Manufacturers National Bank (Chicago, IL)

Episode Information

Episode UID
72400885
Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
national
Bank ID
7240 national
Charter Number
724
Start Date
September 22, 1873
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8e23f56a49166823

Response Measures

Partial suspension, Full suspension, Books examined

Other: The Manufacturers' National suspended and ultimately went into voluntary liquidation rather than resuming; the Clearing-House met and considered loan-certificate plans and examinations of banks occurred; Comptroller/Receivership procedures and later legal/receiver actions followed.

Clearinghouse involved: Yes (loan, examination, or other measures)

Description

Bank voluntarily went into liquidation after suspending during the 1873 panic.

Events (5)

1. January 18, 1865 Chartered
Source
historical_nic
2. September 22, 1873 Run
Cause
Macro News
Cause Details
Runs triggered by the nationwide financial panic of September 1873 and distress among other banks; depositors withdrawing funds
Measures
Banks fell back on thirty and sixty day rule and paid only sums under $100
Newspaper Excerpt
There is considerable of a run upon some of the banks here to-day, but they are adhering to the resolution adopted yesterday to fall back upon the thirty and sixty day rule
Source
newspapers
3. September 25, 1873 Suspension
Cause
Macro News
Cause Details
Collective suspension by Chicago banks amid the September 1873 financial panic and lack of currency/liquidity
Newspaper Excerpt
Telegrams received here this afternoon, announce that all the Chicago banks have suspended.
Source
newspapers
4. September 25, 1873 Voluntary Liquidation
Source
historical_nic
5. September 27, 1873 Receivership
Newspaper Excerpt
Some suspended banks promise early resumption, and only one, the Manufacturers' National, admits it will go into a liquidation and this will pay dollar for dollar.
Source
newspapers

Newspaper Articles (25)

Article from The New York Herald, January 11, 1871

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UNITED STATES CIRCUIT COURT. Important Question RS to Receiverships and the Right to Sue by n Foreign Corporation. Before Judge Blatchford. The Manufacturers National Bank of Chicago vs. Ethorard Baach and Edward Baach, Jr.-The bill in this case describes the plaintiffs as the Manufacsurers' National Bank of Chicago, Illinois, a banking corporation incorporated and existing under an act of Congress of the United States, and having capacity to sue under the above title the same as a citizen of the State of Illinois, doing basiness in Chicago, in that State. The defendants are citizens of the State of New York. The plaintiffs moved for the appointment of a receiver in the case and au injunction. The citizenship of the defendants was not denied and the question was Whether the court has jurisdiction of the suit. Under the decision in the case of Osborn vs. The Bank of the United States (9th Wheaten. 738), such a suit 18 a case arising under a law of the United States within the meaning of the constitution, the bank being incorporated by a law of the United States, and it is comperent for Congress to confer jurisdiction over it in the federal courts. After a lengthened opinion the Judge holds that the averments of the bill are suillcient to shew that the court has jurisdiction of this suit, and that the plaintiffs are entitled to the receivership and injunction asked for III their bill. Before Judge Woodraft. Eliza We's Administrative, d.c., vs. Henry H. Janques, al.- Verdict of jury for the plaintiff in the sum of $7,500.


Article from New-York Tribune, January 12, 1871

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THE RIGHT OF NATIONAL BANKS TO SUE IN FEDERAL COURTS. In the case of The Manufacturers' National Bank of Chicago agaiust Edward Baack and Edward Brack, jr., tried some time ago before Judge Blatchford, and recently decided by him, the plaintiffs are a banking corporation, existing and having power to sue by virtue of an act of Congress to provide a national curreney, approved June 3, 1864. The defendants are citizens of New-York. The plaThElfr moved for an injunction and the appointment of a receiver in the case. This raised the question whether, considering the admitted allegations of the bill, together with the fact that the answer did not deny the allegation of the citizenship of the defendants, the Court bad jurisdiction of the case. The argument urged against a jurisdiction in the case, drawn from the question of chizenship, was that, as this banking corporation IS created by the United States, the only legal presumption that can be drawn is that its members are citizens of the United States, and that there is 110 presumption that they are citizens of the State in which the corporation is located. In the course of a long decision Judge Blatchford said, after citing all the authorities upon the question: It is quite apparent, from all these statutory provisions. that Congress regards a national banking asso lation as being located .at the place specific lini organization certificate If such a place a State, the association is located in the Sinte The requirement that at least three-fourths of directors of the association shall be residents, during their con flimance in off e, in the State in which the asso. dation is located, e peciality indientes an intention on the part of Congress to regard the association as belonging to such State." In dealing with the argument that "the legislation of Counters shows an intention not to confer upon nature pal bank associations the right to one in the Federal Courts, Judge Blatenford said, after reviewing the "If the plaintiffs can sue another national bank Court, 101 difficult to see why they shoul BO1 be lowed to sue in this Court defend ints, who are titless of New-York I can perceive no evidence in the legislation referred to. that Congress intended that this with should not assume the juris diction invoke in this it. I am, therefore, satisfied that the governments of the bill are sufficient snow forts He tion, and that this Court has jurisdiction of this smit. On the merits, the 0 are entitled to the receivership and the injunetion."


Article from The Wheeling Daily Intelligencer, October 18, 1871

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CHICAGO. by Lumber Attempted The Resumption.org Rebuilding the on Banks--The Work of attempt was Oct. 17.-An lumber dealers, lummade by a up the price but this yesterday, CHICAGO, to number carry per of thousand, larger of and at from $3 to $4 of the the was ber, was resisted respectable by many dealers, deteated. and Lumis selling at the old and filty millions tempted more ber extortion hundred prices. There the Italian sup- are of fully feet in two the continue yards in to this be abundant. city, and the will captured police have Peteri, who on keeper, week, in a Monday night stabbed two saloon ply The of Gregorio last saloon men on of to Buren street, at the Van He was found west of village this city. on death. about five miles dead bodies total held up inquests Of course Austin, which The number have been of when removed, to last the night, is ninety-two. burnt dietrict is debris in the be disovered. more will been made to-day the special removal of by many Aarrangements for the agent have of avenue the the Postoffice Church, PostDepartment the Wabash and Harrison office avenue for corner to Wabash will be occupied build that streets, and it the government Church can edifice purpose until building. This burned district, suitable the south line of the was considerably scorched, south is on division. but suffered It little or no of Trade injury inside. The directors this of morning, the Board for of the location. purhad a meeting settling the question it was deAfter to appoint a near the old cided a suitable lot, the Chamber pose to select of considerable and committee discussion on a rooms, Board tem- of of Trade rooms, and to erect thereon transaction of business. Sheridan to-day the porory their Commerce, General building, he for announces the issued contin- an There ad dress, peace in which and quiet violence of the city. since the disaster has uous been of Sunday no case night of and Monday morn- reing. The banks, national to-day. and The savings, calls settle- from sumed business were light for immediate to ascertain ment, as many what extent they depositors and to sought Many deposits could their or draw was no safely balance made. There hereafter. drafts on excitement the Savings were whatever. The and in many rush Bank were very light, made. There deposits were at the considerable many checks were confidence stances and excitement the thrown closing out. was the in- to hour, illustration of banks, we refer placed in Third public to-day's As an work: checked At the the out, and National, bank $72,000 pre$45,000 State dedeposited were rush, The but only Savings money, some forty the aghave gregate pared positors for of called a which for was their greatly exceeded been by deposits. contracts for building those who Many to-day. Among are William F. Wheeler, propose consummated to rebuild H. G. Powers, at once Armour, C.T. John Pot- B. Coolbaugh, George Walker, Mathew K. Drake, Boin Bros., of Drake Block, Laflin, J.C. C. H. Tuttle, Beck une ter Gregstin with, Palmer, Company, Edwin & Mackin, Hunt, &c. House Frederick Jas. The square H. entire Reese, from block Trib the on Court from Randolph streets, will Dr. Fowler, J. C. and John Drs. Union Depot land and street is to be east, by fronting Washington E. Goodell, Messrs. and others. of running Lake Charles Walker, The great be rebuilt scale. at at Quin- once once R. rebuilt at the toot and on a greatly were enlarged issued to-day thousand for A persons number leaving of passes the city. The number was The one action the of postoffice the postoflice on one-third authorities the South of the Side, in locating population where there surprise of the is less city and than and a good no gas, to deal have has of indignation, created great for the less accommodation regard seeming should of a mahad of the citizens than to-day, In number of of been jority lected. been. Brooklyn A various small $1,200 parts contributions was have New col- at from Committee State. telegraphed that in money ought to give Various New Chicago York are reported The $1,000,000 Boston England Massachusetts towns and for supplies. are reported $10,000 as a portion The registration for this the morning; election to-day Michigan. commenced registered 23,200. Germans November total was number of the leading for the purA meeting Hall to-night, element one pose held at of uniting the A German committee, was ap. organization. Apollo prominent Germans, Democ- includ. into ing many with the reform pointed racy for to the conter purpose of an alliance against


