4672. State Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: July 1, 1877*
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 3118bfde

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Assignee/receiver (Col. Abner Taylor) took possession; bank placed in receivership.

Description

Contemporary reports describe a run beginning in July 1877 with heavy withdrawals and 'reckless investments' by management; an assignment was made and Col. Abner Taylor was turned papers and is 'in full possession' (receiver/assignee). The bank was placed in the hands of an assignee and treated as failed; no reopening is reported.

Events (3)

1. July 1, 1877* Run

Cause: Bank Specific Adverse Info
Cause Details: Run followed revelations of reckless investments, declining suburban real estate values and heavy withdrawals; insolvency concerns about management (President Spencer) noted.
Measures: Payments made during July and August; some banks enforcing time rule; efforts to raise funds among bankers and president Spencer traveled to New York to raise money.
Newspaper Excerpt: It is alleged that, since the July run began, about $900,000 has been paid out.
Source: newspapers

2. August 29, 1877 Receivership

Newspaper Excerpt: Promptly at the hour the papers were turned over to Col. Abner Taylor, who is now in full possession. Assignee Taylor reports ... a more favorable showing in the affairs of the State Bank.
Source: newspapers

3. August 29, 1877 Suspension

Cause: Government Action
Cause Details: An assignment/assignee (Col. Abner Taylor) was appointed and took possession of the bank due to its financial condition and large withdrawals.
Newspaper Excerpt: an assignment had been drawn up ... Promptly at the hour the papers were turned over to Col. Abner Taylor, who is now in full possession.
Source: newspapers

Newspaper Articles (7)

1. August 29, 1877 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, August 29, 1877

Click image to open full size in new tab

Article Text

Run on the Savings Banks of Chicago The Last Statement of the Insolvent Bank. CHICAGO, Aug. 29.-There has been no demonstration at any of the banks this morning beyond a somewhat larger proportion of depositors than usual, who are drawing out their accounts from the savings institution. There is a large crowd about the State Bank but the doors are closed and guarded by a small detatchment of police. The last report of the bank made July 1st, is as follows: Mortgage loans, on real estate, $1,507,013; loans on collaterals, $1,565,053; on U. S. bonds, $510,000; on South Park bonds, $20, 800; on county and school bonds, $10,500; cash I and exchange, $285,429; banking house and deposit; vaults, $319. 332; safes and fixtures, $10,000: total resources, $4,415,327 due depositors, $3,774,875; capital stock, $500,000; sur plus fund, $125.000; undivided profits, $15,452; total liabilities, $4,415,327. This statement, compared with the one sent last night, shows that during July and August the liabilities were reduced $1,427,000 and resources $1,690,000. It is alleged that, since the July run began, about $900,000 has been paid out. The available assets have all been converted into cash and for the past few weeks vigorous efforts have been making to raise money to tide over affairs. On Saturday President Spencer left for Few York for the alleged purpose of raising $300,000 nothing has been heard from him since that time. Just before going, previous to the press of business Saturday, an assignment was drawn up to be used in case nothing was heard from Spencer by three o'clock yesterday. Promptly at the hour, the papers were turned over to Col. Abner Taylor who is now in full possession. The bank has under its more recent management made some reckless investments and lost heavily by them and by the decline in suburban real estate. The papers print the record of D. D. Spencer this morning, and make is a bad showing for that gentleman. It estimated by some that the depositors will realize about 33 per cent., but on this point nothing definite can be learned until the assignees report. At 1:30 there has been DO demonstration of any kind and there is now no probablily of any disturbance at the banks. The Fidelity, which opened two hours earlier than usual has been paying fifteen per cent. to all depositors who present their books, but enforces the time rule as to the remainder of the amount deposited One or two banks are paying without reserve and the people who gather in the vicioity of the savings institution. even those about the State Bank, are especially orderly and good natured. The commercial banks report no unusual drain. Assignee Taylor reports this morning a more favor able showing in the affairs of the State Bank. He gives as assets, loans secured 8 by wortgages, $1,330,184; by collateral, $1,169,850; taxes advanced on loans, $4. 242; Grundy county, Highland Park, South Park, and Fort Dodge Coal Company bonds, $195,500; real bonds, $195,500 real estate, $105,031; new building $121,625; deposits in vaults, $92,625 f furniture and fixtures, $8,740; cash or is hand at sundry banks, about $25,000 total assets, $3,050,947. Liabilities du g saving deposits, $2,931,756; creditor deposits, $4,534; due savings and deposi tors of south branch, $47,677 bills payable S. $52,050; total, $3,036,017. The more sanguine claims that, at least, 80 per cent , n of deposits will, in time, be repaid. Inter views with leading bankingmen indicate S. that theyfear more for the effect outside th 88 t. city where the failure was not anticipated ee than here where it has long been looked for.

