14019. Hoboken Bank For Savings (Hoboken, NJ)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
April 16, 1873
Location
Hoboken, New Jersey (40.744, -74.032)

Metadata

Model
gpt-5-mini
Short Digest
b042c329

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Directors called in passbooks and gave written acknowledgements; books to be compared with bank records.

Description

A run on the savings bank is reported in April 1873. Directors closed the bank on 1873-08-01 to examine passbooks amid panic driven by false reports and discovered large defalcations; by September the examiners found severe deficits and directors moved to have a receiver appointed and formally close the institution. Cause of the initial run is described as circulation of false/detrimental reports; the suspension was taken to square accounts and investigate a cashier's defalcation but was prompted by the panic. OCR issues: 'Klenen'/'Klemen'/'Klennen' appears in articles as the defaulting cashier; I preserve 'Klemen' references as defalcation in notes.

Events (4)
1. April 16, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Depositors withdrew funds amid circulating unfavorable reports and news of a defaulting secretary/cashier; newspapers describe panic from detrimental and false reports.
Measures
Bank remained open and paid depositors; officials predicted run would subside; later directors prepared examinations and measures to address deficiency.
Newspaper Excerpt
HOBOKEN.-The run on the Hoboken Bank for Savings continued yesterday, but was not as severe as on Mon... $24,375 withdrawn... $70,182.14 withdrawn and $3,823.83 deposited.
Source
newspapers
2. August 1, 1873 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors closed the bank because undue excitement and extraordinary withdrawals—attributed in reports to circulation of detrimental and false reports—made it necessary to call in passbooks and examine accounts (to ascertain cashier's defalcation).
Newspaper Excerpt
HOBOKEN, August 1, 1873. Notice is hereby given that the Hoboken Bank for Savings has been this day closed... The directors deem this course proper on account of the undue excitement causing an extraordinary demand upon the bank during the past few days, thereby retarding the examination now being made by an examining committee.
Source
newspapers
3. September 10, 1873 Other
Newspaper Excerpt
the directors were unwilling to have the institution go into bankruptcy, and decided to take steps to have a receiver appointed. Arrangements will be made this morning for the formal closing of the concern. ... discovered a deficiency of $113,000 ... deficiency may be $150,000 ... will fall short of paying its debts by about $63,000. William E. Warren ... reported ... deficiency ... directors decided to take steps to have a receiver appointed . . . formal closing of the concern . . . . (reports Sep 10, 1873).
Source
newspapers
4. September 10, 1873 Receivership
Newspaper Excerpt
the directors were unwilling to have the institution go into bankruptcy, and decided to take steps to have a receiver appointed. Arrangements will be made this morning for the formal closing of the concern.
Source
newspapers

Newspaper Articles (9)
1. April 16, 1873 New-York Tribune New York, NY
Article from New-York Tribune, April 16, 1873

