Click image to open full size in new tab
Article Text
ing $2,707,503. of which amount $454,000 are deposits in trust and $500,000 in certificates of deposit Mixed Up in Politics. The Chicago National bank has been an active factor in local politics for several years, and enormous funds received from taxation for building and maintenance of the drainage canal have been a part of its deposits and have been available for investment by the bank. A change was recently made in the political complexion of the board and it was understood those funds would not remain for any length of time as deposits in the Chicago National Their impending withdrawal had much to do with the fear of other banks of a farreaching collapse if they did not come to the aid of the weakened institutions. Where He Lost His Money. The enterprises which are generally credited with being the indirect cause of the financial troubles of Walsh, are the Bedford Quarries company, of Indiana, and the Southern Indiana Railroad company, which was constructed by Walsh for the purpose of getting stone from his quarries to the market. Walsh was a heavy stockholder in the Akron Gas company, Illinois Southern Railway company, Rand McNally company, Southern Indiana Express company and half a score of gas, electric lighting and coal mining companies. Ridgely Was Patient. To the stone quarries and Southern Indiana railroad, Walsh made repeated heavy loans of funds of the bank, and it was these to which objection was made by Comptroller Ridgely. Repeated assurances by officers of the bank that these loans would be called in or at least largely curtailed, were not fulfilled. Finally Ridgely determined on a personal investigation. The action last night followed his determination. It is declared by local financiers that Walsh has invested all the way from $5,000,000 to $15,000,000 in the quarries and railroads. Public Was Surprised. News of the difficulties surrounding the banks came as a tremendous surprise to the public. The first information of any trouble was conveyed to the people by extra editions of the morning papers. Two hours before time for opening the banks large crowds were gathered in front of the Chicago National and Home Savings banks, waiting for the doors to open so they might withdraw their funds. Money Lay in Heaps. Inside the banks ample provision had been made for the impending run and money was laid out in large piles. Additional clerks were stationed at paying windows and arrangements were made in other parts of the bank to pay out money as fast as it was called for. The Home Savings has a right under the state law to demand sixty days' notice of withdrawal from all depositors, but it was decided not to invoke this rule. John R. Walsh kept to home this morning and declined to see anybody. He has not been well for a number of days Excitement Subsides. Excitement over the suspension of the two banks largely subsided by 11 o'clock. There was no longer a crowd around the Chicago National, Offices of the Home Savings are in the same building as the Chicago National Here a line of depositors formed reaching out to Monroe street and fifty feet west to the corner of LaSalle A large detail of policemen was in evidence and assurances of those who had received their money that officials of the bank declared everybody would be paid allayed all excitement. All claims were paid as quickly as pass books were presented. In the Chicago National there was no outward evidence of a run, although money was being drawn out with great h rapidity. Many business men who called were told that checks for the amount of their balances would be accepted as deposits at other banks and they departed without drawing out the actual currency Small depositors asked for their money and in every in stance it was handed to them. At other bank there was no apparent excitement and no evidence of a run upon any of them. 5 All Other Banks Sound. Charles G. Dawes former comptroller of the currency now president of a the Central Trust and Savings bank, a declared there was absolutely no danger of any other Chicago bank being involved. nor is there any other bank in financial difficulty. Walsh's Bank Holds Up. di Bedford Ind., Dec. 18.-The Bedford National bank, of which John R. Walsh of Chicago is president, is doing business as usual today. Secretary Shaw Gets News Washington Dec 18.-Secretary Shaw received the following telegraphic re00 port from Comptroller Ridgely, Chicago, in reference to the failure of the e banks this morning "The clearing house guaranteed pay ment of all liabilities of the three banks, which will liquidate and pay everything in full. Officers and directors will resign and be replaced by a clearing house committee and Examiner Bosworth who will run the banks and conduct the liquidation. This should relieve the situation and prevent further trouble here or elsewhere. "I TOLD YOU SO" R.
