chicago banks in following the course of the New York banks, in suspending payment of large sums of currency. is almost universally sustained and commended by bankers and business men as wise and timely and calculated to arrest the panic and pave the way to relief from the present difficulties. The following IS a correct list of the banks which have suspended in this city:Union National Bank. Cooke County National Bank. Second National Bank. Manulacturers' National Bank. National Bank or Commerce.

8. September 28, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 28, 1873

Click image to open full size in new tab

Article Text

Coolbaugh's language. a brief summary of his views la thus given. The President ot the Union National is perfeatly confident of the wisdom of the course adopted by the Bank; he fully appreciates the harsh criticisms that have been passed upon him since the suspension, and realizes fully that he has encrificed temporary reputation and Allpremacy, but hazards his reputation upon the wisdom of the courHO adopted, and the sequence to rosult. No ono, he HAYA, more regrets the financial neconsity that compelled tho susponsion than himsolf and the other officers of the Bank, but, in their united judgment, it WaH forced upon them by advorso circumstances beyond their control. It was utterly impossible for the banks of Chicago to hold out with currency payments when overy other city in the country hind suapended, and currency was hold at a premium. Had there been concorted action on the part of local banks, developing soine temporary remedy for pending difficulties, though hazardous, the chasni between suspension and full payment might have been bridged over. But when such construction could not be accomplished, proparation for: the fanoled inovitable behooved every consorvativo and safe investing interest. It was as impracticable for the banks of Chicago to maintain business on a currency basis nt premium in this hour of uncertainty and gloom as it would bo to attempt special resumption ou the part of one city while the balance of the nation was doing business on legalized promises to pay. IIo had little doubt that the financial problem was as yet in the inauguration of its propounding to the country, and that its solution would require time and governmental interference, the latter to be exoused, if not justified, by the past accoptod plea of public necessity. The nows yestorday morning of tho suapeusion of the Boston banks was received by Mr. Coolbough as confirmation of the prophocios he had inado, and confirming justification of the course adopted by the Union National. Mr. Coolbaugh hazards no prediction of the outcome of the present situation, but stands ready to coincide with any action of the banks that, in his opinion. will afford any pormanent relief. THE MEROHANTS' AND NORTHWESTERN. The Moroliants' National and the Northwestorn National were in perfect confidence and security. Thoro was nothing at either indicative of anything but serenity and safety. The same course regarding debtors and creditors, both classes being represented in the same individual, as observed in the Commorcial, Fourth, and Fifth, and First National Banks, were here obsorved,and officers expressed the completest confidence in the future. THE NATIONAL BANK OF COMMERCE, suspended on Friday, declared its readiness to resume whenever other susponded banks took the initiativo, and asserted its perfect solvency. Their suspension had not been forced by the desolation of their vaults, but dictated by the same financial views that had directed the course of the Union National. THE GERMAN NATIONAL and its energetic President, Mr. Groonebaum, were doing business, paying and receiving money as usual, and Mr. Greenebaum believed the excitoment would quickly subside. Ho intended to keep on with his business as herotofore.

9. September 28, 1873 Chicago Daily Tribune Chicago, IL

Click image to open full size in new tab

Article Text

in currency, and Mr. S. B. Cobb deposited over 8200,000 in another prominent bank. Such public-spirited and plucky citizens deservo infinito crodit. If others would put out their money Instend of hoarding it, the stringency would moon coase. Actions like those are noble, and do not look like a lack of confidence in Chicago business. PERSONAL. In the list of Directors of the Union National Bank who pledged themselves as personally liablo for the obligations of the bank the name of Daniel Thompson, one of its most responsiblo representatives, was unintentionally omitted in yesterday's issue. THE SUSPENDED. The only suapension of Chicago banks yesterday was that of the Third National. Every other bank cleared on Friday passed enfely through the Clearing-House yesterday. The list of B116pended numbers six, as follows Union National, Manufacturors' National, Second National, National Bank of Commerce, Cook County National, and Third National. LINCOLN PARK WAS crowded with people listoning to the music, and there was as many teams and carriages as on any other Saturday. This shows that the panic has not seized the people, whomo exomplification of common BOUBO in the crisis we have passed through was the finest over shown by any people. AN UNFOUNDED RUMOR. The rumor on the street yesterday that Field, Letter & Co. had recalled from the railway depots goods once platformed for shipment to country purchasers was uttorly unfounded. To a TRIBUNE reporter Mr. Leiter yesterday stated that the firm was doing business as usual; had refused no shipments, discharged no employes, and saw no necessity for either measure.