2. August 29, 1877 Public Ledger Memphis, TN

Article from Public Ledger, August 29, 1877

Click image to open full size in new tab

Article Text

CHICAGO. Run on the Banks-Report of the State Bank. CHICAGO, August 29 -There has been no demonstration on any of the banks this morning beyond a somewhat larger proportion of depositers than usual, who are drawing out their accounts from the savings institutions. There is a large crowd about the State Bank, but the doors are closed and guarded by a small detachment of police. The last report of the bank, made July 1st, is as follows: Mortgage loans on real estate, $1,507,013; loans on collaterals, 1,565,053; U.S bonds, $510,000; South Park bonds, $208,000; county and school bonds, $10,500; cash and exchange, $285,429; banking house and deposit in vaults, $319,332; safes and fixtures, $10, 000. Total resources, $4,415,327. Due depositors, $3,774,875; capital stock, $500,000; surplus fund, $125,000; undivided prefits, $15,452 Total liabilities, $4,415,327. This statement, compared with the one sent last night, shows that during July and August the liabilities were reduced $1,427,000, and the re sources $1,690,000. It is alleged that since the July run began about $900,000 has been paid out. The available assets have been all converted into cash, and for the past few weeks vigorous efforts have been made raise enough money among the bankers here to tide over affairs. On Saturday President Spencer left for New York for the alleged purpose of raising $300,000. Nothing has been heard from him since that time. Just before going, previous to the close of business, Saturday, an assignment had been drawn up, to be used in case nothing was head from Spencer by o'clock yesterday. Promptly at the hour the papers were turned ov.r to Colonel Taylor, who is now in full possession. The bank has, under its more recent management, made some reckless invest ments and lost heavily by them and by the decline in suburban real estate. The papers print the record of D. D. Spencer this morning and make a bad showing for that gentleman. It is estimated by some that the depositors will realize about 33 per cent, but on this point bothing definite can be learned until the assignee reports.

3. August 30, 1877 The Rutland Daily Globe Rutland, VT

Article from The Rutland Daily Globe, August 30, 1877

Click image to open full size in new tab

Article Text

The Chicago Bank Panic CHICAGO, Aug 29. There is no demonstration at any of the banks this morning, beyond a somewhat larger proportion of depositors than usual, who are drawing out their accounts from the savings institution. There is a large crowd about the state bank, but the doors are closed and guarded by police. The total liabilities, according to the last official report, are $4,415,327. During July and August the liabilities were reduced $1,427000, and resources $1,690,000. It is alleged that since the July run began, about $900,000 has been paid out, the available assets have been converted into cash, and for the past few weeks vigorous efforts have been making to raise enough here to tide over affairs. Saturday President Spencer left for New That for the alleged purpose of raising $300 000. Nothing has been heard from him since. Just before going, previous to the close of business on Saturday, an assignment had been drawn up to be used in case nothing was heard from Spencer by 3 o'clock yesterday. Promptly at the hour the papers were turned over to Col. Abner Taylor, who is now in full possession. The bank has, under its more recent management, made some reckless investments and lost heavily, and also by decline in suburban rea! estate. It is estimated that depositors will realize about 33 per cent., but there is nothing definite.

