Fourth National Bank of Chicago

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Fourth National Bank of Chicago was a financial institution which went into liquidation on September 25, 1875. The bank did not recover from the Great Chicago Fire of 1871 and the ensuing financial crisis which followed it.

Great Chicago Fire city fire

The Great Chicago Fire was a conflagration that burned in the American city of Chicago from October 8–10, 1871. The fire killed approximately 300 people, destroyed roughly 3.3 square miles (9 km2) of the city, and left more than 100,000 residents homeless. The fire began in a neighborhood southwest of the city center. A long period of hot, dry, windy conditions, and the wooden construction prevalent in the city lead to a conflagration. The fire leapt the south branch of the Chicago River and destroyed much of central Chicago, and then leapt the main branch of the river consuming the near north side.

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy.

Its deposits amounted to only $120,000 at the time of its closing. $72,000 of this belonged to the city of Chicago, with the remainder the property of depositors. Bills receivable amounted to $300,000. A clearinghouse debit of $25,000, presented on the morning of September 25, precipitated its prompt closing. The debt was anticipated not to be above $10,000. [1]

Chicago City in Illinois, United States

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References

  1. Suspension of a Chicago Bank, New York Times, September 26, 1875, pg. 1.