10. September 29, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 29, 1873

Click image to open full size in new tab

Article Text

THE CRISIS IN CHICAGO. HEAVY RECEIPTS OF CURRENCY-SUSPENSION OF THE THIRD NATIONAL BANK-FALLING OFF IN RAILROAD BUSINESS-BANK RESUMPTION TO-DAY -A CARD FROM THE UNION NATIONAL-EDITORIAL COMMENT ON THE SITUATION. (BY TELEGRAPH TO THE TRIBUNE.| CHICAGO, Sept. 28.-There has been a much better feeling in this city and the surrounding country to-day and yesterday. The receipts of currency here Saturday and Sunday reached $3,615,000. In addition to this, the Adams Express Company has notice of $500,000 to arrive. making a total of $4,000,000 in 48 heura. Much of this currency (comes consigned to private commission houses for the purchase of grain. The influx has already revived business in the Board of Trade, and prices advanced on Saturday with av active demand. It was reported Saturday morning that a number of manu. facturers had decided to discharge their employés, but an investigation showed that the rumor was groundless. The Bank meeting last evening wisely decided not to adopt the loan certificate plan in vogue in New York. The Third National closed its doors yesterday morning, a notice being posted on the door setting forth that, owing to the continued financial stringency, the management deemed it proper to suspend business for the present. This was signed by the President and cashier. The President, J. Irving Pearce, felt confident that in a few days the bank would be able to resume. The savings banks of this city still continue undisturbed. Their business is lighter than it would be in ordinary times, but there have been no runs, and the notices for withdrswal have decreased very decidedly. The effect of the prevailing distress on the railroads is very noticeable. The Chicago, Aiton and St. Louis Railroad report that their freight business had fallen off immensely since the setting in of the panic. Before the present excitement they were running 75. freight trains, while now they only run about 50 trains a day. This reduction has compelled already the discharge of about 200 men, and should the pressure con tinue much longer the services of many others would have to be dispensed with. Stock shipments had entirely ceased, and the business in grain and produce had greatly fallen off. They were still bringing in about 200 car-loads a day. All the larger shipments of the Michigan Southern have been checked because the shippers cannot draw on New-York. Still no employés have been discharged, and none will be unless the panic continues much longer. Louis Viele, General Freight Agent of the Chicago, Rock Island and Pacific Railroad, on being asked by a revorter, " How is your freight business q" answered, "It is going to h-1 as fast as it can." Mr. Viele stated that he telegraphed to all the agents yesterday to stop all shipments of grain and produce. Stock shipments had already been stopped several days ago; they had taken off their freight trains and discharged thus far about 500 men. He was in hopes that this panic would be over in a few days. If not, the railroads and the banks would go up together. The Chicago, Burlington and Quincy Road are still moving their usual number of freight trains, though the trains are much smaller than usual. They are still moving everything except cattle. If shippers had no money to pay for their freights they were receiving grain in payment at market rates. On the Illinois Central orders have been given to reduce the force in accordance with the falling off of business. The Union National and Cook County National Banks certainly, and the National Bank of Commerce probably, will open their doors to-morrow morning and resume payment. There is not and has not at any time a doubt but that the banks are perfectly solvent. Their bonds show abundant assets in excess of their capital and liabilities. It is probable that they have more than 30 per cent of their liabilities in case in their vaults. A reserve ample to meet all currency demands in ordinary times. It is understood that the Third National will resume in a few days. The following card issued by the officers of Union National is of interest : UNION NATIONAL BANK, CHICAGO, Sept. 29, 1873. Union National Bank, believing that it would be for the banks and business men to for any length of time to carry on financontinue impossible The basis of their Chicago than cial and commercial affairs on any other that adopted in all the commercial centers of the counhaving failed in all its earnest efforts to try, concert of action among the bankers, disconactive business for two men of our city would see maintaining any more than 2,000 tinued secure that permanently business accepted any its by different the the National days, bank impossibility position in yet hope Banks believe than that of of the United States. The officers of it impossible, and hope that this unity of action may be secured, but recognizing the conndence in them for 80 many years, and knowing the solvency of their bank, and believing it to be a solemn duty in this emergency to share the cointron lot of their customers, and to act with them 111 sustaining by all legitimate means in their power the commercial interests of the country