Click image to open full size in new tab

Article Text

NEW-JERSEY. JERSEY CITY.-The average register of the public schools during March was 9,275, and the attendance 8,273 Bishop Odenheimer will administer the rite of confirmation at St. Mark's P. E. Church next Sunday The names of the last jury to be drawn under the old law were announced yesterday. Hereafter jurors will be selected under the newly-appointed Jury Commission The Board of Finance and Taxation authorized, yesterday. the issue of $200,000 in water bonds, not from 15 to 50 years, which are to be sold for cent of their face value. The Board was fixed at $4,000, and running less Clerk than of the 95 per salary that of of the the the Chief-Engineer at $6,000 An outgoing train on Pennsylvania Railroad struck the rear platform of a Pavonia horse-car, at the Newark-ave. crossing, Monday night, and demolished it. No one was hurt. There are 87 patients in the new County Lunatic AsySheriff Beinhardt removed to the State Prison at yesterday. Owen Casey, James Blake, George and William Howard William on the Pennsylvania Trenton, was Williams, injured Railroad, Smith, March who 11, had his arm amputated, yesterday, at the Charity HosO'Connor and Terence Scannell were in the Quarter Sessions, convicted pital Bantley yesterday, costs each of an assault on John Hanlon, and fined $25 and Neil O'Donneil of the firm of O'Donnell Bros.. coopers, at Washington and Morris-sts., was held in $5,000 bail, yesterday, for obstructing the sidewalks with barrels. He was notified February 15 to remove the obstructions, The under a penalty of $50 a day, and failed to do 80. fine now amounts to $3,000. A. P. Barnes has been reelected President and Geo. W. Firth Secretary of the Jersey City Chess Club NEWARK.-William Dougherty, who escaped from the Court-house on Monday, was arrested at his mother's house, yesterday. He has been committed to await senThe store of Glaze & Hastings was entered, on It tence night, and robbed of a quantity of clothing. the that the robbery was William Thompson, who made his escape Monday is by thought by police committed from Mon- the Court-house in company with William Dougherty, afternoon Charles Knoel of No. 4 Charlwas arrested. yesterday, an assault and battery upon cious day ton-st. John for Young atroThe Presbytery of Newark met in the Second Presbyterian Church, yesterday, and elected the Rev. DR. of Montelair, Moderator, and the clerk A man Eddy Berry of Woodside, named Rev. Charles attaché Clarence Bron- of is representing himself in New-York as an son Newark paper,and has obtained money on the strength He is an imposter, and is not to paper in this city The a of known his representations. any incorporators holding an of Industrial Exhibition propose next Fall, that will be the exhibition Newark much superior for permanent to that A building will be erected The Committee library plan have sider exhibition of last the year. free purposes reported appointed adversely. to con- to They mention the great expense such institutions are cities, and refer to the terms upon which books are other drawn from the present library as being within the reach of all. TRENTON.-The April Term of the United States Dismorning, and Judge Nixon charged the was triet sworn. Court 1 met yesterday obscene jurors the publications, Grand with special Jury reference to the abuse of sending deadve ertisements, &c., through the mails, and such matter in the post-offices. City was the center of this positing medical New-York vile He and said corrupt- that the ing stream of poisonous publications, and charged to indict all who may be found using the postor mails for such traffie in held a special session, yesterday, jurors office of Pardons New-Jersey Italian, who to The hear is under Court the application of Luigi Lusignani, an his of death in Morris County for the murder of December last. for the to for life. The sentence sentence wife in imprisonment commutation Court, counsel, after refused of hear- his the application and argument of the it. ing The condommed man will therefore be hanged on May 1. HOBOKEN.-The run on the Hoboken Bank for Savings continued yesterday, but was not as severe as on MonThe bank was opened punctually at 9 a. m. No for money was books were closed, day. depositor Seventy-four applying representing refused making payment. $24,375 total, withdrawn, $1,260 92 was deposited, a during the two days, of $70,182.14 withdrawn and $3,823.83 will deposited. The bank officials predict that the run subside at nood to-day. No news of the defaulting seeretary has yet been received. CHATHAM.-The second vote on the liquor license question, Monday, resulted in 412 against and 188 for the license, a large increase over the majority of 1871. HOBOKEN.-Adolphus Mason was held, yesterday, in $1.000 bail, for Deading his wife.

2. August 2, 1873 The New York Herald New York, NY
Article from The New York Herald, August 2, 1873

Click image to open full size in new tab

Article Text

SUSPENSION OF A SAVINGS BANK. The Hoboken Savings Bank Temporarily Closed to Square Its Accounts-Deposi= tors' Books Called In. As already announced in the HERALD, the panic consequent on the circulation of detrimental and false reports by individuais hostile to the managers of the Hoboken Savings Bank, lost no force in travelling. Throughout Thursday a large number of persons besteged the building and were paid off as fast as possible. Towards evening signs were manifested of a renewal of confidence; although a large amount had been drawn out. Yesterday morning, however, the siege was renewed with increased vigor. The servant girls dropped off, and the large depositors made an attack. The directors made ready for the emergency, there being yet $70,000 in United States securities on hand. At noon it was found that $20,000 had been withdrawn; and it was evident that another day would deplete the tre: 8 ary of all the convertible paper on hand. A meeting of the full Board of Managers was immediately held, when it was unanimously resolved to close the institution. All those who stood outside were requested to hand in their books, which they did, receiving a written acknowledgment thereof. The following notice was then drawn up by the directors:HOBOKEN, August 1, 1873. Notice is hereby given that the Hoboken Bank for Savings has been this day closed. The directors deem this course proper on account of the undue excitement causing an extraordinary demand upon the bank during the past few days, thereby retarding the examination now being made by an examining committee. The depositors are notified that as soon as the investigation of the affairs of the bank is concluded it will be reopened for business. They are also notified to produce their passbooks immediately, that the same may be examined and compared with the books of the bank. A ticket will be given for each book and the books returned assoon as examined. Hence it may be seen that the sole object in closing is to examine all the depositors' books and compare the result with the bank records, in order that the precise extent of Klenen's defalcation may be ascertained. So rar the examination shows a loss of $38,000, but the surplus is yet $12,000. There is at present $1,100,000 in the bank, owned by about five thousand depositors. or this amount the large sum of $850,000 is invested in bond and mortgage; in United States bonds, $70,000; 18 Hoboken Land and Improvement Company bonds, $64,000. The remainder is represented by State and township bonds. After three or four weeks the examination will be concluded, and it is probable that the institution will resume business as usual, if the depositors do not allow themselves to be influenced by exciting rumors. Experts are at work day and night in overhauling the accounts.

