USA > Illinois > Cook County > History of Cook County, Illinois : being a general survey of Cook County history, including a condensed history of Chicago and special account of districts outside the city limits : from the earliest settlement to the present time, volume I > Part 60
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The Eighth Illinois volunteer infantry (colored) contained six companies (A to F inclusive) from Cook county. It was mustered in at Springfield July 23, 1898, numbering 1,217 men and offi- cers, under command of Col. John R. Marshall. Having offered
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to relieve the First Illinois at Santiago, Cuba, it left for there Au- gust 8, going via New York, and was a week in making the trip. It was at once assigned to duty at Santiago, but later was trans- ferred to San Luis, where Colonel Marshall was appointed military governor. There the bulk of the regiment was stationed till early in March, 1899, when it was ordered to Illinois. It reached Chi- cago March 15. When mustered out of the service April 29 it numbered, officers and men, 1,226.
The First Illinois cavalry, organized in Chicago upon the first call of President Mckinley for troops, embraced seven companies of Cook county men. It was mustered into the service at Spring- field, May 21, 1898, with Col. Edward C. Young in command ; started for Camp Thomas, Ga., May 30, was encamped there till October 11, then was mustered out, numbering, rank and file, 1,208. It participated in no engagements, but in drill and discip- line was brought to high efficiency. Officers as shown by muster- out rolls: Edward C. Young, colonel; Roy B. Harper, lieutenant- colonel; William P. Butler, Frank B. Alsip, John S. Hart, majors; Alvar L. Bournique, regimental adjutant; Milton J. Foreman, quartermaster; Louis M. Reeves, first lieutenant and adjutant, first squadron; George R. Linn, first lieutenant and adjutant, second squadron; Orville W. McMichael, first lieutenant and adjutant, third squadron; T. J. Robeson, major surgeon; Jesse Rowe, cap- tain and assistant surgeon; Albert E. Mowery, first lieutenant and assistant surgeon; Charles L. Bullock, captain and chaplain; Rufus Tulford, sergeant-major; George R. Holden, quartermaster-ser- geant; Clarence H. Thompson, chief trumpeter; Thomas H. Gravestock, sergeant and regimental saddler; Harry Hagey, Oli- ver J. Flint, George S. Parke, hospital stewards; William Cuth- bertson, surgeon ; George J. Sperry, sergeant-major; John J. King, sergeant-major. Troop officers: A-Paul B. Line, captain; H. Dorsey Patton, first lieutenant; Joseph E. Wilson, second lieuten- ant. B-Cleon L. Hills, captain; Edward E. Pearson, first lieu- tenant; Frederick J. Knorr, second lieutenant. C-Thomas E. Young, captain; Emil A. Hoeppner, first lieutenant; Charles H. Alsip, second lieutenant. D-William H. Roberts, captain; Henry Bunn, first lieutenant; John E. Dalby, second lieutenant. E-Fred- erick L. Pray, captain ; Archibald Watt, first lieutenant; Charles E. Eager, second lieutenant. F-George P. Tyner, captain; Arthur M. Chamberlain, first lieutenant; Benjamin F. Chase, Jr., second lieutenant. G-Edward C. Butler, captain; Charles M. Ream, first lieutenant; Chris. C. Taylor, second lieutenant. H-John J. Mc- Donell, captain; Charles U. Bear, first lieutenant; Paul W. Line- barger, second lieutenant. I-Thomas S. Quincy, captain ; Wright A. Patterson, first lieutenant; George J. Sperry, second lieutenant ; James E. Rend, second lieutenant. K-John D. C. Oglesby, cap- tain; Walter J. Chapman, first lieutenant; Fred Boyer, second lieu-
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tenant. L-Herbert B. Fort, captain; Bayard W. Wright, first lieutenant ; Charles E. Mccullough, second lieutenant. M-James H. Conlin, captain; Edmond McMahon, first lieutenant; Rudolph C. Seibricht, second lieutenant.
