13421. Omaha Savings Bank (Omaha, NE)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
June 13, 1893
Location
Omaha, Nebraska (41.259, -95.938)

Metadata

Model
gpt-5-mini
Short Digest
19238040

Response Measures

Accommodated withdrawals, Public signal of financial health

Description

Multiple contemporary articles (June 13-15, 1893) report a heavy run on Omaha Savings Bank precipitated by the failure/suspension of McCague Savings Bank and the closing of the American National. Omaha Savings Bank paid depositors in cash and in full and the runs subsided within about two days; there is no evidence the Omaha Savings Bank suspended or closed.

Events (1)
1. June 13, 1893 Run
Cause
Local Banks
Cause Details
Run precipitated by the failure/suspension of the McCague Savings Bank and the closing of the American National Bank, which were closely connected to local institutions.
Measures
Paid depositors in cash and in full; some banks invoked 30/60-day notice but Omaha Savings paid on demand.
Newspaper Excerpt
the heaviest run was on the Omaha Savings Bank, acknowledged to be the soundest concern in the city, where all depositors were paid in cash.
Source
newspapers

Newspaper Articles (10)
1. June 14, 1893 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 14, 1893

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Article Text

MILD PANIC AT OMAHA. Suspension of a Savings Bank Leads to the Failure of the American National. OMAHA, Neb., June 18.-Omaba passed through a mild financial panic, to-day, as the result of the failure of the McCague Savings Bank, last evening. The news of the suspension of the savings bank, last night, was ground for the belief that any run this morning would be made upon the American National Bank, as that and the McCague Savings Bank were closely connected. To meet this emergency a request was made by the American Na. tional upon the Clearing House Association for funds to meet demands. The Clearing House Association was in session until 11 o'clock this morning. It was found that $160,000 would be needed. and the association decided not to advance this amount, as it was feared the securities of the bank could not be realized upon promptly enough to relieve the bank's wants. Accordingly President John L. McCague decided not to open the doors of the bank this morning. This morning depositors, alarmed by reports, began a run on the savings banks of the city, the other national banks not being affected. The heaviest run was on the Omaha Savings Bank, acknowledged to be the soundest concern in the city, where all depositors were paid in cash. At 3 o'clock the bank closed and notified depositors that it would open at 9 A. M. and continue to pay in full. The Dime Savings Bank, the American Savings Bank and the Globe Loan and Trust Company took advantage

2. June 14, 1893 The Morning News Savannah, GA
Article from The Morning News, June 14, 1893

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MORE WILDRUNS ON BANKS A Couple of Failures Start a Rush at Omaha. All the Institutions Except the Two Previously Closed Weather the Storm-Only One Even Takes Advantage of the Sixty Days' Clause. Kansas City the Scene of a Still More Absurd Run. Omaha, Neb., June 13.-There was a run on every savings bank in the city this morning, precipitated by the failure of the McCague Savings Bank yesterday, followed by the downfall this morning of the American National Bank, in which the McCagues are largely interested. It was unofficially stated yesterday that the clearing house association would stand by its members, of which the American National is one, but when the assets of the American National Bank came to be examined they were pronounced not good enough and the aid of the associated banks was withheld. The ominous sign appeared on the door this morning and the crowd which had collected becamegreatly excited. The McCagues tried to reassure the depositors, telling them that every account would be paid in full. At the Omaha Savings Bank, the German Savings Bank, the American Savings Bank, the Globe Loan and Trust Company, and other institutions, there was a steady drain of deposits all day Cash was paid out as long as called for, and there was no apparent limit to the supply. Senator Manderson and Vice President Kimball, of the Union Pacific, directors of the bank, made speeches to the excited depositors, guaranteeing them their money, but the run continued. The Dime Savings Bank compelled its depositors to give sixty days' notice of withdrawal. This action, together with the promptness with which other banks met all demands, is believed, to have stopped what almost promised to be a panic. A CRAZY RUN AT KANSAS CITY. Kansas City, June 13.-As a result of the suspension yesterday of the People's Savings Bank, an insignificant institution with deposits of only $25,000, a run was started this morning on the Kansas City Safe Deposit and Savings Bank. The bank took advantage of the clause of its by-laws requiring depositors to give thirty days' notice of the withdrawal of deposits. That checked the run and at it noon was practically over. None of the other banks experienced a run. Just why the Kansas City Safe Deposit and Savings Bank should have been selected for a run is a mystery. It is the largest and one of the soundest institutions of the kind in the state and has the confidence of the banks and merchants generally. A RUN CHECKED AT DETROIT. Detroit, Mich., June 3.-The State Bank of Crystal Falls, Mich. has suspended as a result of the failure of the Plankington Bank of Milwaukee. The bank is only a year old and its capital is $25,000. The deposits foot up $60,000. The officers of all the savings banks in this city agreed to enforce the time limit upon withdrawals of deposits. A run was started this morning upon the People's Savings Bank, one of the strongest in Detroit, but the sixty-day notice requirement checked it. The officers coneur in a statement that "it was not for want of money that we took this action, for we could have secured enough to have paid every depositor, but we did not think this the wisest plan.' A NASHVILLE BANK SHUT. Nashville, Tenn., June -The Nashville Savings Company, of which Thomas S. Marris is owner and president. filed an assignment to-night. The liabilities are $282,876, and the assets are valued at $ 125,000. The deposits amount to $109,010 22, and the certificates of deposits to $72,911 21. Among the assets are $60,000 on deposit with Arthur, Ketcher & Co., suspended bankers of New York. In an interview President Marr says the failure was due to the shrinkage in values and steady withdrawal of money by depositors since failures have become so frequent. The recent failures of local business houses and the suspension of the Commercial National Bank also caught him for large sums. ASSETS WIPED OUT. Mankoto, Kan. June 3.-The bank of Burr Oak, Jewell county, closed its doors yesterday morning. The bank was owned by Hulbert Bros., and the liabilities are placed at $35,000. The assets are practically nothing. C. D. Hulbert, one of the proprietors of the bank, has fled and his whereabouts are unknown The depositors are greatly excited, and if he should return either of his own accord or to answer a criminal charge, there being some inclination among the depositors to prefer such a charge, he would be roughly dealt with. A BANK FAILS IN UTAIF. Salt Lake, Utah, June 13.-The Park City Bank suspended yesterday. Its liabilities are $130,000, and its assets as much. The claim is made that the bank will shortly resume. The assignee says that depositors are to be paid 80 cents on the dollar.