3. September 10, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 10, 1873

Click image to open full size in new tab

Article Text

THE HOBOKEN SAVINGS BANK FAILURE. William E. Warren, who has been investigating the affairs of the Hoboken Bank for Savings, reported to the directors yesterday that after an examination of 3.200 pass-books he had discovered a deficiency of $113,000, and that 1,300 books remained ito be balanced up. If the loss upon these should prove equally large Klennen's defalcation would not fall short of $150,000. The bank now owes its depositors $1,300,000. and will fall short of paying its debts by about $63,000. The directors were unwilling to have the institution go into bankruptey, and decided to take steps to have a receiver appointed. Arrangements will be made this morning for the formal closing of the concern.

4. September 10, 1873 Elizabeth Daily Monitor Elizabeth, NJ
Article from Elizabeth Daily Monitor, September 10, 1873

Click image to open full size in new tab

Article Text

William E. Warren, who has been investigating the affairs of the Hoboken Bank for Savings, reported to the directors yesterday that after an examination of three thousand two hundred passbooks he had discovered a deficiency of one hundred and thirteen thousand, and that one thousand three hundred books remained to be balanced up. If the loss upon these should prove equally large Klennen's defalcation would not fall short of one hundred and fifty thousand dollars. The bank now owes its depositors one million three hundred thousand dollars, and will fall short of paying its debts by about sixty-three thousand dollars. The directors were unwilling to have the institution go into bankruptcy, and decided to take steps to have a receiver appointed. Arrangements will be made for the formal closing of the concern.

5. September 20, 1873 Gold Hill Daily News Gold Hill, NV
Article from Gold Hill Daily News, September 20, 1873

Click image to open full size in new tab

Article Text

EASTERN DISPATCHES. [SPECIAL TO THE GOLD HILL DAILY NEWS.] DOMESTIC.INTELLICENCE Purchase of Bonds by the Government Announced. NEW YORK. Sept. 20.--The Union Trust Company suspended at half past ten o'clock this morning. The Sub-Treasurer has posted a notice up. stating that he has been instructed by the Secretary of the Treasury to purchase $10,000,000 In bonds to-day This prompt response of the Government to the request made for relief parently, by banks additional yesterday, strength gives the to weak. ap- the strong and encouragement to A better feeling now prevails, and it looks as If the worst is over. Defalcation and Probable Suspension. NEW YORK, Sept. 20.-The suspension of Fisk & Hatch is said to make probable the embarrassment of the Hoboken Bank for Savings. A defalcation of nearly $70,000 was discovered in the bank lately and the directors disposed of securities to make up the deficiency, depositing with Fisk & Hatch for safe keeping $94,000 of the amount realized. The suspension of the firm makes this sum unavailable at present. Numerous Additional Failures. The failures of Ketchum & Belknap and E.C. Moorhead are the latest reported. The National Bank of the Commonwealth has suspended, and Saxe & Rogers have suspended. A meeting of the creditors of Jay Cooke & Co., will be held next Monday. PHILADELPHIA, Sept. 20. - Third street is comparatively quiet. The run on the Fidelity Trust Company has almost entirely subsided. The Union Banking Company did not open to-day. A notice was placed on the door, which states that owing to heavy demands a suspension of a few days was resolved upon. It sustained a heavy run yesterday. paying out $700,000. It is a State institution. no notes, and the supension only effects depositors. At Jay Cooke's clerks are preparing a statement to be laid before the members of the firm on the arrival of the steamship Russia, on board which are two of the pardners. Still Further Suspensions. NEW YORK. Sept. 20.-New suspension are Toussig & Fisher, M. Meyrs, Miller & Wolsch, Laurens. Joseph Fearing & Dellinger, Williams & Bostwick.