Article from The Daily State Journal, October 18, 1871

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# THE WRIT OF HABEAS CORPUS SUSPENDED IN SOUTH CAROLINA, &C. Washington, October 17.--The President to-day, after reciting the causes and quoting the laws under which he acts, issued a proclamation in which he suspends the writ of habeas corpus in Spartanburg, York, Marion, Chester, Laurens, Newberry, Fairfield, Lancaster, and Chesterfield counties, of South Carolina. The suspension extends to the arrest by the United States marshal, his deputies, any military officer of the United States, or any soldier or citizen acting under the orders of said marshal, deputy, or such military officer within said counties, of persons charged with any violation of the Ku-Klux act of Congress during the continuance of the "rebellion" in said counties. The Attorney-General has a dispatch from North Mississippi that five Ku-Klux with disguises complete have been captured. Seven hundred and fifty thousand dollars in revenue stamps were found safe in the government vault in Chicago. Secretary Boutwell has received the following dispatch from Chicago: "The Chicago banks are saved, and are paying every dollar on demand. A good feeling prevails. [Signed] H. R. Hurlbut, Comptroller of Currency." Mexican Affairs. Havana, October 17.-A steamer just arrived from Vera Cruz brings late dates from the Mexican capital. Juarez had been re-elected President by Congress, receiving 108 votes-all that were cast. The opposition abstained from voting. Everything was quiet in the city. The telegraph wire between the capital and Matamoras had been cut by Trevina. Telegraphic Summary. Eighty Catholic children have arrived at Cincinnati from Chicago, and have been committed to the care of the bishop. The cholera has again appeared in an epidemie form in Constantinople. Sixty deaths have occurred in two days, nine of whom are Englishmen. Hon. James McNab, Governor of Nova Scotia, is dead. The preparations for the exposition of the Industrial Association of Georgia, to be held in Savannah on the 21st of November, are nearly complete. A suit has been instituted in the Federal Court at Memphis, Tenn., against Gen. Forrest and others, by Capt. Houston, of the steamer Hester, for arms destroyed some years ago by disguised men. A dispatch from Raleigh states that the exhibition of the North Carolina State Fair at that place is unsurpassed in every respect. The sub-Ku-Klux Committee has been investigating at Montgomery, Ala., whence they go to Demopolis, in the same State, and thence return to Washington. Four deaths from yellow fever have occurred in Charleston during the past two days. The Security Insurance Company has suspended. Fires are raging in Deer and Harrison Creek Valley; extending to Jefferson county, Nebraska. The loss is estimated at $50,000. A later dispatch from Glocester, Canada, says an American fleet of four vessels is outside, and that any attempt to seize the "Horton" will meat with disastrious defeat. The vessels spoke the "Horton," but did not see the British gunboats.


Article from The Tipton Advertiser, October 19, 1871

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# THE CHICAGO FIRE considered a sufficiently large figure to cover all the losses. The number of acres actually burned over is about 2,500-comprising the most compact and thickly inhabited part of the city, and the great bulk of its business and substance. About 20,000 buildings were burned, one-fourth of which were of stone or brick. The actual loss of life was undoubtedly over 300. Concerning the situation and prospects, on Friday, the Journal said: "Chicago is not hopelessly down. Her capitalists and merchants are 'up and doing'-preparing for reorganization and reconstruction upon the old foundations -and it is very apparent to all intelligent observers, that all will soon be well, and that Chicago will, before long, be in rapid process of rebuilding, and that before many years she will in all respects be herself again. The fact, now positively stated, that the heaviest insurance companies at the East will promptly adjust and pay in full their losses by our Great Conflagration, is the most cheering news we have yet received since the Calamity. This will go far towards helping many of our people out of their troubles and setting them on their feet again." On Monday, it speaks yet more cheerfully, speaking of the announcement that the banks would resume business on the 17th, which is strengthened by a certificate from the United States Comptroller of Currency that the National banks of Chicago are solvent institutions, as follows: "The decision of the banks to abandon their fifteen per cent. installment policy, and resume business as usual to-morrow, has restored confidence in Chicago. The universal opinion now is that the grain business will soon be running as usual. At present the derangement in insurance is a hindrance to shipments. There is no speculative business attempted. It is believed that the permanent increase in the price of grain will be slight. We hear of scores of cases where merchants or capitalists are already fully determined to rebuild in the most substantial style on the old sites, and it is already very evident that the South Side will before many months be 'reconstructed' even more substantially than is was built originally." The peace of the city has been restored and is maintained. The papers deprecate the statements which are finding place in newspapers signifying a different state of things, and say that General Sheridan and the city authorities report no cases of outrage or serious disturbance.


