People's Pilot, Volume 5, Number 48, Rensselaer, Jasper County, 4 June 1896 — RAMSAY WAS A BANKRUPT. [ARTICLE]

RAMSAY WAS A BANKRUPT.

Late Illinois Stat* Treasurer Placed In a Bad Light. Carlyle, 111., June 4. —The report of Edward P. Keshner, who has been examining the books of the defunct Ramsay bank here, was made a matter of record Wednesday. The details of the report have created a sensation. The report shows that Ramsay was a bankrupt The bank had a capital of $45,000 ten years ago, but since then Carlyle’s great financier enjoyed the distinction of operating a bank without capital. The depositors furnished the money and he did the rest. During fourteen years of his career as a country banker his net losses were exactly $55,190.12. He paid out interest during the same time amounting to $78,899.91. He borrowed in that period from outside banks $1,000,127, paying as high a rate as 10 per cent for the same. He borrowed equally as much from other sources. During the years of ’93 and ’94, during the occupancy of the state treasurer’s office by Ramsay, nearly all the balances were forced. April 9, ’94, the general balance was forced and continued each day up to May 5, ’94, by crediting “subtraction in the cash book with above amount and charging same to individual account of R. N. Ramsay.” Ramsay had an individual account in his bank, but, sad to relate, it was heavily overdrawn. This overdraft developed into a balance of $103,000 soon after he became state treasurer. During the month of January, 1893, at the commencement of his term, he deposited $82,000 in the banks of Chicago and St. Louis. His net loss started to decrease at once, and all was well. He would lend money and then discount the paper at St. Louis, bring the money back and be ready for the next. Those who were favored by being loaned money through this bank during the reign of Treasurer Ramsay were ex-Congressman George W. Fithian of Newton: William Brinton, United States marshal; Senator Benjamin F. Caldwell, J. J. Kearans and others of Newton; D. L. Phelps, W. W. Veitch of Jacksonville, and O. S s Scott of Newton. The general balance at the bank was out of line SBO,OOO at the time of Jlamsay’s death. Ramsay and Setter, the ex-Lebanon banker, contrary to reports, had vast dealings together. Seiter had an account with the Carlyle bank. Their transactions together during fourteen years amounted to over $518,000. A peculiarity of their dealings was the issuance of drafts by Ramsay to persons unknown here. Although they were given on a Chicago bank, the drafts invariably came through the Lebanon money institution. The names indorsed thereon were written in a feeble hand. The outstanding claims amount to over $35,000.