First National Bank (Rock Island, IL)

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Episode Information

Episode UID
10800885
Episode Type
Run Only
Bank Type
national
Bank ID
1080 national
Charter Number
108
Start Date
September 26, 1873
Location
Rock Island, Illinois (41.509, -90.579)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9394f1f488356360

Response Measures

Public signal of financial health, Partial suspension

Events (3)
1. October 21, 1863 Chartered
Source
historical_nic
2. September 26, 1873 Run
Cause
Macro News
Cause Details
Derangement of financial matters and partial suspension of New York and Chicago banks that locked up currency, producing heavy withdrawals
Measures
Limit currency payments to $100 per depositor and issue certified checks for larger amounts
Newspaper Excerpt
the banks ... only pay in currency our depositors $100 each ... and will certify all other checks
Source
newspapers
3. April 19, 1890 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (2)
1. September 26, 1873 The Rock Island Daily Argus Rock Island, IL
Article from The Rock Island Daily Argus, September 26, 1873

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Article Text

THE MONEY PANIC Action of Rock Island, Moline and Daven$ port Banks. Last evening, (the 26th) a consultation of the officers of all the banks in Rock Island, Moline and Davenport. was held at the Rock Island National Bank in this city. The following were represented First National, Rock Island. Rock Island National. Rock Island. First National, Moline. 0 Moline National, Moline. e First National, Davenport. . Davenport National, Davenport. d Citizens National. Davenport. t The Davenport Savings Banks were also 1. informally represented. e After discussing the situation. Hon. e Hiram Price introduced the following: WHEREAS The partial suspension of the New York and Chicago banks has locked up the currency and other means of the banks of the West. so that we are unable for the present to procure currency to meet the demands of our customers; therefore Resolved. That the banks of Rock I-land, Davenport and Moline will, hereafter. and until further e. and better arrangements can be made, only pay in S currency our depositors $100 each. where the depositor has that much on deposit. and will certify d all other checks. which certified checks will be taken by all of said banks of Davenport, Rock 1-1or and and Moline. n The above resolution was agreed to and sk signed by all present except the Moline d National. the representative from that inle stitution being of the opinion that they d could weather the storm. no This action is simply following in the line ey of precedent set by secure banks in the nd Eastern states-not to pay out currency in he large amounts. When Chicago and St. ot. Louis banks refuse to pay out currency for the benefit of New York banks why should rt our banks do so? It seems to be a matter he of self-preservation for our banks to he pursue the course pursued elsewhere and ks wait a bit, for the clouds to clear away re rotten concerns will be wound up, but sound he ones will be all the better for being rid of ple the gamblers and speculators. Prices will not fall temporarily, and men who have cash acin their pockets can take advantage of the ur times and buy grain, stock. or other prop se erty at prices which will pay them a big re profit. Those who are not obliged to sell 10should keep quiet and wait for things to ex settle. is The strongest assurances are given tha ti each bank in this city has assets very large of ly in excess of its liabilities, and that bu little time will be required to resume i full. e is REMOVAL.- - Balch, Frazer & Co. hav removed their office to the old C., R. I. & un27dtf P. passenger depot. of

2. September 27, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 27, 1873

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Article Text

Special Dispatch to The Chicago Tribune. DAVENPORT, Ia., Sept. 20.-A meeting of bank officers and Directors of all the city banks was held last night. The session lasted until midnight. The result was that it was RESOLVED TO TEMPORABILITY SUSPEND, and on the opening of the banks this morning the following placard, signed by the officers and Directors, was posted on each National Bank: "The derangement of financial matters in the larger cities, with the consequent difficulty of obtaining currency on produce or other drafts, and of making exchanges between banks, has coinpelled this bank to adopt, for the preeent, the following course: 1. To pay only $100 in currency to each of our depositors who may have that amount due to them. 2. To give certified checks for all amounts above $100, which certified checks will be taken at par by any of the banks of this city on doposit or in payment of any debt due it, the same as cash. 4 This bank never was in a sounder or safer condition than now, and to any ono holding a certified check, who wishes it, either of us will give an individunl note. The above arrangement will not apply to currency deposited on and after this date, which currency will be paid on checks, in full, as usual," This arrangement was adhered to strictly. There were excited crowds gathered about the banks all day, and business has been suspended to a certain degree. The Rock Island and Molino banks adopted the same plan, paying no larger than $100 checks. All merchanta in the three cities FREELY TAKE CERTIFIED at par, thus preventing a total suspension of trade. There was considerable of a run on the savings banks to-day, but they declined, in most cases, to make immediate payments. At the close of business to-day the Davenport Savings Bank filed a statement of its condition, which showed resources amounting to $1,430,185 cash on hand, $52,055. The German Savings Bank also made a sworn state. ment, alowing resources amounting to $938,958; cash on hand, $35,281. SHIPMENTS OF GRAIN AND STOCK to the East have entirely ceased, and the markets are dead, buyers holding over all they have. The effects of the panic yesterday were to drain the banks of much-needed money, over $130,000 MORE THAN USUAL having been drawn out of the banks in Davenport and and Rock Island. The banks will continue business to-morrow, adhering to the same plan adopted to-day.