It is probable that, in proportion to the number of men involved, Cook county's representatives in the United States navy during the Spanish-American war saw more active service than its representa- tives in the army. In considering this fact it should not be forgot- ten that it was distinctively a naval war. As members of the Naval Reserves they nobly did their duty in every station and in every emergency. They were assigned as follows to various battleships, and in smaller numbers to other vessels in active service: To the Oregon, 60; to the Yale, 47; to the Harvard, 35; to the Cincinnati, 27; to the Yankton, 19; to the Franklin, 18; to the Montgomery, 17; to the Indiana, 17; to the Hector, 14; to the Marietta, 11; to the Wilmington, 10; to the Lancaster, 10. Illinois Naval Reserves were in service on board nearly sixty vessels, notably on board most of the vessels of the North Atlantic squadron. They took part in the historic engagement off Santiago, in which Cervera's fleet was destroyed and in about every other maritime event of the war that took place in the West Indies.' Exposed to peril in many forms, not a man of them was lost. The reserves from Illinois were mus- tered into the United States navy, while the naval militia of other States retained their State organizations. When it became certain that war was inevitable, the government set about strengthening the navy. The Naval Militia, originally organized about five years earlier, made it possible for this State to promptly offer for the ser- vice men of high efficiency. This fact was promptly and forcibly brought to the knowledge of the Navy department by General McNulta, head of the local committee, and the Naval Militia was enlisted almost in a body. Only eighty-eight of its men failed to meet physical requirements, and they were immediately replaced by recruits. A detachment of more than 200, commanded by Col. Jolin M. Hawley, left Chicago May 2, 1898, the day following that of Dewey's destruction of the Spanish fleet at Manila, and was soon joined by the rest of the First battalion. The number of men from Cook county was 400. The Second battalion, 267 strong, was made up of men from other parts of Illinois. The Reserves were mustered out at the close of hostilities in different fields as they could be spared from the service, some of them serving out their full term of twelve months. The Reserves from Chicago and vicinity are organized under the style of Naval Reserve veterans.
Mention has been made of eighty men who were detached from the First Illinois volunteer infantry at Tampa, Fla., for engineering service at Porto Rico. They went with General Miles's expedition, July 12, 1898, and being pioneers in such service in that field, be- came known as the First Engineering Corps. They were chiefly
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employed in bridge building, in furtherance of operations prepara- tory to an intended movement across the island, till September 8, when they sailed for he United States. They arrived in Chicago September 17. November 20 they were mustered out of the ser- vice.
There came down to the new Chicago from the old Chicago several stanch national banks which have been referred to at more or less length and quite a number of strong private banks whose history an- tedates the Great Fire of 1871. The latter were the institutions of Greenebaum Brothers, bankers, established about 1854; Adolph Loeb & Bro., bankers, about 1856; Foreman Brothers, bankers, 1860; Meadowcroft Brothers, bankers, 1860; the Hibernian Banking asso- ciation, 1867 ; E. S. Dreyer and Co., before 1870; the Union Trust company, 1870. Among private banks established soon after the fire were the Corn Exchange bank, 1872; and the bank of Peterson & Bay, 1873. There were nineteen national banks and eight savings banks in operation in Chicago January 10, 1872, in which were de- posited $41,742,922, against $26,077,921 on deposit October 2, 1871, six days before the fire. Not only had the city revived financially, but it was in a more healthy condition than ever before.
The stringency that followed the panic of 1873 caused the sus- pension of several national banks without serious injury to the financial system of the city. But later the failure of the State Sav- ings Institution, Chicago's leading savings bank, and of some lesser banks, was far-reaching in its effects. Public confidence in savings banks was destroyed, and it was some years before it was revived with the encouragement of a policy of State supervision of all banks doing business under State charters. '
The First National bank came out of the panic of 1873 with re- newed and strengthened public confidence in its stability and in the wisdom and resourcefulness of its management. It has often been remarked that Mr. Gage not only averted a calamity for his own bank but stimulated the nerve of other bankers and inspired a public belief that most Chicago banks could meet all obligations if they were not harassed or hampered.
Peterson & Bay, bankers, began business in 1873; Schaffner & Co., bankers, in 1878.
In the State Savings Institution, organized in 1863, D. D. Spen- cer became a stockholder in 1872, a director in January, 1873, presi- dent in June, 1873, owner of more than four-fifths of the capital stock February 5, 1874. From then on he was its borrower-in- chief. Insolvency, with all the attendant horrors of a failure, in- volving hundreds, if not thousands of hard-working, frugal men and women was inevitable. The following is a copy of a promis- sory note found by the assignee among the bank's assets :
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HISTORY OF COOK COUNTY
"$479,177.40.
Chicago, December 31, 1875. 621
"One year after date, I promise to pay to the State Savings Institution, in the City of Chicago, four hundred and seventy-nine thousand, one hundred and seventy-seven dollars and forty cents, for value received, with interest at eight per cent per annum, for money borrowed. D. D. SPENCER."
