13839. Dollar Savings Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
October 23, 1907
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
05aee9e96464e37f

Response Measures

None

Description

Multiple newspaper accounts (Oct 23–25, 1907) report large crowds and runs on the Dollar Savings Bank in the Bronx/Harlem area triggered by the Knickerbocker Trust failure and, in one instance, a mistaken identity rumor. The bank paid demands and did not suspend or enter receivership in these articles.

Events (2)
1. October 23, 1907 Run
Cause
Rumor Or Misinformation
Cause Details
Mistaken report that a nearby bank on 148th Street (Knickerbocker branch) had suspended; message spread in Italian neighborhood leading depositors to confuse that bank with Dollar Savings Bank.
Random Run
Yes
Random Run Snippet
Mistaken report bank on 148th suspended; interpreter corrected the mistake
Measures
Secretary ordered large quantities of currency displayed so depositors could see money; tellers paid demands promptly.
Newspaper Excerpt
Hundreds of Italians, hearing that 'The Bank of 148th street,' had suspended payment started a run on the branch Dollar Savings bank ... the quick witted secretary ... ordered large quantities of currency to be placed where the clamoring crowd could see it.
Source
newspapers
2. October 25, 1907 Run
Cause
Local Banks
Cause Details
Continued panic and runs following the failure/suspension of nearby institutions (Knickerbocker Trust and other Harlem/Trust company troubles) led depositors to withdraw funds from Dollar Savings Bank.
Measures
Paid out demands as fast as tellers could work; maintained large cash on hand; engaged police to control crowds.
Newspaper Excerpt
The run on the Dollar Bank set in with renewed vigor today, there being more than 400 persons in line by daybreak ... more than 1,500 persons, mostly Italians, stormed the doors of the Dollar Savings Bank when that institution opened today.
Source
newspapers

Newspaper Articles (11)
1. October 23, 1907 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 23, 1907

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Article Text

FINANCIAL DEVELOPMENTS. Knickerbocker Trust Company, New York, in hands state banking department. Sensational runs on Trust Company of North America, Colonial Trust Company, Star Savings Bank and Dollar Savings Bank. Slump on New York stock market ranged eleven points throughout. Pittsburg stock exchange closed on request of clearing house. London and Paris affected. Mayer & Co., members of the New York Stock Exchange, make an assignment, with liabilities of $6,000,000. Secretary of the Treasury George B. Cortelyou arrived in Gotham, Tuesday night. and issued statement declaring that all other New York banks are in a safe condition. Before leaving Washington, Secretary Cortelyou directs that millions be placed with New York banks as soon as the necessary collateral is furnished. Fourth vice president of the Knickerbocker Trust Company says that one man is responsible for the recent flurries in Gotham and intimates that the man he means is Roosevelt. President Roosevelt, in speech at Nashville, unconsciously replies to the charges of the Knickerbocker official and says that there will be no change in his policy.

2. October 23, 1907 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 23, 1907

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Article Text

New York, Oct. 23.-The money panfe extended all over New York today and extended to other cities. The Knickerbocker Trust company is in the hands of the state banking department and lines of depositors at all branches of the institution were disappointed. Sensational runs were begun on the Trust company of North America, the Colonial Trust company the Star Savings bank and the Dollar Savings bank. The slump in the stock market ranged eleven points throughout. In Pittsburg the stock exchange was closed on request of the clearing house. London and Paris are affected by the panic.

