San Francisco Savings Union - San Francisco, CA

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: June 24, 1893
Location: San Francisco, California (37.780, -122.419)

Metadata

Model: gpt-5-mini
Short Digest: 0c7aeca1

Response Measures

Accommodated withdrawals, Partial suspension

Description

Multiple June 23–24, 1893 newspaper accounts describe a daytime run on the San Francisco Savings Union in the wake of the Pacific Bank and People's Home Savings Bank closures. The Savings Union paid small demands and required notice for larger withdrawals; it did not suspend or close and later reports (Nov 1893) describe normalizing operations. Classified as run_only.

Events (1)

1. June 24, 1893 Run

Cause: Local Banks
Cause Details: Run driven by panic/excitement after the Pacific Bank and the People's Home Savings Bank closed, causing depositors' nervousness and withdrawals from local savings banks.
Measures: Paid all demands under $1,000; required 30-day notice for $1,000–$5,000, 60-day notice for larger amounts; term depositors required six months' notice.
Newspaper Excerpt: The San Francisco Savings Union...was subjected to a slight run, which was kept up all day...In all about $138,000 was taken out during the day by 410 depositors. All demands under $1000 were paid. Those who desired between $1000 and $5000 were required to give thirty days' notice and those who desired more than $5000 had to give sixty days' notice.
Source: newspapers

Newspaper Articles (6)

1. June 24, 1893 The Sun New York, NY

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Article Text

STANFORD AVERTED A PANIC. The Dead Senator's Last Service to Call. fornia Business Men. SAN FRANCISCO. June 23.-The closing of the Pacific Bank and the People's Home Savings Bank this morning caused some excitement. but the only serious run was on the San Francisco Savings Union. which. however, paid all depositors who asked for less than $1,000. Those who wanted more had to give thirty days' notice. The commercial banks have been heavily fortifled within the last three days. as they have been able to draw money from the Sub-Treasury against balances in New York. This privilege. which saved San Francisco from a panic, was the last service rendered by Senator Stanford. He made a personal appeal by telegraph to President Cleveland on June 20, and Mr. Cleveland at once ordered Secretary Carlisle to receive gold certificates as convertible currency at the New York Sub-Treasury and permit the payment in like amounts at the San Francisco Sub-Treasury. This saved transportation that would have consumed six days. Had Mr. Stanford not interfered the banks here would have been caught with small reserves. and a disastrous panic would have resulted. Conservative bankers express little hope of the resumption of the Pacific Bank It is involved in too many speculative schemes on which no money can be realized for years. if at all. On top of about three millions scattered among California schemes. the bank has borrowed $400.000 from New York banks. and it owes considerable on foreign certificates of deposit. These certificates are issued in New York, and interest is paid on coupons. The small schemes. running from $10.000 to $50,000 on which the bank has lost money. are counted by the dozen. The People's Home Savings Bank will pull through. as several of the directors are rich men. and R. S. McDonald of the Pacific Bank to-day transferred to them the Pacific Bank building. worth $200,000. his residence. and other valuable real estate, and reports from Southern California show better feeling. but in San Bernardino the First National Bank closed after a severe run of five days.