Hardly had the closing doors of the bank clanged their alarm to a too-trusting public when it was known that Spencer had disap- peared from Chicago. He lived long afterward at Stuttgart, Ger- many, but it is not of record that he ever made good his defalca- tions. The Cook County National bank, which he had organized, had failed badly in 1873. The receiver of the assets of the Illinois State Savings Institution paid the last of 50 per cent to depositors in 1884. Soon after the collapse of the State Savings Institution came the failure of the "Fidelity," a savings bank which eventually paid about 70 per cent of an indebtedness of a million and a half. The greed of profit at the expense of security brought on the "sav- ings bank crash" of 1877.
In 1880 the deposits in Chicago banks were $64,764, increase over about $47,000,000 in 1879. The clearing house returns for those years showed an increase of nearly half a million. In 1881 there was a further increase of more than a quarter of a million. Chicago had gained second place in amount of deposits among great American financial centers. Prosperity was growing. In all quar- ters public confidence was fully restored. In 1883 a Chicago bank took fourth place among the banks of the entire United States. That year witnessed a steadily prosperous business. In 1880 the Chicago Clearing House association, established as a private insti- tution in 1870 and not incorporated till 1882, included in its mem- bership twelve national, two State, three savings and two branch banks.
The report of the Comptroller of the Currency of October 1, 1883, mentioned the following active national banks: The Chicago National bank, the Continental National bank, the First National bank, the Hide and Leather National bank, the Home National bank, the Merchants National bank, the Metropolitan National bank, the National Bank of America, the National Bank of Illinois, the Northwestern National bank, the Union National bank, the Union Stock Yards National bank. Increase in twelve months: Loans-$6,143,189; cash and exchange-$6,943,509; deposits- $2,999,928; capital and surplus-$871,600.
The charter of the old First National bank expired in 1882. It paid each of its stockholders $294 for every $100 received, in addi- tion to an average of 10 per cent per annum in dividends on capital which had been paid from time to time. The new First National
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bank was organized and succeeded to the business of the original bank.
The National Safe Deposit company was organized in 1880, the National Bank of America was organized January 1, 1883; the Continental National bank March 5, 1883; the Drovers' National bank, 1883; the Metropolitan National bank, 1884; the Western Investment bank, 1884; the Chicago Trust and Savings bank, May, 1885; the Atlas National bank, May 17, 1886; the American Ex- change National bank, in May, 1886; the Lincoln National bank, March, 1887; the Fort Dearborn National bank, May 1, 1887; the Illinois Trust and Savings bank, August, 1887; the Union Stock Yards bank, established in 1867, its charter expiring in 1887, be- came the National Live Stock bank; the Prairie State National bank was organized May 15, 1888; the Northern Trust company was organized in 1889; the American Trust and Savings bank, 1889.
The following named national banks were doing business in Chi- cago about the beginning of the decade 1890-1900: The American Exchange National bank, the Atlas National bank, the Calumet Na- tional bank (South Chicago), the Chicago National bank, the Co- lumbia National bank, the Commercial National bank, the Conti- nental National bank, the Drovers' National bank, the Englewood National bank, the First National bank, the Fort Dearborn Na- tional bank, the Hide and Leather National bank, the Home Na- tional bank, the Lincoln National bank, the Merchants' National bank, the Metropolitan National bank, the National bank of Ameri- ca, the National Bank of Illinois, the National Live Stock bank, the Northwestern National bank, the Oakland National bank, the Union National bank, the United States National bank.
The capital of the national banks of Chicago at the end of 1890 was $16,100,000; surplus and profits were $10,343,119; deposits were $94,471,271, a substantial increase in twelve months. The total capital of the State banks was considerably more than eight million dollars, making the combined capital of State and national banks more than twenty-five and a half million dollars. As indi- cated by the report of the Controller of the Currency for 1890, Chicago was making rapid headway on her sister cities of the East as a great money center. In the decade just closed the percentage of drafts and checks handled by Chicago banks had rapidly in- creased, while the percentages of New York and Boston had de- clined. Chicago was now doing 7 per cent of the whole banking of the country in the matter of checks and drafts. New York still led, but Chicago was gaining fast and Illinois ranked second among the States in the amount of drafts drawn. Massachusetts was first, New York fourth. Illinois had passed the billion mark, New York had not.
The New York Financier, referring to Chicago's financial busi-
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ness at the end of 1900, said: "The bankers of the country think New York's banking business is large, and that the percentage of increase of deposits during the past six years is, or ought to be, larger than elsewhere, but this is a mistake so far as the percentage of increase is concerned, for Chicago beats New York by over 125 per cent on New York's increase. This is a remarkable differ- ence, and means that Chicago's commerce, so far as bank deposits show it, is growing twice and one-fourth as fast as New York's. Everybody knows that Chicago is one of the phenomena of the country, so far as its development is concerned, but few are aware of the remarkable speed shown by the figures of our tellers. Even Boston's growth of banking during the six years mentioned is far outstripped by Chicago's, and it does look as if the "Hub" is going west. Chicago's percentage of increase exceeds Boston's by 30 per cent upon Boston's figures, in spite of the big manufactories in New England. Philadelphia, too, whose population is now slightly ex- ceeded by Chicago's, is away in the rear in percentage of increase, as Chicago's figures exceed Philadelphia's by 44 per cent." The paper went on to show that on the deposits of its national banks for 1890 Chicago had increased its business during the past six years 46 per cent; Boston, 361/2 per cent ; Philadelphia, about 32 per cent ; New York, about 20 per cent.