3. October 23, 1907 Evening Star Washington, DC
Article from Evening Star, October 23, 1907

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Article Text

STORM THE BANK DOORS. Another Wild Day in Wall Street Many Rumors. By Associated Press NEW YORK, October 23.-It was estimated that 200,000 shares of various stocks were sold here for Pittsburg account, including large amounts of Westinghouse Electric. A petition in bankruptcy was filed in the United States court today against the stock exchange firm of Mayer & Co., which made an assignment yesterday with liabilities of $6,000,000. E. C. Benedict was appointed receiver, with a bond of $100,000. More than 1,500 persons, mostly Italians, stormed the doors of the Dollar Savings Bank when that Institution opened today. Police were called to control the half-frenzied crowd. The Dollar Savings Bank is near the Bronx branch of the Knickerbocker Trust Company, and the alarm was started by the run yesterday on the trust company's branch. Morgan in Command. J. Pierpont Morgan has practically assumed command in financial circles in New York today. He is striving to bring order out of chaos, and see what can be done to protect the large interests that are now in jeopardy. Up to this time there has been no organization among the trust company officers, and Mr. Morgan and James Stillman of the National City Bank are earnestly engaged in an effort to bring about co-operation among these institutions. Wherever it is found that the management of any institution under suspicion has been sufficiently conservative to warrant rendering assistance, that assistance will be forthcoming. E. H. Harriman, H. B. Hollins, Thomas F, Ryan and President Oakleigh Thorne of the Trust Company of America and several other bankers were in conference at the office of J. P. Morgan & Co. at 11:30 a.m. Cannon's Statement. James G. Cannon, vice president of the Fourth National Bank and a member of the clearing house committee. appointed to examine the national banks which have been under criticism, announced today that the condition of the banks as shown at the clearing house was first class. Although a few of them might have to be assisted, he said that conditions were fast becoming normal. Several prominent bankers called on Secretary Cortelyou at the subtreasury to receive suggestions. A report was started that there was a run upon the Morton Trust Company, but an investigation shows it to be untrue. An Associated Press representative who has just come from there reports that three depositors were then in the trust company. A thorough examination of the trust company's finances made in the last twenty-four hours shows that it has over 70 per cent cash means. Secretary Cortelyou is in constant communication with Acting Secretary of the Treasury Edwards regarding the situation in New York, but Mr. Edwards declines to state what amount had been deposited today in the New York banks. It is understood, however, that the amount is quite large. Other severe losses in the industrial and miscellaneous stocks took place in New York Air Brake, Distillers' Securities, International Pump, National Lead, Republic Iron and Steel preferred, American Tobacco preferred and North American.

4. October 23, 1907 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 23, 1907

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Article Text

Knickerbocker Trust company. At the Colonial branch of the Trust company of America, in the St. Paul building on Broadway, more than a hundred persons were in line shortly before 10 o'clock waiting for the doors to open. The market opened at a decline from last night's prices. Southern Pacific sold at 68, a loss of 7/8, Great Northern at a loss of 1½, United States Steel at 22, a decline of 3/8, Baltimore & Ohio at 81, a loss of 7/8, Amalgamated Copper at 441/4, a decline of 1 1/4, Atchison at 76, a loss of 1%. Northern Pacific sold at 108, a loss of 4 points, Union Pacific opened at 110, a loss of 2½ and sold off immediately to 1071/2. from which it rallied to 108½. Westinghouse Electric sold down to 60 at a decline of 19% from last night. Italians Start a Run. New York, Oct. 23.-Hundreds of Italians, hearing that "The Bank of 148th street," had suspended payment started a run on the branch Dollar Savings bank which is located next door to the branch institution of the Knickerbocker Trust company in the Bronx. The Dollar Savings concern's difficulties lasted only until an interpreter could explain to the alarmed depositors that it was the Knickerbocker and not the Dollar Savings bank that was in trouble. When the Knickerbocker branch suspended payment the news flashed through the Italian section like prairie fire. The message was vague-only that the bank in 148th street could not pay depositors. Hundreds of Italians went to the bank but the quick witted secretary of the institution, seeing that a mistake had been made, ordered large quantities of currency to be placed where the clamoring crowd could see it. A sight of the money seemed to satisfy the Italians and the run on the bank ended and most of those who had withdrawn their savring there was something like a panic. Hits Race Track Men. New York, Oct. 23.-Many race track men were up in arms at Jamaica when the news was received that the

5. October 24, 1907 The Times Dispatch Richmond, VA
Article from The Times Dispatch, October 24, 1907

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Article Text

DOLLAR SAVINGS BANK Mob of 1,500 Itallans and Others Clamorous for Their Deposits. NEW YORK, October 23.-A petition in bankruptcy was filed in the United States Court to-day against the Stock Exchange firm of Mayer & Co., which made an assignment yesterday with liabilities of $6,000,000. E. C. Benedict was appointed receiver with a bond of $100,000. 1. More than 1,500 persons, mostly Italians, stormed the doors of the Dollar Savings Bank when that institution opened to-day. Police were called to control the half frenzied crowd. The Dollar Savings Bank I near the Bronx branch of the Knickerbocker Trust Company, and the alarm was started by the run yesterday on the Trust Company's branch.

