Northwestern National Bank (Chicago, IL)

Episode Information

Episode UID
50800933
Episode Type
Run Only
Bank Type
national
Bank ID
5080 national
Charter Number
508
Start Date
September 7, 1877
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
daa24d9ad152e81e

Response Measures

No run

Description

The bank experienced a general city-wide run in September 1877 but remained solvent, later becoming the first national bank to resume specie payments in 1878.

Events (4)

1. August 30, 1864 Chartered
Source
historical_nic
2. September 7, 1877 Run
Cause
Local Banks
Cause Details
Failure of the State Saving Institution of Chicago which was found to be a million dollars short.
Measures
The bank remained open and later resumed specie payments in gold.
Newspaper Excerpt
A general run is being made on all the Chicago banks and some more of them may close their doors before the panic is over.
Source
newspapers
3. April 15, 1878 Other
Newspaper Excerpt
Northwestern National Bank at Chicago bad commenced the redemption of its circulation... in gold in place of greenbacks
Source
newspapers
4. September 15, 1900 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (3)

Article from Clearfield Republican, September 12, 1877

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Article Text

AN AWFUL "BUST Up."-The State Saving Institution, at Chicago, closed its doors on Friday. The concern is a million of dollars short. The assetts foot up at their face $2,337,496.23 while the true value is only $869,000. The amount due depositors is $3,050,017.17. All the available cash to be found in the Bank was about $24,000 out of the millions deposited by the 15,000 depositors. The Cashier, David D. Spencer, is in Europe. His own individual note for $500,000 was found among the assets. A general run is being made on all the Chicago banks and some more of them may close their doors before the panic is over. But, then Chicago can stand almost anything.


Article from The Daily Dispatch, April 16, 1878

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Article Text

APRIL 16, 1878. TUESDAY Resumption. Rosumption commences in the West. The grad-grinds of New York have regarded the West as the source of financial heresies; but the West is the leader in resumption. We published yesterday morning the fact that the Northwestern National Bank at Chicago bad commenced the redemption of its circulation, and we also published a correspondence between the cashier of the bank and the Controller of the Currency at Wash1 agton, from which It appeared that the bank wanted to put gold in place of greenbacks deposited as its reserve fund with the Federul Treasury. The answer of the ControlBer showed that this at present was.impraclicable. The reserve is only five per cent. of the circulation. There aresome two thousand five hundred National Banks. Their reserve deposit is in greenbacks. It is not practicable to keep gold for one or two of them. It would complicate the business of redemption too much. This is the meaning of the answer. Indeed, the proposition, when we consider the small amount of the reserve fund, could not have been inspired by any prospective advantage to the bank save through the advertisement it might thus give to the country. This is all-Γ©ciat. And the Treasurer simply said, " Pay gold at your own counter." Mr. SHERMAN wants none of this little botheration, but be is getting ready rapidly, and will soon be ready, we hope, should Congress concur in bis plan, to ring the bell as a signal for resumption. Simultaneously with the Chicago Bank the Third National Bank of Cincinnati announces that it is prepared to redeem all of its outstanding circulation in gold. It is the second largest bank in Cincinnati. It has been already stated that the Broadway Bank of New York has been paying gold in sums of $500 and less to persons who desired it. Furthermore, the prominent business houses in that city have been paying out gold freely to their customers in change. These facts indicate the ripe condition for resumption. It bas been a raw-head and bloody bones to many people who remember the resumptions of times past, when the whole matter of finance was entirely unlike that of the present day. Then there were banks in every State whose standing was as different from one another as possible. The notes of those banks were nearly all below par at the settling points of the country. The country merchants carried them to the principal markets and paid them for goods. They were discounted instantly by those from whom the goods were bought, and the brokers who discounted them sent them posthaste to the banks that issued them and had them converted into gold or New York checks. Thus we bad a sample of the disadvantage of a bad currency. Its want of credit away. from home kept it at a discount, and the people who traded in it had to pay in addition to the price of the goods they bought the discount upon the notes they paid for these goods. It must be at once perceived that specie-payments with such a currency was a difficult business. Numemerous brokers thrived upon the gains of trading in these degraded notes-in simply collecting those notes-and the vast amount which went to the benefit of these brokers was a tax upon the people. A bad system it was, indeed. Now what a different state of things we have! The present circulating medium is entirely acceptable to all the people of the Union. There is no discount upon the notes in circulation, and therefore there is no brokerage upon them, and SO far as the dealing in bank-notes is concerned the business of exchange broker is dead; and just here we may, now that gold-gambling is about as dead. So here we see that the citizen loses nothing in the money with which he buys. So also there is no trade in this money. There is no inducement to gather up the notes to return them upon the banks that issued them. There is not a cent to be made by it. There is no way to engineer a run upon banks for the payment of their circulation. Only for deposits can they be embarrassed; and we may feel this assurance on this point: that where the currency is so sound that it cannot be made bad there is the best reason for supposing that the banks will take care that they do not entangle themselves by a reckless use of the fund that is placed in their custody, which they should hold sacred from devastation. The currency is solvent. The system of finance inaugurated by the Government is entrenched by accountability and credibility, and it must be a signally reckless and depraved morality which is unrestrained by these things, and which drifts into dishonor and ruin. But we have deviated from the main point we had in view, and that was simply to show how much easier, comparatively, it is to resume now than formerly. The paper money of the national banks is acceptable to all people, and gold is too low to make trading in that a remunerative employment. Greenbacks are the paper of the Government. When made payable in all dues to the Government it must be at par with gold, and cannot, except in small amounts, be returned upon the Government to draw gold. There cannot reasonably be entertained any fear of a pressure for coin that can at all embarrass the Government. The country can resume at any time, and, what is better, it can maintain resumption.


