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bankers the money they required to move the crops. There was united action among the banks as far as they agreed.
CERTIFICATES ARE ISSUED THIS BANK WITHDRAWS.
If the Association issued certificates, his bank would withdraw. It could meet all its demands, and he did not see why other banks should object. He was not fighting the resolutions. He simply said he did not want the certificates. The public would not last long. It was of short duration. But the people must have the money. To prevent the breaking down of the country correspondents, they should let them have their due. He wanted to be united.
MR. GREENEBAUM CROSS-QUESTIONS.
Mr. Greenebaum inquired if Mr. Blair did not think that there must be a certain amount of currency Clearing-House balances.
Mr. Blair said every bank must have a surplus of money, several hundred thousand. They must all have it. You can't do the business of a day without money.
Mr. Greenebaum asked if drafts drawn by country correspondents came to the city and were presented through the Clearing-House, would not his certificates pay them at the Clearing-House?
Mr. Blair said a rule could not be made to apply to all cases. If a man's check was presented it must be paid.
Mr. Greenebaum said that in New York they were certified "good through the Clearing-House."
A DEFENSE OF CERTIFICATES.
Mr. Clarke said the Committee had made these loans payable on demand, on one day's notice; strictly a demand loan. Those who wanted to go on a currency basis could best afford to wait twenty-four hours. Mr. Blair knew the trouble was owing to the lack of currency. He knew there was a good crop; that the wheat crop would need $50,000,000 to remove. Hitherto the crops had been removed by credit, the modus operandi of which he explained. What institution in the city could move the crops? These banks here could not give the crops, if they didn't want their money or their depositors. If these certificates could be converted in twenty-four hours, where could safer security be found? Here was a good note, and the responsibility of the bank on top of it, or they got a warehouse receipt similarly guaranteed. Was not corn at 25 per cent below value a good security? What was the risk of issuing them? Why did Mr. Blair object, if they made him secure? If there was no risk, then all these men should come in. Cook County bonds were good security, and so was gold. To meet all objections, it had been made a time loan with 25 per cent margin.
MUCH MONEY, BUT NO CONFIDENCE.
Mr. Blair said if a man could not pay to-day, the presumption was he could not to-morrow. There was a need of money. There was as much as a month ago, but it was hoarded up as it left the banks, which could not collect their bills receivable. Lots of them were going to protest. There were heavy collections for Eastern banks, half of which would not be collected. The trouble came from not paying the country banks. The crop could not be moved, because there was a panic. It was monster for a banker here to give the country banker his money, even if it led to a failure, for otherwise the reputation of Chicago would be ruined, and they would never get any credit again. He did not want to come, but he had to. It was his duty to express his opinion.
EVERYBODY SINCERE.
Mr. Greenebaum moved the adoption of the report. He was sure Mr. Blair was sincere and logical in what he said. It was sound from the gentleman's standpoint, which was, to pay till you had to stop. But other bankers had a different standpoint, had not so much money and would not be so long in getting through it. All he wanted was a general consent in the sincerity of one another's motives.
Mr. Rumsey would like a little more talk (this was 10 o'clock) so he moved to take it up by sections, in order to discuss and amend it, reserving the right to vote against the whole of it if it did not suit him in its final form. He would like to try his hand and see if he could not improve some of the sections.
A DIRECT VOTE WANTED.
Sol Smith suggested that they had better vote, and not talk till midnight. They had had meetings enough to decide something. The question was whether they would issue loan certificates. He hoped all pending questions could be withdrawn and a vote taken on the naked question of issuing loan certificates. Then they would know where they stood.
Mr. Greenebaum withdrew his report, and the question came up on Mr. Smith's suggestion.
Mr. Nash failed to see, even if they had certificates, where they would get money to send into the country. How would it be of any avail to move the crops?
MR. LOEWENTHAL.
Mr. Loewenthal said one question had been overlooked. Mr. Blair said currency must be sent to country correspondents. That was true. But how did New York stand now? Once it supplied us. Now it did not, since it had not it to send. Did not Chicago occupy the same position to its country bankers? There was currency enough, if not locked up. It would come when New York let it out. The certificates were merely temporary relief.
Mr. Blair wanted to know how the currency came to be locked up.
Mr. Loewenthal set it down to lack of confidence.
Mr. Blair said it would not be restored if Chicago banks did not pay.
ANOTHER MAN THREATENS TO WITHDRAW.
Sol Smith was willing to do anything to sustain our business credit, but he did not see how general suspension and loan certificates would afford relief. A draft on New York had been offered at 5 per cent discount for currency. A manufacturing establishment here had often called on him for $30,000 for his pay-roll. How could the speaker pay him and replace it, except at a premium of 5 per cent? It was impossible for Chicago to do as they did in New York in the use of loan certificates. How could they get along for a day by paying checks with loan certificates good through the Clearing-House? As for the bank he represented, pay every dollar he had so long as checks were presented, and then go into liquidation. He would not run it on the basis of a depreciated currency. In one week, on his honor as a banker and man, if the bankers stood up, there would be more currency here than for a twelve month. Every check presented at his counter Saturday had been paid, and the deposits made about good two-thirds or 67 per cent of what was drawn. He regretted to differ and oppose any plan which seemed to look to relief. He had a large stake in Chicago, and would do anything, but he did not see any proposition which would enable him to pay his creditors, so if the Association paid loan certificates he must withdraw from it.
