13738. Central Bank (New York, NY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 8, 1927
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
c95f05180a433f3c

Response Measures

None

Description

Multiple articles (Jan 8–22, 1927) report a heavy depositor run on the Central Bank of New York triggered by revelations of embezzlement by three employees. The run (≈$1.7M withdrawn) led the bank to close its doors; the Mercantile Bank Trust Co. displayed currency to reassure depositors and then acquired/operated the Broadway Central. OCR errors in the extracts were corrected (e.g., dates and dollar amounts). The sequence is a run that precipitated suspension and sale/acquisition (permanent closure of the independent bank), so classified as run_suspension_closure.

Events (4)
1. January 8, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Public revelation/allegation that three employees had embezzled large sums from the bank, prompting depositor panic and heavy withdrawals.
Measures
Mercantile Bank Trust Co. and Central Bank officials displayed large amounts of currency at windows to reassure depositors; Mercantile later operated/acquired the Broadway Central.
Newspaper Excerpt
Employes Accused of Taking $100,000; Crowd of 2,000 Demands Funds. NO LOSSES ARE SUFFERED. New Jan. 8 ... the Central Bank ... three employers alleged to have embezzled $100,000 ... crowd ... demanded funds.
Source
newspapers
2. January 10, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Continuation/escalation of withdrawals after embezzlement revelations; large sums withdrawn (~$1.7M).
Measures
Currency placed in view of depositors by Mercantile Bank Trust Co.; bank closed its doors temporarily.
Newspaper Excerpt
CASH FAILS $2,000,0 TO HALT RUN ON BANK ... $1,700,000 IS WITHDRAWN ... Currency Stacked High to Be Seen by Depositors at New York. New York, Jan. 10 ... the 000,000 run on Central Bank ... $1,700,000 is withdrawn.
Source
newspapers
3. January 10, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure of the bank following heavy withdrawals triggered by employee embezzlement disclosures; subsequent acquisition by Mercantile Bank Trust Co. indicates permanent cessation of independent operations rather than a temporary suspension by itself alone (sale/takeover).
Newspaper Excerpt
But when the bank closed its doors ... the bank closed its doors ... the Central Mercantile Bank will operate the Broadway Central as the obligations of the Central had been acquired ... the bank was sold to the Central Mercantile Bank Trust Company during heavy run by depositors.
Source
newspapers
4. January 22, 1927 Other
Newspaper Excerpt
Grief Over Run On Bank Believed Cause Of President's Death ... the closing of the bank severe ... Mr. Williams, president of the Central Bank, died ... after the arrest of three trusted [employees].
Source
newspapers

Newspaper Articles (6)
1. January 9, 1927 The Washington Post Washington, DC
Article from The Washington Post, January 9, 1927

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Article Text

YORK BANK PAYS "RUN" Employes Accused of Taking $100,000; Crowd of 2,000 Demands Funds. NO LOSSES ARE SUFFERED New Jan. 8 (By milon the Central Bank-from coffers three employers alleged to have embezzled $100,000 afternoon when the bank ed late this closed its doors because the clerks were tired. About 250 remnant of disap- the earlier of shouted the the Charles vice president. told the staff was tired and positors that there was no in paying more the was meet the emergency by the the bank imported other banks. The officials cash from that the bank has not been harmed by the of its ployes, since all losses covered arrested for the alThe three men leged were Harry cashier, of Union and George Cook, assistant Anthony Glesat. The specific the arraignment larceny but the court told the total would be more than officials of the State bank bank had made day prothe during nounced the institution in ry condition.

2. January 11, 1927 The Washington Post Washington, DC
Article from The Washington Post, January 11, 1927

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Article Text

CASH FAILS $2,000,0 TO HALT RUN ON BANK Currency Stacked High to Be Seen by Depositors at New York. $1,700,000 IS WITHDRAWN New York, Jan. 10 (By and play of in acement that bank of unquestioned purchased failed today to stop the 000,000 run on Central Bank caused by reof alleged embezziement by three of The in currency was placed standing in line the see Purthe Broadway Central Bank by the Mercantile Bank Trust Co. was to the depositors shivered before the building. But when the bank closed its doora 'clock than 100 persons were in line to withdraw their deAnd before but subsequent to the display and the announcement. one of the windows was the crowd first day of the by Today approximately 000 was taken Central Mercantile Bank will operate the Broadway Central as the obligations of the Central had been acquired, but its stock Saturday after the Friday the bank and the start of by State bank Police said virtually $100,000 been improperly withdrawn from bank that this had been lost stock speculation.