11. September 29, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 29, 1873

Click image to open full size in new tab

Article Text

DAYLIGHT IN THE WEST. The Union National and Cook County National Banks will cortainly, and the National Bank of Commerco probably, open their doors this morning and resume payment. This is a bravo and honorable act, worthy of all commendation. There is not, and has not been at any time, a doubt that these banks are perfectly solvent. Thoir books show abundant assets in excess of their capital, surplus, and liabilities. It is probable that they have more than 30 per cont of their liabilities in cash in their vaults,-aroserve ample to meet all domands for currency in ordinary times. This reserve will increaso every day, instead of diminishing, if their customors pursue their ordinary practico of drawing money only as they actually need it, and depositing it as it comes back to thom; for the struggle of the bankers at the present time is really to carry along the mercantile community. The increase in currency will be still further augmented by the large daily reseipts from the Enet. Currenoy is now coming into Chicago at the rate of $2,000,000 a day. It is safe to say that thore has been no time within the past year when there was BO much currency in Chicago as now. Aud still more must como. The people of the world need our breadstuffs, which are ready for them whonover they send their money. They will sond greenbacks, or gold, or procious stones, or anything elso which is necessary to secure thom. This monoy should pass through the banks. It will be used to pay off the Enstern exchange issued on advance shipments and the individual notes made for the same purpose. Every bank in Chicago will grow strouger in currency from day to day if the business is permitted to rosume its normal condition. These considerations, which cannot but commond themselves to the judgment of intelligent men, should prompt the greatest possible forboarance towards the banks that resumo to-day as well as those which have not suspended. If the scramble for greenbacks is rocommenced, the dopositore themselves will bo responsible for the results that it will inovitably bring upon them. If it is suppressed by the voice of reason, there is a good prospect that Chicago will como out of the crisis whole, however New York may bo affected. Tho Now York banks, having adopted the plan of issuing loan - certificatos for their own use, are Bonding their currency West, where it will be employed in the movement of the crope. Chicago and the West have the bonefit of the arrangement. The receipts of currency by express in this city for the last two days have been as follows: THE AMERICAN EXPRESS COMPANY.