Mr. Greenebaum wanted to know: Would the interest of Mr. Smith's bank or the country suffer if Mr. Smith would try the experiment for a day or two, and only withdraw if disappointed, provided he could not get the currency or certificates.
Mr. Smith said it was merely a call loan. He had plenty in his bank, but could not get any money on them. He had no objection to any plan which facilitated settlements at the Clearing-House. He would withdraw if the certificate business was agreed to.
THE RESOLUTION ADOPTED.
The motion that the Association agree to issue loan certificates was then modified, or turned upside down, and made to read:
Resolved, That, in view of the improved condition of affairs in New York and in the country generally, the banks represented in the Association deem it inexpedient to issue any Clearing-House certificates.
THE VOTE.
It was adopted—yeas, 12; nays, 4, as follows:
Yeas—First National, Fifth National, Merchants' National, Manufacturers' National, Commercial National, Merchants' Savings Bank, Corn Exchange, Traders' National, Central National, German National, Hide and Leather Bank, Union Loan and Trust Company—12.
Nays—Fourth National, Mechanics' National, Cook County National, and Hibernian—4.
EXPLANATIONS.
Mr. Greenebaum explained his vote. Inasmuch as he had drawn up the report, and had determined to vote to do anything that seemed good to the majority, and inasmuch as the majority appeared to vote in the affirmative, he would do the same thing and vote "yea."
It was suggested that several banks present had not voted, and that they be requested to put themselves on the record.
Mr. Reed declined to vote, and said no Association could force him to. There was no power in an Association to force its members to vote.
Mr. Rutter wanted harmony, and, though a member of the Committee, would vote for the resolution, to keep in harmony with what was evidently the majority.
KEEP ON AS BEFORE.
Mr. Lombard moved the banks continue to do business as they had been doing recently, which was agreed to, and the meeting adjourned about half-past 10 o'clock.
THE NATIONAL BANKS.
THE FIRST NATIONAL.
Immediately after the confirmed report of the suspension of the Third National, which somewhat startled the public, there was a rumor of a heavy intended run on the First National, and some apprehension was realized as to the ability of this bank to stem the tide. True enough, the demand at the counter of the First National grew strong, but there was nothing like the semblance of a panicky run. From 11 o'clock in the morning until 2 o'clock the afternoon there was a constant and steady demand for currency at this counter, and every check was met promptly by a smiling Cashier, who disbursed greenbacks to the greedy. There was nothing like confusion or excitement about the bank, and the street rumors, as usual, exaggerated the reality. After banking hours, a reporter of THE TRIBUNE conversed with the accomplished and cool-headed cashier, Mr. L. J. Gage, and the substance of the information derived from this gentleman may thus be briefly summarized: The so-called "run" on the bank had not amounted to anything serious, and was not precipitated by resident depositors or country correspondents. Numbers of small checks, that in the usual course of business would have lain in other banks for at least a day, or passed through the Clearing-House, had been presented immediately in consequence of the suspension of other banks, and this had occasioned a temporary small excitement. All of these checks have been promptly paid on presentation, and such payments had to a small extent exceeded the amounts of deposits during the day. The result was that the amount of actual currency on hand had been somewhat reduced since the opening of the bank in the morning, but they had closed business with a large surplus, and were abundantly able to meet all legitimate demands they could foresee. Mr. Gage thought the day (Saturday) was the trying one in the emergency, and that all those who had stood the brunt would issue successfully from the conflict, and have attested their ability to meet all obligations.
THE SECOND NATIONAL
is regarded as hopelessly insolvent, and the predictions by the best posted financiers are that it will not resume. As reported in yesterday's TRIBUNE, the bank is making such adjustments as it can with forbearing creditors, and its officers hope to be permitted to go into quiet and voluntary liquidation. The disaster that has overtaken them is not wholly attributable to the present crisis, but to unfortunate previous disappointments, and the present has crushed the hope of any immediate redemption. The officers maintain that their securities are good, and that every dollar of obligation will be paid if time is granted and no hard measures are adopted to force them into bankruptcy.
THE THIRD NATIONAL
closed its doors in the morning, a notice being pasted on the door setting forth that, owing to the continued financial stringency, the management deemed it proper to suspend business for the present. This was signed by the President and Cashier. The President Mr. J. Irving Pearce, felt confident and serene, and so did all who had accounts with the bank. There was no uneasiness; it was a matter of a few days, and all would be right. The best feeling prevailed, and there was no abatement of the confidence that has always existed in the community toward the institution. A crowd of idlers who had not a cent in the bank, stood round for a while, studying the architecture of the building. They seemed satisfied after a short time that it was a very fine specimen of architecture, and moved off to pursue their studies somewhere else.