Article from New-York Tribune, December 2, 1872

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THE CURRENCY. We complete to-day our extracts from the annual report of the Controller of the Currency, of which we printed a portion on Saturday. The limit of the National Bank issues in each State and Territory is fixed on the basis of population. resources, businees, and bank capital, as ascertained by the census. The last census required a new apportionment, as it showed a total increase in the population of the Union of more than 7,000,000 persons, and in wealth of nearly $14,000,000,000. An act was accordingly passed providing for an additional issue of $54,000,000. Of this the largest sum, $8,400,000, apportioned to any State, went to Illinois; Ohio and Kentucky each got over $5,000,000; Indiana, $4,000,000; Michigan and Louisiana each over $3,000,000; the distribution being made one-half on the population and one-half on the wealth of the country. It will be noticed that the increase all goes to the South and West, and more is yet needed to give those sections their due apportionment; to accomplish this, $25,000,000 is to be withdrawn and redeemed from the circulation of banks in New-York and New-England, and a corresponding amount authorized to banks in States that have not now their quota. It is a commonly received but somewhat erroneous opinon that the amount of currency in the hands of each individual member of the community has been on the average largely increased by the National Bank system; but this report only gives it now as, for the whole United States, $9 18 per capita, against $7 59 before National Banks existed: but the circulation of U. S. Treasury notes should be added before any conclusion is reached from these figures. The State of Rhode Island has the largest per capita circulation: $61 56; Mississippi the least:-one centexcept Florida and California, which have none. New-York has but $14 08. The National Banks have paid in the last eight years some $40,000,000 taxes to the United States; their State and national taxes for four specified years together amount to $71,000,000. The bank dividends are not so large on the average as is generally supposed: they do not exceed in the aggregate those of the old State banks; for the whole Union they but slightly exceed five per cent on invested capital. The great question of the proper reserve to be held by the National Banks is discussed in this report, and the conclusion reached that it is only the smaller and weaker banks that want to go below the present limit. Their necessities arise from putting out their funds at interest on deposit with Eastern banks-a condition which has more than once given riso to the most serious financial convulsions, as in 1857 - and a remedy proposed by the Controller is the issue of a new security by Government which will afford these banks the needful investment at interest. Not the least interesting feature of this report is the announcement that the Chicago banks, 80 far from being crippled as was anticipated after the fire by losses on discounted paper and the withdrawal of their balances, in point of fact steadily increased in business and profit, after resuming without embarrassment as soon as their safes were cool. There is a similar prospect in Boston, where the aggregate losses since the fire on bills receivable are estimated at less than three millions of dollars, which the bank surpluses will cover without touching capital or reserve. The question of usury is discussed. It appears that the penalty for its practice by National Banks is not clearly defined, and the Controller therefore declines to institute proceedings concerning it. A general law for the establishment of Savings Banks in the District of Columbia seems desirable. Locking up greenbacks is reprehended, and the New-York Stock Board and Clearing House are asked to discourage it. A table of the specie kept on hand by the banks shows it as less in October last than in many years before; as $10,000,000 against a usual average of $25,000,000. In the few cases of failure among the National Banks, the unfortunate institutions seem to be wound up with less ruinous loss to depositors and stockholders than has ever been re-


Article from Chicago Daily Tribune, September 16, 1873

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MONETARY. MONDAY EVENING, Sept. 15. Local finances word n little more quiet to-day than during last week. The country orders for burrency were considerably lighter, but the supply of currency in this markot in BO extremely scanty that the banks find it very difficult to moot oven the diminished domanda of their country customors. No considerable amounts of currency coino back from the country yet, and though the Chicago banks keep bringing currenby hore from Now York, all thoy get la in $100, 0500, and $1,000 bills, which are of but little uso In the country. Money is evidently becoming scarcer in this market AB the grain accumulates horo. It le estimated that the aggregate deposits of the Chicago banks havo fallen off between $2,000,000 and $3,000,000 in the last ten days. Now York exchange was much depressed again 10-day, owing to the pressure for currency, and was freely offored at $1.25 por $1,000 discount, with no buyers at that. EMBABRABSMENTS OF THE CANADA SOUTHERN. It is surmised in some quarters that the financial difficultion of the Canada Southorn Railroad, which were the cause of the susponsion of Kenyon, Cox & Co., of Now York, will intorforo with the construction of the Chicago oxtonlon of the road called the Chicago & Canada Bouthern." boing the line from Amherstburg, Canada (Detroit Rivor) to Chicago, in which case the main line and branches of the Canada Southorn already completed would have to dopend on the Michigan Southern and Tolodo, Wabash & Wostern for any connection with the great grain region of the West, instead of connecting at Chicago with the Rook Island and the Northwestern, as was intended by the projectors of the Canada Southern. It is oven not impossiblo that the confliot of intercete between the Michigan Southern and the Tolodo & Wabash on the one hand, and of the Rock Island and the Northwestern on the other, may have exercised wome influence to bring about the present financial difficulties. By Oct. 1 it is expected that the Canada Sonthorn will be operating 405 milos of road, viz. : The main lino and St. Thomas Branch in Canada, 292 miles; the Toledo, Canada Southorn & Detroit, which makes the connection with the Michigan Southorn, and also with the Tolodo, Wabash & Westorn, the Dayton & Michigan, the Pennsylvania Railroad branch leading to Pittsburgh, as well as with roads centering at Detroit, 58 miles; the Erie & Niagara, 31 miles: and the Michigan Midland and Canada, 14 miles. The Chicago & Canada Southern is finished 70 milos of the distance from opposite Amboratburg (Dotroit Rivor) toward this city. The noncompletion of this latter road would leave the main lino, Canada Southorn, with us principal Western connections at Tolodo instead of Chlcago. The opening of the Canada Southorn was delayed for some time by the non-completion of the International Bridgo over the Niagara River, a work over which tho Canada Southern had no control. In the menutime, arrangements have been made for the use of the Suspension Bridge, 15 miles bolow the International, and reached by the Erio & Niagara Railway, which is owned by the Canada Southorn. This routo has been, and will bo, used for freight business, but no through passenger trains will be put on until tho International Bridge is done. THE GAUGE OF THE GRAND TRUNK Railway will be changed to 4 foot 81/4 inches botween Toronto and Montreal, on Saturday, 4th of October next. IMPORTS AT NEW YORK AND BOSTON continuo light compared to previous years. At New York the imports for the wook ending Sept. 12 were: For the week. 1871. 1872. 1873, Entered at port $ 3,467,827 $ 3,492,058 $ 2,503,718 Thrown on market. 3,670,665 3,814,767 2,853,374 Since Jan. 1. 1871. 1873. 1873. Entered At port $101,134,535 $110,425,322 $90,487,529 Thrownon market. 99,070,410 104,345,101 92,910,729 At Boston, for the week ending Sept. 5, they were: 1873, 1872. $ 1,617,897 For the week ending Sept. 5 $ 1,288,197 Previously reported 43,867,776 50,456,133 845 156 079 Total


Article from Memphis Daily Appeal, September 22, 1873

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NEWS OF THE DAY. The Wisconsin State fair begins at Milwaukee to-day. The Texas editorial excursionists left Cincinnati last night for Louisville. The financial panic is reported to have seriously affected the narrow-gauge interests in Utah. The Chicago banks have taken advantage of the sixty-day privilege on their depositors. McClure's military academy, at Oakland, California, was entirely destroyed by fire Saturday night. Immediately after the cortes adjourns the Spanish government at Madrid will declare Spain in a state of seige. Thomas Tarwater, a brakeman, was run over and killed by a freight-train at Columbia, Tennessee, on the nineteenth instant. Pat Garnley, an insane man, set fire to a building in Jeffersonville, Indiana, yesterday, remained in it and was burned to death. Business generally will be suspended in Cincinnati to-day. it being proclaimed by the mayor. a holiday in the interest of the exposition. A strange and fatal disease at Kelter, in Utah, is very prevalent, producing great consternation. The patients die in a few hours. It resembles fever. Satisfactory arrangements have bee n perfected with the Ute and other tribes of Indians, hitherto in discontent, so that they will be settled upon their reservations. A Milwaukee dispatch says the financial panic of New York produces no disturbance there as yet, but the banks are preparing for any emergency that may occur the coming week. At Carbondale, Illinois, yesterday two negroes, Bill Smith and Frank Collins, remembered the Sabbath by playing cards, "fell out," resulting in the latter shooting the former through the heart. He's dead.