4. August 30, 1877 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, August 30, 1877

Click image to open full size in new tab

Article Text

Bank Troubles in Chicago. CHICAGO, August 29.-There has been no demonstration at any of the the banks this morning beyond a somewhat larger proportion of depositors than usual, who are drawing out their accounts from saying institutions. There is a large crowd about the State Bank, but the doors are closed and guarded by a small detachment of police. The last report of the bank, made July 1st, is as follows Mortgage loans on real estate, $1,507,013; loans on collaterals, $1,565,053; United States bonds, $510,000; South Park bonds, $208,000; county and school bonds, $10,500; cash and exchange, $285,429; bank. ing house and deposits in vaults, $319,332; safes and fixtures, $10,000; total resources, $4,415,327; due depositors, $3,774,875; capital stock, $500,000; surplus fund, $125,000; undivided profits, $15,452; total liabilities, $4,415,327. This statement compared with the one sent last evening shows that during July and August the liabilities were reduced $1,427,000 and the resources $167,000. It is alleged that since the July run began about $900,000 has been paid out. The available assetts have all been converted into cash and for the past few weeks vigorous efforts have been making to raise enough money among bankers here to tide over affairs on Saturday. President Spencer left for New York for the alleged purpose of raising three hundred thousand dollars. Nothing has been heard from him since that time. Just previous to the close of business on Saturday an assignment had been made up to be used in case nothing was heard from Spencer. By 3 o'clock yesterday, promptly at the hour, the papers were turned over to Col. Abner Taylor, who is now in full possession of the bank, and has under its more recent management made some reckless investments and lost heavily by them and the decline in suburban real estate. The papers print the record of D. D. Spencer this morning and make bad showing for that gentleman. It is estimated by some that the depositors will realize about 33 per cent, but on this point nothing definite can be obtained until the assignee reports. At 1:30 there has been no demonstration of any kind, and there was no probability of any disturbance at these banks. The Fidelty, which opened two hours earlier than usual, has been paying 15 per cent to all depositors who present their books, but enforce the time rule as to the remainder of the amounts deposited. One or two of the banks are paying without reserve, and the people who gather in the vicinity of the Savings Bank, and even those about the State Bank, are exceptionally orderly and good natured. The Commercial Bank reports no unsual drain. Assignee Taylor reports this morning a more favorable showing in the affairs of the State. He gives as the assets, loans secured by mortgages $1,330,184, by collaterals $1,169,850, taxes advanced on loans $4,242. Beside the President of the State Savings Bank, the Cashier and Assistant Cashier are said to have left town. None of the officers have visited the institution during the day. The examination of the securities has not yet progressed very far, and various reports as to the character of those already scrutinized are current. Nothing authentic or official has, however, been made known. Some days are likely to be consumed in looking over matters, preparatory to a definite report.