6. September 20, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 20, 1873

Click image to open full size in new tab

Article Text

AN IMPENDING CRASH IN HOBOKEN. TWO BANKS embarrassed BY THE FISK & HATCH FAILURE. The following facts in reference to the Hoboken Bank for Savings are furnished by a reporter on the authority of ex-Recorder Pope of Hoboken, who is a director of the bank: Up to yesterday afternoon the efforts to raise by subscription the $67,000 deficiency caused by the late defalcation in the bank had not reached $10,000. The directors, seeing the doubtful success of this movement, have been circulating a petition to have Chancellor Runyon appoint Charles Clinton, the present President of the bank, its receiver if it goes into bankruptcy. Meanwhile, the events of yesterday will probably induce the depositors to take immediate steps to throw the institution into bankruptcy. The failure of Fisk & Hatch impairs the resources of the bank by about $100,000. Deeming it possible that the bank would resume, the directors sent over to New-York a good part of their convertible securities, for the purpose of getting them cashed. Of the amount thus realized they deposited for safe keeping with Fisk & Hatch, $94,000. Immediately upon the announcement in yesterday morning's papers of the crash in Wall-st., the treasurer of the bank went to New-York for the purpose of taking this money out of the hands of the suspected bankers. He reached their office only to learn of their suspension and came back empty-handed. If this money cannot be recovered the bank is in a hopeless state. The directors of it hope that Fisk & Hatch may resume soon, and repay the amount deposited with them. The ruin of the bank will involve the ruin of the First National Bank of Hoboken. No two banks were ever more completely united than these two. They are both controlled by the same Board of Directors, and the funds of the two are common property. Neither bank can be crippled without crippling the other. Owing to these facts several of the depositors in the First National Bank have withdrawn their deposits, and a run upon the bank is dreaded. The sole reason of the strong effort made to save the Hoboken Savings Bank was the desirability of covering the insolvency of the First National Bank It is thought that in the event of the latter

7. September 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 22, 1873

Click image to open full size in new tab

Article Text

THE SUSPECTED HOBOKEN BANKS. THE FIRST NATIONAL SURVIVES A RUN-HOPEFUL OUTLOOK FOR THE BANK FOR SAVINGS. Early on Saturday a large crowd gathered around the First National Bank, at Hudson and Newarksts., Hoboken. In the same building are the offices of the Hoboken Land and Improvement Company. and the Hoboken Bank for Savings. At 10 o'clock the First National Bank opened, and the depositors speedily formed in line to reach the paying teller. As fast as the books were presented the cash was handed out, much to the surprise of many of the depositors, until by noon over $75,000 were withdrawn. As the day wore on the depositors learned that the bank was in, no danger, and though the total amount withdrawn during the day was over $137,000, many of those who had received their money returned and deposited it again. The First National Bank 18 considered to be one of the most secure in the State, and numbers some of the wealthiest men in the city among its directors, who are by the laws of New-Jersey personally responsible for all the money received by them in trust in any way. No further trouble is anticipated, and the bank officers state that they have sufficient money to pay every depositor in full and leave a balance. Wm. H. Hankins, director of the First Na tional Bank, denies the reports circulated regarding the institution. The capital stock is $110,000, and according to the State laws the stockholders are bound in double the amount of their subscription to make any discrepancy good. Aside from the legal responsibility of the stockholders, and their ability in their private resources to save the institution from ruin, they had, he said, a cash surplus of $70,000 and Governments and other 80curities available for immediate negotiation, sufficient in amount to pay every dollar placed with them on deposit. The Hoboken Savings Bank has $94,000, in Government bonds, on deposit with Fisk & Hatch. Those whose property 18 mortgaged by the bank have subscribed over $10,000, and others have, it is said, promised to advance enough to cover the liabilities. The Hoboken Land and Improvement Company have offered to save he citizens any trouble by taking the mortgages off the hands of the directors. W. W. Shippen, President of the Hoboken Land and Improvement Company and managing executor of the Stevens estate, has written a letter to the directors of the Hoboken Savings Bank, stating that his company will subscribe $10,000 toward making up its deficiency, provided other subscriptions sufficient to cover the deficiency are received, and that, in case the deficiency is made good, the company will take the book of any depositor at par, giving in return the Company's obligation to pay on 60 days' notice, with six per cent per annum, payable in January and July if the amount is left, and the bonde and mortgages from the bank in payment for the amount advanced. If the deficiency is not made good, the company will probably take the books at what they are worth, and take mortgages at par for the claim. It is thought that this announcement will help restore public confidence in the bank.