Article from The New York Herald, September 23, 1873

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Run on the Chicago Banks. CHICAGO, Sept. 22, 1873. There is considerable of a run upon some of the banks here to-day, but they are adhering to the resolution adopted yesterday to fall back upon the thirty and sixty day rule, and are only paying on sums of less than $100. The largest assemblage appears to be gathered at the States Savings Institution, but so far the crowd has been very quiet and orderly. The latest reports, public and private, from New York, appear to have had the effect to lessen the anxiety which was manifested this morning among many bankers and business men.


Article from Knoxville Weekly Chronicle, September 24, 1873

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Georgia, to Hopkins, Dwight & Trowbridge; Deposit Savings Institution, Mobile, to Metropolitan National Bank The Brooklyn Banks. The Brooklyu bank presidents to resolved te sell $1,000,000 of U. S. securities in case of emergency. The majority were, however, of the opinion that there would be no run upon them. The Evening Post says: The day closed with an established improvement in general feeling; one day more with the Stock Exchange closed, will, it is thought, put everybody in such a condition, SO far as the exercise of reason is concerned, that it will be prudent for the brokers to again resume business. This afternoon money lent on the streets at : per cent., that rate having been paid by distressed brokers. President Rail, of the Bank of Commerce, said this afternoon that confidence had been very greatly improved and he Thought the action of the Government in buying 5-20s had been highly beneficial in loosening greenbacks. NEW York, Sept. 22.-When the doors of the Irving Savings Bank, 96 Warren street, were opened this morning, a crowd of depositors rushed in, clamoring for their money. The paying teller immediately set to work to satisfy their demands. When the majority, however, saw how willingly money was being paid out, they became quieted and left. Up to 2 o' clock the bank had paid out above $10,000, and had received a considerale amount in deposits. Feeling of Relief in New York. NEW YORK, Sept. 20.-The feeling among all classes is one of great relief. No runs on any of the national or state banks and the crowds on Wall street are mainly curious spectators. There are considerable inquirry for stocks on Wall street. Investors with greenbacks in hand are seeking to purchase, but the prohibition of Stock Ex: change drohibits transactions. The Chicago Banks. CHICAGO, Sept. 22.-There was a considerable run upon some of the banks here today, but they areadhering to the resolution adopted yesterday to fall back upon thirty and sixty days notice, and only paying sums of less than one hundred dollars. The largest assemblage appears to be gathered at the Statee Savings Institution, but so far the crowd has been very quiet and orderly. The latest reports, public and private from New York appear to have had the effect to lessen the anxiety. Chicago Savings Bank. CHICAGO, Sept. 22.-The Savings Banks give notice of the enforcement of thesixty days' notice. MEMPHIS, Sept. 22.-There were eight cases of yellow fever on Sunday. Philadelphia Banks. PHILADELPHIA, Sept. 22.-The run on the Savings] Banks has subsided. PHILADELPHIA, Sept. 2.-There is a much better feeling on the street to-day. The Stock Board is firmer. Pennsylvanias are holding ground at 40 to 50. A bank statement wili be out as usual to-day and will show a gratifying exhibit. The Situation in London. LONDON, Sept. 22-5 P. M.-Much excitement is manifested on all sides to hear further news from New York. Jay Cooke, McCulloch & Co. continue to pay cash in the usual manner over their counter. Among the rumors current in Stock Exchange is one that the Bank of England holds $400,000 of Jay Cooke Co.'s acceptances and that Rothschilds have $100,000 of the same paper. LONDON, Sept. 22-6:30 P. M. - dispatch announcing the closing of the New York Gold Exchanged has just been bulletined. This news is aceepted as an indication of the gravity of the financial situation and the market for American securities is again depressed.


Article from The Rock Island Daily Argus, September 25, 1873

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# Banks In Chicago all Suspended. Telegrams received here this afternoon, announce that all the Chicago banks have suspended. This is probably by a united agreement to suspend until some plan of action can be agreed on. Things look blue, and there is great probability that the panic will become general and extend all over the country.


Article from The True Northerner, September 26, 1873

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# True Northerner. PAW PAW, MICHIGAN, Sept. 26, 1873. # Local Department. Hon. Wilder D. Foster, Representative in Congress from the Fifth District of Michigan, died in Grand Rapids Sept. 20. H. P. McFarlin will hold an Auction Sale at the residence of Fdward Stowman, two miles north-west of Glendale P. O., Oct. 11. We advise every young man or lady who wish to qualify for business to attend the Kalamazoo Business College. The Ann Arbor Courier says the seating capactity of the new University Hall is 3,000, and by the use of temporary seats 4,000 can be accommodated. Charles Smolk has removed his Sewing Machine Depot to the new building on the corner of Main and Niles streets, adjoining the residence of T. A. Granger. The Fair of the Paw Paw Valley Agricultural Society commenced last Wednesday and closed to-day. We will give a more extended notice of it in our next issue. REV. R. C. WELCH, who has been assigned by the Michigan Conference to the charge of the M. E. Church in this place for the ensuing year. preached his first sermon on Sunday morning last. All the Banks of Chicago entered into an arrangement by which they closed their doors yesterday morning, and take thirty days in which to pay depositors. A genral derangement of business must be the result. The South Haven Sentinel says: "The condition of religion is good." That is just as we had supposed, and we are right glad to see that fact verified in so public a manner, for the past season has been unusually sickly. The Government Printing office in the City of Washington, in the Territory of Columbia, is one of the largest printing offices in the world. Six colored compositors are employed at the case in that concern. The Lapeer Clarion wants the fat men to stand back in future and give the lean men of the State a chance to hold a convention and get a good, square meal out of East Saginaw or some other philanthropic city. At a public gathering lately one of the gentlemen present was called upon for a speech, and this is how he responded: "Gentlemen and women, I ain't no speecher. More'n 20 years ago I came here a poor idiot boy, and now what are I?" On Saturday last, Miss Emma Pugsley left for Ann Arbor to enter the State University. She is a graduate of the school here, and is an excellent scholar. There are now two young ladies attending the University from this village, the other being Mies Emma Andrews. who has been there for the past two years. The Circuit Court has been in session during the past week. On Monday the Matteson case came up on a motion for change of venue, which motion, after a hearing and the reading of affidavits in support of the motion and counter affidavits opposed to it, was denied. The time for the trial will probably be set down for the next term of the Court. The most important other matter before the Court was a case between A. M. Merrifield and Philo Reed. LAWRENCE, Sept. 16, 1873. TRUE NORTHERNER: DEAR. SIR, I have been away all summer, and have but just returned. The first newspaper I saw after getting home was yourself going "Up in a Balloon." If a little money will save you, the enclosed Two Dollars will help. Keep the thing flying till they all respond, and keep the paper coming. Can't keep house without it. Yours Truly, The State Fair, held at Grand Rapids last week, was a success as regards the magnitude of the exhibition in all its departmentst-he Lumber of people who attended and financially. We learn that the receipts exceeded thirty thousand dollars. Our own Van Buren County maintained the ascendency she had heretofore attained. She bore off the highest prize for her County Collection of Fruit; the township of South Haven took the first prize for her Township collection of Fruit; and the Williams' process for evaporating fruit was pronounced superior to the Alden process. Mr. Williams. the inventor, is a resident and fruit grower of South Haven, in this countv. Our worthy and honored friend. Judge Monroe. met with a very serious mishap on Saturday night last, by which he is now lying in a critical condition. He had arrived here on the nine o'clock train on his way home from Grand Rapids, where he had been attending the State Fair. He started for his home, aboat eight miles from town, on foot and leading a ball by a cord attached to a ring in his nose. When about one-half mile from town the bull became somewhat refractory and refused to go. the Judge meanwhile pulling him along by the cord, when the animal suddenly attacked nim, throwing him to the ground and trampling him under his feet, bruising and lacerating him very seriously about the chest, side and bowels. fter becoming released the Judge crawled to the house of Mr. Clancy and aroused the inmates. who took him in and cared for him until he was taken home, Sunday morning. Ir not unfrequently happens that a party political convention is moved to deliberately falsify history in their platforms, declarations and resolves, as was the case of the Ohio in ther recant numatform adopted by