5. August 30, 1877 The Wheeling Daily Register Wheeling, WV

Article from The Wheeling Daily Register, August 30, 1877

Click image to open full size in new tab

Article Text

Bank Failure In Chicago. CHICAGO, August 29.-There has been no demonstration at any of the banks this morning beyond a somewhat larger proportion of depositors than usual who are drawing @ut their accounts from savings institutions There is a largecrow about the State bank, but the doors are closed and guarded by a small detachment of police. The last report of the bank, made last July, is as follows: Mortgage loanson real estate $1,507,013; loans on collaterals, $1,565,053; United States bonds $510,000; South Park bonds, $208,000; county and school bonds, $10,500; cash or exchange $285,429; banking house and deposit vaults, $319,332, safes and fixtures, $10,000; total resources, $4,415,327; due depositors, $37, 748.75; capital stock, $500,000; surplus fund, $125,000; undivided prófits, $15,452; total liabilities, $415,327. This statement compared with the one sent yesterday afternoon, shows that during July and August the liabilities were reduced $1,427,000 and the resources $1,690,000. It is alleged that since the Juy run begun about $9,000,000 has been paid out The available a sets have all been converted into cash, and for the past few weeks vigorous efforts have been made to raise enough money among the bankers here to tide over affairs On Saturday President Spencer left for New York for the alleged purpose of raising $300,000 Nothing has been heard from him since that time. Just before going, previous to the close of business Saturday, an assignment had been drawn up to be used in case nothing had been heard from Spencer by three o'clock yesterday. Promptly at the hour the papers were turned over to Col. Abner Taylor, who now IS in full possession. The bank has, under its more recent mar agem nt made some reckless investments and lost heavily by them and by the decline in sub urban real estate The papers print the record of D. D. Spencer this morning and make a bad showing for that gent man. It is estimated by ome that the depositors will realize about 33 per cent.. but on this point nothing definite can be learned until the assignee reports. CHICAGO. August 29.-At 1:30 there has been nodemonstration of any kind and there is now no probability of any sturbance at the banks. The Fidelity, which opened two hours earlier than usual. has been paying 15 per cent to all depositors who present books, but enforces the time rate as to the remainder o the amounts deposited. One or two banks are paying without reserve and the people who gather in the vincinty of the savings bank and even those about the State Bank are exceptionally good natured. The commercial banks report no unusual drain. Assignee Taylor reports this morning 8 more favorable showing in the affairs of the State Bank. He gives as theassets loans secured by mortgages $1,330,184. by collaterals $1,169,855, and taxes advanced on loans 4.242. CHICAGO. August 29. -Besides the President of the State Savings Bank the cashier and assistant cashier are said to have left town. None of the officers have visited the institution during the day. The examination of securities has not yet progressed very far. and varlous reports as to the character of those already scrutinized are current Nothing authentic or official has, however, been made known. Some days very like. ly will be consumed in looking over matters preparatory to a definite report.

6. August 30, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, August 30, 1877

Click image to open full size in new tab

Article Text

# "OF WHAT DO THOSE COLLATERALS CONSIST, Colonel," asked a TRIBUNE reporter, pointing to the second Itein in the list of assets. "That is just what I can't tell as yet," was the reply. "We havn't touched the papers lu the vaults, and don't mean to until we get through the work we have in hand. The assets are there, and they're going to stay. What, I am trying to do is to see if I can gather in atuy thing viset" "To be somewhat Inquisitivo, Colonel, what is the particular thing you are after now!" "The bank officers' private accounts. What I want to seo is whether they have taken any-thing to which they hadn't a clear title, and it I flud they have done so I propose to take the necessary measures to get my hands on'it or them." "Do you know anything about # THOSE SOUTH PARK BONDS, put in at $151,0001 Are they where anybody ran get at them without an intfuite amount of troublet" "As I said before, I haven't touched the papers, but I was told this morning that all but about $45,000 of them had been put up as collaterals for money borrowed to pay out to depositors during July and August. A broker, Mr. Wrenn, told me that, and I shouidn't wonder if I'd find it so when I come to look at the papers." And the Colonel returned to his inquisition Into the private accounts of the bank officers. He remained at the bank with his assistants all the afternoon up to 6 o'clock, during which tune Spencer's private account for 1877 was fully explored, and no crookedness discovered. The Colonel was disappointed at not finding what he rather expected would disclose itself, -evidences of appropriations of money by Spencer, -and will institute an examination this morning into that gentleman's necounts from the time he became connected with the tank. It is very clear that he expects to find something which will repay his researches, and the basis for his supposition lies in the fact that when Spencer came the Chicago he had very little money, and yet that he succeeded in rather rapidly buying unself into the bank. The Colonel's idea is that Spencer borrowed money of outside friends so pay for the stock, and then drew out from the bank's funds enough to pay these debts. "I believe I will get it," said Col. Taylor, "although it may take some time to do it. I shall follow the lead up and see what it brings. He has bought himself into this pauk, and I'm determined to see where and how he got the money to pay for his stock." The clerks were also put to work during the afternoon to # SCHEDULE THE ASSETS, but at the time of closing the bank they had only succeeded in scheduling soine of the mortgages. It will be a day or two before this part of the work is completed, after which will come the labor of valuation. It is, of course, unpossible to say, with any approach to certainty, how much the depositors will realize, but, when asked if he had any ideas on that subject, Col. Taylor said that, for a rough guess, he thought 50 cents on the dollar would not be out of the way, and the probability was that depositors would get even a shade above that. At all events, he didn't think it would be any less. It will be noticed in the above statement that the # CASH ON HAND and in sundry banks is lumped at $25,000. Mr. O. R. Glover, Col. Taylor's chief assistant, sald to a TRIBUNE reporter yesterday morning that this amount is probably correct, and that it represented pretty nearly, if not exactly, the amount of cash on hand and to the bank's credit In other banks, some of them in this city aud some in other places. The amount on deposit to the State's credit with its New York corre-spondent, the Chemical National, is, according to the books, about $2,000, and it may not be a rash supposition to think, as many do, in a manner rather public, too, that the pilgrim Spencer may have concluded to check out that simount, upon his arrival in New York. # THERE WAS A HUMOR TESTERDAY That Assistant Cashier Bulkley, of the Stato