12. September 30, 1873 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, September 30, 1873

Click image to open full size in new tab

Article Text

# THE STOCK PANIC. # The Horizon Lighting Up. Suspended Firms Resuming. GETTING OUT OF THE WOODS. The Scare Believed to be Over. Clearer Skies. NEW YORK, Sept. 29.—Both Clews & Co., and Howes & Macy have done a good business today, a large number of depositors having resumed business with them. There is nothing new relative to Fisk & Hatch or Jay Cooke & Co. It is stated that several heavy business men of this city on Saturday last paid high as 4 and 5 per cent. a month to obtain money to meet the pressing engagements. One large dry goods house issued a circular to its customers offering 2 per cent. a month discount on all paper due them for cash. The Glenham woolen manufacturing company of Glenham, N. Y., suspended today. Its President is not prepared to make any statement. Its capital is estimated at over $1,000,000. The company owns 200 acres of land at Glenham, with large factories and dwellings for 500 operatives. The company was over 50 years old. The suspension of B. Bullock & Sons, wool dealers, in Philadelphia today, was caused by the suspension of the Glenham company, which owes the firm about $600,000. At the produce exchange today there was a decidedly improved feeling and the business is working back into the old channels. The apprehensions as to difficulties in obtaining exchange is gradually being dispelled. Resolutions of the Stock Exchange. The Governing Committee of the Stock Exchange met at 1:30 p. m. to-day and passed the following resolutions: Resolved, That nothing in the action of the Governing Committee of the Stock Exchange shall be construed as absolving any member from obligation to the rules. Resolved, That all parties to the existing and unsettled contracts who were solvent at the close of the Stock Exchange, but who shall refuse to surrender satisfactory principal or furnish a margin in cash or securities, shall be regarded as insolvent. Resolved, That so much of article 22 of the by-laws as authorizes an officer of the Board to close the contracts of parties in default be suspended. As to existing contracts, during three days after the opening of the Exchange the President shall appoint a committee of three, which shall be in session from 2:15 to 2:45 o'clock, to determine on an equitable market price to which margins shall be made to conform, and also to determine the market price at which the contracts of defaulting parties shall be settled. Resolved, That all contracts shall be settled by a check certified as good through the Clearing House, but where a check is tendered upon a bank which is not satisfactory, the people must agree upon what shall be satisfactory, but no demand for greenbacks or currency shall be allowed. Bank Presidents in Council. At the bank presidents' meeting this afternoon, one plan was discussed which was referred to a loan committee. The committee has issued at different times loan certificates as the emergency required. It was rumored this evening that the committee has been authorized to employ loan certificates to any amount. It is certain that the committee was entrusted with additional powers, but of what nature Mr. Camp preemptorily refuses to make known. Another Suspension. ALBANY, Sept. 29.—The banks here are working under the New York plan. Ford & Fuller, brokers, have suspended. The Financial Outlook at Pittsburg. PITTSBURG, Sept. 29.—The financial outlook in Pittsburg was brighter today than it has been any time during the panic. Confidence seems fully restored, and business is being transacted as usual. At a meeting of the clearing house association this morning to consult on the present monetary situation it was resolved in view of the brightening prospects to make no change in the manner of conducting the business of the banks and clearing house. The Lawrence Saving Bank commenced paying its checks today. Embarrassing the Money Order Officers. WASHINGTON, Sept. 29.—The refusal of the National banks in Philadelphia to pay drafts upon them in currency having threatened to deprive the postal money order office in that city of resources on which it largely depends for remittances from country offices, the postmaster was today authorized to draw for a limited amount on the department's reserve deposited in the sub-Treasury at New York. Similar embarrassments were foreshadowed by numerous telegrams from western postmasters on the situation but their generally report today is that the banks have resumed currency payments. Favorable Signs. This city is free from financial excitement. The recent statements received from the North of the improved condition of affairs have had a tranquilizing effect in Washington to such an extent that several gentlemen connected with the banking combination say that in the course of a few days checks for small amounts will be cashed at the counters of their institutions instead of being as now, merely certified. Another favorable sign is that many large depositors in the Washington Savings' Bank are concerting with a view to the resumption of its business. Extensive Conflagration. CINCINNATI, Sept. 29.—A despatch from Brenham, Texas, Sept. 29th, says that a fire last night consumed two and a half squares of buildings in the business portion of that city. The loss is not yet ascertained. CINCINNATI, Sept. 29.—There is an improved feeling here today. In several banks the deposits of currency equalled the demand for it. The general markets are still quiet with a modified tone. A Fortunate City. CHICAGO, Sept. 29.—The financial prospects in this city this morning were brighter. The Union National, the York County National and the National Bank of Commerce resumed business at the usual hour. There has been no run upon either of them, while there have been considerable deposits made. Influx of currency from New York and from the country continues large, not less than $3,000,000 being received during Saturday and Sunday. Of this incoming currency a good proportion goes directly into the banks, and the rest into the hands of commission merchants for the purchase of grain by outside parties, but all tends to relieve present stringency. So far as can be learned there is no urgent demand from country banks upon their correspondents here, and in all quarters confidence is returning. This view of the situation is based on an interview with a number of prominent bankers and business men. More Dismissals. JEFFERSONVILLE, Ind., Sept. 29.—It is reported the Ohio Falls Car Company will suspend work, throwing 700 men out of employment. More Bank Suspensions. ST. LOUIS, Sept. 29.—The express lines centring here are bringing to this city a much larger amount of currency than they are taking away. The banking house of Curry & Kirby at Jefferson City, and two at Chillicothe suspended on Saturday. They are all regarded as solvent. Money Wanted. CHARLESTON, S. C., Sept. 29.—The Chamber of Commerce have adopted a resolution asking for the deposit of $500,000 with the Assistant Treasurer, to be used in the purchase of Exchange. Following the General Example. LOUISVILLE, Ky., Sept. 29.—A majority of the banks formed a Clearing House Association yesterday, and resolved to suspend paying currency in large amounts Seven German and two other banks have been received into the clearing house, making 21 in all.