6. October 25, 1907 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 25, 1907

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Article Text

New York, Oct. ...Two more banks were added to the lengthening list of financial institutions forced to close under the terrible financial pressure in the last three days. The United States Exchange bank, One Hundred and Twenty-fifth street, posted a notice announcing a temporary suspension. The police were called out to handle the crowds in front of the Borough bank of Brooklyn, which also printed a notice of suspension. Three banks that suspended yesterday remained closed today. These are the Hamilton, Twelfth Ward and Empire Savings. All are declared solvent and depositors will lose nothing. Notwithstanding Secretary Cortelyou, Morgan and Rockefeller poured one hundred and ten millions into the banks yesterday, the run continued today at the Trust Company of America, the Colonial Trust, the Lincoln Trust, and the Dollar Bank. Financiers are optimistic and declare every run will be met. Position of the clearing house banks is strong and the stock market strongly supported.

7. October 25, 1907 The Seattle Star Seattle, WA
Article from The Seattle Star, October 25, 1907

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(By United Press.) Avenue Trust, Harlem Savings and the Dollar Savings banks continue, NEW YORK, Oct. 25.-Financial but are decreasing. New York la convalescent, but still The Williamsburg Trust company, of Williamsburg, Brooklyn, closed ever, shaky, that and The It is sky confidently is clearing, asserted howits doors this afternoon, being unthe worst is over. It will able to cash a $10,000 check. Frank many stock days, though, before the be Jenkins is president of the bank, which has a capital of $700,000, and liabilities of $9,676,484. the to The a normal market hardest basis. and blow banks of today are back was The following receivers were appointed for the Knie erbecker the company, suspension of Providence, of the Union R. 1., Trust and Trust company today: Otto Bannard, president of the New York Trust company; Ernest Thalman Ized posits The the the deand Henry C. no. million at $200,000. Almost capitalGregory, Guifck & Co. menbers by deposit- half a of The Consolulated Stock file change, failed this afternoon. the Trust The Jenkins Trust company sawLincoln Trust, Company Mith this aftersoon. The Justi. pended

8. October 25, 1907 The Washington Times Washington, DC
Article from The Washington Times, October 25, 1907

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Dollar Bank Run Renewed; One Casualty NEW YORK, Oct. 25.-Arthur C. Simpson, fifty years old, had stood in the line of depositors making the run on the Dollar Savings Bank, at 142d street and Third avenue, SO long that today he collapsed. It was believed that he had been in line since daybreak yesterday and that he had had no nourishment. R. R. Frey, of the Lincoln Hospital, was called, gave the man brandy and took him to the hospital, where it was said he would recover. He was suffering from almost complete physical exhaustion. The run on the Dollar Bank set in with renewed vigor today, there being more than 400° persons in line by daybreak and the line was much longer than that by the time the bank was due to open its doors. Many of the depositors were women who had been in the line a good part of yesterday and all of last night, The small boys of the neighborhood were reaping a harvest today. The morning was bitter cold and some of the enterprising youngsters had their mothers and sisters help them make up sandwiches and prepare cans of ceffee at home. Then they marched away and tackled the long line that wound it way from the doors of the bank half way around the block. The boys found ready customers for their sandwiches and more especially for their pot of coffee. They sold a cup of coffee and sandwich for 20 cents, and

9. October 25, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 25, 1907

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Near the usual closing time a depositor appeared with a check for $1,000, which he wanted to deposit. When it was refused he expressed considerable indignation. A recent report shows the status of the bank as follows: Paid up capital, $200,000; surplus and profits, $221,680; due to banks, $165,590; individual deposits, $3,007,350. Assets shown are: Loans and discounts, $2,384,870; bonds, stocks, etc., $94,570; due from banks, $235,220; cash and exchanges, $480,600. The New Amsterdam National Bank clears for the Twelfth Ward Bank, The officers and directors of the bank are: President, Thomas Simpson; cashier. Frank B. French. Additional directors: George B. Brown, Thomas Crawford, Joseph B. Kaiser, William T. Purdy, Theodore Dieterlin, Louis H. Perlman, John H. Duffy, Richard Webber, Henry H. Barnard, Frederick W. Dressell, James H. Purdy, Enoch C. Bell. John H. Shipway and Carl D. Jackson. Through a mistake, or rather the ill-advised use of the words "Harlem Savings Bank" as a caption over a newspaper picture of the Dollar Savings Bank, a run was caused on the Harlem institution that lasted until 3 o'clock When the doors opened an eager crowd of three hundred, mostly women, was waiting. But the bank was ready for any emergency, and paid as quickly as the tellers could work. As time passed the crowd grew finally to such proportions that the services of twenty policement were needed to maintain a semblance of order and to keep traffic open. All demands were promptly paid up to the closing time, when there was a line of perhaps one hundred disappointed depositors. Of course, those who drew their money sacrificed their interest. William E. Trotter, president of the bank, said that it was in good condition, with cash enough on hand to meet all demands. A Harlem merchant displayed his confidence in the bank by depositing $50,000 in cash. There were in line about eight hundred depositors when the Dollar Savings Bank opened yesterday. The scene was a repetition of that on the day before. Mr. MacKellar, counsel of the bank, said that the officials had absolutely no fear. They were going right on paying as fast as possible, and were not going to take advantage of the laws to suspend even for thirty days. He said they have over $600,000 in cash. Manager Kearn said that not more than $50,000 had been taken out. all in small amounts.

