Loans By The Million

Chicago, Dea 22. - There was a feelIng of confldence in banking circle3 Tuesday mora ng which was noticeable o thp i.iost casual observers who called at tiic big institutions. ïhis feeling was _Qt i :nfined alone to the banks, but extércíad to the mercan tile houses. At the sheriff's office, whích often acts as a pulse to the heart of trade, the utmost confidence was expressed . that with the suspension of the Bank of Illinois, Dreyer & Co., the Roseland inetitution, and Wasmansdorf & Heinefeann the suspensions had ceased and nothing more remained to be done than _Lo straighten out the stangled affairs of those institutions. Probably more interest centered in the Garden City bank Tuesday than in any other of the concerns. As early as 8 o'clock there was a small crowd of depositors waiting to be admitted. Mr. Buehler of the bank was early on hand and the teller paid out all money that was demanded. At no time did the demand amount to a run. Mr. Buehler and President Gilbert, as well as the bank's attorney, declared without reserve that they would pay out every cent asked of them and that there was not the slightest occasion for alarm. True Cause of the I'ailure. The true causes which led to the failure of the National Bank of Illinois- which also closed Wasmansdorff & Heinemann, E. S. Dreyer & Co., and the Roseland bank - are gradually coming to light and have surprised those who were not on the inside. It is now claimed that the National Bank of Illinois, of which George Schneider was not only president but the moving spirit, loaned to Robert Berger, son-in-law of Mr. Schneider and partner of E. S. Dreyer, the neat sum of $500,000; advanced to the Calumet Electric rail■way, of which John Farson is president, the great sum of $2,475,000; backed Angxis & Gindele, contractors, to the tune of $250,000, and also had a list of doubtful claims against individuals of $818,000. Rumor had it that George A. Weiss, another son-in-law of President Schneider, owed the bank half a million, but Mr. Weiss denles this. Aside trom the above condition of affairs, it ■was discovered that on the Dooks of the bank was an item of $900,000, which was the foreign exchange account, but which in reality was a loan to the Calumet Electric road and had been so placed as to deceive even the bank examiner. Directora In Ignorance. Another feature of the failure is the fact - admitted by some of the directors of Mr. Schneider's bank - that they were in absolute ignorance of the way in which the institution was being run until the collapse came. Right here comes in a story as to what brought matters to a climax. It is to the effect that the rivalry between the Calumet Electric and the Chicago City railway - the south side line - became so great that the last-named corporation resorted to all marnier of means to injure ita rival. According to this story some one connected with the Chicago City eompany informed the comptroller of the currency that the collateral of the Calumet eompany held by the bank was not nearly so valuable as had been represented to the bank examiner and by him to the comptroller. This led to more investigs.tion, and. as known, the comptroller notified the directors of the bank to take action. This they failed to do - being misled, as they claim - and the rumorsof unsoundness reaching the clearing house committee the suspension followed.