Article from The Centre Reporter, May 2, 1878

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Article Text

and just as the clock in bell tower of Ludlow street jail had begun strike twelve William M. Twood threw head back slightly and breathed his Tast thout strugg Only daughter was pres in the building at the time of his death, wife and two sons being abroad. The room which he died was sumptionsly furnished weed was born in Now York on April 3d. 1823 in early life was chairmaker His first ublic appearance Was as an alderman 1852. after he served term in Congress he became super visor in New York city after holding other subordinate offices he elected State Senator in 1867 In 1870 was made commissioner of the department public works in his native city and from that me began the thieving career of the Hing onsisting of Tweed Sweeny, Connolly and fall In 1871 the Committee of Seventy be the famous crusade against the Hing ended in its downfall Twood was as ested, tried found guilty and sentenced years imprisonment and to pay fine $12 550. After serving portion of his time escaped from Ludlow street Jail in 1875 fied Spain That country gave him up the nited States in 1876 and since then he ad been endeavoring to obtain his release by ffering to surrender his property and betray numerous accomplices in crime. His efforts regain his liberty however, had been unsue essful up to the time of his death. Eleven business failures and ensions of firms were announed in New York the ther day E. F. Massurett, cashier of the Tremont Louse Boston, embezzied about $5,000 from hotel funds to cover losses incurred by ambling and when his employers sent for an fficer to have him arrested he shot himself, officting fatal wound Francis Borne died in New York city from ujuries received while wrestling with boar weeks previous at performance in Albany Borne was struck in the side by the animal and hurt internally Rumors have been for some time floating bont New York and Brooklyn that Theodore filton was visiting his wife and that reconillation was about to take place between the WO. These rumors were confirmed in most tartling manner by the publication of the folowing letter written by Mrs. Tilton to Ira B. hoeler, her legal counsel My DEAR SIR few weeks since, after long months of menanguish, Itold, M you know, few friends, rhom had bitterly deceived, that the charge rought bymy husband, of adultery between nyself and the Rev. Henry Want Beecher was rue, and that the lie I had lived 80 well the ast four years had become intolerable to me That statement solemnly reaffirm, and leave truth with God, to whom also commit myself, my children, and all who must suffer know full well the explanations that will be ought by many for this acknowledgment lesire to return to my husband, insanity uslice, everything as true and only quickened opnscience and the sense or what truth During all complications of these years been confidential friend and therefore ou, juesting secure its publication. HARRATILTON When this letter appeared in New York newspapers Mr Beecher who on lecturing was found at Waverly Y., and in anywer to the question what he going to do, he answered Nothing at present, except to give it an explicit denial Beecher also made the following state for publication confront Mrs Tilconfession with explicit and absolute lenial testimony to her own innocence mine which for four years, she made hundreds in private and in public, before court, in writing and orally, declare to be rae And the allegations now made in con radiction of her uniform, solemn, and unvary statements heitherto made utterly deny declare her to be innocent of the great trans ression. HENRY W AND BEECHER. The Lowell millagents have decided to reluce the wages of operatives from nye to fifper cent. The supreme court of Rhode Island has ranted an injunction, restraining the Five Cent Savings Bank of Newport, from loing further business The Emigrant be vings Bank, of Boston, has been similarly enjoined. The funeral of William M. Tweed took place from the residence of his law in New (ork A crowd gathered in front of the house several hundred availed themselves of