2. June 24, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, June 24, 1893

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Thomas Brown, the cashier of the Bank of California, was not worried or bothered by the flurry. de said: "All of the banks are in good condition. We received by mail to-day $300,000 from the East. It should have come through the Sub-Treasury but for the refusal of the Secretary to give the usual facilities. Today we have had only our ordinary business. The bank's precincts have been as quiet as ever." Philip H. Lilienthal, the manager of the Anglo-California Bank, said that $1,500,000 in gold had been received on Thursday through the Sub-Treasury here and that each bank received a portion. Yesterday another half million or more had come. 'More than that," he continued, **the city banks have been anticipating some trouble of the kind that has come upon them and were prepared for it. Owing to the very peculiar unwillingness of the Secretary of the Treasury to transfer funds out here except upon gold certificates in New York when gold certificates were practically unobtainable these banks began to ship money by express, thus taking time by the forelock and getting themselves forearmed. The commercial banks consider that the course of many of the savings banks in declining to pay on demand and taking advantage of their legal right of a time notice is a very wise one. They are parceling out even justice to all. You may say that we have in San Francisco savings banks that are as sound as any in America and that they are all solvent." William H. Crocker, president of the Crocker-Woolworth National Bank. said: "I consider that the failure of the Pacific Bank has had very little effect on the financial situation here in this city. The failure had been anticipated for some time and had been an open secret in financial circles, and therefore caused us no uneasiness. This should not have any effect in the way of affecting the credit of the other banks, which are being conducted on conservative lines. There is no alarm or panic here and no cause for either, because the banks are all in good conservative condition and well prepared for this flurry, which will be all over in a few days. One of the causes of the stringency here has been the heavy withdrawals of gold by interior banks from this city. I think that all the banks have céased making new loans and after July 1 the tightness in the money market will be very much relieved by the payment of corporation dividends throughout the country." At the Clearing-house President McKee said that everything bad gone through in the usual way, although there was a larger gathering of bankers there than usual yesterday. Mr. McKee added: "Nothing has happened to-day resulting from the suspension of the Pacific Bank and the People's Home Society, except slight runs in two or three savings banks for which there was no good excuse. They were caused by a lot of women who became scared and wanted their smell deposits. The savings banks here are abundantly able to meet all their July demands in the shape of dividends." Loveil White of the San Francisco Savings Union. ou which there was a run of a number of small depositors yesterday, said that there was no excuse for any worry in its case. "On learning of the coming failure of the People's Home Savings Bank," he said, "in order to fortify ourselves we refused to pay term deposits until the expiration of the time of the notice required. Notice is demanded on all deposits of over $1000. The other banks, as far as we know, are doing the same thing. However, we are not at all worried. Our ordinary deposits are about $8,000,000. and of this less than one-third is due in this city. We have loans on collateral amounting to $4,800,000. We have in bonds and loans $7,500,000 Immediately convertible. and in cash $500,000. This is enough to cover all our liabilities, and we are not feeling concerned at all. We shall very likely pay out to-day and to-morrow two or three hundred thousand dollars, and by that time the poor panic-stricken fools who

3. June 24, 1893 The Morning Call San Francisco, CA

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THE SAVINGS UNION. Several Hundred Small Depositors Withdraw Their Funds. The San Francisco Savings Union, one of the most solid among the San Francisco savings banks, which occupies temporary quarters on the northwest corner of Sansome and California streets, was subjected to a slight run, which was kept up all day. to the amazement of people on the outside who know the institution and the high character of its directors and managers. The run aid not affect the bank except to impose additional work on the clerks and to enable it to save the interest on the deposits withdrawn. all of which would have been due July 1. In all about $138,000 was taken out during the day by 410 depositors. All demands under $1000 were paid. Those who desired between $1000 and $5000 were required to give thirty days' notice and those who desired more than $5000 had to give sixty days' notice. All term depositors were compelled to give six months' notice, the usual agreement with term depositors. The San Francisco Savings Union on the 1st day of January, 1893, reported resources and liabilities as follows: Resources-Bank premises, $216,502 75; other real estate, $111,953 03; invested in stocks. bonds and warrants, $2,439,986 83; loans on real estate, $20,724,721 95; loans on stocks, bonds and warrants. $4,550,132 87; money on band, checks and other cash items, $174,696 54; due from banks and bankers, $531,330 29; other assets, $1000. Liabilities-Capital paid up, $1,000,000;

4. June 24, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, June 24, 1893

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BUSINESS TROUBLE. NEW YORK, June 23.-Sheridan & Byrne, builders, are financially embarrassed, and Charles W. Gibbs has been appointed receiver in a suit brought by Thomas J. Sheridan against James E. Byrne to wind up their affairs. The unsecured liabilities of the firm are $70,000, and their total liabilities, including mortgages, more than $225.000. CHICAGO, June 23.-Leroy Payne, the liveryman, failed this morning for $250,000. His estimated assets are $275,000. A bill for a receiver for his livery business was filed yesterday in the circuit court. SAN FRANCISCO, June 23. - At a meeting of the directors of the Pacific Bank of San Francisco, held last night, it was decided not to open their doors this morning. In a statement issued by their vice-president, their liabilities, outside of capital stock and surplus, is placed at $1,630,000. Assets, if properly handled, $2,000,000. The People's Home Savings bank closed its doors this morning. It affiliated with the Pacific bank, which closed yesterday. The resources are said to far exceed the liabilities. There was a little flurry around the San Francisco Savings union when it opened, but this soon subsided. The feeling is that all the commercial banks are on a secure footing. The presidents of many of them express themselves as glad that the crisis has arrived that they may show their strength.