3. June 14, 1893 The Sun New York, NY
Article from The Sun, June 14, 1893

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A HARD ROAD FOR THE BANKS. Runs Are In Progress, and Some Institutions Suspend. OMAHA. June 13.-The American National Bank was closed by order of the Comptroller of the Treasury this morning. Runs were started on the Globe Loan and Trust Company. the Dine Savings Bank. the German Savings Bank. and the Nebraska Savings Bank. No statement of the condition of the American National was made except that the Clearing House refused to assist it. It is understood that the affairs of the bank are entangled with those of the McCague Savings Bank, that closed yesterday afternoon. It was said yesterday that the Clearing House Association would stand by its members. of which the American National Bank is one. but when the assets of the American National came to be examined they were pronounced not good enough. and the aid of the Association banks was withheld. The ominous sign appeared on the door this morning. and the crowd which had collected became greatly excited. The McCagues tried to reasoure the depositors. telling them that every account would be paid in full. At the institutions above named there was a steady drain of deposits all morning. Cash was paid out as ROOD as called for. and there was no ap. parent limit to it. Toward noon the lines had dwindled until they appeared no larger than upon any day of business. Bank Examiner Griffth. who took charge of the American National for the Comptroller this morning. could not say much about the assets. A great deal of paper which is thought not to be first class figured in the resources of the bank. The failing off in deposits had amounted to noarly $200,000 since May 4. and this badly crippled the institution. The Dime havings Bank compelled its depositors to give sixty days' notice of withdrawal This action. together with the promptness with which the other banks met all demanda, is believed to have stopped what promised at first to be a panic. The run was of extensive proportions on the Omaha Havings Bank. and all the morning the bank was besieged by depositors. Senafor Man.

4. June 14, 1893 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, June 14, 1893

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The Omaha savings bank runs have entirely ceased.

5. June 14, 1893 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, June 14, 1893

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BUSINESS TROUBLES. Runs on Several Banks in Omaha and Detroit-A Nachville Bana Faile. NASHVILLE, June 13.-The Nashville Savings Company, of which Thomas S. Marr is president, the oldest financial institution in Nashville, filed articles of assignment tonight. The liabilities are placed at $220,000 and the assets, accord. ing to the president's estimate, will pay not more than 25 or 30 per cent. KANSAS CITY, Mo. June 13.-As a result of the suspension yesterday of the Peopie's Savings bank a run was started on the Kansas City Safe Deposit and Savings bank this morning, but the bank took advantage of the thirty-day clause and at noon the run was practically over. None of the other banks experienced any run. MOBERLY. Mo., June 13.-The Exchange bank. of Moberly. made an assignment today for the benefit of its creditors. No statement is yet obtainable, but it is believed that payments will be made in full. -OMAHA, June 13-The American National bank was closed this morning by order of the comptroller of the currency. and runs are now in progress on the Globe Loan and Trust Company, the Dime Savings bank and the Nebraska Savings bank No statement of the American bank has been made but the clearing house refused to assist it. It is understood that its affairs are entangled with those of Mc. Cague's Savings bank. which closed yesterday afternoon. A run of extensive proportions began on the Omaha Savings bank at opening this morning, and all morning the bank was besieged by depositors. Senator Manderson and Vice President Kimbali, of the Union Pacific, who are directors of the bank. made speeches to the crowd, guaranteeing them their money, but the run continued. A bank examiner is in charge of the American National. The clearing house. at its meeting'la night, decided to give it no help. and the decision of the comptroller to close it followed. The statement made on May 4 showed: Capital stock $200,000 Lease and discounts 571,699 Surplus 16.000 Undivided profits 5,161 Due depositors 577,326 President McCague, of the bank said this afternoon that his bank closed with almost $100,000 in cash and exchange in the bank and the mail brought remittances of $20,000 from New York. He said that while adverse circumstances had overtaken the bank he was positive the depositors would to be paid in full, The Dime Savings bank, American Sav. ings bank and Globe Loan and Trust Company took advantage of the sixty-day rule, but the other savings banks paid depositors in full on demand. NEW YORK, June 1&-The correspondent here of the American National bank. of Omaha, is the First National bank. which reports a substantial balance to its credit. LANSING, Mich June 13.-The commis sioner of banking has received notice that the state bank at Crystal Falls has made an assignment. The capital stock is $250.000 and deposits $60,000. The bank is involved in the failure of the Plankinton bank at Milwaukee. DETROIT, June 13-Fourteen savings banks in this city, in view of the ten-

