13769. Citizens Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
September 23, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
0e56308110d1f01f

Response Measures

None

Description

Articles (Sept 23 and Oct 20, 1873) describe a heavy run on the Citizens' Bank in New York during the 1873 panic. The bank paid small withdrawals, refused large cash payouts (issuing certificates for large deposits), stayed open, and by Oct. business had largely resumed. No suspension or permanent closure is reported. OCRed text corrected to Citizens' Bank (apostrophe). Cause classified as macro_news (part of 1873 panic/scare), though some local rumors/scare language appears.

Events (2)

1. September 23, 1873 Run
Cause
Macro News
Cause Details
Part of the broader 1873 financial panic and associated local scares/rumors that provoked heavy withdrawals
Measures
Paid sums under $1,000 promptly; declined to pay largest deposits in cash and issued certificates for large amounts; extended paying hours to manage withdrawals
Newspaper Excerpt
they did all they could to assure them that the bank was perfectly solvent and abundantly able to pay every dollar that might be demanded... The bank kept open until seven o'clock last evening. Up to that hour the crowd continued around the building
Source
newspapers
2. October 20, 1873 Other
Newspaper Excerpt
Visits to numerous other savings banks - ... and Citizens' - substantiated the above reports. With all, business has resumed its ordinary channel, and the future appears most promising.
Source
newspapers

Newspaper Articles (2)

Article from The New York Herald, September 23, 1873

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Article Text

was solvent, and, being assured of this, they did not draw their money. A 10w people, who had come under the influence of a scare in the early part of the afternoon, and drawn their money, and who then went away, subsequently returned and again deposited their money. The bank officers say that they looked upon the action of the great bulk of their depositors as very foolish. They did all they could to assure them that the bank was perfectly solvent and abundantly able to pay every dollar that might be demanded, but they did not desire to pay the largest deposits. Sums of less than $1,000 were paid as fast as the corps of assistants were able to prepare them. There are about $8,000,000 deposited in this bank. The bank officers say that they will continue to pay as they were paying yesterday, but should the other savings banks agree on a united action the Citizens' Bank will be in tull accord with them, and will act in harmony with them. The bank kept open until seven o'clock last evening. Up to that hour the crowd continued around the buil ding, and became an object of attention for all the passengers in the cars travelling up and down the Bowery. The Bowery Savings Bank. There was a long and a strong run on this bank during the entire day. The bank offices were crammed, and the street in front of the building was thronged with anxious groups of people. As in the Citizens' Bank police officers were stationed in the building and outside of it to preserve order. The rush was constant and threatening. More than at any other banking institution in the city depositors flocked here, as rumors had been rile relative to the run upon it. The stream of people wanting to draw their money was continuous, and last as the clerks could supply it the money was placed on the counters. The facility with which anxious people were supplied with their accounts helped to send many others away who had been in serious trepidation as to the safety of their savings. The principal officers of the bank stated that it was with great. regret they saw depositors acting so foolishly, as, of course, by drawing their money they were losing the three months' interest. They stated, furthermore, that they intend paying as long as depositors appear to demand their money. They do not, however, intend to pay in cash the largest amounts on deposit, for this could not possibly do any good, but to those who have very large deposits in the bank they give certificates, which, IOr all business purposes, are just as good as the money. In this way they mean to continue until'the run ceases. They had no fears whatever yesterday as to the result of the run upon the savings' banks, and anticipated that to-day would see the end of it. The bank had a rull reserve on hand yesterday morning, in all about four hundred thousand dollars. The total deposits amounted to about nine hundred and fifty thousand dollars.


Article from The Wheeling Daily Intelligencer, October 20, 1873

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Article Text

age one or two a day. "Taken altogether, notices had been received covering about $280,000; if the bank had settled all these book accounts at the time the respective notices were given, it would not have proved much more than the usual day's business. More money was being paid out than during the month previous to the panic, no doubt partly occasioned by the investments in real estate." They said the number of small drafts-of $5, $10, and $20-was unusually large, which would seem to indicate that a large number of the laboring class were out of employment. "At the Greenwich Savings Bank they had not exacted any notice from their depositors, meeting all demands promptly. Secretary Boyce stated that they were still paying out a larger amount of money than usual, but, as it seemed, chiefly to meet actual necessities. Few if any accounts were being closed, and no evidences of alarm could be seen among those making drafts. This rather unusual drain upon the deposits he believed was occasioned partly by the large number of men out of employment at present, partly by the tightness of the money market, and partly by the investment of considerable sums in real estate." "Visits to numerous other savings banks-the German, Merchants' Clerks', Freedman's, Manhattan, Mechanics' and Traders', and Citizens'-substantiated the above reports. With all, business has resumed its ordinary channel, and the fu. ture appears most promising."