Article from Memphis Daily Appeal, September 27, 1873

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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.


Article from The Rutland Daily Globe, September 29, 1873

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Latest Financial LOUIVVILLE, Sept. 27. SUSPENSIONS The following banks suspended payment temporarily to-day German Bank. Ma. onic savings bank, Western bank. German Insurance bank. Louisville Banking Co., German savings bank, and Central savings bank. The run on these banks has been steadily increasing for three days. All have abundant resources. Other banks have heavily drawn on the suspended banks All the savings institutions are owned chiefly by Germans. PANIC CONTINUES. LITTLE Rock, Sept. 27. The money panic continued to-day. Never in the history of the city has money been so stringent. It is impossible collaterals. to get any money with any sort of CONFIDENCE. CHICAGO, Sept. 25. People generally are taking matters very quietly and there seems to be considerable confidence among bankers that with prudent management and no further trouble East they will be able to pull through. AT CINCINNATI. CINCINNATI, Ohio, Sept. 27. The day has passed quietly in financial and commercial circles. There was positively an improved feeling among all classes. Prices on change stiffened materially, and some articles brought higher figures than since the panic. A number of banks have announced that they would pay all currency checks against new deposits, and certify checks in checks. A currency against deposits fair mechanics amount of currency has been paid to and manufacturers for wages, and no great dissatisfaction was expressed by any one. A much healthier tone has prevailed, and greatly increased hopefulness has been manifested on all sides. AT DUBUQUE. DUBUQUE. I., Sept. 27. The Commercial National Bank is the national bank in this city that is meetdemands in full in currency. only ing all The Merchants' National Bank has suspended. The First National Bank is paying in bills receivable and small amounts of currency. The run on the German Sayings Bank and the Peoples' Sayings Bank has subsided. AT PHILADELPHIA. PHILADELPHIA. Sept. 27. A committee of the stock board had a this afternoon bank at which the latter it presidents, conference with stated the that was not the intentions of banks to force any securities upon the market and they would not do anything that would tend to cause a decline of securities of the stock board. AT CHICAGO. CHICAGO, Sept. 27. The clearing house association held adjourned meeting last night. The committee on Friday night to a plan, submitted appointed report two consider reports and which were essentially the same, the only difference being that one recommended the of the New York adoption recommended plan in all the its details: while the other adoption of something similar to it. After e a prolonged discussion both reports were 1 tabled by a majority vote. The situation 1 here is therefore essentially unchanged. currency a of which went has been no serious e or savings S either and large Considerable there portion national arrived into yesterday, institutions. drain the banks upon e Some suspended banks promise early resumption, and only one, the Manufacturers' National admits it will go into a liquidation and this will pay dollar for dollar.


Article from New-York Tribune, September 29, 1873

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they have determined to open their doors at once for resumption of business. This bank will accordingly open for business at 10 o'clock this morning. W. F. COOLBAUGH, President C. T. WHEELER, Vice-President. GEORGE A. IVES. Cashier. This is accompanied by a written paper signed by all the resident directors, pledging their personal responsibility for payment of all deposits of the bank. Officers of the National Rank of Commerce were busy to-day in the examination of the accounts and securities of the institution, preparatory to an anticipated resumption of business to-morrow. A special meeting of the directors is to be held before banking hours, to determine as to its future action. There is little doubt of the bank being solvent, and. having considerable cash on hand, they will resume business at once and open their doors for a full resumption. The resumptions of business and the influx of currency have brightened the skies here greatly. The Tribune says, editorially, to-morrow morning : Now if the depositors will exercise the reasonable prudence demanded by the situation and warranted by the solvency of our banks they will not only get the greenbacks they need the sooner, but they will reestablish the agencies of their own credit. This will enable them to go on doing a profitable business. The weakening of three of the banks that suspended last Friday, and the enormous and steady influx of currency into the city, ought to convince everybody of the advantage there will be in sustaining all the banks for the few days they will need it. CHICAGO BANK PROSPECTS--ANOTHER SUSPENSIONTHE LOAN CERTIFICATE PLAN ADOPTED. CHICAGO. Sept. 27.-At the Clearing-house meeting, which continued to an early hour this morning, the suspended banks were permitted to vote. Mr. Coolbaugh handed communication to the public, signed by the President and Directors of the Union National Bank, saying they would hold themselves personally responsible, as inviduals, for the payment of all deposits now held by the bank. or which may hereafter be made with it. Mr. Coolbaugh stated that he had been advised that the banks in Ciacinnati and St. Louis were doing business on other than a currency basis. He believed, in view of the change made by these cities. that it would be as impossible for Chicago to do business on a currency basis as it would be for it to do business for the surrounding country on a gold basis. For the information of those present, he would say that the entire assets of the bank amounted to $4,300,000, not over $50,000 of which was doubtful. In 60 days $4,000.000 would mature, and at the present time there was in bank $1,000,000. It was announced, this morning, that the Third National Bank had suspended. At a meeting of the Clearing-house Association, to-night. a committee was appointed to draft a plan for the issue of loan certificates, to be used in the Clearing-house in the settlement of balances. Sept. 8.-The Clearing-house Association of this city held an adjourned meeting last night, which was at tended by representatives of all the banks belonging to the association, including those that suspended on Friday and yesterday. The committee appointed on Friday night to consider and report a plan similar to that adopted in New-York and other cities providing for the issue of loan certificates, and the payment of checks through the Cleariag-house only, submitted two reports, which were essentially the same. the only difference being that one recommended the adoption of the New-York plan in all its details. while the other recommended the adoption of the New-York plan, or something similar to it. After a long discussion, in which the representatives of some of the strongest banks opposed the adoption of either of the reports, both reports were tabled. The situation here is therefore essentially unchanged. A considerable amount of currency arrived here yesterday, a large portion of which went: into the banks, and there has been no serious drain upon either national or savings institutions. Some of the suspended banks prom180 an early resumption, and only one, the Manufacturers National, admits that it will go into liquidation, and this one asserts that it will be aole to pay dollar for dollar. The people generally are very quiet, and there seems to be confidence among bankers that with prudent management and no further crouble East they will be able to pull through. CHEAP TRANSPORTATION-A NATIONAL CONVENTION CALLED. CHICAGO, Sept. 28.-The State Central Committee of the Illinois State Farmers' Association have issued a call to Farmers' Clubs, Granges, Farmers' Associations, Agricultural Societies, Boards of Agrieulture, and other organizations of the industrial classes of the United States, requesting them to send from their own numbers, identified with their interest, one delegate from each organization, to meet in Chicago, on Oct. 22, for the purpose of discussing the prevailing overcharges in transportation, to insure a perfect organization of the agricultural and other industrial classes who chiefiy suffer from these overcharges in every State, Territory, and province in the country with a view or throwing a combined and overwhelming influence against future exactions, and to take such measures as shall secure prompt and efficient legislation that shall end in the complete extinction of all railroad or other monopolies now preying on the productive interests of America.