13. September 30, 1873 The Rutland Daily Globe Rutland, VT

Article from The Rutland Daily Globe, September 30, 1873

Click image to open full size in new tab

Article Text

Prospects in Chicago. RESUMPTION OF SUSPENDED BANKS. CHICAGO, Sept. 29. Financial prospects in this city this morning are decidedly brighter. Union National, Cook County National and National Bank of Commerce, opened their doors and resumed business at the usual hour this morning, and although they have paid out considerable money, there is nothing that can be called a run upon either of them, while there have been considerable deposits made. The influx of currency from New York and from the country continues to be larger -not less than three millions having been received during Saturday and Sunday. Of this incoming currency a good proportion goes directly into the banks and the rest into the hands of commission merchants for the purchase of grain by outside parties. But it all tends to relieve the present stringency. So tar as can be learned there is no urgent demand from country banks upon their correspondents here, and in all quarters confidence appears to be returning. This view of the situation is based upon interviews with a number of prominent bankers and business men.

14. September 30, 1873 The New York Herald New York, NY

Article from The New York Herald, September 30, 1873

Click image to open full size in new tab

Article Text

certifica cneck plan has been adopted for large sums. Confidence Returning in Chicago. CHICAGO, III., Sept. 29, 1873. The financial prospects in this city this morning are decidedly brighter. The Union National, the Cook County National and the National Bank of Commerce opened their doors and resumed business at the usual hour this morning, and although they have paid out considerable money there is nothing that can be called a run upon either of them, while there have been considerable deposits made. The influx of currency from New York and from the country continues to be large, not less than $3,000,000 having been received during Saturday and Sunday. Of this incoming currency a good proportion goes directly into the banks and the rest into the hands of commission merchants for the purchase of grain by outside parties. But'it ail tends to relieve the present stringency. So far as can be learned there is no urgent demand from country banks upon their correspondents here and in all quarters confidence appears to be returning. This view of the situation is based upon interviews with a number of prominent bankers and business men.