The American Exchange National bank, caught with three hun- dred thousand dollars of the exchange of the Fidelity National bank of Cincinnati, upon the latter's failure, called on its stock- holders to make good the amount. Their prompt response left the bank free to fight first in the lower, later in the Supreme court. In every case set up by the receiver of the Fidelity bank that the ex- change was issued without consideration, the American Exchange National won, establishing a precedent of interest to bankers throughout the country.
The Park National bank was closed by the controller in 1890. There were several failures among private banks. The Thirty-first Street bank, a dependency of the Park National, went down with it; the Oakland, Prettyman and Kean banks failed that year. The Globe National bank began business December 22, making the num- ber of national banks twenty-four. The Globe Savings bank and the Chemical Trust and Savings banks were organized. In 1890, also, the United States National bank became the Columbia Na- tional bank. The State and private banks of 1890 were Adolph Loeb & Brother, the American Trust and Savings bank, the Bank of Montreal, Cohn & Strauss, bankers; Charles Henrotin, banker and broker; the Chemical Trust and Savings bank, the Chicago Trust and Savings bank, the Corn Exchange bank (organized in 1872, reorganized in 1879, now the Corn Exchange National bank), the Dime Savings bank, E. S. Dreyer & Co., bankers; the Farmers' Trust company, Foreman Brothers, bankers; the Globe Savings
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bank, Greenebaum Sons, bankers; the Guarantee Company of North America, the Hibernian Banking association, the Illinois Trust and Savings bank, the International bank, Meadowcroft Brothers, bank- ers; the Merchants' Loan and Trust company, the Northern Trust company, Paul O. Stensland & Co., bankers; Peterson & Bay, bank- ers; Prairie State Savings and Trust company, Schaffner & Co., bankers, the Security Loan and Savings bank, the State Bank of Illinois, the Union Trust company, the Western Trust and Savings bank. The latter was organized January, 1890, succeeding the Western Investment bank. The Milwaukee Avenue State bank was organized September 15, 1891. The Security Loan and Savings bank ·began business in 1891, succeeding the private banking house of Filsenthal, Gross & Miller. The Chicago National bank was organized January 2, 1892.
The bank panic of 1893 shook down the financial structures of a few weak banks as an earthquake might have toppled over the build- ings in which they were housed, but the havoc was by no means general. The coolness of the Chicago clearing house management was effective in preventing panic. Banks were mutually helpful throughout the ordeal. Some weak banks had inevitably to go, but private banking and its attendant ills were buried, at least for a season. Such institutions went into liquidation or reorganized un- der State charters and became subject to State supervision.
In the decade 1889-99, inclusive, Chicago banks passed through trying times that led to a period of great prosperity. In that ten years Chicago gradually discarded the provincial system of banking and took on the metropolitan system. In that period, too, it became a depository of funds for large flotation enterprises. The first in- stance in which Chicago banks became active in such a capacity was in the floating of the Glucose Sugar Refining company, capitalized at forty millions. In the promotion of that interest the Illinois Trust and Savings bank received jointly with a New York concern the underwriting deposits. Next followed the National Biscuit company, capitalized at fifty-five millions, which was for the most part floated in Chicago. In 1898, a year historic for promotion, Chicago banks acted either wholly or in part as trustee for enter- prises capitalized in total at more than 300 million dollars. Among them were the American Steel and Wire company, the American Tin Plate company, the National Steel company, the National Car- bon company, the American Linseed company and the Chicago Union Traction company. In the same period Chicago banks were large lenders of money in New York, in Berlin and in London. In 1898, when money was stringent in Germany and the bank rate was advanced to 6 per cent Chicago banks carried credits of about ten million dollars in the German capital. In 1899, because of fluctua- tions of the New York stock market and unusually heavy transac- tions on that exchange, money was rapidly advanced. At that time
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Chicago loaned daily on call from two million to five million dol- lars, a kind of transaction that was practically unknown five years before. It is significant that during the period of the Spanish- American war (April to August, 1898), when New York's bank deposits went down from $738,683,800 to $658,503,300, Chicago's bank deposits increased $6,452,996. Country bankers had not for- gotten that in 1893, when industrial depression had set in, New York banks had issued clearing house certificates. From Decem- ber, 1890, to June, 1899, the deposits of Chicago national banks went up from $94,470,300 to $216,751,193, a growth of 129.43 per cent. Deposits in her State banks increased in the same time from $35,753,854 to $101,104,303, an advance of 282.77 per cent. The total increase in deposits of banks of both classes was $223,- 384,696, a growth of 171.53 per cent. Of the total percentage of increase the relative gain was 31.40 per cent for the local national banks; 68.60 per cent for the local State banks. To some extent, but not wholly, this showing was due to the latitude which the State laws offer with reference to reserves, not available under the national banking act. Its cause is found, also, in the fact that a coterie of capitalists had founded and successfully managed several State banks. The decrease in banking capital by suspension or vol- untary liquidation in the ten years under consideration was $4,450,- 000 on the part of national banks, $2,000,000 on the part of State banks. At the same time old capitalization had been increased and new capital had come into action, amounting altogether to $2,195,- 000.