THE FOURTH NATIONAL.
Everything was very quiet at the Fourth National, and only a moderate business was being done. They were paying all positive demands, but strongly discountenancing large drafts, and were generally successful in satisfying anxious ones of their stability, and preventing unnecessary withdrawals of currency. They said they were not in need of currency, and had not drawn on the East for any, nor checked for their balances since the inception of the financial troubles. Their receipts from the West had been considerable during the day, and they had not been checked against, and the amount of deposits exceeded the sum of outgoing payments, leaving a considerable currency gain in their vaults for the day. Here, as elsewhere, the precautionary measure was adopted of refusing payments to depositors whose debts would mature in a brief time. This was simply tantamount to reserving sums of cash held as security for obligations soon due, and though not strictly legal, nor in times of ordinary business justifiable by the code of trade, was held to be a necessity to conserve the general interests of the public. In this hour of doubt it was deemed a suicidal policy to pay $1,000 to-day when the bank held A's notes for $2,000 due in three or four days and not secured by cash-commanding collaterals. It was this course, pursued by this, as well as other banks, which had given rise to the unfounded rumors of the suspension of this bank on the previous day.
AT THE FIFTH NATIONAL
everything was quiet during the day, and business was conducted with perfect composure. The urbane Cashier was smiling and cheerful, and readily devoted time and good humor to every business applicant. He said that in the morning, owing to the deeply regretted suspension of the Third National, they had anticipated a general "run," but had been most agreeably disappointed. Upon an investigation of the reasons why no "run" had occurred one of the chief developed facts was that the depositors of this bank had no deposits largely drawn upon before, leaving only a comparatively small balance, which was the money of staunch business men who had no fear of failure. The receipts of money on Friday, he said, had been much less than payments, in consequence of the fact that this bank had been compelled to redeem checks heretofore given on other banks which had suspended. During yesterday the case was exactly reversed, and the amount of deposits exceeded the sum of payments, leaving the bank with an augmented currency balance. Large amounts of currency, he said, had been received from the East Saturday, and he thought THE TRIBUNE estimate in yesterday's issue was very nearly correct of the sums in actual greenbacks that had come to the city during the day. The bank, he had no doubt, would be able to respond to every demand in the legitimate line of trade, but, as a precautionary measure for protection, they were refusing currency on sight drafts.
THE COMMERCIAL NATIONAL,
One of the most pleasant and assuring visits made by that ubiquitous individual, THE TRIBUNE reporter, yesterday, was to the Commercial National Bank, where he had the pleasure of a most entertaining and instructive interview with the popular President, Mr. H. F. Eames. Here business had been conducted with remarkable confidence and quiet during the day, and the result was a handsome addition to the cash funds in the bank's vaults. Mr. Eames, after the announcement of the suspension of the Third National, "just across the way," on the corner of Dearborn and Washington streets, had anticipated a "run." But he, like others, had been disappointed, and the result of that failure of promise was only satisfaction. There had not been the slightest indication of alarm here during the day, and everything had been pleasantly conducted with that conservative quiet that marks the solidity of every-day transactions. The deposit receipts during the day had exceeded the currency withdrawals by over $50,000. This bank had not during the impending crisis experienced any necessity for summoning its Eastern balances, nor had it asked the East anything more than its usual and customary balances with which it was credited, and which were regularly forwarded. But here fairness does not go to the excess of generosity at the expense of security, and safety is not hazarded for fictitious reputation. Every demand over the counter, even though it be legitimately made, is not honored. Where securities for maturing debts to the bank are in whole or in part held by the bank, they are not relinquished. Hazardous games of chance are not played. If Smith or Jones presents a check for any given sum which he may have on deposit, it is promptly honored if the bank holds none of his obligations near maturity. If his paper is held by the bank, and the day of payment close at hand, the bank's safety from specific loss is secured by the refusal to pay the check. This is a legitimate insurance against the possibility of loss. But in cases where depositors are not debtors, the full sum of their currency credits is transferred to them on demand. Mr. Eames has full faith in the speedy and happy solution of pending complications. From country correspondents receipts of cash were acknowledged yesterday, and a footing up of balances due exhibited a creditable reserve in the bank vaults.
THE CORN EXCHANGE NATIONAL
folks were serene and happy. There was no excitement here during the day, and the deposits exceeded currency payments by over $50,000. Currency receipts by express sent to the bank, and to its officers and Directors, all of which is made subject to blank demands, were reported by the President to exceed $150,000, and when the bank closed its currency treasure in vault was about $200,000 more than when the bank closed on Friday evening. The officers expressed their confident anticipation of another receipt of $125,000 before Monday morning, and had no doubt of their ability to pay all demands, and hold open doors till the ordinary current of trade flowed peacefully and swiftly to Chicago's continued prosperity.
THE CENTRAL NATIONAL
continued conducting its business as though nothing had happened to disturb the serenity of the financial world. The reporter called upon
