Rensselaer Semi-Weekly Republican, Volume 38, Number 29, Rensselaer, Jasper County, 22 December 1905 — THREE BANKS FAIL. [ARTICLE]

THREE BANKS FAIL.

CHICAGO INSTITUTIONS OF JOHN R. WALSH GO DOWN. Chicago National, Equitable Trant Company and Home Savings Bank Clone in Crash—Two Bunks Alone Carry $22,500,000 of Deposttn. Failure of the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company, all of Chicago, was announced at 3:30 o’clock Monday morning by representatives of the Chicago Clearing House Association, after a session lasting eighteen hours. Janies B. Forgan, President of the First National Bank, as head of the clearing house committee of the Chicago Associated banks, gave forth the statement. The assets of these Institutions, it was asserted, were Involved In coal and railway properties of John R. Walsh, President of the Chicago National Bank. The statement was Issued in the office of the First National Bank. It Is as follows: “The citizens of Chicago will undoubtedly be surprised to learn that the Chicago National Bank, the Home Savings Bank, and the Equitable Trust Company, which have been controlled, managed, and officered by John R. Walsh and his associates have concluded to wind up their affairs and quit business in the city of Chicago, but they will be gratified to learn that after a thorough and careful examination of their affairs by the Chicago Clearing House banks that all of the depositors of these institutions will be pand in full upon demand, the Chicago clearing house banks having pledged themselves to this result, thus putting all the resources of the Chicago banks behind the depositors of these three institutions. The difficulty with the institutions has been that their Investments have been made In assets connected with the railway and coal enterprises of John R. Walsh. These assets were not Immediately available to meet deposits in full.” The meeting of the Chicago Clearing House Association began at noon Sunday. Notices were sent members of the board by Mr. Morgan after the condition of the banks and the trust company had been learned. Clerks were notified and fifty or more with their stenographers hurried to the First National bank. Behind closed doors the ’Clearing House Association began its work of finding a way that might enable them to ride the financial sea in safety. That a panic would be likely to follow was the first thought of the committee. Resolutions were adopted and heads of other banks pledged themselves to give assistance. The amount involved in the failure would not be discussed by the committee members. In addition to the formal statement of the failure nnd the announcement that the banks involved would not open their doors Monday morning, the following announcement was made, signed by the clearing house committee of the Chicago associated banks: “To the Public: Depositors of the Chicago National bank, the Home Savings bank, and the Equitable Trust Company are respectfully advised that their deposits will be paid in full upon demand.”