5. June 29, 1893 The Manitowoc Pilot Manitowoc, WI

Article from The Manitowoc Pilot, June 29, 1893

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SAN FRANCISCO, June 23.-The People's Home Savings bank failed to open its doors this morning. It was closed temporiarily to protect depositors. The president, Columbus W aterhouse, has deeded all his property to the bank that it may raise money to tide over the crisis. This property is far in excess of all liabilities of the bank. Failure to realize on securi ties was the immediate cause of the temporary suspension. There was a little flurry around the San FrancisCO Savings Union when it opened, but this soon subsided. The feeling is that all the commercial banks are on a secure foooting. The Pacific bank did not open its doors this morning, owing to the recent monetary troubles, The Pacific bank was organized in 1863. It has a paid up capital stock of $1,000,000, a nominal reserve of about $700,000 and deposits of about $1,500,000. Its loans and discounts are said to be about $2,500,000. The deposits will be paid in full.

6. November 24, 1893 The Morning Call San Francisco, CA

Article from The Morning Call, November 24, 1893

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MUCH COIN HOARDED UP. Interviews With Officers of Big Institutions. NORMAL CONDITION NOT FAR OFF General Impression That the Banks Will Be Making Loans as Usual in January. business man who returned on from a three A well-known Monday CALL months' trip East, said yesterday to a reporter: "If want a really news, you banks important and piece of visit the savings ask about their affairs. I want to build on some lots in them soon the banks Western to and I went to three see I could get any money. me to learn that at each whether Addition. prised bank It loans they surare getting ready to make the usual just as soon as the January settlements are over." Practically the savings banks of San Francisco have made no new loans since last for reasons which have been knows. July They accumulating every during one demands which arose the storm of last summer, has over. These vast sums coin financial blown to meet interest which have been kept in Idleness, earning no stockand consequently no dividends for holders. A well-known financier said to a CALL reporter: "The amount of $20 gold nearly pieces so in the savings banks was never at this time. The sworn stateof the banks. which will be 1, will astonish the town. great ments January as made be twice The on actual cash on hand will probably as on as great order to get January the 1 last." reliable informaIn possible ou the subject a CALL reporter tion visited the heads of the large savings institutions of the city, with inquiry the as to the probable date of resuming making of new loans. Lovell White, secretary of the San Francisco Savings Union. said: "We have made provision for meeting all demands which will come. For this purpose we have accumulated sufficient coin. Our to half payment of taxes, amounting $175,000. has been met. We will pay about $700,000 in dividends early next year. The amount to be called for in cash is uncertain. Some years it is as low as $200,000; in others from $400,000 to $500,000. Then there for. are the term deposit notices to be provided As soon as it is determined what proportion of dividends and term deposits able will be demanded, just so soon will we be to fix a time for making loans again. "If the demand shall be an average of former years, and am inclined to believe such will be the case, we will begin making new loans, soon after New Year-say January Robert 15." J. Tobin, secretary of the Hibernia Savings and Loan Society, said: "As perhaps know, this bank nas only one you class of deposits. We have never taken term deposits. I think after the payment that of annual dividends early in January business of the savings banks of San the Francisco will return to its normal condi- about tion. Dividends will let loose to $2,000,000 in money. No mian can tell but a the events six weeks hence, be certainty I believe the loaning of money will resumed generally during next January. alWant of confidence has passed away most entirely. We have been making loans in small some right along. George A. Story, secretary of the Mutual we Bank, said: "On November 1 notices to all our to meet their of Savings sentout were ready depositors demands about all that and we have now settled with oblithem. we This bank has met all of its will under these notices, and we within gations back to our normal condition the be weeks. We expect to resume and making two of loans between December 10; Samuel perhaps Bigelow. a little earlier. president of the Savand Loan Society, said: ings facts are. withdrawals are very "The diminished and deposits are which increasmuch Of the term deposits for we on ing. received notices of withdrawal had 1, only one-sixteenth of the November was called for on that date. It settle- is alsum that after January balance will be on that all the banks, side ments, together and the likely including loans the again." right our will commence making of the own, Edward Kruse. acting president said: Savings and Loan Society, German bank has accumulated sufficient divi"This for the payment of January been funds and term deposits which have to dends for. It is a great disadvan age and called retain large sums lying made idle for have know to when demands will be approxinot In order to ascertain for the amount which shall sent notices to all our term we whom notices of mately money. have the withdrawals be called depos- have itors up to January 10 call to or cancel the their the calls have been very continue to-day been by given money notice. will and trifling, Up get is fair to suppose they the reand it inconsiderable. The time determined for to be of loans cannot be settlement, sumption the usual annual which until after takes place in and January. withdrawals Our de- diposits are increasing Indeed, nearly all be money meat of taxes." being minishing. taken out now is devoted to the pay-