Article from Chicago Daily Tribune, September 30, 1873

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LAWRENCE, KS. Special Dispatch to The Chicago Tribune. LAWRENCE, Ks., Sept. 20.-Financial matters are looking brighter. The news of resumption by the Chicago banks is hailed with delight. Our banks have paid without suspension through the panic.


Article from Chicago Daily Tribune, September 30, 1873

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SAN FRANCISCO. Special Dispatch to The Chicago Tribune. SAN FRANCISCO, Sept. 20.-To-day was devoted almost exclusively to collections and legitimate channels, and the result inspirod confidence. Tho resumption of business by the Chicago banks was the subject of much congratulation, showing the panic had no serious effects on Western finance and stability. This, with the promptness with which to-day's matured obliga- tions were mot, has reopened the current of exchange, which resumed with some briskness. Coin drafts on New York sold at ยพ to 1 por cent; telegraphic transfers at 2 por cent. The panic has fully demonstrated the unadvisability of stock speculations. Capitalists are more unwilling than ever to invest in outside real estate, preferring legitimate enter- prises and staple products. The panic is charged


Article from The Redwood Gazette, October 9, 1873

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Federal, State, county or musicipal governments; opposes the present tariffs; favors taking solvent debts: favors the eight-hour law; opposed to Chinese immigration, and also opposed to the election of the President more than one term of four years. The last resolution indorses the stand taken by Governor Booth in behalf of popular rights against the encroachments of politicians and railway corporations. A dispatch from Deaver, Col., states that over vo-thirds of the mining town of Fairplay, Col., had been consumed on he 26th. All the stores, printing offices, the United States land office, post office, express office, als and other business places, three exceptions, had been utterly destroyed. The Right Rev. Geo. M. Randall, Episcopal Bishop of Colorado New Mexico and Wyoming, died at Denver, Colorado, on the 28th, of typhold pneumonia. The Third National Bank, of Chicago, closed its doors on the 27th. The Cook County National, one of the suspended banks of that city, had announced its resumption. The Manufacturers' and Second National banks had decided to go into liquidation. The Union National, the first of the Chicago banks that closed its doors, had announced its assets at $5,600,000, and its liabilities at $4,300,000. and given notice of its speedy resumption of business. The Clearing-Ho Association met on the evening of the 27th, and after an animated discussion resolved not to issue ClearHouse certificates. A dispatch from St. Louis of the 27th says that the rear wall of the five-story warehouse, on the corner of Second and Chestnut streets, had fallen, opening gap in the building fifty feet wide from the ground to the roof. One man had been killed and two seriously injured. In Chicago, on the 29th, business had resumed very nearly its normal condition. Three of the suspended banks had resumed business and were receiving deposits and paying out on checks as before the panic. Over $3,000,000 currency had been received during the preceding forty-eight hours. Traffic had fallen off on the various lines of railroad, and a large number of trains had been drawn off, and many men discharged. A St. Louis dispatch of the 29th says that while Joseph H. Fore, who attempted to kill his wife, on the 4th of June last, was being tried in that city on the 29th for that offense, hethrew heavy cut glass inkstand at his wife as she was giving in her testimony. The missile missed her, but struck her counsel full in the forehead, inflicting an ugly and danger wound. At a late hour on the night of the 29th the Union National Bank of Chicago, which had resumed business on that morning, and during the day had paid out $400,000, decided to go into liquidation, under the provisions of Sec. 42 of the National Currency Act. A call has been issued for a Northwestern Farmers' Convention, to meet at Chicago on the 22d of October, to consist of delegates from Granges and farmers' organizations. The South. A dispatch from Richmond, Va., of the 23d, says that the Merchants' National, the Planters', the Mechanics', the Peoples', the First National, and the Citizens' banks, of Petersburg, had suspended. A Baltimere telegram of the 24th announced that all the banks of that city had stopped currency payment. Brown, Lancaster & Cowell, agents of the Chesapeak and Ohio Railway, having houses in Baltimore, New York and Richmond, had also suspended. A Little Rock, Ark., dispatch of the 24th says the money panic in that city continued, caused not 80 much by Eastern financial complications as by the refusal of the city banks to take the shinplasters that have been current there. A dispatch from Richmond, Va., says that the Richmond Dollar Savings Bank had suspended, and that Taylor & Williams, bankers, had failed. A dispatch to the Associated Press, from Brownsville, Texas, of September 24, says that a series of butcheries and robberies had recently been committed in Mexico, the victime every case being Americans. The perpetrators of these crimes were arrested, and their guilt fully established, yet not one of them had been punished, the authorities being either indifferent or powerless. The facts had been reported by the Consuls to Washington, in the hopes that redress would be demanded. A Memphis dispatch of the 25th says that the First National and De Soto banks, of that city, had closed their doors. A dispatch from Nashville Tenn., says that the National Banks of that city had suspended currency payments on all balances exceeding $200. A dispatch from Selma, Ala., of the 25th. says the Savings Bank of Selma had suspended in consequence of an extraordinary run by depositors. All the banks of New Orleans partially suspended payment on the 25th, according to a dispatch from that city. The suspension was to remain in force for thirty days. Telegrams from various cities in Georgia, of the 25th, say the following banks had suspended: National Exchange, the Merchants' and Planters' National, the Planters' Loan and Savings Banks, of Augusta, Ga.; the Dollar Savings Bank, of Atlanta, Ga.: Savannah Bank and Trust Company, and the South ern Bank of Georgia. A dispatch from Shreveport, La., of the 25th, says the fever, which seemed to have abated on the preceding day, had broken out with renewed violence. The interments numbered twenty-two. A dispatch from Shreveport, La., of the 29th says that within the last four days sever al of the most prominent and useful citizens of that city had fallen victims to the epidemic. The dispatch adds: "The population has been fearfully thinned out by sickness and death We no longer have funerals. The hearses, followed by one or two carriages, dash through the streets like a section of artillery in a battle seeking position. A few men are drummed up, the coffins shoved into the hearse, and driven rapidly to the cemetery. This is the case even with the most prominent citizens. The Howards have opened an orphan asylum, and are feeding about two-thirds of the resident population. There are fewer deaths and new cases, because there are fewer people.' A Jackson, Miss., dispatch of the 29th says Governor Powers, acting under the advice of Attorney-General Morris, had issued proclamation postponing the State election. The Governor says that he will convene the Legislature in extraordinary session as soon as possible. The Pilot, the State organ, has pronounced the Governor's movement incendiary, and calculated to lead to revolution and anarchy.