6. June 15, 1893 New-York Tribune New York, NY
Article from New-York Tribune, June 15, 1893

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RUNS ON SAVINGS BANKS SUBSIDE. Detroit, June 14.-A better feeling prevails on Griswold-st. to day. but there was still a large crowd waiting for admission to the People's Savings Bank when the doors were thrown open for business. It was composed almost entirely of worrel, interspersed with a few laborers. Many Detrolt business men aided in the work of restoring configence, by personally talking with depositors in the bank corridors and advising them to go quietly home and allow matters to assume their normal condition. By noon the fever of excitement had noticeably diminished. Omaha, June 14.-The runs on the Omaha Savings bank subsided this morning almost as quickly as th y began yesterday. Early there were a few depositors at the Omaha Savings Bank demanding their money, but as SOOD as it became apparent that the rusb was over, anxious ones left without taking their cash.

7. June 15, 1893 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, June 15, 1893

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OMAHA BANKS. Another Failure and Several Runs in Progress. OMAHA, June 14. -There is a run on every savings bank in the city, precipitated by the failure of the McCague Savings bank Monday, followed by the downfall of the American National bank, in which the McCagues are largely interested. It had been unofficially stated that the Clearing House association would stand by its members, of which the American National is one, but when the assets of the bank came to be examined they were pronounced not good enough, and the aid of the associated banks was withheld. The ominous sign appeared on the doors, and the crowd which had collected became greatly excited. The McCagues tried to assure the depositors, telling them that Every Account Would Be Paid in full. At the Omaha Savings bank the German Savings bank, the American Savings bank, the Globe Loan and Trust company and other institutions there was a steady train of depositors all morning. Cash was paid out as soon as called for and there was no apparent limit to it. Toward noon the lines had dwindled till they appeared no larger than upon any day of busi. ness. Bank Examiner Griffith, who took charge of the American National bank for the comptroller, could not say much about the assets. A great deal of paper thought not to be first class figures in the resources of the bank. The falling of in deposits amounted to nearly $400,000 since May 4, and this has badly crippled the institution. The Dime Savings bank compelled its depositors to give 60 days notice of withdrawal. This action, together with the promptness with which other banks met all demands, is believed to have stopped what almost promised to be a panic.

8. June 15, 1893 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, June 15, 1893

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OMAHA BANKS. Another Failure and Several Runs in Progress. OMAHA, June 14. -There is a run on every savings bank in the city, precipitated by the failure of the McCague Savings bank Monday, followed by the downfall of the American National bank, in which the McCagues are largely interested. It had been unofficially stated that the Clearing House association would stand by its members, of which the American National is one, but when the assets of the bank came to be examined they were pronounced not good enough, and the aid of the associated banks was withheld. The ominous sign appeared on the doors, and the crowd which had collected became greatly excited. The McCagues tried to assure the depositors, telling them that Every Account Would Be Paid in full. At the Omaha Savings bank the German Savings bank, the American Savings bank, the Globe Loan and Trust company and other institutions there was a steady train of depositors all morning. Cash was paid out as soon as called for and there was no apparent limit to it. Toward noon the lines had dwindled till they appeared no larger than upon any day of busi. ness. Bank Examiner Griffith, who took charge of the American National bank for the comptroller, could not say much about the assets. A great deal of paper thought not to be first class figures in the resources of the bank. The falling of in deposits amounted to nearly $400,000 since May 4, and this has badly crippled the institution. The Dime Savings bank compelled its depositors to give 60 days notice of withdrawal. This action, together with the promptness with which other banks met all demands, is believed to have stopped what almost promised to be a panic.

9. June 15, 1893 Fort Worth Gazette Fort Worth, TX
Article from Fort Worth Gazette, June 15, 1893

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RUN SUBSIDED Omahn. Neb. June 14.-The run on the Omaha Savings bank subsided this morning.

10. June 16, 1893 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, June 16, 1893

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RUNS ON BANKS ENDED. The Omaha Savings and Irvings savings, of New York, Stand Solid. OMAHA, June 15.-The run on the Omaha banks is practically over, the Omaha Savings bank, which caught it the hardest, having passed through a two days' siege apparently without inconvenience, and today there was no indication at any of the banks of the strain of the past fortyeight hours. NEW YORK, June 15.-A run on the Irv. ing Savings institution, which started yesterday, continued until this afternoon, and all the depositors were paid promptly and in full. The run eased off this afternoon, and is believed to be ended.