7. November 25, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 25, 1877

Click image to open full size in new tab

Article Text

troller of the Currency. President Pearce, of the Third, stated to the reporter that he had learned that the Park Bank, of New York, had thrown out the draft for $120,000 given to County-Treasurer Huck Tuesday. He had not heard directly from the managers of the Park, but thought that their action in so doing was unwarranted. Efforts to ascertain the truth of the rumor from Treasurer Huck were productive of no satisfaction, as the re- porter was denied access to his presence. # THE STATE. The customary visit to the broken savings banks was made yesterday by a reporter, but, as of late, very little could be gotten from the Re- ceivers, since they had next to nothing to com- municate. At the State, Judge Otis is still "busy on routine matters." There certainly will be no dividend this year. To pay 10 per cent will re- quire nearly $300,000, and it will be impossible to realize that amount this month or next un- less the bank building is sold. Whether it is advisable to sell now has not been seriously considered. Some of the depositors are in need of funds, but they are at the same time anxious to get all that is possible out of the estate, and it is conceded by everybody that to dispose of property now it must be sacrificed. The Re- ceiver consults the interest of the creditors by holding off, and they will doubtless be content to wait until spring, in view of the fact that the real-estate assets will bring better prices then than now. # THE DEPOSITORS IN THE FIDELITY -certainly the most fortunate people of any who had money in other than sound savings banks-are still drawing their first dividend. Of the 8,000 who have accounts about 1,600 had received the 10 per cent of their deposit up to the closing hour yesterday afternoon. Receiver Turpin says that the first 2,000 will take out 60 per cent of the $130,000, leaving $52,000 for the other 6,000, nearly all the applicants thus far being those who find the larger sums to their credit. There was a "line" in the bank all day. Payments are made as rapidly as possible, but only so many can be accommodated within a given time. Very little, if any, growling, how- ever, is indulged in, as the depositors know that the funds are there, and that, if they do not get what is due them to-day, they will to- morrow. Letters are still being received from the country asking that balances or interest be forwarded, the writer being unaware that the institution has failed. The Receiver breaks the news to them by circular, and gives them some consolation by notification of the dividend. # THE BEEHIVE. The Committee appointed by the depositors of the "Beehive" did a very indiscreet thing when they called on Receiver Ward Friday af- ternoon. They took a reporter along with them, who represented to Mr. Ward that he was a member of the Committee. He took notes of the conference and published them, giving the names of several of the debtors of the bank. This will have a tendency to impair the credit of the debtors, and will impede, if not absolutely pre- vent, the collection of between $30,000 and $40,000. The reporter could have been present only by the connivance of the Committee, and they alone are responsible for his act. Mr. Ward is justifiedly indignant at this unwise and inexcusable conduct, and when the Committee call to-morrow he will see to it that the in- terests of the mass of the depositors are not put in jeopardy by the "smartness" of three or four fellows who evidently haven't sense enough to consult their own interests.