Article from Ottumwa Weekly Courier, October 16, 1873

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At last it turns out that of the twenty-one National banks of Chicago before the panic, three have gone into liquidation, viz: the Union, the Second National, and the Manufacturers'. The three other banks which suspended have all opened again, and are moving along as usual. Rapidly currency is coming into Chicago, and the best and most hopeful teeling prevails. It is confidently expected that the three banks which have gone into liquidation, will pay everybody, depositors and all.


Article from Chicago Daily Tribune, November 23, 1873

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A NEW QUESTION. Can a National Bank Be Put into Bankruptcy. The Question Raised with Respect to the Manufacturers' National. A week ago Saturday J. R. Smith & Co. filed a petition against the Manufacturers' National Bank, to throw it into bankruptcy, alleging that the bank was then a debtor of the petitioners to the amount of $1,500, on account of money deposited, which it had failed to pay for fourteen days after request for the same, and charging that the bank had committed acts of bankruptcy in suspending payment of said deposit, and, also, by giving numerous preferential assignments to various persons, by turning over paper and securities in payment of sundry creditors. The usual rule to show cause was not issued, but was deferred until an argument could be heard on the question as to whether a National Bank could be put into bankruptcy. Messrs. Harding, McCoy & Pratt and Mr. T. C. Whiteside appeared for petitioners, and argued that the power was unquestionable, as the jurisdiction is expressly given by the Banking act of 1864, and also by the Bankrupt law of 1867. The Banking act, by the eighth and thirty-seventh sections, expressly gives to creditors the right to sue the corporation as they would other natural persons. The Bankrupt act was passed nearly three years after the Banking act, and merely gave a remedy which a creditor under the old Banking act had a right to use. The Bankrupt act confers the same power by the thirty-seventh section, where it is said the Bankrupt act shall apply to all moneyed and stock corporations, and where a banker has fraudulently suspended payment of his commercial paper it shall be deemed an act of bankruptcy. The remedies are either concurrent or that given under the Bankrupt act is a distinct remedy. The Banking act does not provide any scheme for the bankruptcy of banks, does not make any provision for their insolvency. There is only one provision made in the Banking act for the non-payment of anything, and that is for the non-payment of the circulating notes of the bank, in which case the Comptroller may sell the bonds held by him, or, with the concurrence of the Secretary of the Treasury, have a Receiver appointed to distribute the assets, but there is no provision for any other non-payment. The Bankrupt act simply furnishes a proceeding which the Banking act says a creditor shall have against a bank, and the policy of the Bankrupt act is in perfect harmony with the Banking act. The fundamental error is in supposing that the two acts are inconsistent. Judge Lawrence, associated with Messrs. Ayer and Kales, for the bank, argued that the Comptroller is the person appointed by law to wind up the affairs of the bank. When a bank is insolvent it can go into voluntary liquidation and settle its claims. Supposing an Assignee were to be appointed, no person could be found who, on the sale of the assets, would bid anything near their true value when it was known that the Comptroller could stop in and assert hostile rights. Again, no Assignee could reduce to possession the bonds held by the United States. They might be sold for the benefit of the holders of notes, and then there would remain a surplus in the hands of the Government, assets which could not be reduced to possession by the Assignee. It is impossible to conceive of a greater conflict than would arise from this cause. The act in existence provides for all emergencies, and for the security of the Government. A bank cannot be put into bankruptcy unless the Bankrupt act repeals the Banking act and substitutes the Bankrupt act, and the question is to determine which of the laws is in force. Now, does the Bankrupt law repeal the Banking law? In the 8th Wallace the question is settled. The Court there recognizes the provisions of the Banking act as in full force, and Congress recognizes it as in full force. The counsel on the other side must fall back on the proposition that either of the remedies are applicable, at the discretion of the Judge. By the act, the banks are required to keep on hand enough to pay the ordinary run of their depositors, which is fixed at 25 per cent of their notes; and it is not the intention that depositors shall be allowed to force a bank into bankruptcy in that mode. If the Bankrupt act were to be repealed to-morrow, the banks could go on as they have done under the Banking law. If the depositors during the late panic, when everyone was apprehensive and doubtful where he stood, could have forced the National Banks into bankruptcy, it would have caused a universal crash over the country, and would have done more than anything else to make it hopelessly insolvent. The argument was not concluded, but will be resumed when Judge Blodgett shall have concluded the Howell case, now on trial.


Article from The Wheeling Daily Intelligencer, December 15, 1873

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Another Man Short in his Accounts. CHICAGO, Dec. 14.-It is stated that David Gage, City Treasnrer, is short in his accounts with the city to an amount which will reach nearly or quite four hundred thousand dollars. A portion of this amount is locked up in the suspended Second National and Manufacturer's National Banks. It is said that Mr. Gage will be able to obtain security from any ultimate loss.


Article from The Daily Gazette, April 22, 1875

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"FAST BANKING.-The Chicago Tri. bune says; The Cook County National Bank paid the highest rates known in this city for deposits. The history of banking here and elsewhere dces not encourage the idea that placing deposts where they will draw the highest interest is putting them where they will do the most good to the depositor. When the extinguished financier under whose auspices the Manufacturers' National Bank of thiscity we tinto liquidations became its president, he outbid all the other bankers in the city in interest on deposits. He paid 5 and 6 per cent., and even more. "How can you afford to pay such rates?" he was asked one day by a fellow-financier. "Pay!" said he, "I don't care what rates I pay. I am going to build up the business of this bank, no matter what it costs!" Whatit costs, the report of the Receiver, lately published, showed to the full satisfaction, it is to be hoped, of the depositors.