8. September 25, 1873 Puget Sound Dispatch Seattle, WA
Article from Puget Sound Dispatch, September 25, 1873

Click image to open full size in new tab

Article Text

haps force them into relief from Most active of business, for this day at least. three per the sales are for cash, two or is cent. below the regular transaction. Hatch suspension of Fisk & The to make a probable embarassment of said the Hoboken bank for Savings: number of telegrar hs were the received Postat theFost A Office requesting letters to withold from delivery sending master the stamp of the firms addressed bearing and which were tmaster the message Cook & Co. The Po request provide could to Jay not comply with the that,after the postal regulations passed from the mailing be ofa Jetter has delivery of it cannot writer. prefice, vented the or delayed by the alleged and Broad crowds are in Wall keeping Great and the police are bus? Exchange. free Sts. entrance to the Stock & failure of Ketchum Belknap reportThe Moorehead are the latest the Comand E. The National Bank Kolners of have ed. and Saxe & creditors monwealth A meeting of the Monsuspended. of Jay Cook & Co. will be held on of day. Rumors in circulation of the Trust cause Co. suspension of the Union Haight and the the just defaication announced of as Edward having suspend- Banking Certification Co., and Merchants continental Bank Association and the out of the Clearing is have been The thrown Fourth National and Bank they meeting House. all demands upon it, are now numerous. Exchange closed at ammouned 10 minutes Stock The snspension is Miller Toussin to 12. & Fisher, P. Meyers, Dearing Walsh. Laurens & Josephs, Bostwick. a Williams & time that Rumor the Dellinger, right this Trust The defalcation seems exists in of the Union Bank of the on President the Co. Commonwealth says the precipitated run the of National Bank that Edoverdrew Fourth that Institution, and their acruin ward Haight & Co. of $200,000, which io the amount the extent of did not circumstances count they $170,000. Under make the good suspend. to clearbank thought better to general is given owing ance Notice cannot be effected that dealers a to-day, find it fact that many certified in a prodocuments and per will be possible the manner. to get All checks statements, returned to dealers Exchange on application cheques Gold at at 1 o'clock, the Gold 1 its 13. doors. Bank of Banks. PHILADELPHIA, North America has close Sept closed at 20. 6 P. Fidelity M. but not receivto meet at which hour continued Trust Co. did as late as all 5, demands, out. over ing checks $900,000 had been 20.-The paid financial BOSTON, Sept. the principal subof alarm in discussion, New York but is so far does not ject interfere with business. here effect Sept. 20. -Only of MONTREAL, panic in New cautious York has and been less to willing ample make bankers more their funds, which are Discount let from to for all out legitimate bills demands. varies 7 to of cent., per according rates for good to the standing the names. & J. More in of TORONTO, bankers Sept. and brokers 20.-H. the failure this city, have and Co., suspended, owing other to prominent Jay Cooke & Co. York. Another story of the houses in New suspension with the excitement connection Trust Co. is that the the Secretary of Union so unnerved in $3,000,000 he yesterday that instead mistake calling and only the called Company for $300,000, made 2 thus leaving its suspension without funds, causing of the National Trust Secretary is perfectly sound and cent. Merril, Co., says that that the no Company depositors would lose NEW this YORK, Sept. 22.-The morning that official the is made will continue pur at statement Assistant 5-20 Treasurer bonds in paying accordance for them with his in >hase of Saturuay, of sales currency notice that day. average Secretary prices not Richardson see that said he night that he did any more than buy last had power 5-20s to do offered will be bought bonds. All red-tape. delay or is the without The following notice Trust posted Co:-" on the Union of a receiver. is in the is being institution doors of of its affairs hands made public, prestatement be sacri pared A and will cautioned soon against Depositors are is ficing their hour, accounts." 10 o'clock, the probability bank be. will is no not At opened this and there better is feeling no prevails telling this may bring has that it morning, hour but there forth. notice what an Following Ex10 15 A. York Stock and will been issued remain New Governing closed to-day, Committee nine meeting chan ze of to-morrow the morning at half will be held (Signed) o'clock." G. CHAPMAN, President. closed, the past Gold Exchange H. Stock has been Exchange. the One basame as has the been established rate of as interest is New twelfth sis fixed of settlement. at per cent. The for carrying

9. September 30, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 30, 1873

Click image to open full size in new tab

Article Text

THE HOBOKEN SAVINGS BANK HOPEFUL. Several days ago, John Kennedy, County Clerk, sent word to the directors of the Hoboken Bank for Savings, that he would demand payment on Oct. 1 of public balances in several books amounting to $7,000. The letter was not of a threatening nature, and did not even suggest the appointment of a Receiver. The fact that he had made the demand was circulated and grew into a statement that a Receiver had been appointed. The President, Mr. Clinton, and two of the directors, called on him and requested him to withdraw his demand, and he stated that it was not his intention to make any demonstration that would operate to the disadvantage of any other depositors. President Clinton stated last night that he did not believe that Mr. Kennedy would institute proceedings to throw the institution into bankruptcy. The subscriptions to make up the deficiency caused by the defalcation of Klemen, the cashier, are increasing rapidly. and the detailed examination of the books of depositors still continues. Yesterday several book accounts which were still open on the lodger, were found by the return of books by depositors to be closed. These represented $2,600.