These national banks were doing business in Chicago in 1900: The Bankers National bank, the Chicago National bank, the Com- mercial National bank, the Continental National bank, the Corn Exchange National bank, the Drovers' National bank, the First Na- tional bank, the Fort Dearborn National bank, the Live Stock National bank, the Merchants' National bank, the Metropolitan Na- . tional bank, the Republic National bank, the First National Bank of Englewood, the Oakland National bank. State banks: The American Trust and Savings bank, the Chicago City bank, Fore- man Brothers Banking company, the Garden City Banking and Trust company, the Hibernian Banking association, the Home Sav- ings bank, the Illinois Trust and Savings bank, the Merchants Loan and Trust company, the Milwaukee Avenue State bank, the North- ern Trust company, Pearsons-Taft Land Credit company, the Prairie State bank, the Pullman Loan and Savings bank, the Royal Trust company, the State Bank of Chicago, the Union Trust com- pany, the Western State bank. Following is an exhibit of the con- dition of the combined national and State banks of Chicago during the five years ending and including 1900:
1896. Loans and discounts, $146,717,701; total deposits, $186,- 276,751.
Vol. 1-36.
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1897.
Loans and discounts, $151,570,775; total deposits, $245,- 463,612.
1898. Loans and discounts, $168,345,896; total deposits, $276,- 159,823.
1899. Loans and discounts, $217,474,204; total deposits, $345,- 077,893.
1900. Loans and discounts, $234,576,463; total deposits, $394,- 545,617.
Now Chicago again led Boston in amount of clearings.
In. July, 1900, the Lincoln National bank was consolidated with the Bankers National bank. In the following September the North- western National bank and the America National bank were ab- sorbed by the Corn Exchange National bank and the First National bank and the Union National bank were consolidated, leaving four- teen national banks doing business in Chicago, counting the First National bank of Englewood and the Oakland National bank, which were outside the central reserve district, and of course including the two banks at the National Stock Yards. In the downtown district there were left only ten national banks. In the opening of this decade there were twenty-three in all, sixteen of them down town. These changes effected a slight falling-off in capital stock, but the surplus of the banks was largely increased in the decade and the institutions were much strengthened. In that period there was a gain of 190 per cent in deposits. Such changes illustrate a process of natural selection which is as clearly active in economic affairs as in physics. "National banks that had a place in the list of 1890 but have already disappeared or will disappear in the course of the ne- gotiations now in progress," said The Economist for July 21, 1900, "are the America, American Exchange, Atlas, Hide and Leather, Home, Illinois, Lincoln, Northwestern, Park, Union, United States; State institutions in the same category are the Chicago Trust and Savings bank, International, Northwestern Bond and Trust com- pany, Western Investment bank. On the other hand, the Chicago City, Foreman Brothers, Garden City, Milwaukee Avenue, Pear- sons-Taft Land Credit company, Royal Trust, State and Western State, now in the State bank list, were not there ten years ago, while the Bankers, Corn Exchange and Republic are new in the national table. Of banks that have come and gone in the interval may be mentioned the Globe National, Columbia National, Bank of Com- merce, Commercial Loan and Trust, Chemical Trust and Savings (afterward the Chemical National), Globe Savings, Central Trust, Industrial, and Market National. The market was fully organized, but the only business it ever did was to wind up. Several private banks have failed-Meadowcroft, Schaffner, Dreyer, and Silver- man. It is well known, of course, that by no means all banks that have passed out of existence were insolvent. There were some
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