Article from Chicago Daily Tribune, April 25, 1875

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MONEY AND COMMERCE. FINANCIAL. A rapid advance in the price of exchange was the only change in the financial situation. Sales were made at 25@50c premium between banks for $1,000. The sudden fall in price the day before is to be attributed to the large amounts simultaneously offered by the banks upon discovering that they had run down their stocks of currency lower than they wanted to see them. The amount of exchange made by the cattle trade here has been very large. During the past week fully $2,000,000 of exchange has been made at the StockYards. It is worth noticing that the cattle trade of the West and Northwest now centres at this point. The cattle, instead of being shipped as in earlier days, through Chicago on Eastern account, are purchased here and shipped on Western account, The discount market remains without any noticeable new features. Merchants are borrowing largely on account of the retardation of collections, and business in the country on account of the cold, unseasonable weather. Rates at the banks are 8@10 per cent. On the street there is less good paper offering than could be taken. Rates are 7@18 per cent. The clearings Saturday were $3,096,275.05; for the week the clearings were $18,998,852.21; and the baiances $1,995,489.41: for the corresponding week of last year the figures were respectively $17,180,770.79 and $1,937,000.40. 5-20 BONDS. The seventeenth call for the redemption of 5-20 bonds of 1862 states that the principal and interest of the following bonds will be paid July 20, 1875, and intercet will cease after that date: Coupon bonds, known as the Fourth Series, Act of Feb. 23, 1852, dated May 1, 1862, ns follows: COUPON BONDS. $30-No. 15,401 to No. 17,100, both inclusive. $500No 20,001 to 22,400, both inclusive. $100-No. 40,001 to No. 44,200, both inclusive. $1,000-No. 66,001 to No. 70,950, both inclusive. $5,000,000. The amount outstanding (embraced in the numbers as above) is $5,000,000. United States securities, forwarded for redemption, should be addressed to the Loan Division of the Sacretary's Office." THE ERIE HAILROAD IN THE LONDON STOCK MARKET. The London Times of the 10th inst., in its financial article, says: A correspondent writes complaining very bitterly of the way in which pamphiets and circulars are kept flying about filled with extremely damaging statements as to the present position of the Erie Railway. He says bons fide investors are disturbed, frightened, and induced to sell on terms by which they are nearly ruined, and gives a number of figures to prove that the line is not FO bad as these publications assert. Probably he is right. The winter has been a very bad one for Erie, there is no doubt; but by latest accounts traffic has been recovering, and working expenses have been so reduced that the line may fairly be held to be better off than it was some time ago. At the same time, this cannot be asserted positively, and until the traffic receipts are again issued month by month it is impossible to prevent the evil rumors from doing harm, however false they may be. The shareholders ought to know the state of receipts in any case, and, although we can quite understand the desire of the President of the line to lat the bad time go by without saying anything, 80 that his work might appear all the greater when it is revealed, we think it is time secrecy W38 discarded. Even bad traffics, if honestly explained, would at once put an end to the disgraceful running-down system that has been in progress for some time now, and which has unquestionably resulted in the recuperative capacity of the line being grossly underestimated. RECEIVERS FOR INSOLVENT NATIONAL BANKS. The scandalous results of the voluntary liquidation of the Manufacturers' National Bank of this city have evoked considerable discussion of the defects in the National Banking act, which renders such things possible, Comptroller Knox sends the New York Daily Bulletin the following extract from a bill authorized to be reported by the Bank Committee of the last Congress, and intended to cure this defect in the law. The following is the section of the Bank Committee bill to which the Comptroller alludes SEC. 2. That whenever any association shall be dissolved, and its rights, privileges and franchises declared forfeited, as prescribed in Sec. 5,239 of said statutes, or whenever any creditor of any such association shall have obtained a judgment against it,and execution thereon shall have been returned unsatisfied, the Comptroller of the Currency may, on the application of such judgment-creditor, accompanied by a certificate from the Clerk of the court in which such judgment may have been rendered, stating that such judgment has been rendered, and execution thereon has been issued and returned unsatisfied, appoint a Receiver, who shall proceed to close up such association, and enforce the personal liability of the shareholders, as provided in Sec. 5,234 of said statutes. The Bulletin thinks that this clause, if adopted, would undoubtedly have given the creditors of an insolvent bank a remedy through the Banking Department. But the thing needed is that it shall be impossible for an insolvent bank to undertake its own liquidation simply at its own option. The law should provide that, when a bank proposes to go into liquidation, the Comptroller of the Currency shall institute an examination into its affairs, and upon such examination determine whether, in the interests of its greditors, the bank shall be liquidated under & Rebeiver, or may be safely allowed to wind up its own affairs," GOVERNMENT BONDS. Bid. 1.Asked.


Article from Chicago Daily Tribune, December 28, 1877

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Total $5,464,108 $2,784,835 2,070,303 Deficiency Here is a loss to the poor depositors of over $2,679,000. the accumulation of months and years of toll, all squaudered by a system of banking which never has, and never can, produce a sufficient margin of prodt to give to the business that stability which is 60 Imperatively demanded in the interest of the working classes. Then add to this vaulabed capital the Interest on what the depositors will ultimately receive, but not for some years-it will certainly be $100,000. Then add to this $500,000, the callmated capital on which these four banks were doing business, and there is dgured up a loss of nearly $3,200,000, swept away forever from the earnings and accumulations of our city. If to this sum be added the losses resulting from the failures of other banks, the Scandinavisu, Cook County, Second, Manufacturers', Commercial Loan. mid others which now-escape recollection, It will be found that there have beeu frittered away In glittering land and other speculations, fully $5,000,000 of the capital of our citizens. AS A. MATTER OF CURIOSITY, and for future reference, the following statistics, showlug the condition of all the savings banks in the city on July 1 last, is submitted. The figures for the Dime and Chicago Savings are estimated, and, It is believed, are sufficiently accurate for this purpose. The reported capItal of the " Bee-live " includes the " contingent fund," the grandiloquent appellation bestowed upon the surplus by the roly-polv manager, Syd Myers. During the run, which began about the middle of July and ceased only when the banks closed their doors, the depositors succeeded in withdrawing nearly if not fully $5,000,000, or a little over 56 per cent of the amount due them In the aggregate. It is indeed very questionable If there be to. day $1,000,000 on deposit In the four savings banks now running. The confidence of the people to these Institutions is at A very low ebb, and will remain so for some years to come. In fact, it seems not hazarding too much to say that, when the Government shall have resumed specie payment, there will not be & savings bank in the city, as those which are now in existence will be forced to retire for lack of business. [Enaur L. Bananted


Article from Omaha Daily Bee, March 29, 1887

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IMPORT NT DECISION. The Highest Tribunal On the Insolvent Mann facturers Bank Case. WASHINGTON. March 28.-A decision was rendered by the United States supreme court to-day in the insolvent bank case of Alonzo Richmond, Charles Comstock and others against Agnes F. Irons and Andrew H. Foskett, executor and executrix of James Irons, deceased, and others, an appeal from the United States circuit court for the northern district of Illinois. This was a suit to enforce the personal liabilities of stockholders for the debts of the insolvent Manufacturers' National bank of Chicago. A master, anpointed by the court below to ascertain the amount of the debts and assets of the bank, reported on the 25th day of May, 1886, that the indebtedness of the bank at that time was $346,733; that $69,346 should be added to that sum for the expenses of the receivership, making a total of $416,079 and that the necessary assessment which should be made on the stockholder to pay said indebtedness was 83.2 per cent upon the capital stock of $500,000. Many exceptions were made to the master's report, but they were overruled and the decree was entered against each stockholder severally for the amount computed to be due from him according to the amount of his stock. From this decree Richmond, Comstock and others appealed. This court holds: 1. That the action of the circuit court in permitting amendments to the original pleadings is justified by the rules on that subject as stated by this court in the case of Neale vs Neale (9 Wallace 1) and in the Tremolo patent (23 Wallace 518), etc. 2. That the statute of limitations, even if applicable as a bar to this proceeding, ceased to run against the creditors of the bank entitied to the benefit of the decree from the time when the amended bill was filed in October, 1876. It had not then taken effect. 3. That the obligation of the deceased stockholder survives as against his personal representatives. 4. That Comstock is liable on stock sold by him in good faith but not transferred by him on the books, as well as on stock sold with a knowledge of the bank's insolvency. 5. That the stockholders are by law exonerated from obligation to contribute to the payment of all claims in class D, amounting in the aggregate to $18,500. 6. That the creditors are entitled to interest on the dates of the bank as against the stockholders. 7. That the stockholders are not bound to' contribute as a debt due from the bank or themselves to a fund for the payment of the expenses of the receivership. The decree of the circuit court, in so far as it is inconsistent with the foregoing decision, is reversed and the cause remanded with directions to proceed therein as justice and equity may require in conformity with this opinion. Opinion by Justice Matthews.