The Park Governments of Chicago 37 



present time George M. Reynolds, president of the Continental 

 and Commercial National Bank, is Treasurer of the South Park 

 Board, and all of the South Park money is deposited in that 

 bank. B. A. Eckhart, a director of the same bank, is Treasurer 

 of the West Park Board and practically all of the West Park 

 funds are also deposited therein. Of $1,463,836 of West Park 

 funds on hand October 1, 1911, the Continental and Commercial 

 held $1,361,666. Theodore Freeman, a director of the State 

 Bank of Chicago, is Treasurer of the Lincoln Park Board and 

 all of th€ Lincoln Park funds are deposited in that bank. 



The sureties furnished by the park treasurers have with 

 few exceptions been directors or officers of the bank of which the 

 treasurer was an officer. The depositories have thus to an extent 

 furnished their own surety. The depository is sometimes a na- 

 tional bank. In event of the insolvency of such an institution the 

 stockholders are liable for an amount equal to their holdings. 

 Conditions might arise when such a liability would seriously affect 

 the value of the surety behind the park funds. At the present 

 time the treasurer of the South Park Board is one of the bonds- 

 men for the treasurer of the West Park Board and vice versa. 



It is submitted that the policy of accepting personal bonds- 

 men is bad in any case; also that it is bad policy to keep all the 

 funds of a park district in one bank. All of the West Park 

 funds were in the National Bank of Illinois when it failed in 

 1896. The failure cost the Park Board over $50,000 in legal 

 fees and in loss of interest. 



INTEREST ON DEPOSITS 



Each of the three large Park Boards receives 2 per cent, in- 

 terest on the average daily balances of its checking accounts in 

 bank. 



During the five years ending April 1, 1911, the South Park 

 Board had on deposit in bank an amount never less than $1,000,- 

 000 and the monthly average of which, during the period, was 

 approximately $1,800,000. Of this amount two special accounts 

 averaging about $950,000 a month earned 3 per cent, interest 

 but only 2 per cent, was received on the remaining portion. The 



