The Illinois Staats-Zeitung, had the unpleasant task of publishing the following item:

The directors of the German National Bank, herewith report to their creditors, that on July 1st, 1877, the deposits of the bank amounted to $1,115,700. Since that time the deposits have gradually dwindled to $183,000. Without the creditors' indulgence the bank cannot continue to operate. This institution is in a position to pay the depositors in full, and still could show a profit for itself, but the directors ask for time necessary for transaction of business. Therefore, we request all depositors to refrain from drawing from their accounts, until we shall be in a position to pay them, without endangering a normal outcome of the present situation, while nothing would be gained by their forcing us into receivership.

This we promise in good faith, confident that we can and will live up to it.

Henry Greenebaum)

August Beck)

L. Eliel) Directors

Henry Leopold)

S. F. Leopold)

Albert M. Day)

Hermann Schaffner, Cashier

Chicago, December 5th, 1877.

This report can hardly be considered as anything else but a declaration of insolvency, and regardless of the fact that a promise was given to keep the bank operating, it depends entirely on the creditors, who will have to decide whether they entrust the process of liquidation to the present officials, or prefer a receivership. Considering that the bank paid five-sixths of the deposits, in a period of four months, which is an excellent record, there would be no reason why the present officials should not be entrusted with the liquidation of the bank's assets.

In an interview granted to our reporter, Mr. Greenebaum declared that the bank will in all probability be able to pay every dollar it owes within the next two weeks, and of the shares amounting to $500,000 the shareholders will at least receive $400,000. What influence will the closing of the National Bank have on the house of Henry Greenebaum & Company, and on the savings bank under his management? Mr. Greenebaum's reply was that he hopes to be able to save that institution....It would be most regrettable, if the Greenebaum Bank, which was known for its honesty during the twenty-three years of its existence, should as a consequence of the National Bank's inability to meet its obligations, become insolvent also.

This bank was established in 1871. The founders were Henry Greenebaum, Michael Greenebaum, David S. Greenebaum, Isaak Greenebaum, Beck and Wirth, John Herting, Leopold, Kuh & Co., Seipp and Lehmann, and other well-to-do German merchants. The bank enjoyed an excellent reputation and disposed of $2,000,000 in deposits in 1873.