15. September 30, 1873 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 30, 1873

Click image to open full size in new tab

Article Text

servatism would insure our success. Reporter-How have your operations been to-day? Mr. Wheeler-The demand upon us has been heavy, and our cash balances have been reduced over $400,000. We have felt utterly unable, in view of the outstanding amount, to maintain such heavy drafts while unable to collect outstanding obligations due. Reporter-Are your securities good, and does the bank think it will be able to discharge all obligations ? Mr. Wheeler-We have no doubt of either, and to this the personal word of our Directors and stockholders is pledged. Reporter-What was the amount of your obligations at the time of your first suspension ? Mr. Wheeler-I cannot tell that. It was so large compared with our immediately available funds as to make a temporary suspension a necessity. Reporter-In that conclusion, were the Directors of the bank unanimous? Did they agree with Mr. Coolbaugh? Mr. Wheeler-We agreed with Mr. Coolbaugh, and believed in the soundness of his judgment. Reporter-What was the immediate occasion of your suspension, aside from the general seeming adversity? Mr. Wheeler-We had a very large country correspondence, and were dealing with banks throughout the Northwestern country. Here are 250 country banks, howling for money and clamoring for currency, and their demands were importunate. They looked to us to supply them, and called upon us in an emergency which neither we nor any other bankers in the country had anticipated in time. Reporter-When you received on the day of your suspension a telegram from a leading New York bank an authority to call upon them for $500,000, would it not have been possible for you to have availed yourself of this credit, and maintained your own standing? Mr. Wheeler-No, sir; on that credit we could not have drawn currency, which was the article immediately demanded. We had not the available current funds to continue business, and had continued against our better judgments in the hope of unity of action among local bankers which would have afforded some solution of the difficulty. But without this we were compelled to act upon our own responsibility, and assumed a position which we regretted, but felt necessitous. Reporter-There have been rumors, Mr. Wheeler, that the bank or its officers have of late been largely engaged in speculations. Is there any foundation for this report? Mr. Wheeler-No, sir. The bank has not engaged in any speculations, nor has any of its officers. Reporter-To be more specific; has the bank or any of its officers engaged in corn speculations since the commencement of the present crisis? Mr. Wheeler-Neither the bank nor its officers have. Reporter-What are your obligations? Mr. Wheeler-I believe we owe about $3,800,000. Reporter-What is the sum of cash on hand? Mr. Wheeler-I do not know exactly. Our balance of cash on hand from the time of former suspension has been reduced over $400,000. We may have now $600,000. Perhaps not so much. Reporter-Will you be able to realize on collaterals and resume ? Mr. Wheeler-This we do not anticipate. Our securities are good, and we expect to be able to pay obligations. But we have gone into voluntary liquidation, and cannot resume the banking business. ### THE COMMERCIAL NATIONAL folks were happy and serene. Feeling confident of the subsiding of the waves, and that they were in a safe harbor yesterday, this bank was paying in full the checks of every depositor. A large number of new accounts were opened with them during the day, and deposits had been very largely in excess of payments. So strong and confident were they that even discounting had been resumed to some extent and in a safe way. Mr. Eames, the President, spoke in a most confident manner of the present, and looked forward to only brighter and better realizations in the immediate future. ### AT THE TRADERS NATIONAL full business was resumed without asking favors, and every draft of a depositor was honored, while the deposits for the day were greatly in excess of the withdrawals. Without seeking (as none of the banks did) new accounts, a number were opened, and the affable President, Mr. J. O. Rutter, to use a hackneyed expression, which the reporter could never see any sense in, but which he uses in deference to popular judgment, -looked" as smiling as a basket of chips." ### THE NATIONAL BANK OF COMMERCE reopened its doors for business yesterday, and was pursuing very much the course adopted by the Union National. It did not attempt to clear at the Clearing-House, but over its counters met and responded to every obligation. In a day or two it will resume in full the ordinary course of business, as its affairs are reported in excellent shape. ### AT THE CENTRAL NATIONAL matters seemed to be moving easily along. The President was chatting cheerfully with his customers, none of whom looked as if they were overburdened with the unhappy train of thought which arises upon the return on a business man's hands of a quantity of what he vainly considered negotiable paper. An interview with the President satisfied the reporter that, in the financial ship Mr. Endicott was sailing, everything was taut and trim. She had weathered the breakers, and, with a skillful pilot and leadsman, would cast anchor shortly in a safe harbor. The result of the panic, he said, would be that it would teach the people not to carry too much sail, and, with this result attained, even though much distress must come before it is accomplished, the panic would be by no means an unmixed evil. We thought one of the great evils which prevailed among bankers at the present day was the prevalent desire to do "a big business." Many bankers with limited capital are running a very large and not very safe business, the profits of which could be realized out of a much smaller one. Mr. Endicott explained a system by which loan certificates might be issued on a basis which could hardly fail to be agreeable to all the banks, but, now that the time for their necessity may be considered past, it is hardly worth while mentioning. More than that, the strong point of the system is the depositing by the bank requiring such certificates, in addition to a set proportion of securities, 25 per cent of the amount of the securities in currency. With regard to the position of the banks, Mr. Endicott, who illustrates his explanations with a freeness of nautical expression that would do credit to a Marryatt or Fenimore Cooper, stated that every day showed an improvement, his customers willingly doing all they could to make matters move smoothly. Highly pleased with the result of this interview, the reporter moved eastward to ### THE CITY NATIONAL BANK where the President was busily engaged transacting the business of a little knot of customers. Their little wants having been apparently supplied by that gentleman, he began to at once express his satisfaction at the way in which the week had opened. "Things," he said, "looked well on Saturday, but they look better now." The cash resources of the bank were increasing daily, and he felt now that he was safe on Saturday in thinking that the end of the trouble had been reached. In his opinion the final result of the present trouble will be the end of the currency question. When everything came to be rearranged and in running order once more,