10. October 25, 1907 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, October 25, 1907

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CRISIS IS AVERTED. Morgan, John D. and Uncle Sam Raise $110,000,000 Relief. HARLEM BANKS CLOSE DOORS $27,000,000 Sent Into New York Stock Exchange and Other Great Sums Distributed Clear Financial Air-Outlook Is Satisfactory, Says Cortelyou. New York. Oct. 25.-Equipped with a relief fund amounting to $60,000,000 in actual cash and with an additional $50,000,000 available J. Pierpont Morgan, co-operating with the Washington administration and John D. Rockefeller, succeeded 'in preventing the collapse of any financial institutions in this city. Had it not been for his appreciation of the situation and his promptness there would undoubtedly have resulted a most serious panic on the stock exchange. For a few tense moments the indications strongly pointed to the of on complete collapse values the exchange. That such a calamity was averted was solely due to the decisive action of Mr. Morgan and his associates who were in command of the financial situation. Three Banks Suspend Payment. Yet there was not a single failure of any financial or business institution. Runs inspired by senseless fear and rumors were on irresponsible started the Lincoln Trust company, the Harlem bank, the Savings Empire Savings bank, the Dollar bank and the Fifth Avenue Trust company. The Empire Savings bank, the Twelfth Ward bank and the Hamilton bank suspended payment for the time being and are in charge of the state department of banks. The Lincoln Trust company and the Harlem bank weathered the storm successfully, and the indications are that they will continue to meet every demand made upon their resources. No better illustration of the feeling of nervous apprehension among depositors in financial institutions could be afforded than the run on the Harlem Savings bank, one of the strongest institutions in the city. There was absolutely no justification for suspicion as the bank's to solvency beyond the anxiety existing among persons having bank accounts as a result of the suspension of the Knickerbocker Trust company and other recent financial scandals. Mr. Morgan and his associates had carefully planned to protect the banks as was and trust companies, shown by the success of the Trust Company of America in withstanding the second day's attack made on its resources by its That was depositors. institution the storm center of the financial disturbance outside of the stock exchange. It met every demand with at prompt payment. and the close the of business President Thorne and other officers of the company were confident that they would get through all right. Trust Company Took In a Million. The run on the trust company continued all day, but toward the close of it the number of persons who demanded their money were not as many as had been expected. The most hopeful feature of the run was that while only $4,000,000 was paid out as against $9,000,000 on the previous day deposits aggregating nearly $1,000,000 were taken in by the receiving tellers.

11. October 30, 1907 New-York Tribune New York, NY
Article from New-York Tribune, October 30, 1907

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HARLEM BANKS MAY SOON REOPEN. The announcement was made yesterday that the Harlem banks that suspended last week would open in a few days. Attorney General Jackson said that he would give them every opportunity to resume business and would take no steps against them If their condition justifled their resumption. William Montgomery, president of the Hamilton Bank, in 125th street, speaking for that institution, said that it would reopen not later than next Monday, The same was said of the Twelfth Ward Bank. The run on the Harlem Savings Bank was ended yesterday. Many patrons returned to deposit the money they drew out last week. The conditions at the Empire City Savings Bank also were normal. There was none of the unusual activity of the last few days at the Dollar Savings Bank, in The Bronx. The run on the Broadway Trust Company had also abated.