3. January 22, 1927 The Washington Post Washington, DC
Article from The Washington Post, January 22, 1927

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Article Text

DAY IN CONGRESS Met at noon January 21 and recessed at m. until today at 12 o'clock. appropriation bill. carrying total of $320,020,534 funds for beginning on three reported Senator Maine. in charge bill. urged Senate pointing America far below ratio strength, declaring that military strength can be called economy Spent from o'clock secret of Cyrus Woods. of to be Interstate Commerce Corrimission Democrat) West considered by vote but President ruled vote necessary On appeal from that decision the chair E. Coke Hill San Francisco, nominated division Alaska, Hard States for Bill by Senator Copeland, of New York. designed to repeal Federal for and development of power. Under by Senator Frazier North Dakota, President Coolidge would be directed not to any against Congress in special session that body be not session Senator Norris of braska, introduced resolution calling on foreign to that State into give publicity arouse Mexico. State resolution Senator requested transmit all names dividuals concessions Mexico, names of accepting or rejecting Mexican constitution copies had by department concession Foreign relations committee. 13 to ordered resolution declaring be sense Senate any question involving property rights Mexico proper for Copeland reduce bag limits hunters of game birds, heard distinguished sportsmen and of its all whom game especially are extinction by use highly guns, hunters" of protection HOUSE. Met at noon 21. and adat 4:35 m. until today at o'clock. Passed deficiency carCharles M. of North Carolina, sole surviving Confederate soldier of civil war, paid glowing tribute to character of Gen. Stonewall of of his Agreed to conférence Treasappropriation bill carrying Mr. of New York, demanded of charges that John Thomas Taylor, American islative carrying legalleged financed chemical companies, against poison gas Mr Aswell of Louisiana, declared designed to deal with surpluses, failed which, he is the big problem before farmers Democratic leader Garrett announced Democratic demand tax reduction legislation would be placed squarely before House Monday, when he move to discharge and ways means Garner reduction House for to bring it before Today House will attempt to deterMcFadden disposition branch banking Rules heard advocates sides of Boulder project on whether be status this session. Atto law lators, Capt. Charles Backus, bureau of railway intelligence, railroads are ing of annually through operscalpers. Responding Chairman Greene told committee would report bill for payment of loans to veterans along Director Hines. Dr. Edward Hume, Yale, China, Dr Paul Monroe, before foreign affairs United States from of in China project Secret erecting in Valley, near Nevada New York Bank Head Dies After Heavy Run New Jan. 21 (By Frank Williams, tution until the the sold heavy run dead at Hunthe Central Bank after became ago. Mr Williams had short time before his death last night. morning Post That why new offers change so often

4. January 22, 1927 Evening Express Portland, ME
Article from Evening Express, January 22, 1927

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Article Text

Grief Over Run On Bank Believed Cause Of President's Death NEW YORK, Jan. (A. Grief the Central Bank was president. believed friends have caused the death Frank years The occurred two weeks ago after the arrest of three trusted the bank. for days during which more million deposits The ended when ficials their the Mercantile Bank Trust Co., protect the The closing of the bank severe Mr. founded the with group associates 1914. hundred and boxing California last under control the State Athletic Commission.

5. January 22, 1927 Buffalo Courier Express Buffalo, NY
Article from Buffalo Courier Express, January 22, 1927

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Article Text

Bank President Dies Suddenly New York, Jan Williams, 51, president of the way Central Bank until the institu was sold to the Central Mercan tile Bank Trust Company during heavy run by depositors dead his home here. Hundreds of dollars were from the Central Bank alleged defalca tions by employes became public short time ago. Mr. Williams had been ill only short time before death last night,

6. January 25, 1927 The Saginaw News Saginaw, MI
Article from The Saginaw News, January 25, 1927

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Article Text

THEFTS ADMITTED BY BANK OFFICERS (By Associated NEW YORK. Jan. former officials of the Central Bank took money from to stocks and run on the bank which only ended when to another pleaded guilty former offiare Harry Rebholz, cashdent: and H. Cook, assistant Officials of the bank the court money would amount to or more