16. October 2, 1873 The Kenosha Telegraph Kenosha, WI

Article from The Kenosha Telegraph, October 2, 1873

Click image to open full size in new tab

Article Text

MONETARY. Since our last issue there has passed a week of great anxiety and fear throughout the country, the best of financiers and the wisest not being able to forsee what S day might bring forth. In New York there were but few or no more important failures and the panic has gradually subsid ed and business is assuming its usual activity The Gold and Produce Exchanges were ecarcely more than closed till they were opened again. The Stock Exchange remained closed till Tuesday morning at 10 o'clock when it was opened and immediately filled by the crowds rushin in at the three entrances on Wall Broad and New streets. Stocks at first rose and then remained etationary or fell. Dividend paying stocks generally held an ad vance. The day passed and closed as fa. vorably as was expected-perhaps more favorably. The Secretary of the Treasury paid out $14,000,000 for the purchase of government indebtedness and then declined paying out any more. His declining to purchase any more bonds had a depressing effect but the orders for the prepayment of the interest accruing in November and the President's letter on the situation and the USJ of currency to restore confidence and legitimate trade and commerce had a reassuring effect. During tne week the financial stringen cy reached Chicago and six National Bankssuspended,namely-Union Natioual, Cook County National, National Bank of Commerce, Second National, Third National, Manufacturers National. The Bank Officers held several meetings but could come to no agreement as to the course to be pursued. Two plans were before the meetings, one to issue Clearing House certificates as 1 New York to be used in the settlement of balances, the other to go on as usual A motion to issue Clearing House certifi cates was voted down and the last meeting adjourned. Two of the suspended banks, Manufacturers National and Sec ond National, went into liquidation last week. On Monday three of the suspended banks, Unlon National, Cook County National, National Bank of Commerce after a suspension of two business days. reopened at the usual time and continued open till the hour for closing without any unusual rnn on the banks. On Tuesday one of the three, Union National Bank of Chicago, did not open, and gavo notice that it had gone into liquidation. The reason given by the Union National for going into liquidation was that it had out on their would soon out currency paid Monday $400,000 all be drawn and and the bank would become crippled,but by going into liquidation it could in thirty or forty days pay all demands, save the capital and have a surplus left. The Union going into liquidation had an un favorable effect but all the banks including the other three which reopened on Monday went safely through the day and paid their clearances as on Monday. Altogether the prospect Tuesday night was that the crisis had passed and that business was assuming a healthy tone. y Yesterday was an encouraging day. All the bank in Chicago doing business passed e safely through the day, many or all receiving n more in deposits than was withdrawn. The produce trade is reviving and prices advanc. ing. The general aspect is more cheerful o and confidence is becoming more general. e There have been no bank suspensions in Milwaukee and it is thought there will not d be. Business has been partly suspended by the adjournment of the Chamber of Commerce but otherwise is passing on about as usual. n In New York the panic seems to have n subsided, business being transacted and n confidence increasing. Boston has thus n far had no panic, no bank failures, and h not much suspension of business. I. Gold to a large amount is being imkported from England and currency to very large amount has been transmitted g and is being transmitted by express from y the East to the West. Of the currency st transmitted Chicago has received and is receiving it by millions. The produce er and pork business cannot be fully carried g, on without the use and assistance of the gy e banks. And this cannot be had without naccommodation on the part of the banks de and confidence by the banks in each other and in the banks by the people. The

