Elizabeth Savings Institution

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: February 14, 1879
Location: Elizabeth, New Jersey (40.664, -74.211)

Metadata

Model: gpt-5-mini
Short Digest: c2f62c8c

Response Measures

None

Description

Article (published 1879-02-14) reports Elizabeth Savings placed 'in the hands of Chancellor Runyon' with officers ordered to prepare a report to protect depositors after the city defaulted on bonds. No explicit mention of a depositor run; the bank appears taken into court custody (receivership/suspension). It is not explicit whether it later reopened, so I classify this as suspension leading to closure/receivership.

Events (3)

1. February 14, 1879 Other

Newspaper Excerpt: has been placed in the hands of Chancellor Runyon, who has ordered the officers to prepare a report at once and protect the interests of depositors, to whom some $226,000 is due.
Source: newspapers

2. February 14, 1879 Receivership

Newspaper Excerpt: has been placed in the hands of Chancellor Runyon
Source: newspapers

3. February 14, 1879 Suspension

Cause: Local Shock
Cause Details: City of Elizabeth declared itself bankrupt and failed to pay interest on its bonded debt; heavy municipal indebtedness impaired the bank's assets (held city bonds), prompting court custody.
Newspaper Excerpt: Elizabeth Savings bank, $56,000. The latter concern has been placed in the hands of Chancellor Runyon, who has ordered the officers to prepare a report at once and protect the interests of depositors
Source: newspapers

Newspaper Articles (1)

1. February 14, 1879 Iowa County Democrat Mineral Point, WI

Article from Iowa County Democrat, February 14, 1879

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Article Text

ELIZABETH CITY, N. J., has declared itself bankrupt by failing to pay the interest on its bonded debt, $41,000 of which matured Saturday. The salaries of its school-teachers, police officers and city employes for the past four months, amounting to $60,000, have not been paid, and in addition their is an indebtedness of about $150,000 for temporary loans. The trouble is all due to an overzealous desire for local improvements. Prior to 1869 the entire debt of the city for general purposes did not exceed $500,000, and for street improvements $75,000. A ring was formed in the city. known as the Nicolson pavement ring, who bought farms on the outskirts, cut them into streets, and then petitioned the common council to pave, sewer, curb and flag them. They agreed to pay large prices for the land, but managed to get possession by the payment of small sums, giving mortgages on the property to secure the balance. After disposing of enough city lots to reimburse them for their outlay, they got rid of paying the assessments on the property for improvements and threw the whole burden upon the city. The total debt of Elizabeth City Jan. 1 was $5,823,965, with nominal assets, mainly in the shape of unpaid taxes, of $2,819,771. The city bonds become due from this time until 1907. In addition to the state of New Jersey and its employes of the city the following are the leading sufferers: The Singer Manufacturing company, which holds $1,000,000 of the bonds; Equitable Life Insurance company, $1,500,000; the Mutual Benefit Life Insurance company, of Newark, $ 2,000,000; Elizabeth Savings bank, $56,000. The latter concern has been placed in the hands of Chancellor Runyon, who has ordered the officers to prepare a report at once and protect the interests of depositors, to whom some $226,000 is due.