an ortanity to take Inst look at the corpse, body was enclosed coffin on the silver plate was the inscription, William M Tweed died April 12, 1878 aged years The venerable clergyman who mar weed and his children read the Episopal services but made no address The body taken to Greenwood Cemetery followed eight coaches, three of which contained relatives.of the deceased, while the other were filled with the twelve pall bearers and few friends. At the cemetery entrance telegation from the lodge of Masons to which Tweed belonged was present, and the masonic itual for the burial fithe dead was read after he body had been lowered into the grave. The uneral was so unostentation that the small ortege passed through the streets without notice any itracting The clothing of Miss Effie Da Costra of Philadelphia, caught fire from match on which she trod and she was fatally burned. Inttie Green, who tried to put out the flames, burned to death. Richard Schweitzer. a young lad. died in York from the effects of bite by spitz The doctors pronounced Schweitzer of one hydrophobia. genuine Western and Southern States. A fire covering sixteen acres of houses tcok lace at Clarksville, Tenn destroying about of the principal business houses and ausing a loss of over $500,000. The Northwestern Bank, of Chicago an counced that would redeem its circulating otes in gold, and is the first national bank the country that resumed specie payments Forty-five cars at Cottonwood, Kansas, on Santa Fe railroad, were blown from the by heavy tornado. Several houses also destroyed and a number of lives sported lost. Hon:C E. Ellsworth, Representative in ConTess from Michigan, while spending & few lays at his home in Greenville, was man named Shearer, against whom he had egun law suit. Shearer attackedl Elsworth heavy whip, knocking him down and skull. his racturing The Indians are committing depredations in Southwest, killing mail carriers and taking the mails. way Robert M. Reynolds, of Alabama, has been onfirmed by the Senate as first auditor of the reasury. He had previously been rejected by Senate, but motion to reconsider preailed, and his nomination was then secured. The Oregon Republicans held their conven at Salem and declared for "sound money the national administration. The Oregon Republicans held their conven at Salem and declared for "sound money the national administration. Ben Evans and Epb Hall, both colored, and White, white man, who were under rrest at Huntsville, Ala. for the murder of leorge Schoenberger : prominent butcher, taken from jail large crowd and anged Evans accused White, who was bus1088 rival of the murdered man, of having intigated him to commit the crime. White proested his innocence to the last An international Sunday school convention ssembled in Atlanta, Ga, delegates from all States, Indian Territory and Canadian proinces being in attendance. At Coal Creek, Ind., mining town near ovington, Ky., an altercation arose in aloon between miner member of militia ompany that had been drilling and colored The quarrel grew out of former trouble stween the white and colored miners of the The colored man was killed and then whites moved through the streets, oting Two more colored men were Illed and another was mortally wounded. sheriff called out the militia and arms supplied to colored miners. From Washington. The House has voted an appropriation of for monument to Thomas Jefferson. The Democratic Senstors have had caucus, which the resumption repeal bill, the coming ections and other matters were discussed At meeting of the Cabinet, the President alled attention to platform of principles resented by Cleveland (Ohio) paper, and hich, he said, met nis views. The platform vors specie resumption (in gold and silver, esistance to all schemes for increasing the resent volume of currency, moderate tariff, constitutional amendment prohibiting the of any money raised by taxation for seearian schools, the speedy completion of all ablie works and the improvement of great ational channels of commerce, like the Mis. river and its tributaries. pon SecreMcCrary's suggestion clause was added eclaring opposition to the payment of South