17. October 3, 1873 The True Northerner Paw Paw, MI

Article from The True Northerner, October 3, 1873

Click image to open full size in new tab

Article Text

news came that the banks of Chicago and Cincinnati had followed the example of New York. They at once yielded to the pressure. There is no apparent excitement on the streets. CHICAGO, Sept. 27.-Yesterday the financial tidal wave caused the first real damage in this city. At 10 o'clock a. m. it was announced from the Clearing-House that, on account of the extraordinary situation, no deposits would for the present be received and no checks would be paid by the following banks: Union National Bank, Cook County National Bank, Second National Bank, Manufacturers' National Bank, National Bank of Commerce. These banks all claim that their suspension is only temporary, that they have ample assets to meet all demands, and that they will resume business SO soon as they can convert those assets into currency. There is a strong belief that the crisis of the panic has been reached and passed, and that there will be no more suspensions. The mercantile classes do not seem to have been thus far affected, and have been able to meet all their obligations as they matured. Deposits are still made in all the banks. That there has been a withdrawal of currency for the purpose of hoarding it in private safes is obvious: but if the banks continue to meet the requirements of their customers a few days longer, most of this hoarded currency will come forth. The receipts of currency here by express are large. The country must have the breadstuffs and the provisions which are packed in our warehouses and stock-yards, and to get them the money must be sent here. A dispatch from Leavenworth, Kan., announces the temporary suspension of the following banks: First National, Second National, Leavenworth Savings, Clark & Co., Insley, Shire & Co., Newmans & Havens. Good feeling prevails among merchants, all seeming to appreciate the situation. CHICAGO, Sept. 29.-The two most important developments of Saturday were the suspension of the Third National Bank, and the announcement that the Cook County National, which closed on Thursday, would resumeo Monday (to-day). The suspension of the Third National, though not unlooked for in banking circles- the run on it having been heavy-created a feeling of depression in the community. The bank was the second largest in the city, its deposits amounting to about $4,000,000. It is said the institution will soon resume, as its securities are all right, and can be made available with little delay. All the banks, with the exception of those that had suspended, passed the ClearingHouse with flying colors. This fact, added to the cheerful news received from abroad. served to re-establish confidence, and renew and strengthen the spirit of moderation that has been generally manifested since the panic began ; and it came to be the accepted theory that the suspension of the Third National marked the turning-point of the crisis, that the storm had spent its fury, and the sunlight was about to break through the dark clouds. An immense volume of currency is flowing into the city. Over $4,000,000 has been received by express in the past forty-eight hours. The total assets of the Union National (familiarly known as Coolbaugh's Bank, and the largest in the city), which suspended last week, are given at $5,600,000; liabilities, $4.300,000. There is little or nothing doing at the stockyards. There is over a million dollars' worth of stock in the yards, and the pens are so full that no more can be received for the present. CINCINNATI, Sept. -Thefinancialsituation here to-day appears to be improved. At the close of business an improved feeling was plainly manifest. Sr. LOUIS, Sept. .29.-Quietnessreigns among the banks here. All are paying checks under the rule, and everybody seems cheerfully to acquiesce in the "arrangement. The feeling on Cliange was better, and prices for some articles are stiffened materially. OTHER POINTS. Detroit, Cleveland, Toledo, Milwaukee, Dubuque, Keokuk, DesMoines, and in fact every Western city and town heard from, report an improved feeling in financial circles. CHICAGO, Sept. 30.-About $4,000,000 in currency has been received in this city within the last 48 hours, making about $11,000,000 for the last five days. Three of the suspended banks have resumed. The Union National (Coolbaugh's) has gone into voluntary liquidation. Produce markets active. Wheat and corn are advancing. The storm is practically over, everything is serene, and people wonder why they allowed themselves to become so excited.